80 FR 38251 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 127 (July 2, 2015)
Federal Register Volume 80, Issue 127 (July 2, 2015)
| Page Range | 38251-38253 | |
| FR Document | 2015-16270 |
[Federal Register Volume 80, Number 127 (Thursday, July 2, 2015)] [Notices] [Pages 38251-38253] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-16270] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75312; File No. SR-ISE-2015-21] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program June 26, 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 June 22, 2015, the International Securities Exchange, LLC (the ``Exchange'' or the ``ISE'') filed with the Securities and Exchange 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The ISE proposes to amend its rules relating to a pilot program to quote and to trade certain options in pennies (``Penny Pilot Program''). The text of the proposed rule change is available on the Exchange's Web site www.ise.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. [[Page 38252]] The self-regulatory organization has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose Under the Penny Pilot Program, the minimum price variation for all participating options classes, except for the Nasdaq-100 Index Tracking Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 increments for all options series. The Penny Pilot Program is currently scheduled to expire on June 30, 2015.\3\ The Exchange proposes to extend the time period of the Penny Pilot Program through June 30, 2016, and to provide revised dates for adding replacement issues to the Penny Pilot Program. The Exchange proposes that any Penny Pilot Program issues that have been delisted may be replaced on the second trading day following July 1, 2015, and the second trading day following January 1, 2016.\4\ The replacement issues will be selected based on trading activity for the six month period beginning 1) December 1, 2014, and ending May 31, 2015, and 2) June 1, 2015, and ending November 30, 2015, respectively. This filing does not propose any substantive changes to the Penny Pilot Program: All classes currently participating will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the increase in quote traffic. --------------------------------------------------------------------------- \3\ See Exchange Act Release No. 73757 (Dec. 5, 2014), 79 FR 73672 (Dec. 11, 2014) (SR-ISE-2014-55). \4\ Please note, the month immediately preceding a replacement class's addition to the Penny Pilot Program (i.e., June) will not be used for purposes of the six month analysis. --------------------------------------------------------------------------- 2. Statutory Basis The basis under the Securities Exchange Act of 1934 (the ``Exchange Act'') for this proposed rule change is found in section 6(b)(5), in that the proposed rule change is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. In particular, the proposed rule change, which extends the Penny Pilot Program for an additional one year, will enable public customers and other market participants to express their true prices to buy and sell options for the benefit of all market participants. B. Self-Regulatory Organization's Statement on Burden on Competition This proposed rule change does not impose any burden on competition. Specifically, the Exchange believes that, by extending the expiration of the Penny Pilot Program, the proposed rule change will allow for further analysis of the Penny Pilot Program and a determination of how the Penny Pilot Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to section 19(b)(3)(A)(iii) of the Act \5\ and Rule 19b-4(f)(6) thereunder.\6\ 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. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78s(b)(3)(A)(iii). \6\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \7\ normally does not become operative prior to 30 days after the date of the filing.\8\ However, pursuant to Rule 19b-4(f)(6)(iii),\9\ 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.\10\ Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\11\ --------------------------------------------------------------------------- \7\ 17 CFR 240.19b-4(f)(6). \8\ 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. \9\ 17 CFR 240.19b-4(f)(6)(iii). \10\ See Securities Exchange Act Release No. 61061 (November 24, 2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44). \11\ 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) \12\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \12\ 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 38253]] Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-ISE-2015-21 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-ISE-2015-21. 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 20549-1090 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 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-ISE-2015-21 and should be submitted on or before July 22, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-16270 Filed 7-1-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Notices 38251
Exchange believes that the proposed it appears to the Commission that such 2015–46 and should be submitted on or
fees would reflect an equitable action is necessary or appropriate in the before July 23, 2015.
allocation of its overall costs to users of public interest, for the protection of For the Commission, by the Division of
its facilities. investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated
In addition, when establishing the the purposes of the Act. If the authority.27
proposed fees, the Exchange considered Commission takes such action, the Robert W. Errett,
the competitiveness of the market for Commission shall institute proceedings Deputy Secretary.
proprietary data and all of the to determine whether the proposed rule [FR Doc. 2015–16271 Filed 7–1–15; 8:45 am]
implications of that competition. The should be approved or disapproved.
BILLING CODE P
Exchange believes that it has considered
IV. Solicitation of Comments
all relevant factors and has not
considered irrelevant factors in order to Interested persons are invited to
SECURITIES AND EXCHANGE
establish fair, reasonable, and not submit written data, views and
COMMISSION
unreasonably discriminatory fees and an arguments concerning the foregoing,
equitable allocation of fees among all including whether the proposed rule [Release No. 34–75312; File No. SR–ISE–
change is consistent with the Act. 2015–21]
Users. The existence of alternatives to
Multicast PITCH, including existing Comments may be submitted by any of
the following methods: Self-Regulatory Organizations;
similar feeds by other exchanges, International Securities Exchange,
consolidated data, and proprietary data Electronic Comments LLC; Notice of Filing and Immediate
from other sources, ensures that the
• Use the Commission’s Internet Effectiveness of Proposed Rule
Exchange cannot set unreasonable fees, Change To Extend the Penny Pilot
comment form (http://www.sec.gov/
or fees that are unreasonably Program
rules/sro.shtml); or
discriminatory, when vendors and • Send an email to rule-comments@
subscribers can elect these alternatives June 26, 2015.
sec.gov. Please include File Number SR–
or choose not to purchase a specific Pursuant to section 19(b)(1) of the
BATS–2015–46 on the subject line.
proprietary data product if its cost to Securities Exchange Act of 1934 (the
purchase is not justified by the returns Paper Comments ‘‘Act’’),1 and Rule 19b–4 thereunder,2
any particular vendor or subscriber • Send paper comments in triplicate notice is hereby given that on June 22,
would achieve through the purchase. to Secretary, Securities and Exchange 2015, the International Securities
Commission, 100 F Street NE., Exchange, LLC (the ‘‘Exchange’’ or the
Definitions Applicable to Market Data ‘‘ISE’’) filed with the Securities and
Fees Washington, DC 20549–1090.
All submissions should refer to File Exchange Commission the proposed
The proposed definitions applicable rule change as described in Items I and
Number SR–BATS–2015–46. This file
to market data fees will not result in any II below, which items have been
number should be included on the
burden on competition. The proposed prepared by the self-regulatory
subject line if email is used. To help the
definitions are not designed to amend organization. The Commission is
Commission process and review your
any fee, nor alter the manner in which publishing this notice to solicit
comments more efficiently, please use
it assesses fees. The Exchange believes comments on the proposed rule change
only one method. The Commission will
that recipients of Exchange data would from interested persons.
post all comments on the Commission’s
benefit from clear guidance in its fee
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
schedule that describes the manner in
rules/sro.shtml). Copies of the Statement of the Terms of Substance of
which the Exchange would assess fees
submission, all subsequent the Proposed Rule Change
for market data. These definitions are
amendments, all written statements
intended to make the Fee Schedule The ISE proposes to amend its rules
with respect to the proposed rule
clearer and less confusing for investors relating to a pilot program to quote and
change that are filed with the
and are not designed to have a to trade certain options in pennies
Commission, and all written
competitive impact. (‘‘Penny Pilot Program’’). The text of the
communications relating to the
proposed rule change is available on the
C. Self-Regulatory Organization’s proposed rule change between the
Exchange’s Web site www.ise.com, at
Statement on Comments on the Commission and any person, other than
the principal office of the Exchange, and
Proposed Rule Change Received From those that may be withheld from the
at the Commission’s Public Reference
Members, Participants or Others public in accordance with the
Room.
The Exchange has neither solicited provisions of 5 U.S.C. 552, will be
nor received written comments on the available for Web site viewing and II. Self-Regulatory Organization’s
proposed rule change. printing in the Commission’s Public Statement of the Purpose of, and
Reference Room, 100 F Street NE., Statutory Basis for, the Proposed Rule
III. Date of Effectiveness of the Washington, DC 20549, on official Change
Proposed Rule Change and Timing for business days between the hours of In its filing with the Commission, the
Commission Action 10:00 a.m. and 3:00 p.m. Copies of such self-regulatory organization included
The foregoing rule change has become filing will also be available for statements concerning the purpose of,
inspection and copying at the principal
asabaliauskas on DSK5VPTVN1PROD with NOTICES
effective pursuant to section 19(b)(3)(A) and basis for, the proposed rule change
of the Act 25 and paragraph (f)(2) of Rule office of the Exchange. All comments and discussed any comments it received
19b–4 thereunder.26 At any time within received will be posted without change; on the proposed rule change. The text
60 days of the filing of the proposed rule the Commission does not edit personal of these statements may be examined at
change, the Commission summarily may identifying information from the places specified in Item IV below.
temporarily suspend such rule change if submissions. You should submit only
information that you wish to make 27 17 CFR 200.30–3(a)(12).
25 15 U.S.C. 78s(b)(3)(A). available publicly. All submissions 1 15 U.S.C. 78s(b)(1).
26 17 CFR 240.19b–4(f)(2). should refer to File Number SR–BATS– 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 127 / Thursday, July 2, 2015 / Notices 38253
Electronic Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and the
• Use the Commission’s Internet Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Change
[Release No. 34–75311; File No. SR–
rules/sro.shtml); or
NYSEArca–2015–50] 1. Purpose
• Send an email to rule-comments@
sec.gov. Please include File Number SR– The Exchange proposes to list and
Self-Regulatory Organizations; NYSE
ISE–2015–21 on the subject line. trade shares (’’Shares’’) of the following
Arca, Inc.; Notice of Filing of Proposed
under NYSE Arca Equities Rule 8.600,
Rule Change Relating to Listing and which governs the listing and trading of
Paper Comments
Trading of Shares of the Cambria Managed Fund Shares: 4 Cambria
• Send paper comments in triplicate Sovereign High Yield Bond ETF and Sovereign High Yield Bond ETF and the
to Secretary, Securities and Exchange the Cambria Value and Momentum ETF Cambria Value and Momentum ETF
Commission, 100 F Street NE., Under NYSE Arca Equities Rule 8.600 (each a ‘‘Fund’’ and, collectively, the
Washington, DC 20549–1090. ‘‘Funds’’).5 The Shares will be offered
June 26, 2015.
by the Cambria ETF Trust (the ‘‘Trust’’),
All submissions should refer to File Pursuant to section 19(b)(1) 1 of the a Delaware statutory trust which is
Number SR–ISE–2015–21. This file Securities Exchange Act of 1934 registered with the Commission as an
number should be included on the (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 open-end management investment
subject line if email is used. To help the notice is hereby given that on June 19, company.6 Cambria Investment
Commission process and review your 2015, NYSE Arca, Inc. (‘‘NYSE Arca’’ or Management, L.P. (‘‘Cambria’’ or the
comments more efficiently, please use ‘‘Exchange’’) filed with the Securities ‘‘Adviser’’) will serve as the investment
only one method. The Commission will and Exchange Commission adviser of the Funds. SEI Investments
post all comments on the Commission’s (‘‘Commission’’) the proposed rule Distribution Co. (the ‘‘Distributor’’ or
Internet Web site (http://www.sec.gov/ change as described in Items I, II, and ‘‘SEI’’) will be the principal underwriter
rules/sro.shtml). Copies of the III below, which Items have been and distributor of the Funds’ Shares. SEI
submission, all subsequent prepared by the Exchange. The Investments Global Funds Services
amendments, all written statements (‘‘SEI GFS’’) will serve as the accountant
Commission is publishing this notice to
with respect to the proposed rule and administrator of the Funds. Brown
solicit comments on the proposed rule
change that are filed with the Brothers Harriman & Co. will serve as
change from interested persons.
Commission, and all written
4 A Managed Fund Share is a security that
communications relating to the I. Self-Regulatory Organization’s
represents an interest in an investment company
proposed rule change between the Statement of the Terms of Substance of registered under the Investment Company Act of
Commission and any person, other than the Proposed Rule Change 1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
those that may be withheld from the an open-end investment company or similar entity
public in accordance with the The Exchange proposes to list and that invests in a portfolio of securities selected by
trade shares of the Cambria Sovereign its investment adviser consistent with its
provisions of 5 U.S.C. 552, will be investment objectives and policies. In contrast, an
available for Web site viewing and High Yield Bond ETF and the Cambria open-end investment company that issues
printing in the Commission’s Public Value and Momentum ETF under NYSE Investment Company Units, listed and traded on
Arca Equities Rule 8.600 (‘‘Managed the Exchange under NYSE Arca Equities Rule
Reference Room, 100 F Street NE., 5.2(j)(3), seeks to provide investment results that
Washington, DC 20549–1090 on official Fund Shares’’). The text of the proposed correspond generally to the price and yield
business days between the hours of rule change is available on the performance of a specific foreign or domestic stock
Exchange’s Web site at www.nyse.com, index, fixed income securities index or combination
10:00 a.m. and 3:00 p.m. Copies of the thereof.
filing will also be available for at the principal office of the Exchange, 5 The Commission has previously approved
inspection and copying at the principal and at the Commission’s Public listing and trading on the Exchange of a number of
office of the Exchange. All comments Reference Room. actively managed funds under Rule 8.600. See, e.g.,
Securities Exchange Act Release Nos. 71999 (April
received will be posted without change; II. Self-Regulatory Organization’s 23, 2014), 79 FR 24040 (April 29, 2014) (SR–
the Commission does not edit personal Statement of the Purpose of, and NYSEArca–2014–19) (order approving Exchange
listing and trading of shares of four actively-
identifying information from Statutory Basis for, the Proposed Rule managed asset allocation funds of iShares U.S. ETF
submissions. You should submit only Change Trust); 57801 (May 8, 2008), 73 FR 27878 (May 14,
information that you wish to make 2008) (SR–NYSEArca–2008–31) (order approving
In its filing with the Commission, the Exchange listing and trading of shares of twelve
available publicly. All submissions actively-managed funds of the WisdomTree Trust);
should refer to File Number SR–ISE– self-regulatory organization included 73004 (September 5, 2014), 79 FR 54333 (September
2015–21 and should be submitted on or statements concerning the purpose of, 11, 2014) (SR–NYSEArca–2014–76) (order
before July 22, 2015. and basis for, the proposed rule change approving Exchange listing and trading of Shares of
the Cambria Global Momentum ETF).
and discussed any comments it received
For the Commission, by the Division of 6 The Trust will be registered under the 1940 Act.
on the proposed rule change. The text On August 27, 2014, the Trust filed an amendment
Trading and Markets, pursuant to delegated
authority.13
of those statements may be examined at to the Trust’s registration statement on Form N–1A
the places specified in Item IV below. under the Securities Act of 1933 (the ‘‘1933 Act’’)
Robert W. Errett,
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(15 U.S.C. 77a), and under the 1940 Act relating to
The Exchange has prepared summaries, the Funds (File Nos. 333–180879 and 811–22704)
Deputy Secretary. set forth in sections A, B, and C below, (the ‘‘Registration Statement’’). The description of
[FR Doc. 2015–16270 Filed 7–1–15; 8:45 am] of the most significant parts of such the operation of the Trust and the Funds herein is
based, in part, on the Registration Statement. In
BILLING CODE 8011–01–P statements. addition, the Commission has issued an order
granting certain exemptive relief to the Trust under
1 15
the 1940 Act. See Investment Company Act Release
U.S.C. 78s(b)(1).
No. 30340 (January 4, 2013) (‘‘Exemptive Order’’).
2 15 U.S.C. 78a. Investments made by the Funds will comply with
13 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. the conditions set forth in the Exemptive Order.
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Document Created: 2015-12-15 13:15:19
Document Modified: 2015-12-15 13:15:19
| 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 38251 |
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