80_FR_37456 80 FR 37331 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to Exchange Rule 6.72 in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through June 30, 2016

80 FR 37331 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to Exchange Rule 6.72 in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through June 30, 2016

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 125 (June 30, 2015)

Page Range37331-37333
FR Document2015-15977

Federal Register, Volume 80 Issue 125 (Tuesday, June 30, 2015)
[Federal Register Volume 80, Number 125 (Tuesday, June 30, 2015)]
[Notices]
[Pages 37331-37333]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-15977]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75280; File No. SR-NYSEArca-2015-51]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Commentary 
.02 to Exchange Rule 6.72 in Order To Extend the Penny Pilot in Options 
Classes in Certain Issues Through June 30, 2016

June 24, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on June 15, 2015, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Commentary .02 to Exchange Rule 6.72 
in order to extend the Penny Pilot in options classes in certain issues 
(``Pilot Program'') previously approved by the Securities and Exchange 
Commission (``Commission'') through June 30, 2016. The Pilot Program is 
currently scheduled to expire on June 30, 2015. The text of the 
proposed rule change is available on the Exchange's Web site at 
www.nyse.com, at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

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

1. Purpose
    The Exchange hereby proposes to amend Commentary .02 to Exchange 
Rule 6.72 to extend the time period of the Pilot Program,\4\ which is 
currently scheduled to expire on June 30, 2015, through June 30, 2016. 
The Exchange also proposes that the dates to replace issues in the 
Pilot Program that have been delisted be revised to the second trading 
day following July 1, 2015 and January 1, 2016.\5\
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    \4\ See Securities Exchange Act Release No. 73777 (December 8, 
2014), 79 FR 73913 (December 12, 2014) (SR-NYSEArca-2014-136).
    \5\ The month immediately preceding a replacement class's 
addition to the Pilot Program (i.e., June) would not be used for 
purposes of the analysis for determining the replacement class. 
Thus, a replacement class to be added on the second trading day 
following July 1, 2015 would be identified based on The Option 
Clearing Corporation's trading volume data from December 1, 2014 
through May 31, 2015. The Exchange will announce the replacement 
issues to the Exchange's membership through a Trader Update.
---------------------------------------------------------------------------

    This filing does not propose any substantive changes to the Pilot 
Program: all classes currently participating will remain the same and 
all minimum increments will remain

[[Page 37332]]

unchanged. The Exchange believes the benefits to public customers and 
other market participants who will be able to express their true prices 
to buy and sell options have been demonstrated to outweigh the increase 
in quote traffic.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the objectives of Section 6(b)(5),\7\ 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, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    In particular, the proposed rule change, which extends the Penny 
Pilot Program for one year, allows the Exchange to continue to 
participate in a program that has been viewed as beneficial to traders, 
investors and public customers and viewed as successful by the other 
options exchanges participating in it. Accordingly, the Exchange 
believes that the proposal is consistent with the Act because it will 
allow the Exchange to extend the Pilot Program prior to its expiration 
on June 30, 2015. The Exchange notes that this proposal does not 
propose any new policies or provisions that are unique or unproven, but 
instead relates to the continuation of an existing program that 
operates on a pilot basis.
    The Exchange believes that the Pilot Program promotes just and 
equitable principles of trade by enabling public customers and other 
market participants to express their true prices to buy and sell 
options to the benefit of all market participants.
    The proposal to extend the Pilot Program is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system, by allowing the 
Exchange and the Commission additional time to analyze the impact of 
the Pilot Program while also allowing the Exchange to continue to 
compete for order flow with other exchanges in option issues trading as 
part of the Pilot Program.

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. Specifically, the Exchange 
believes that, by extending the expiration of the Pilot Program, the 
proposed rule change will allow for further analysis of the Pilot 
Program and a determination of how the Program should be structured in 
the future. In doing so, the proposed rule change will also serve to 
promote regulatory clarity and consistency, thereby reducing burdens on 
the marketplace and facilitating investor protection. The Pilot Program 
is an industry wide initiative supported by all other option exchanges. 
The Exchange believes that extending the Pilot Program will allow for 
continued competition between Exchange market participants trading 
similar products as their counterparts on other exchanges, while at the 
same time allowing the Exchange to continue to compete for order flow 
with other exchanges in option issues trading as part of the Pilot 
Program.

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

    No written comments were solicited or received with respect to the 
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
Because the proposed rule change does not: (i) significantly affect the 
protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate, if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally 
does not become operative prior to 30 days after the date of the 
filing.\11\ However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the 
Commission may designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The 
Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because doing so will allow the Pilot Program to continue without 
interruption in a manner that is consistent with the Commission's prior 
approval of the extension and expansion of the Pilot Program and will 
allow the Exchange and the Commission additional time to analyze the 
impact of the Pilot Program.\13\ Accordingly, the Commission designates 
the proposed rule change as operative upon filing with the 
Commission.\14\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change along with a 
brief description and 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 satisfied this pre-filing requirement.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See Securities Exchange Act Release No. 61061 (November 24, 
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). See 
also supra note 4.
    \14\ For purposes only of waiving the operative delay for this 
proposal, the Commission has 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 such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
---------------------------------------------------------------------------

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

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:

[[Page 37333]]

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-NYSEArca-2015-51 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-NYSEArca-2015-51. 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 Section, 100 F Street 
NE., Washington, DC 20549-1090 on official business days between the 
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing will also be 
available for inspection and copying at the NYSE's principal office and 
on its Internet Web site at www.nyse.com. 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-NYSEArca-2015-51 and should be submitted 
on or before July 21, 2015.
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    \16\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-15977 Filed 6-29-15; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                   Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices                                                   37331

                                                    companies and companies controlled by                   Funds will comply with rule 12d1–2                     I. Self-Regulatory Organization’s
                                                    them.                                                   under the Act, but for the fact that the               Statement of the Terms of Substance of
                                                       2. Section 12(d)(1)(G) of the Act                    Funds of Funds may invest a portion of                 the Proposed Rule Change
                                                    provides, in part, that section 12(d)(1)                their assets in Other Investments.                        The Exchange proposes to amend
                                                    will not apply to securities of an                      Applicants assert that permitting the                  Commentary .02 to Exchange Rule 6.72
                                                    acquired company purchased by an                        Funds of Funds to invest in Other                      in order to extend the Penny Pilot in
                                                    acquiring company if: (i) The acquired                  Investments as described in the                        options classes in certain issues (‘‘Pilot
                                                    company and acquiring company are                       application would not raise any of the                 Program’’) previously approved by the
                                                    part of the same group of investment                                                                           Securities and Exchange Commission
                                                                                                            concerns that the requirements of
                                                    companies; (ii) the acquiring company                                                                          (‘‘Commission’’) through June 30, 2016.
                                                                                                            section 12(d)(1) were designed to
                                                    holds only securities of acquired                                                                              The Pilot Program is currently
                                                    companies that are part of the same                     address.
                                                                                                                                                                   scheduled to expire on June 30, 2015.
                                                    group of investment companies,                          Applicants’ Condition                                  The text of the proposed rule change is
                                                    Government securities, and short-term                                                                          available on the Exchange’s Web site at
                                                    paper; (iii) the aggregate sales loads and                Applicants agree that any order
                                                                                                                                                                   www.nyse.com, at the principal office of
                                                    distribution-related fees of the acquiring              granting the requested relief will be                  the Exchange, and at the Commission’s
                                                    company and the acquired company are                    subject to the following condition:                    Public Reference Room.
                                                    not excessive under rules adopted                         Applicants will comply with all
                                                    pursuant to section 22(b) or section                                                                           II. Self-Regulatory Organization’s
                                                                                                            provisions of rule 12d1–2 under the Act,
                                                    22(c) of the Act by a securities                                                                               Statement of the Purpose of, and
                                                                                                            except for paragraph (a)(2) to the extent
                                                    association registered under section 15A                                                                       Statutory Basis for, the Proposed Rule
                                                                                                            that it restricts any Fund of Funds from               Change
                                                    of the Securities Exchange Act of 1934
                                                    or by the Commission; and (iv) the                      investing in Other Investments as
                                                                                                            described in the application.                             In its filing with the Commission, the
                                                    acquired company has a policy that                                                                             self-regulatory organization included
                                                    prohibits it from acquiring securities of                 For the Commission, by the Division of               statements concerning the purpose of,
                                                    registered open-end investment                          Investment Management, under delegated                 and basis for, the proposed rule change
                                                    companies or registered unit investment                 authority.                                             and discussed any comments it received
                                                    trusts in reliance on section 12(d)(1)(F)               Robert W. Errett,                                      on the proposed rule change. The text
                                                    or (G) of the Act.                                      Deputy Secretary.                                      of those statements may be examined at
                                                       3. Rule 12d1–2 under the Act permits                                                                        the places specified in Item IV below.
                                                                                                            [FR Doc. 2015–15975 Filed 6–29–15; 08:45 am]
                                                    a registered open-end investment                                                                               The Exchange has prepared summaries,
                                                    company or a registered unit investment                 BILLING CODE 8011–01–P
                                                                                                                                                                   set forth in sections A, B, and C below,
                                                    trust that relies on section 12(d)(1)(G) of                                                                    of the most significant parts of such
                                                    the Act to acquire, in addition to                                                                             statements.
                                                    securities issued by another registered                 SECURITIES AND EXCHANGE
                                                    investment company in the same group                    COMMISSION                                             A. Self-Regulatory Organization’s
                                                    of investment companies, Government                                                                            Statement of the Purpose of, and the
                                                    securities, and short-term paper: (i)                   [Release No. 34–75280; File No. SR–                    Statutory Basis for, the Proposed Rule
                                                    Securities issued by an investment                      NYSEArca-2015–51]                                      Change
                                                    company that is not in the same group                                                                          1. Purpose
                                                    of investment companies, when the                       Self-Regulatory Organizations; NYSE
                                                    acquisition is in reliance on section                   Arca, Inc.; Notice of Filing and                          The Exchange hereby proposes to
                                                    12(d)(1)(A) or 12(d)(1)(F) of the Act; (ii)             Immediate Effectiveness of Proposed                    amend Commentary .02 to Exchange
                                                    securities (other than securities issued                Rule Change Amending Commentary                        Rule 6.72 to extend the time period of
                                                    by an investment company); and (iii)                    .02 to Exchange Rule 6.72 in Order To                  the Pilot Program,4 which is currently
                                                    securities issued by a money market                                                                            scheduled to expire on June 30, 2015,
                                                                                                            Extend the Penny Pilot in Options
                                                    fund, when the investment is in reliance                                                                       through June 30, 2016. The Exchange
                                                                                                            Classes in Certain Issues Through                      also proposes that the dates to replace
                                                    on rule 12d1–1 under the Act. For the                   June 30, 2016
                                                    purposes of rule 12d1–2, ‘‘securities’’                                                                        issues in the Pilot Program that have
                                                    means any security as defined in section                June 24, 2015.                                         been delisted be revised to the second
                                                    2(a)(36) of the Act.                                                                                           trading day following July 1, 2015 and
                                                                                                               Pursuant to Section 19(b)(1) 1 of the               January 1, 2016.5
                                                       4. Section 6(c) of the Act provides that
                                                                                                            Securities Exchange Act of 1934 (the                      This filing does not propose any
                                                    the Commission may exempt any
                                                                                                            ‘‘Act’’) 2 and Rule 19b–4 thereunder,3                 substantive changes to the Pilot
                                                    person, security, or transaction from any
                                                    provision of the Act, or from any rule                  notice is hereby given that on June 15,                Program: all classes currently
                                                    under the Act, if such exemption is                     2015, NYSE Arca, Inc. (the ‘‘Exchange’’                participating will remain the same and
                                                    necessary or appropriate in the public                  or ‘‘NYSE Arca’’) filed with the                       all minimum increments will remain
                                                    interest and consistent with the                        Securities and Exchange Commission
                                                                                                                                                                      4 See Securities Exchange Act Release No. 73777
                                                    protection of investors and the purposes                (the ‘‘Commission’’) the proposed rule
                                                                                                                                                                   (December 8, 2014), 79 FR 73913 (December 12,
                                                    fairly intended by the policies and                     change as described in Items I and II                  2014) (SR–NYSEArca–2014–136).
                                                    provisions of the Act. Applicants submit                below, which Items have been prepared
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                                                                                      5 The month immediately preceding a

                                                    that their request for relief meets this                by the self-regulatory organization. The               replacement class’s addition to the Pilot Program
                                                                                                            Commission is publishing this notice to                (i.e., June) would not be used for purposes of the
                                                    standard.                                                                                                      analysis for determining the replacement class.
                                                       5. Applicants request an order under                 solicit comments on the proposed rule                  Thus, a replacement class to be added on the
                                                    section 6(c) of the Act for an exemption                change from interested persons.                        second trading day following July 1, 2015 would be
                                                    from rule 12d1–2(a) to allow the Funds                                                                         identified based on The Option Clearing
                                                                                                                                                                   Corporation’s trading volume data from December
                                                    of Funds to invest in Other Investments                   1 15 U.S.C. 78s(b)(1).                               1, 2014 through May 31, 2015. The Exchange will
                                                    while investing in Underlying Funds.                      2 15 U.S.C. 78a.                                     announce the replacement issues to the Exchange’s
                                                    Applicants state that the Funds of                        3 17 CFR 240.19b–4.                                  membership through a Trader Update.



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                                                    37332                           Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices

                                                    unchanged. The Exchange believes the                     B. Self-Regulatory Organization’s                       the date of the filing.11 However,
                                                    benefits to public customers and other                   Statement on Burden on Competition                      pursuant to Rule 19b–4(f)(6)(iii),12 the
                                                    market participants who will be able to                                                                          Commission may designate a shorter
                                                    express their true prices to buy and sell                  The Exchange does not believe that                    time if such action is consistent with the
                                                    options have been demonstrated to                        the proposed rule change will impose                    protection of investors and the public
                                                    outweigh the increase in quote traffic.                  any burden on competition that is not                   interest. The Exchange has asked the
                                                                                                             necessary or appropriate in furtherance                 Commission to waive the 30-day
                                                    2. Statutory Basis                                       of the purposes of the Act. Specifically,
                                                                                                                                                                     operative delay so that the proposal may
                                                       The proposed rule change is                           the Exchange believes that, by extending
                                                                                                                                                                     become operative immediately upon
                                                    consistent with Section 6(b) 6 of the                    the expiration of the Pilot Program, the
                                                                                                                                                                     filing. The Commission believes that
                                                    Securities Exchange Act of 1934 (the                     proposed rule change will allow for
                                                                                                                                                                     waiving the 30-day operative delay is
                                                    ‘‘Act’’), in general, and furthers the                   further analysis of the Pilot Program and
                                                                                                                                                                     consistent with the protection of
                                                    objectives of Section 6(b)(5),7 in                       a determination of how the Program
                                                                                                             should be structured in the future. In                  investors and the public interest
                                                    particular, in that it is designed to
                                                    prevent fraudulent and manipulative                      doing so, the proposed rule change will                 because doing so will allow the Pilot
                                                    acts and practices, to promote just and                  also serve to promote regulatory clarity                Program to continue without
                                                    equitable principles of trade, to foster                 and consistency, thereby reducing                       interruption in a manner that is
                                                    cooperation and coordination with                        burdens on the marketplace and                          consistent with the Commission’s prior
                                                    persons engaged in facilitating                          facilitating investor protection. The                   approval of the extension and expansion
                                                    transactions in securities, and to remove                Pilot Program is an industry wide                       of the Pilot Program and will allow the
                                                    impediments to and perfect the                           initiative supported by all other option                Exchange and the Commission
                                                    mechanisms of a free and open market                     exchanges. The Exchange believes that                   additional time to analyze the impact of
                                                    and a national market system.                            extending the Pilot Program will allow                  the Pilot Program.13 Accordingly, the
                                                       In particular, the proposed rule                      for continued competition between                       Commission designates the proposed
                                                    change, which extends the Penny Pilot                    Exchange market participants trading                    rule change as operative upon filing
                                                    Program for one year, allows the                         similar products as their counterparts                  with the Commission.14
                                                    Exchange to continue to participate in a                 on other exchanges, while at the same                      At any time within 60 days of the
                                                    program that has been viewed as                          time allowing the Exchange to continue                  filing of such proposed rule change, the
                                                    beneficial to traders, investors and                     to compete for order flow with other                    Commission summarily may
                                                    public customers and viewed as                           exchanges in option issues trading as                   temporarily suspend such rule change if
                                                    successful by the other options                          part of the Pilot Program.                              it appears to the Commission that such
                                                    exchanges participating in it.                                                                                   action is necessary or appropriate in the
                                                    Accordingly, the Exchange believes that                  C. Self-Regulatory Organization’s
                                                                                                             Statement on Comments on the                            public interest, for the protection of
                                                    the proposal is consistent with the Act                                                                          investors, or otherwise in furtherance of
                                                    because it will allow the Exchange to                    Proposed Rule Change Received From
                                                                                                             Members, Participants, or Others                        the purposes of the Act. If the
                                                    extend the Pilot Program prior to its
                                                                                                                                                                     Commission takes such action, the
                                                    expiration on June 30, 2015. The                           No written comments were solicited                    Commission shall institute proceedings
                                                    Exchange notes that this proposal does                   or received with respect to the proposed                under Section 19(b)(2)(B) 15 of the Act to
                                                    not propose any new policies or                          rule change.                                            determine whether the proposed rule
                                                    provisions that are unique or unproven,
                                                    but instead relates to the continuation of               III. Date of Effectiveness of the                       change should be approved or
                                                    an existing program that operates on a                   Proposed Rule Change and Timing for                     disapproved.
                                                    pilot basis.                                             Commission Action                                       IV. Solicitation of Comments
                                                       The Exchange believes that the Pilot
                                                    Program promotes just and equitable                         The Exchange has filed the proposed                    Interested persons are invited to
                                                    principles of trade by enabling public                   rule change pursuant to Section                         submit written data, views, and
                                                    customers and other market participants                  19(b)(3)(A)(iii) of the Act 8 and Rule                  arguments concerning the foregoing,
                                                    to express their true prices to buy and                  19b–4(f)(6) thereunder.9 Because the                    including whether the proposed rule
                                                    sell options to the benefit of all market                proposed rule change does not: (i)                      change is consistent with the Act.
                                                    participants.                                            significantly affect the protection of                  Comments may be submitted by any of
                                                       The proposal to extend the Pilot                      investors or the public interest; (ii)
                                                                                                                                                                     the following methods:
                                                    Program is designed to promote just and                  impose any significant burden on
                                                    equitable principles of trade, to foster                 competition; and (iii) become operative                    11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–

                                                    cooperation and coordination with                        prior to 30 days from the date on which                 4(f)(6)(iii) requires the Exchange to give the
                                                    persons engaged in facilitating                          it was filed, or such shorter time as the               Commission written notice of the Exchange’s intent
                                                    transactions in securities, and to remove                Commission may designate, if                            to file the proposed rule change along with a brief
                                                                                                             consistent with the protection of                       description and the text of the proposed rule
                                                    impediments to and perfect the                                                                                   change, at least five business days prior to the date
                                                    mechanisms of a free and open market                     investors and the public interest, the                  of filing of the proposed rule change, or such
                                                    and a national market system, by                         proposed rule change has become                         shorter time as designated by the Commission. The
                                                    allowing the Exchange and the                            effective pursuant to Section 19(b)(3)(A)               Exchange has satisfied this pre-filing requirement.
                                                                                                             of the Act and Rule 19b–4(f)(6)(iii)                       12 17 CFR 240.19b–4(f)(6)(iii).
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Commission additional time to analyze                                                                               13 See Securities Exchange Act Release No. 61061
                                                    the impact of the Pilot Program while                    thereunder.
                                                                                                                                                                     (November 24, 2009), 74 FR 62857 (December 1,
                                                    also allowing the Exchange to continue                      A proposed rule change filed under                   2009) (SR–NYSEArca–2009–44). See also supra
                                                    to compete for order flow with other                     Rule 19b–4(f)(6) 10 normally does not                   note 4.
                                                                                                                                                                        14 For purposes only of waiving the operative
                                                    exchanges in option issues trading as                    become operative prior to 30 days after
                                                                                                                                                                     delay for this proposal, the Commission has
                                                    part of the Pilot Program.                                                                                       considered the proposed rule’s impact on
                                                                                                               8 15 U.S.C. 78s(b)(3)(A)(iii).                        efficiency, competition, and capital formation. See
                                                      6 15 U.S.C. 78f(b).                                      9 17 CFR 240.19b–4(f)(6).                             15 U.S.C. 78c(f).
                                                      7 15 U.S.C. 78f(b)(5).                                   10 17 CFR 240.19b–4(f)(6).                               15 15 U.S.C. 78s(b)(2)(B).




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                                                                                     Federal Register / Vol. 80, No. 125 / Tuesday, June 30, 2015 / Notices                                              37333

                                                    Electronic Comments                                       SECURITIES AND EXCHANGE                                 in decimals at $3.00 or higher shall have
                                                                                                              COMMISSION                                              a minimum increment of $.10, and all
                                                      • Use the Commission’s Internet                                                                                 options on stocks and index options
                                                    comment form (http://www.sec.gov/                         [Release No. 34–75286; File No. SR–Phlx–
                                                                                                              2015–54]                                                quoting in decimals under $3.00 shall
                                                    rules/sro.shtml); or                                                                                              have a minimum increment of $.05.
                                                      • Send an email to rule-comments@                       Self-Regulatory Organizations;                             (i)(A) No Change.
                                                    sec.gov. Please include File Number SR–                   NASDAQ OMX PHLX LLC; Notice of
                                                    NYSEArca–2015–51 on the subject line.                     Filing and Immediate Effectiveness of                      (B) For a pilot period scheduled to
                                                                                                              a Proposed Rule Change Relating to                      expire June 30, [2015]2016 or the date
                                                    Paper Comments                                            Extension of the Exchange’s Penny                       of permanent approval, if earlier (the
                                                                                                              Pilot Program and Replacement of                        ‘‘pilot’’), certain options shall be quoted
                                                      • Send paper comments in triplicate
                                                                                                              Penny Pilot Issues That Have Been                       and traded on the Exchange in
                                                    to Secretary, Securities and Exchange
                                                                                                              Delisted                                                minimum increments of $0.01 for all
                                                    Commission, 100 F Street, NE.,
                                                                                                                                                                      series in such options with a price of
                                                    Washington, DC 20549–1090.                                June 24, 2015.                                          less than $3.00, and in minimum
                                                    All submissions should refer to File                         Pursuant to section 19(b)(1) of the                  increments of $0.05 for all series in such
                                                                                                              Securities Exchange Act of 1934                         options with a price of $3.00 or higher,
                                                    Number SR–NYSEArca–2015–51. This
                                                                                                              (‘‘Act’’),1 and Rule 19b–4 2 thereunder,
                                                    file number should be included on the                                                                             except that options overlying the
                                                                                                              notice is hereby given that on June 18,
                                                    subject line if email is used. To help the                                                                        PowerShares QQQ Trust (‘‘QQQQ’’)®,
                                                                                                              2015, NASDAQ OMX PHLX LLC
                                                    Commission process and review your                        (‘‘Phlx’’ or ‘‘Exchange’’) filed with the               SPDR S&P 500 Exchange Traded Funds
                                                    comments more efficiently, please use                     Securities and Exchange Commission                      (‘‘SPY’’), and iShares Russell 2000 Index
                                                    only one method. The Commission will                      (‘‘SEC’’ or ‘‘Commission’’) the proposed                Funds (‘‘IWM’’) shall be quoted and
                                                    post all comments on the Commission’s                     rule change as described in Items I and                 traded in minimum increments of $0.01
                                                    Internet Web site (http://www.sec.gov/                    II below, which Items have been                         for all series regardless of the price. A
                                                    rules/sro.shtml). Copies of the                           prepared by the Exchange. The                           list of such options shall be
                                                    submission, all subsequent                                Commission is publishing this notice to                 communicated to membership via an
                                                    amendments, all written statements                        solicit comments on the proposed rule                   Options Trader Alert (‘‘OTA’’) posted on
                                                    with respect to the proposed rule                         change from interested persons.                         the Exchange’s Web site.
                                                    change that are filed with the                            I. Self-Regulatory Organization’s                          The Exchange may replace any pilot
                                                    Commission, and all written                               Statement of the Terms of Substance of                  issues that have been delisted with the
                                                    communications relating to the                            the Proposed Rule Change                                next most actively traded multiply
                                                    proposed rule change between the                                                                                  listed options classes that are not yet
                                                                                                                 The Exchange is filing with the
                                                    Commission and any person, other than                                                                             included in the pilot, based on trading
                                                                                                              Commission a proposal to amend Phlx
                                                    those that may be withheld from the                                                                               activity in the previous six months. The
                                                                                                              Rule 1034 (Minimum Increments) to
                                                    public in accordance with the                                                                                     replacement issues may be added to the
                                                                                                              extend through June 30, 2016 or the date
                                                    provisions of 5 U.S.C. 552, will be                       of permanent approval, if earlier, the                  pilot on the second trading day
                                                    available for Web site viewing and                        Penny Pilot Program in options classes                  following July 1, 2015 and January 1,
                                                    printing in the Commission’s Public                       in certain issues (‘‘Penny Pilot’’ or                   [2015]2016.
                                                    Reference Section, 100 F Street NE.,                      ‘‘Pilot’’), and to change the date when                    (C) No Change.
                                                    Washington, DC 20549–1090 on official                     delisted classes may be replaced in the                    (ii)–(v) No Change.
                                                    business days between the hours of                        Penny Pilot.3
                                                    10:00 a.m. and 3:00 p.m. Copies of the                       The text of the amended Exchange                     *      *      *     *    *
                                                    filing will also be available for                         rule is set forth immediately below.                       The text of the proposed rule change
                                                    inspection and copying at the NYSE’s                         Proposed new language is in italics                  is available on the Exchange’s Web site
                                                    principal office and on its Internet Web                  and proposed deleted language is                        at http://
                                                    site at www.nyse.com. All comments                        [bracketed].                                            nasdaqomxphlx.cchwallstreet.com, at
                                                    received will be posted without change;                   NASDAQ OMX PHLX Rules                                   the principal office of the Exchange, and
                                                    the Commission does not edit personal                                                                             at the Commission’s Public Reference
                                                    identifying information from                              Options Rules                                           Room.
                                                    submissions. You should submit only                       *          *   *       *      *
                                                                                                                                                                      II. Self-Regulatory Organization’s
                                                    information that you wish to make                         Rule 1034. Minimum Increments                           Statement of the Purpose of, and
                                                    available publicly. All submissions
                                                                                                                (a) Except as provided in sub-                        Statutory Basis for, the Proposed Rule
                                                    should refer to File Number SR–
                                                                                                              paragraphs (i)(B) and (iii) below, all                  Change
                                                    NYSEArca–2015–51 and should be
                                                                                                              options on stocks, index options, and
                                                    submitted on or before July 21,2015.                                                                                In its filing with the Commission, the
                                                                                                              Exchange Traded Fund Shares quoting
                                                      For the Commission, by the Division of                                                                          Exchange included statements
                                                    Trading and Markets, pursuant to delegated                    1 15
                                                                                                                     U.S.C. 78s(b)(1).                                concerning the purpose of and basis for
                                                    authority.16                                                  2 17
                                                                                                                     CFR 240.19b–4.                                   the proposed rule change and discussed
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Robert W. Errett,
                                                                                                                 3 The Penny Pilot was established in January 2007    any comments it received on the
                                                                                                              and was last extended in 2014. See Securities           proposed rule change. The text of these
                                                    Deputy Secretary.                                         Exchange Act Release Nos. 55153 (January 23,
                                                                                                              2007), 72 FR 4553 (January 31, 2007)(SR–Phlx–
                                                                                                                                                                      statements may be examined at the
                                                    [FR Doc. 2015–15977 Filed 6–29–15; 8:45 am]
                                                                                                              2006–74)(notice of filing and approval order            places specified in Item IV below. The
                                                    BILLING CODE 8011–01–P
                                                                                                              establishing Penny Pilot); and 73688 (November 25,      Exchange has prepared summaries, set
                                                                                                              2014), 79 FR 71484 (December 2, 2014)(SR–Phlx–          forth in sections A, B, and C below, of
                                                                                                              2014–77)(notice of filing and immediate
                                                                                                              effectiveness extending the Penny Pilot through         the most significant aspects of such
                                                      16 17   CFR 200.30–3(a)(12).                            June 30, 2015).                                         statements.


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Document Created: 2018-02-22 11:17:10
Document Modified: 2018-02-22 11:17:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 37331 

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