80 FR 10196 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period Applicable to Rule 530 Relating To Limit Up/Limit Down

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 37 (February 25, 2015)

Page Range		10196-10198
FR Document		2015-03815
Federal Register, Volume 80 Issue 37 (Wednesday, February 25, 2015)
[Federal Register Volume 80, Number 37 (Wednesday, February 25, 2015)]
[Notices]
[Pages 10196-10198]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03815]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74307; File No. SR-MIAX-2015-11]


Self-Regulatory Organizations; Miami International Securities 
Exchange LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Extend the Pilot Period Applicable to Rule 530 
Relating To Limit Up/Limit Down

February 19, 2015.
    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 February 18, 2015, Miami International Securities Exchange LLC 
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to

[[Page 10197]]

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 the 
Substance of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 530 to 
extend the pilot period for the treatment of erroneous transactions 
during a Limit or Straddle State.
    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 Rule 530 (Limit Up-Limit Down) in 
order to extend the pilot period for the treatment of erroneous 
transactions that occur in a Limit or Straddle State until October 23, 
2015.
    Exchange Rule 530(j) provides for the treatment of erroneous 
transactions occurring during Limit and Straddle States. Specifically, 
once an NMS Stock has entered a Limit or Straddle State, the Exchange 
will nullify a transaction in an option overlying such an NMS Stock as 
provided in the Rule 530(j). This provision was adopted for a one year 
pilot period beginning on the date of the implementation of the Plan to 
Address Extraordinary Market Volatility Pursuant to Rule 608 of 
Regulation NMS, April 8, 2013.\3\ The Exchange previously extended the 
pilot period for Rule 530(j) until February 20, 2015.\4\ The Exchange 
now proposes to extend the pilot period for Rule 530(j) until October 
23, 2015 in order to allow the Exchange and the Commission additional 
time to collect and analyze data regarding the impact of Rule 530(j) on 
liquidity and market quality in the options markets.
---------------------------------------------------------------------------

    \3\ See Exchange Rule 503(j). See also Securities Exchange Act 
Release Nos. 69210 (March 22, 2013), 78 FR 18637 (March 27, 2013) 
(SR-MIAX-2013-12); 69342 (April 8, 2013), 78 FR 22017 (April 12, 
2013) (SR-MIAX-2013-12); 69234 (March 25, 2013), 78 FR 19344 (March 
29, 2013) (SR-MIAX-2013-15); 69354 (April 9, 2013), 78 FR 22357 
(April 15, 2013) (SR-MIAX-2013-15).
    \4\ See Securities Exchange Act Release No. 71881 (April 4, 
2014), 79 FR 19956 (April 10, 2014) (SR-MIAX-2014-14).
---------------------------------------------------------------------------

    To assist the Commission in its analysis, the Exchange will provide 
the Commission and the public with data and analysis during the 
duration of the pilot in order to evaluate the impact of Limit and 
Straddle States on liquidity and market quality in the options markets. 
Specifically, by May 29, 2015, the Exchange represents that it shall 
provide the Commission and the public assessments relating to the 
impact of the obvious error Rules during Limit and Straddle States that 
(i) evaluate the statistical and economic impact of Limit and Straddle 
States on liquidity and market quality in the options markets; and (ii) 
assess whether the lack of obvious error rules in effect during the 
Straddle and Limit States are problematic. Additionally, each month 
during the pilot period the Exchange shall provide to the Commission 
and the public a dataset containing the data for each Straddle and 
Limit State in optionable stocks. For each stock that reaches a 
Straddle or Limit State, the number of options included in the dataset 
can be reduced by selecting options in which at least one (1) trade 
occurred on the Exchange during the Straddle or Limit State. For each 
of those options affected, each data record should contain the 
following information: (i) Stock symbol, option symbol, time at the 
start of the straddle or limit state, an indicator for whether it is a 
straddle or limit state; and (ii) for activity on the exchange--(A) 
executed volume, time-weighted quoted bid-ask spread, time-weighted 
average quoted depth at the bid, time-weighted average quoted depth at 
the offer, (B) high execution price, low execution price, (C) number of 
trades for which a request for review for error was received during 
Straddle and Limit States, (D) an indicator variable for whether those 
options outlined above have a price change exceeding 30% during the 
underlying stock's Limit or Straddle state compared to the last 
available option price as reported by OPRA before the start of the 
Limit or Straddle state (1 if observe 30% and 0 otherwise) and another 
indicator variable for whether the option price within five minutes of 
the underlying stock leaving the Limit or Straddle state (or halt if 
applicable) is 30% away from the price before the start of the Limit or 
Straddle state.
2. Statutory Basis
    MIAX believes that its proposed rule change is consistent with 
Section 6(b) of the Act \5\ in general, and furthers the objectives of 
Section 6(b)(5) of the Act \6\ 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. Specifically, the proposal 
supports the objectives of perfecting the mechanism of a free and open 
market and the national market system because it promotes uniformity 
across markets concerning when and how to halt trading in all stock 
options as a result of extraordinary market volatility. In addition, 
the Exchange believes that the extension of the pilot will help ensure 
that market participants continue to benefit from the protections of 
the Limit Up-Limit Down Rules which will protect investors and the 
public interest while allowing the Exchange and the Commission 
additional time to collect and analyze data regarding the impact of 
Rules on liquidity and market quality in the options markets.
---------------------------------------------------------------------------

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

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 proposed changes are 
being made to extend the pilot program that provides for how the 
Exchange shall treat orders and quotes in options overlying NMS stocks 
when the Limit Up-Limit Down Plan is in effect and will not impose any 
burden on competition while providing certainty of treatment and 
execution of options orders during periods of extraordinary volatility 
in the underlying NMS stock, and facilitating appropriate liquidity 
during a Limit State or Straddle State.

[[Page 10198]]

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.

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 if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6)(iii) thereunder.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6)(iii). 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 Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest, 
as it will allow the obvious error pilot program to continue 
uninterrupted while the industry gains further experience operating 
under the Plan to Address Extraordinary Market Volatility, and avoid 
any investor confusion that could result from a temporary interruption 
in the pilot program. For this reason, the Commission designates the 
proposed rule change to be operative upon filing.\9\
---------------------------------------------------------------------------

    \9\ 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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-MIAX-2015-11 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-MIAX-2015-11. 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 such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-MIAX-2015-11, and should be 
submitted on or before March 18, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
---------------------------------------------------------------------------

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

Brent J. Fields,
Secretary.
[FR Doc. 2015-03815 Filed 2-24-15; 8:45 am]
BILLING CODE 8011-01-P
10196 Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices

the proposed rule changes are consistent with the requirements of the Act and the the ETFs compliant with all of the
with Section 6 of the Act ‘‘by avoiding rules and regulations thereunder applicable Listing Standards.31
the regulatory compliance issue of applicable to a national securities The Commission notes that Rule
improperly listing the ETFs without exchange.26 In particular, the 700(b)(3) of its Rules of Practice
CSSAs, or without Commission Commission does not find that the reiterates that ‘‘[t]he burden to
approval, while providing a clear proposed rule changes are consistent demonstrate that a proposed rule change
mechanism to acquire surveillance and with Section 6(b)(5) of the Act, which is consistent with the Exchange Act . . .
trading information when necessary requires that the rules of a national is on the self-regulatory organization
from a foreign regulator via the securities exchange be designed, among that proposed the rule change.’’ 32 For
Commission.’’ 23 other things, ‘‘to promote just and the reasons articulated above, the
equitable principles of trade, to foster Commission does not believe that MIAX
III. Discussion
cooperation and coordination with has met that burden in this case.
Under section 19(b)(2)(C) of the Act, persons engaged in regulating, clearing,
the Commission shall approve a settling, processing information with IV. Conclusion
proposed rule change of a self- respect to, and facilitating transactions For the foregoing reasons, the
regulatory organization (‘‘SRO’’) if it in securities, to remove impediments to Commission does not find that the
finds that such proposed rule change is and perfect the mechanism of a free and proposed rule changes are consistent
consistent with the requirements of the open market and a national market with the Act and the rules and
Act, and the rules and regulations system, and, in general, to protect regulations thereunder applicable to a
thereunder that are applicable to such investors and the public interest.’’ 27 national securities exchange, and, in
organization.24 The Commission shall As noted by MIAX, the Commission particular, with Section 6(b)(5) of the
disapprove a proposed rule change if it has permitted an SRO to rely on an Act.
does not make such a finding.25 agreement between the Commission and It is therefore ordered, pursuant to
After careful consideration, the the applicable foreign regulator in the section 19(b)(2) of the Act, that the
Commission does not find that the absence of a CSSA only if the SRO proposed rule changes (SR–MIAX–
proposed rule changes are consistent receives an assurance from the 2014–30 and SR–MIAX–2014–39) be,
Commission that such an agreement can and hereby are, disapproved.
National Commission for Banking and Securities
dated as of October 18, 1990, see Securities
be relied on for surveillance purposes For the Commission, by the Division of
Exchange Act Release Nos. 53824 (May 17, 2006), and provides, at a minimum, for the Trading and Markets, pursuant to delegated
71 FR 30003 (May 24, 2006) (SR–Amex–2006–43), exchange of transaction, clearing and authority.33
56324 (August 27, 2007), 72 FR 50426 (August 31, customer information necessary to
2007) (SR–ISE–2007–72), 56778 (November 9, Brent J. Fields,
2007), 72 FR 65113 (November 19, 2007) (SR– conduct an investigation.28 This Secretary.
Amex–2007–100), 57013 (December 20, 2007), 72 assurance is necessary, because the
[FR Doc. 2015–03813 Filed 2–24–15; 8:45 am]
FR 73923 (December 28, 2007) (SR–CBOE–2007– Commission may enter into a variety of
140), and 57014 (December 20, 2007), 72 FR 73934 BILLING CODE 8011–01–P
agreements with foreign regulators some
(December 28, 2007) (SR–ISE–2007–111). See MIAX
Letter, supra note 6, at 3 nn.7–9 and accompanying of which may be unrelated to the
text. The Commission notes that these agreements sharing of surveillance information. SECURITIES AND EXCHANGE
are not at issue in the present proposed rule After carefully and thoroughly COMMISSION
changes. MIAX also noted that it had previously reviewing the agreements cited by the
filed another proposed rule change that was
immediately effective using a similar approach to Exchange in its proposals, the [Release No. 34–74307; File No. SR–MIAX–
list options on shares of the iShares MSCI Mexico Commission is unable to provide the 2015–11]
Index Fund. See Securities Exchange Act Release necessary assurance that such
No. 72213 (May 21, 2014), 79 FR 30669 (May 28, Self-Regulatory Organizations; Miami
2014) (SR–MIAX–2014–19). In that instance, the
agreements can be relied on for
Exchange relied on an agreement between The surveillance purposes.29 Accordingly, International Securities Exchange LLC;
National Commission for Banking and Securities the Commission cannot approve MIAX’s Notice of Filing and Immediate
and the Commission dated as of October 18, 1990. request to allow the listing and trading Effectiveness of a Proposed Rule
The Commission notes that the Commission had
previously determined that this agreement could be
of options on iShares ETFs and Market Change To Extend the Pilot Period
used for surveillance purposes. See Securities Vectors ETFs, upon reliance on Applicable to Rule 530 Relating To
Exchange Act Release No. 36415 (October 25, 1995), agreements entered into between the Limit Up/Limit Down
60 FR 55620 (November 1, 1995) (SR–CBOE–95– Commission and the applicable foreign
45). February 19, 2015.
23 See MIAX Letter, supra note 6 at 4. regulators in place of a CSSA, in
satisfaction of the Exchange’s Listing Pursuant to Section 19(b)(1) of the
24 See 15 U.S.C. 78s(b)(2)(C)(i).
25 See 15 U.S.C. 78s(b)(2)(C)(ii); see also 17 CFR Standards.30 According to MIAX, such Securities Exchange Act of 1934 (the
201.700(b)(3) (‘‘The burden to demonstrate that a approval would be necessary to make ‘‘Act’’),1 and Rule 19b–4 thereunder,2
proposed rule change is consistent with the notice is hereby given that on February
Exchange Act and the rules and regulations issued 26 In disapproving the proposed rule changes, the 18, 2015, Miami International Securities
thereunder . . . is on the self-regulatory Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’)
Commission has considered the proposed rule’s
organization that proposed the rule change. . . . A
mere assertion that the proposed rule change is
impact on efficiency, competition, and capital filed with the Securities and Exchange
formation. See 15 U.S.C. 78c(f). Commission (‘‘Commission’’) the
consistent with those requirements . . . is not 27 15 U.S.C. 78f(b)(5).
sufficient.’’). The description of a proposed rule
28 See Securities Exchange Act Release No. 40761
proposed rule change as described in
asabaliauskas on DSK5VPTVN1PROD with NOTICES

change, its purpose and operation, its effect, and a Items I and II below, which Items have
legal analysis of its consistency with applicable (December 8, 1998), 63 FR 70952, 70959 n.101
requirements must all be sufficiently detailed and (December 22, 1998). been prepared by the Exchange. The
specific to support an affirmative Commission 29 The Commission also notes that the particular Commission is publishing this notice to
finding. See 17 CFR 201.700(b)(3). Any failure of a agreements referenced in MIAX’s letter, which the
SRO to provide the information elicited by Form Commission has previously allowed exchanges to 31 Id.
19b–4 may result in the Commission not having a rely on in lieu of a CSSA between an exchange and
32 17 CFR 201.700(b)(3).
sufficient basis to make an affirmative finding that the applicable foreign market, are not at issue in the
33 17 CFR 200.30–3(a)(12).
a proposed rule change is consistent with the present proposed rule changes. See supra note 22.
30 See iShares ETFs Proposal, supra note 3, and 1 15 U.S.C. 78s(b)(1).
Exchange Act and the rules and regulations issued
thereunder that are applicable to the SRO. Id. Market Vectors ETFs Proposal, supra note 8. 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 18:05 Feb 24, 2015 Jkt 235001 PO 00000 Frm 00153 Fmt 4703 Sfmt 4703 E:\FR\FM\25FEN1.SGM 25FEN1
Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10197

solicit comments on the proposed rule Rule 530(j) until February 20, 2015.4 the underlying stock leaving the Limit
change from interested persons. The Exchange now proposes to extend or Straddle state (or halt if applicable)
the pilot period for Rule 530(j) until is 30% away from the price before the
I. Self-Regulatory Organization’s
October 23, 2015 in order to allow the start of the Limit or Straddle state.
Statement of the Terms of the Substance
Exchange and the Commission
of the Proposed Rule Change 2. Statutory Basis
additional time to collect and analyze
The Exchange is filing a proposal to data regarding the impact of Rule 530(j)
amend Exchange Rule 530 to extend the MIAX believes that its proposed rule
on liquidity and market quality in the
pilot period for the treatment of change is consistent with Section 6(b) of
options markets.
erroneous transactions during a Limit or To assist the Commission in its the Act 5 in general, and furthers the
Straddle State. analysis, the Exchange will provide the objectives of Section 6(b)(5) of the Act 6
The text of the proposed rule change Commission and the public with data in particular, in that it is designed to
is available on the Exchange’s Web site and analysis during the duration of the prevent fraudulent and manipulative
at http://www.miaxoptions.com/filter/ pilot in order to evaluate the impact of acts and practices, to promote just and
wotitle/rule_filing, at MIAX’s principal Limit and Straddle States on liquidity equitable principles of trade, to foster
office, and at the Commission’s Public and market quality in the options cooperation and coordination with
Reference Room. markets. Specifically, by May 29, 2015, persons engaged in facilitating
II. Self-Regulatory Organization’s the Exchange represents that it shall transactions in securities, to remove
Statement of the Purpose of, and provide the Commission and the public impediments to and perfect the
Statutory Basis for, the Proposed Rule assessments relating to the impact of the mechanisms of a free and open market
Change obvious error Rules during Limit and and a national market system and, in
Straddle States that (i) evaluate the general, to protect investors and the
In its filing with the Commission, the statistical and economic impact of Limit
Exchange included statements public interest. Specifically, the
and Straddle States on liquidity and proposal supports the objectives of
concerning the purpose of and basis for market quality in the options markets;
the proposed rule change and discussed perfecting the mechanism of a free and
and (ii) assess whether the lack of
any comments it received on the open market and the national market
obvious error rules in effect during the
proposed rule change. The text of these system because it promotes uniformity
Straddle and Limit States are
statements may be examined at the problematic. Additionally, each month across markets concerning when and
places specified in Item IV below. The during the pilot period the Exchange how to halt trading in all stock options
Exchange has prepared summaries, set shall provide to the Commission and the as a result of extraordinary market
forth in sections A, B, and C below, of public a dataset containing the data for volatility. In addition, the Exchange
the most significant aspects of such each Straddle and Limit State in believes that the extension of the pilot
statements. optionable stocks. For each stock that will help ensure that market
reaches a Straddle or Limit State, the participants continue to benefit from the
A. Self-Regulatory Organization’s
Statement of the Purpose of, and number of options included in the protections of the Limit Up-Limit Down
Statutory Basis for, the Proposed Rule dataset can be reduced by selecting Rules which will protect investors and
Change options in which at least one (1) trade the public interest while allowing the
occurred on the Exchange during the Exchange and the Commission
1. Purpose Straddle or Limit State. For each of additional time to collect and analyze
The Exchange proposes to amend those options affected, each data record data regarding the impact of Rules on
Rule 530 (Limit Up-Limit Down) in should contain the following liquidity and market quality in the
order to extend the pilot period for the information: (i) Stock symbol, option options markets.
treatment of erroneous transactions that symbol, time at the start of the straddle
occur in a Limit or Straddle State until or limit state, an indicator for whether B. Self-Regulatory Organization’s
October 23, 2015. it is a straddle or limit state; and (ii) for Statement on Burden on Competition
Exchange Rule 530(j) provides for the activity on the exchange—(A) executed
The Exchange does not believe that
treatment of erroneous transactions volume, time-weighted quoted bid-ask
the proposed rule change will impose
occurring during Limit and Straddle spread, time-weighted average quoted
States. Specifically, once an NMS Stock depth at the bid, time-weighted average any burden on competition that is not
has entered a Limit or Straddle State, quoted depth at the offer, (B) high necessary or appropriate in furtherance
the Exchange will nullify a transaction execution price, low execution price, (C) of the purposes of the Act. The
in an option overlying such an NMS number of trades for which a request for proposed changes are being made to
Stock as provided in the Rule 530(j). review for error was received during extend the pilot program that provides
This provision was adopted for a one Straddle and Limit States, (D) an for how the Exchange shall treat orders
year pilot period beginning on the date indicator variable for whether those and quotes in options overlying NMS
of the implementation of the Plan to options outlined above have a price stocks when the Limit Up-Limit Down
Address Extraordinary Market Volatility change exceeding 30% during the Plan is in effect and will not impose any
Pursuant to Rule 608 of Regulation underlying stock’s Limit or Straddle burden on competition while providing
NMS, April 8, 2013.3 The Exchange state compared to the last available certainty of treatment and execution of
asabaliauskas on DSK5VPTVN1PROD with NOTICES

previously extended the pilot period for option price as reported by OPRA before options orders during periods of
the start of the Limit or Straddle state (1 extraordinary volatility in the
3 See Exchange Rule 503(j). See also Securities
if observe 30% and 0 otherwise) and underlying NMS stock, and facilitating
Exchange Act Release Nos. 69210 (March 22, 2013), another indicator variable for whether
78 FR 18637 (March 27, 2013) (SR–MIAX–2013–
appropriate liquidity during a Limit
12); 69342 (April 8, 2013), 78 FR 22017 (April 12, the option price within five minutes of State or Straddle State.
2013) (SR–MIAX–2013–12); 69234 (March 25,
2013), 78 FR 19344 (March 29, 2013) (SR–MIAX– 4 See Securities Exchange Act Release No. 71881
5 15 U.S.C. 78f(b).
2013–15); 69354 (April 9, 2013), 78 FR 22357 (April (April 4, 2014), 79 FR 19956 (April 10, 2014) (SR–
15, 2013) (SR–MIAX–2013–15). MIAX–2014–14). 6 15 U.S.C. 78f(b)(5).

VerDate Sep<11>2014 18:05 Feb 24, 2015 Jkt 235001 PO 00000 Frm 00154 Fmt 4703 Sfmt 4703 E:\FR\FM\25FEN1.SGM 25FEN1
10198 Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices

C. Self-Regulatory Organization’s IV. Solicitation of Comments For the Commission, by the Division of
Statement on Comments on the Trading and Markets, pursuant to delegated
Proposed Rule Change Received From Interested persons are invited to authority.10
Members, Participants, or Others submit written data, views, and Brent J. Fields,
arguments concerning the foregoing, Secretary.
Written comments were neither
solicited nor received. including whether the proposed rule [FR Doc. 2015–03815 Filed 2–24–15; 8:45 am]
change is consistent with the Act. BILLING CODE 8011–01–P
III. Date of Effectiveness of the Comments may be submitted by any of
Proposed Rule Change and Timing for the following methods:
Commission Action SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
Because the proposed rule change
does not (i) significantly affect the • Use the Commission’s Internet [Release No. 34–74309; File No. SR–
protection of investors or the public comment form (http://www.sec.gov/ NYSEMKT–2015–10]
interest; (ii) impose any significant rules/sro.shtml); or
burden on competition; and (iii) become Self-Regulatory Organizations; NYSE
operative for 30 days from the date on • Send an email to rule-comments@ MKT LLC; Notice of Filing and
which it was filed, or such shorter time sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed
as the Commission may designate if MIAX–2015–11 on the subject line. Rule Change Extending the Pilot
consistent with the protection of Paper Comments Period Applicable to Rule 953.1NY(c),
investors and the public interest, the Obvious and Catastrophic Errors, Until
proposed rule change has become • Send paper comments in triplicate October 23, 2015
effective pursuant to Section 19(b)(3)(A) to Brent J. Fields, Secretary, Securities
of the Act 7 and Rule 19b–4(f)(6)(iii) February 19, 2015.
and Exchange Commission, 100 F Street
thereunder.8 NE., Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the
The Exchange has asked the Securities Exchange Act of 1934 (the
Commission to waive the 30-day All submissions should refer to File ‘‘Act’’),1 and Rule 19b–4 thereunder,2
operative delay so that the proposal may Number SR–MIAX–2015–11. This file notice is hereby given that on February
become operative immediately upon number should be included on the 18, 2015, NYSE MKT LLC (the
filing. The Commission believes that subject line if email is used. To help the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
waiving the 30-day operative delay is Commission process and review your the Securities and Exchange
consistent with the protection of comments more efficiently, please use Commission (‘‘Commission’’) the
investors and the public interest, as it only one method. The Commission will proposed rule change as described in
will allow the obvious error pilot post all comments on the Commission’s Items I and II below, which Items have
program to continue uninterrupted Internet Web site (http://www.sec.gov/ been prepared by the self-regulatory
while the industry gains further rules/sro.shtml). Copies of the organization. The Commission is
experience operating under the Plan to submission, all subsequent publishing this notice to solicit
Address Extraordinary Market amendments, all written statements comments on the proposed rule change
Volatility, and avoid any investor with respect to the proposed rule from interested persons.
confusion that could result from a
change that are filed with the I. Self-Regulatory Organization’s
temporary interruption in the pilot
Commission, and all written Statement of the Terms of the Substance
program. For this reason, the
communications relating to the of the Proposed Rule Change
Commission designates the proposed
rule change to be operative upon filing.9 proposed rule change between the The Exchange proposes to extend the
At any time within 60 days of the Commission and any person, other than pilot period applicable to Rule
filing of the proposed rule change, the those that may be withheld from the 953.1NY(c), which addresses how the
Commission summarily may public in accordance with the Exchange treats Obvious and
temporarily suspend such rule change if provisions of 5 U.S.C. 552, will be Catastrophic Errors during periods of
it appears to the Commission that such available for Web site viewing and extreme market volatility, until October
action is necessary or appropriate in the printing in the Commission’s Public 23, 2015. The pilot period is currently
public interest, for the protection of Reference Room, 100 F Street NE., set to expire on February 20, 2015. The
investors, or otherwise in furtherance of Washington, DC 20549 on official text of the proposed rule change is
the purposes of the Act. If the business days between the hours of available on the Exchange’s Web site at
Commission takes such action, the 10:00 a.m. and 3:00 p.m. Copies of such www.nyse.com, at the principal office of
Commission shall institute proceedings filing also will be available for the Exchange, and at the Commission’s
to determine whether the proposed rule inspection and copying at the principal Public Reference Room.
should be approved or disapproved. office of the Exchange. All comments II. Self-Regulatory Organization’s
received will be posted without change; Statement of the Purpose of, and
7 15 U.S.C. 78s(b)(3)(A).
8 17
the Commission does not edit personal Statutory Basis for, the Proposed Rule
CFR 240.19b–4(f)(6)(iii). As required under
Rule 19b–4(f)(6)(iii), the Exchange provided the identifying information from Change
Commission with written notice of its intent to file submissions. You should submit only
asabaliauskas on DSK5VPTVN1PROD with NOTICES

the proposed rule change, along with a brief
In its filing with the Commission, the
information that you wish to make self-regulatory organization included
description and the text of the proposed rule
change, at least five business days prior to the date
available publicly. All submissions statements concerning the purpose of,
of filing of the proposed rule change, or such should refer to File Number SR–MIAX– and basis for, the proposed rule change
shorter time as designated by the Commission. 2015–11, and should be submitted on or and discussed any comments it received
9 For purposes only of waiving the 30-day
before March 18, 2015.
operative delay, the Commission has also
10 17 CFR 200.30–3(a)(12).
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). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 18:05 Feb 24, 2015 Jkt 235001 PO 00000 Frm 00155 Fmt 4703 Sfmt 4703 E:\FR\FM\25FEN1.SGM 25FEN1
Document Created: 2015-12-18 13:08:47
Document Modified: 2015-12-18 13:08:47
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 10196