80 FR 10173 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 404
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 37 (February 25, 2015)
Federal Register Volume 80, Issue 37 (February 25, 2015)
| Page Range | 10173-10175 | |
| FR Document | 2015-03810 |
[Federal Register Volume 80, Number 37 (Wednesday, February 25, 2015)] [Notices] [Pages 10173-10175] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-03810] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74301; File No. SR-MIAX-2015-10] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 404 February 19, 2015. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that, on February 9, 2015, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend Exchange Rule 404. The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Exchange Rule 404, Interpretations and Policies .02, to extend current $0.50 strike price intervals in non-index options to short term options with strike prices less than $100. This is a competitive filing that is based on proposals recently submitted by the International Securities Exchange, LLC (``ISE'') and BOX Options Exchange LLC (``BOX'').\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 73999 (January 6, 2015), 80 FR 1559 (January 12, 2015) (SR-ISE-2014-52); 74016 (January 8, 2015), 80 FR 1976 (January 14, 2015) (SR-BOX-2015-01). --------------------------------------------------------------------------- The Exchange proposes to amend its rules governing the Short Term Option Series Program to introduce finer strike price intervals for certain Short Term Option Series. In particular, the Exchange proposes to amend Rule 404, Interpretations and Policies .02(e), to extend $0.50 strike price intervals in non-index options to Short Term Options Series with strike prices less than $100 instead of the current $75. This proposed change is intended to eliminate gapped strikes between $75 and $100 that result from conflicting strike price parameters under the Short Term Option Series and $2.50 Strike Price Programs as described in more detail below. Under the Exchange's rules, the Exchange may list Short Term Option Series in up to fifty option classes in addition to option classes that are selected by other securities exchanges that employ a similar program under their respective rules.\4\ On any Thursday or Friday that is a business day, the Exchange may list Short Term Option Series in designated option classes that expire at the close of business on each [[Page 10174]] of the next five Fridays that are business days and are not Fridays in which monthly or quarterly options expire.\5\ These Short Term Option Series trade in $0.50, $1, or $2.50 strike price intervals depending on the strike price and whether the option trades in dollar increments in the related monthly expiration.\6\ Specifically, short term options in non-index option classes admitted to the Short Term Options Series Program currently trade in: (1) $0.50 or greater strike price intervals where the strike price is less than $75, and $1 or greater where the strike price is between $75 and $150 for all classes that participate in the Short Term Option Series Program; (ii) $0.50 strike price intervals for classes that trade in one dollar increments in non-Short Term Options and that participate in the Short Term Option Series Program; or (iii) $2.50 or higher strike price intervals where the strike price is above $150. --------------------------------------------------------------------------- \4\ See Exchange Rule 404, Interpretations and Policies .02(a). \5\ See Exchange Rule 404, Interpretations and Policies .02. \6\ See Exchange Rule 404, Interpretations and Policies .02(e). --------------------------------------------------------------------------- The Exchange also operates a $2.50 Strike Price Program that permits the Exchange to select up to sixty options classes on individual stocks to trade in $2.50 strike price intervals, in addition to option classes selected by other securities exchanges that employ a similar program under their respective rules.\7\ Monthly expiration options in classes admitted to the $2.50 Strike Price Program trade in $2.50 intervals where the strike price is (1) greater than $25 but less than $50; or (2) between $50 and $100 if the strikes are no more than $10 from the closing price of the underlying stock in its primary market on the preceding day.\8\ These strike price parameters conflict with strike prices allowed for short term options because dollar strikes between $75 and $100 that are otherwise allowed under the Short Term Option Series Program may be within $0.50 of strikes listed pursuant to the $2.50 Strike Price Program. In order to remedy this conflict, the Exchange proposes to extend the $0.50 or greater strike price intervals currently allowed for Short Term Options Series with strike prices less than $75 to Short Term Options Series with strike prices less than $100. With this proposed change, Short Term Options Series in non-index option classes will trade in: (1) $0.50 or greater intervals for strike prices less than $100, or for option classes that trade in one dollar increments in the related monthly expiration option; (2) $1intervals for strike prices that are between $100 and $150; and (3) $2.50 or greater intervals for strike prices above $150. --------------------------------------------------------------------------- \7\ See Exchange Rule 404(f). \8\ Id. The term ``primary market'' means the principal market in which an underlying security is traded. See Exchange Rule 100. --------------------------------------------------------------------------- 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act \9\ in general, and furthers the objectives of Section 6(b)(5) of the Act \10\ in particular, in that it is 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 facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- During the month prior to expiration, the Exchange is permitted to list related monthly option contracts in the narrower strike price intervals available for Short Term Options Series.\11\ After transitioning to short term strike price intervals, however, monthly options that trade in $2.50 intervals between $50 and $100 under the $2.50 Strike Price Program, trade with dollar strikes between $75 and $150. Due to the overlap of $1 and $2.50 intervals, the Exchange cannot list certain dollar strikes between $75 and $100 that conflict with the prior $2.50 strikes. For example, if the Exchange initially listed monthly options on ABC with $75, $77.50, and $80 strikes, the Exchange could list the $76 and $79 strikes when these transition to short term intervals. The Exchange would not be permitted to list the $77 and $78 strikes, however, as these are $0.50 away from the $77.50 strike already listed on the Exchange. This creates gapped strikes between $75 and $100, where investors are not able to trade otherwise allowable dollar strikes on the Exchange. Similarly, these conflicting strike price parameters create issues for investors who want to roll their positions from monthly to weekly expirations. In the example above, for instance, an investor that purchased a monthly ABC option with a $77.50 strike price would not be able to roll that position into a later short term expiration with the same strike price as that strike is unavailable under current Short Term Option Series Program rules. Permitting $0.50 intervals for Short Term Options Series up to $100 would remedy both of these issues as strikes allowed under the $2.50 Strike Price Program would not conflict with the finer $0.50 strike price interval. --------------------------------------------------------------------------- \11\ See Exchange Rule 404, Interpretations and Policies .02(e). --------------------------------------------------------------------------- The Short Term Option Series Program has been well-received by market participants and the Exchange believes that introducing finer strike price intervals for Short Term Options Series with strike prices between $75 and $100, and thereby eliminating the gapped strikes described above, will benefit these market participants by giving them more flexibility to closely tailor their investment and hedging decisions. With regard to the impact of this proposal on system capacity, the Exchange has analyzed its capacity and represents that it and the Options Price Reporting Authority (``OPRA'') have the necessary systems capacity to handle any potential additional traffic associated with this proposed rule change. The Exchange believes that its members will not have a capacity issue as a result of this proposal. The Exchange also represents that it does not believe this expansion will cause fragmentation of liquidity. 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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to filings submitted by ISE and BOX.\12\ To the contrary, the Exchange believes that the proposed rule change will result in additional investment options and opportunities to achieve the investment objectives of market participants seeking efficient trading and hedging vehicles, to the benefit of investors, market participants, and the marketplace in general. Additionally, the Exchange believes that the proposed rule change is necessary to permit fair competition among the options exchanges with respect to Short Term Option Series Programs. --------------------------------------------------------------------------- \12\ Id. [sic]. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. [[Page 10175]] III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its intent to file the proposed rule change, along with a brief description and the text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. --------------------------------------------------------------------------- The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Exchange stated that waiver of this requirement will allow the Exchange to compete with other exchanges with similar provisions without putting the Exchange at a competitive disadvantage. For this reason, the Commission believes that the proposed rule change presents no novel issues and that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest; and will allow the Exchange to remain competitive with other exchanges. Therefore, the Commission designates the proposed rule change to be operative upon filing.\15\ --------------------------------------------------------------------------- \15\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission 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 Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-MIAX-2015-10 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-MIAX-2015-10. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-MIAX-2015-10 and should be submitted on or before March 18, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-03810 Filed 2-24-15; 8:45 am] BILLING CODE 8011-01-P
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rules and regulations thereunder consistent with the requirements of the II. Self-Regulatory Organization’s
applicable to such organization. Act and in particular with the Statement of the Purpose of, and
The Commission finds that the requirements of Section 17A of the Statutory Basis for, the Proposed Rule
proposed rule change is consistent with Act 15 and the rules and regulations Change
Section 17A(b)(3)(F) of the Act 14 which thereunder. In its filing with the Commission, the
requires the rules of a clearing agency Exchange included statements
It is therefore ordered, pursuant to
to, among other things, assure the concerning the purpose of and basis for
Section 19(b)(2) of the Act,16 that the
safeguarding of securities and funds the proposed rule change and discussed
proposed rule change File No. SR–OCC–
which are in the custody or control of any comments it received on the
2014–23 be, and it hereby is, approved.
the clearing agency or for which it is proposed rule change. The text of these
responsible. OCC is amending Article For the Commission, by the Division of
statements may be examined at the
XII, Section 7, to include a new policy Trading and Markets, pursuant to delegated
places specified in Item IV below. The
and interpretation setting forth the authority.17
Exchange has prepared summaries, set
specific criteria a futures exchange must Brent J. Fields, forth in sections A, B, and C below, of
meet in order for EFPs and Block Trades Secretary. the most significant aspects of such
to not be subject to the delayed novation [FR Doc. 2015–03811 Filed 2–24–15; 8:45 am] statements.
times set forth in Article XII of OCC’s
BILLING CODE 8011–01–P A. Self-Regulatory Organization’s
By-Laws. Specifically the exchange
must provide OCC with a certification Statement of the Purpose of, and
that the exchange has rules, policies or Statutory Basis for, the Proposed Rule
SECURITIES AND EXCHANGE Change
procedures as they relate to verifying
the reasonableness of the price of the COMMISSION
1. Purpose
EFP and Block Trade. OCC’s proposal,
as approved, does not affect the [Release No. 34–74301; File No. SR–MIAX– The Exchange proposes to amend
novation time for any securities 2015–10] Exchange Rule 404, Interpretations and
transactions. Policies .02, to extend current $0.50
OCC has determined that EFPs and Self-Regulatory Organizations; Miami strike price intervals in non-index
Block Trades that are subject to price International Securities Exchange LLC; options to short term options with strike
reasonability checks do not present the Notice of Filing and Immediate prices less than $100. This is a
same settlement risks as those executed Effectiveness of a Proposed Rule competitive filing that is based on
on exchanges without price Change To Amend Exchange Rule 404 proposals recently submitted by the
reasonability checks, and as such has International Securities Exchange, LLC
February 19, 2015. (‘‘ISE’’) and BOX Options Exchange LLC
determined that OCC’s requirement that
exchanges certify price reasonableness Pursuant to the provisions of Section (‘‘BOX’’).3
policies and procedures are sufficiently 19(b)(1) of the Securities Exchange Act The Exchange proposes to amend its
appropriate to mitigate the risks of 1934 (‘‘Act’’) 1 and Rule 19b–4 rules governing the Short Term Option
associated with non-competitively thereunder,2 notice is hereby given that, Series Program to introduce finer strike
executed trades. In addition, in the on February 9, 2015, Miami price intervals for certain Short Term
event a clearing member fails to its first International Securities Exchange LLC Option Series. In particular, the
variation payment to OCC on an EFP or (‘‘MIAX’’ or ‘‘Exchange’’) filed with the Exchange proposes to amend Rule 404,
Block Trade that was executed on an Securities and Exchange Commission Interpretations and Policies .02(e), to
exchange with price reasonability (‘‘Commission’’) a proposed rule change extend $0.50 strike price intervals in
checks, OCC will employ the same risk as described in Items I and II below, non-index options to Short Term
management methodology used for all which Items have been prepared by the Options Series with strike prices less
other competitively executed trades Exchange. The Commission is than $100 instead of the current $75.
accept for clearing at OCC, which publishing this notice to solicit This proposed change is intended to
should in turn reduce settlement risks comments on the proposed rule change eliminate gapped strikes between $75
that could expose OCC to loss if it is from interested persons. and $100 that result from conflicting
required to close out a defaulting strike price parameters under the Short
purchaser’s EFP or Block Trade I. Self-Regulatory Organization’s Term Option Series and $2.50 Strike
position. Combining OCC’s price Statement of the Terms of Substance of Price Programs as described in more
reasonableness requirements for the Proposed Rule Change detail below.
exchanges and OCC’s ability to liquidate Under the Exchange’s rules, the
The Exchange is filing a proposal to Exchange may list Short Term Option
futures positions or use its clearing fund amend Exchange Rule 404.
to management risks associated with Series in up to fifty option classes in
non-payment of premiums for those The text of the proposed rule change addition to option classes that are
trades accepted for clearance and is available on the Exchange’s Web site selected by other securities exchanges
settlement, OCC should have sufficient at http://www.miaxoptions.com/filter/ that employ a similar program under
risk management controls in place in to wotitle/rule_filing, at MIAX’s principal their respective rules.4 On any Thursday
assure the safeguarding of securities and office, and at the Commission’s Public or Friday that is a business day, the
Reference Room. Exchange may list Short Term Option
asabaliauskas on DSK5VPTVN1PROD with NOTICES
funds which are in the custody of
control of OCC or for which it is Series in designated option classes that
responsible. 15 In approving this proposed rule change, the expire at the close of business on each
Commission has considered the proposed rule’s
III. Conclusion impact on efficiency, competition, and capital 3 See Securities Exchange Act Release Nos. 73999
formation. See 15 U.S.C. 78c(f). (January 6, 2015), 80 FR 1559 (January 12, 2015)
On the basis of the foregoing, the 16 15 U.S.C. 78s(b)(2).
(SR–ISE–2014–52); 74016 (January 8, 2015), 80 FR
Commission finds that the proposal is 17 17 CFR 200.30–3(a)(12).
1976 (January 14, 2015) (SR–BOX–2015–01).
1 15 U.S.C. 78s(b)(1). 4 See Exchange Rule 404, Interpretations and
14 15 U.S.C. 78q–1(b)(3)(F). 2 17 CFR 240.19b–4. Policies .02(a).
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![10174 Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices
of the next five Fridays that are business expiration option; (2) $1intervals for issues as strikes allowed under the
days and are not Fridays in which strike prices that are between $100 and $2.50 Strike Price Program would not
monthly or quarterly options expire.5 $150; and (3) $2.50 or greater intervals conflict with the finer $0.50 strike price
These Short Term Option Series trade in for strike prices above $150. interval.
$0.50, $1, or $2.50 strike price intervals
2. Statutory Basis The Short Term Option Series
depending on the strike price and
MIAX believes that its proposed rule Program has been well-received by
whether the option trades in dollar
increments in the related monthly change is consistent with Section 6(b) of market participants and the Exchange
expiration.6 Specifically, short term the Act 9 in general, and furthers the believes that introducing finer strike
options in non-index option classes objectives of Section 6(b)(5) of the Act 10 price intervals for Short Term Options
admitted to the Short Term Options in particular, in that it is designed to Series with strike prices between $75
Series Program currently trade in: (1) prevent fraudulent and manipulative and $100, and thereby eliminating the
$0.50 or greater strike price intervals acts and practices, to promote just and gapped strikes described above, will
where the strike price is less than $75, equitable principles of trade, to foster benefit these market participants by
and $1 or greater where the strike price cooperation and coordination with giving them more flexibility to closely
is between $75 and $150 for all classes persons engaged in facilitating tailor their investment and hedging
that participate in the Short Term transactions in securities, to remove decisions.
Option Series Program; (ii) $0.50 strike impediments to and perfect the
With regard to the impact of this
price intervals for classes that trade in mechanisms of a free and open market
proposal on system capacity, the
one dollar increments in non-Short and a national market system and, in
Exchange has analyzed its capacity and
Term Options and that participate in the general, to protect investors and the
public interest. represents that it and the Options Price
Short Term Option Series Program; or
(iii) $2.50 or higher strike price intervals During the month prior to expiration, Reporting Authority (‘‘OPRA’’) have the
where the strike price is above $150. the Exchange is permitted to list related necessary systems capacity to handle
The Exchange also operates a $2.50 monthly option contracts in the any potential additional traffic
Strike Price Program that permits the narrower strike price intervals available associated with this proposed rule
Exchange to select up to sixty options for Short Term Options Series.11 After change. The Exchange believes that its
classes on individual stocks to trade in transitioning to short term strike price members will not have a capacity issue
$2.50 strike price intervals, in addition intervals, however, monthly options as a result of this proposal. The
to option classes selected by other that trade in $2.50 intervals between Exchange also represents that it does not
securities exchanges that employ a $50 and $100 under the $2.50 Strike believe this expansion will cause
similar program under their respective Price Program, trade with dollar strikes fragmentation of liquidity.
rules.7 Monthly expiration options in between $75 and $150. Due to the
classes admitted to the $2.50 Strike overlap of $1 and $2.50 intervals, the B. Self-Regulatory Organization’s
Price Program trade in $2.50 intervals Exchange cannot list certain dollar Statement on Burden on Competition
where the strike price is (1) greater than strikes between $75 and $100 that The Exchange does not believe that
$25 but less than $50; or (2) between conflict with the prior $2.50 strikes. For the proposed rule change will impose
$50 and $100 if the strikes are no more example, if the Exchange initially listed any burden on competition that is not
than $10 from the closing price of the monthly options on ABC with $75,
underlying stock in its primary market necessary or appropriate in furtherance
$77.50, and $80 strikes, the Exchange
on the preceding day.8 These strike of the purposes of the Act. In this regard
could list the $76 and $79 strikes when
price parameters conflict with strike and as indicated above, the Exchange
these transition to short term intervals.
prices allowed for short term options notes that the rule change is being
The Exchange would not be permitted
because dollar strikes between $75 and to list the $77 and $78 strikes, however, proposed as a competitive response to
$100 that are otherwise allowed under as these are $0.50 away from the $77.50 filings submitted by ISE and BOX.12 To
the Short Term Option Series Program strike already listed on the Exchange. the contrary, the Exchange believes that
may be within $0.50 of strikes listed This creates gapped strikes between $75 the proposed rule change will result in
pursuant to the $2.50 Strike Price and $100, where investors are not able additional investment options and
Program. In order to remedy this to trade otherwise allowable dollar opportunities to achieve the investment
conflict, the Exchange proposes to strikes on the Exchange. Similarly, these objectives of market participants seeking
extend the $0.50 or greater strike price conflicting strike price parameters efficient trading and hedging vehicles,
intervals currently allowed for Short create issues for investors who want to to the benefit of investors, market
Term Options Series with strike prices roll their positions from monthly to participants, and the marketplace in
less than $75 to Short Term Options weekly expirations. In the example general. Additionally, the Exchange
Series with strike prices less than $100. above, for instance, an investor that believes that the proposed rule change
With this proposed change, Short Term purchased a monthly ABC option with is necessary to permit fair competition
Options Series in non-index option a $77.50 strike price would not be able among the options exchanges with
classes will trade in: (1) $0.50 or greater to roll that position into a later short respect to Short Term Option Series
intervals for strike prices less than $100, term expiration with the same strike Programs.
or for option classes that trade in one price as that strike is unavailable under
C. Self-Regulatory Organization’s
asabaliauskas on DSK5VPTVN1PROD with NOTICES
dollar increments in the related monthly current Short Term Option Series
Program rules. Permitting $0.50 Statement on Comments on the
5 See Exchange Rule 404, Interpretations and
intervals for Short Term Options Series Proposed Rule Change Received From
Policies .02. Members, Participants, or Others
6 See Exchange Rule 404, Interpretations and up to $100 would remedy both of these
Policies .02(e). Written comments were neither
7 See Exchange Rule 404(f). 9 15 U.S.C. 78f(b).
8 Id. The term ‘‘primary market’’ means the 10 15 U.S.C. 78f(b)(5). solicited nor received.
principal market in which an underlying security 11 See Exchange Rule 404, Interpretations and
is traded. See Exchange Rule 100. Policies .02(e). 12 Id. [sic].
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![Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10175
III. Date of Effectiveness of the Comments may be submitted by any of SECURITIES AND EXCHANGE
Proposed Rule Change and Timing for the following methods: COMMISSION
Commission Action
Electronic Comments
Because the proposed rule change [Release No. 34–74311; File No. SR–
does not (i) significantly affect the • Use the Commission’s Internet ISEGemini–2015–05]
protection of investors or the public comment form (http://www.sec.gov/
interest; (ii) impose any significant rules/sro.shtml); or Self-Regulatory Organizations; ISE
burden on competition; and (iii) become Gemini, LLC; Notice of Filing and
• Send an email to rule-comments@
operative for 30 days from the date on Immediate Effectiveness of Proposed
sec.gov. Please include File Number SR–
which it was filed, or such shorter time Rule Change to Extend the Limit Up-
as the Commission may designate, the MIAX–2015–10 on the subject line.
Limit Down Obvious Error Pilot
proposed rule change has become Paper Comments
effective pursuant to Section 19(b)(3)(A) February 19, 2015.
of the Act 13 and Rule 19b–4(f)(6) • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
thereunder.14 to Secretary, Securities and Exchange Securities Exchange Act of 1934 (the
The Exchange has asked the Commission, 100 F Street NE., ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission to waive the 30-day Washington, DC 20549–1090. notice is hereby given that on February
operative delay so that the proposal may
All submissions should refer to File 19, 2015, ISE Gemini, LLC (the
become operative immediately upon
Number SR–MIAX–2015–10. This file ‘‘Exchange’’ or ‘‘ISE Gemini’’) filed with
filing. The Exchange stated that waiver
of this requirement will allow the number should be included on the the Securities and Exchange
Exchange to compete with other subject line if email is used. To help the Commission (‘‘Commission’’) the
exchanges with similar provisions Commission process and review your proposed rule change as described in
without putting the Exchange at a comments more efficiently, please use Items I and II below, which Items have
competitive disadvantage. For this only one method. The Commission will been prepared by the self-regulatory
reason, the Commission believes that post all comments on the Commission’s organization. The Commission is
the proposed rule change presents no Internet Web site (http://www.sec.gov/ publishing this notice to solicit
novel issues and that waiver of the 30- rules/sro.shtml). Copies of the comments on the proposed rule change
day operative delay is consistent with submission, all subsequent from interested persons.
the protection of investors and the amendments, all written statements
public interest; and will allow the with respect to the proposed rule I. Self-Regulatory Organization’s
Exchange to remain competitive with change that are filed with the Statement of the Terms of the Substance
other exchanges. Therefore, the Commission, and all written of the Proposed Rule Change
Commission designates the proposed communications relating to the ISE Gemini proposes to extend a pilot
rule change to be operative upon proposed rule change between the
filing.15 program under Rule 703A(d) that
Commission and any person, other than suspends Rule 720 regarding obvious
At any time within 60 days of the those that may be withheld from the
filing of the proposed rule change, the errors during Limit and Straddle States
public in accordance with the in securities that underlie options
Commission summarily may
provisions of 5 U.S.C. 552, will be traded on the Exchange. The text of the
temporarily suspend such rule change if
it appears to the Commission that such available for Web site viewing and proposed rule change is available on the
action is necessary or appropriate in the printing in the Commission’s Public Exchange’s Internet Web site at http://
public interest, for the protection of Reference Room, 100 F Street NE., www.ise.com, at the principal office of
investors, or otherwise in furtherance of Washington, DC 20549, on official the Exchange, and at the Commission’s
the purposes of the Act. If the business days between the hours of Public Reference Room.
Commission takes such action, the 10:00 a.m. and 3:00 p.m. Copies of the
Commission shall institute proceedings filing also will be available for II. Self-Regulatory Organization’s
to determine whether the proposed rule inspection and copying at the principal Statement of the Purpose of, and
should be approved or disapproved. office of the Exchange. All comments Statutory Basis for, the Proposed Rule
received will be posted without change; Change
IV. Solicitation of Comments
the Commission does not edit personal
Interested persons are invited to In its filing with the Commission, the
identifying information from
submit written data, views and Exchange included statements
submissions. You should submit only
arguments concerning the foregoing, concerning the purpose of, and basis for,
information that you wish to make
including whether the proposed rule the proposed rule change and discussed
available publicly. All submissions
change is consistent with the Act. any comments it received on the
should refer to File Number SR–MIAX–
proposed rule change. The text of these
2015–10 and should be submitted on or
13 15 U.S.C. 78s(b)(3)(A). statements may be examined at the
before March 18, 2015.
14 17 CFR 240.19b–4(f)(6). As required under Rule places specified in Item IV below. The
19b–4(f)(6)(iii), the Exchange provided the For the Commission, by the Division of self-regulatory organization has
Commission with written notice of its intent to file
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Trading and Markets, pursuant to delegated prepared summaries, set forth in
the proposed rule change, along with a brief
description and the text of the proposed rule authority.16 Sections A, B and C below, of the most
change, at least five business days prior to the date Brent J. Fields, significant aspects of such statements.
of filing of the proposed rule change, or such
shorter time as designated by the Commission. Secretary.
15 For purposes only of waiving the 30-day [FR Doc. 2015–03810 Filed 2–24–15; 8:45 am]
operative delay, the Commission has also BILLING CODE 8011–01–P
considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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Document Created: 2015-12-18 13:09:39
Document Modified: 2015-12-18 13:09:39
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 10173 |
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