80 FR 41521 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .07 to Rule 904 To Extend the Pilot Program That Eliminated the Position Limits for Options on SPDR S&P 500 ETF

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 135 (July 15, 2015)

Page Range		41521-41522
FR Document		2015-17304

Federal Register, Volume 80 Issue 135 (Wednesday, July 15, 2015)

[Federal Register Volume 80, Number 135 (Wednesday, July 15, 2015)]
[Notices]
[Pages 41521-41522]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-17304]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75416; File No. SR-NYSEMKT-2015-49]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending Commentary .07
to Rule 904 To Extend the Pilot Program That Eliminated the Position
Limits for Options on SPDR S&P 500 ETF

July 9, 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 July 8, 2015, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') 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 the
Substance of the Proposed Rule Change

The Exchange proposes to amend Commentary .07 to Rule 904 to extend
the pilot program that eliminated the position limits for options on
SPDR S&P 500 ETF (``SPY'') (``SPY Pilot Program''). 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
Statutory Basis for, the Proposed Rule Change

1. Purpose
The Exchange proposes to amend Commentary .07 to Rule 904 to extend
the time period of the SPY Pilot Program,\4\ which is currently
scheduled to expire on July 12, 2015, through July 12, 2016.
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\4\ See Securities Exchange Act Release No. 67672 (August 15,
2012), 77 FR 50750 (August 22, 2012). The SPY Pilot Program was
subsequently extended. See Securities Exchange Release Nos. 70734
(October 22, 2013), 78 FR 64255 (October 28, 2013); and 73847
(December 16, 2014), 79 FR 76426 (December 22, 2014) (the ``December
2014 Extension'').
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This filing does not propose any substantive changes to the SPY
Pilot Program. In proposing to extend the SPY Pilot Program, the
Exchange reaffirms its consideration of several factors that supported
the original proposal of the SPY Pilot Program, including (1) the
availability of economically equivalent products and their respective
position limits, (2) the liquidity of the option and the underlying
security, (3) the market capitalization of the underlying security and
the related index, (4) the reporting of large positions and
requirements surrounding margin, and (5) the potential for market on
close volatility.
As part of the December 2014 Extension, the Exchange submitted a
report providing an analysis of the SPY Pilot Program covering the
prior ten (10) months from January 2014 to October 2014 during which
the SPY Pilot Program was in effect (the ``Pilot Report''). In the
December 2014 Extension, the Exchange also stated that if it were to
propose an extension, permanent approval or termination of the program,
the Exchange would submit, along with any filing proposing such
amendments to the program, another Pilot Report covering the period
since the previous extension. Accordingly, the Exchange is submitting
another Pilot Report detailing the Exchange's experience with the SPY
Pilot Program for the period covering six (6) months from November 2014
to April 2015. The Pilot Report is attached as Exhibit 3 to this
filing. The Exchange notes that it is unaware of any problems created
by the SPY Pilot Program and does not foresee any as a result of the
proposed extension. In extending the SPY Pilot Program, the Exchange
states that if it were to propose another extension, permanent approval
or termination of the program, the Exchange would submit another Pilot
Report covering the period since the previous extension, which would be
submitted at least 30 days before the end of the proposed extension. If
the SPY Pilot Program is not extended or adopted on a permanent basis
by July 12, 2016, the position limits for SPY would revert to limits in
effect at the commencement of the pilot program. The proposed extension
will allow the Exchange and the Commission additional time to further
evaluate the SPY Pilot Program and its effect on the market.
2. Statutory Basis
The Exchange believes that its proposal 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 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. The Exchange
believes that extending the SPY Pilot Program promotes just and
equitable principles of trade by permitting market

[[Page 41522]]

participants, including market makers, institutional investors and
retail investors, to establish greater positions when pursuing their
investment goals and needs.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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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 not necessary or appropriate in
furtherance of the purposes of the Act. The proposed rule change is not
designed to address any aspect of competition, whether between the
Exchange and its competitors, or among market participants. Instead,
the proposed rule change is designed to allow the SPY Pilot Program to
continue uninterrupted. Additionally, the Exchange expects all other
SROs that currently have rules regarding the SPY Pilot Program to also
extend the pilot program for an additional year.

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

Because the foregoing 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\7\
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\7\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \8\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ permits the
Commission to 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 Exchange
believes that waiver of the operative delay is consistent with the
protection of investors and the public interest because it will allow
the SPY Pilot Program to continue without interruption. The Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. Therefore, the
Commission hereby waives the operative delay and designates the
proposed rule change operative upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 rule-comments@sec.gov. Please include
File Number SR-NYSEMKT-2015-49 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-NYSEMKT-2015-49. 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-NYSEMKT-2015-49, and should
be submitted on or before August 5, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-17304 Filed 7-14-15; 8:45 am]
BILLING CODE 8011-01-P

41522 Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Notices

participants, including market makers, filing. The Exchange believes that Commission, and all written
institutional investors and retail waiver of the operative delay is communications relating to the
investors, to establish greater positions consistent with the protection of proposed rule change between the
when pursuing their investment goals investors and the public interest Commission and any person, other than
and needs. because it will allow the SPY Pilot those that may be withheld from the
Program to continue without public in accordance with the
B. Self-Regulatory Organization’s
interruption. The Commission believes provisions of 5 U.S.C. 552, will be
Statement on Burden on Competition
that waiving the 30-day operative delay available for Web site viewing and
The Exchange does not believe that is consistent with the protection of printing in the Commission’s Public
the proposed rule change will impose investors and the public interest. Reference Room, 100 F Street NE.,
any burden on competition not Therefore, the Commission hereby Washington, DC 20549 on official
necessary or appropriate in furtherance waives the operative delay and business days between the hours of
of the purposes of the Act. The designates the proposed rule change 10:00 a.m. and 3:00 p.m. Copies of such
proposed rule change is not designed to operative upon filing.10 filing also will be available for
address any aspect of competition, At any time within 60 days of the inspection and copying at the principal
whether between the Exchange and its filing of the proposed rule change, the office of the Exchange. All comments
competitors, or among market Commission summarily may received will be posted without change;
participants. Instead, the proposed rule temporarily suspend such rule change if the Commission does not edit personal
change is designed to allow the SPY it appears to the Commission that such identifying information from
Pilot Program to continue action is necessary or appropriate in the submissions. You should submit only
uninterrupted. Additionally, the public interest, for the protection of information that you wish to make
Exchange expects all other SROs that investors, or otherwise in furtherance of available publicly. All submissions
currently have rules regarding the SPY the purposes of the Act. If the should refer to File Number SR–
Pilot Program to also extend the pilot Commission takes such action, the NYSEMKT–2015–49, and should be
program for an additional year. Commission shall institute proceedings submitted on or before August 5, 2015.
C. Self-Regulatory Organization’s to determine whether the proposed rule For the Commission, by the Division of
Statement on Comments on the should be approved or disapproved. Trading and Markets, pursuant to delegated
Proposed Rule Change Received From authority.11
IV. Solicitation of Comments Brent J. Fields,
Members, Participants, or Others
Interested persons are invited to Secretary.
No written comments were solicited
submit written data, views, and [FR Doc. 2015–17304 Filed 7–14–15; 8:45 am]
or received with respect to the proposed
rule change. arguments concerning the foregoing, BILLING CODE 8011–01–P
including whether the proposed rule
III. Date of Effectiveness of the change is consistent with the Act.
Proposed Rule Change and Timing for Comments may be submitted by any of SECURITIES AND EXCHANGE
Commission Action the following methods: COMMISSION
Because the foregoing proposed rule Electronic Comments [Release No. 34–75406; File No. SR–BATS–
change does not: (i) Significantly affect 2015–48]
the protection of investors or the public • Use the Commission’s Internet
interest; (ii) impose any significant comment form (http://www.sec.gov/ Self-Regulatory Organizations; BATS
burden on competition; and (iii) become rules/sro.shtml); or Exchange, Inc.; Notice of Filing and
operative for 30 days from the date on • Send an email to rule-comments@ Immediate Effectiveness of a Proposed
which it was filed, or such shorter time sec.gov. Please include File Number SR– Rule Change To Amend the Market
as the Commission may designate, it has NYSEMKT–2015–49 on the subject line. Data Section of Its Fee Schedule
become effective pursuant to Section Paper Comments
19(b)(3)(A) of the Act and Rule 19b– July 9, 2015.
4(f)(6) thereunder.7 • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
A proposed rule change filed to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934 (the
pursuant to Rule 19b–4(f)(6) under the and Exchange Commission, 100 F Street ‘‘Act’’),1 and Rule 19b–4 thereunder,2
Act 8 normally does not become NE., Washington, DC 20549–1090. notice is hereby given that on July 1,
operative for 30 days after the date of its All submissions should refer to File 2015, BATS Exchange, Inc. (the
filing. However, Rule 19b–4(f)(6)(iii) 9 Number SR–NYSEMKT–2015–49. This ‘‘Exchange’’ or ‘‘BATS’’) filed with the
permits the Commission to designate a file number should be included on the Securities and Exchange Commission
shorter time if such action is consistent subject line if email is used. To help the (‘‘Commission’’) the proposed rule
with the protection of investors and the Commission process and review your change as described in Items I, II, and
public interest. The Exchange has asked comments more efficiently, please use III below, which Items have been
the Commission to waive the 30-day only one method. The Commission will prepared by the Exchange. The
operative delay so that the proposal may post all comments on the Commission’s Exchange has designated the proposed
become operative immediately upon Internet Web site (http://www.sec.gov/ rule change as one establishing or
rules/sro.shtml). Copies of the changing a member due, fee, or other
7 17 CFR 240.19b–4(f)(6). As required under Rule
submission, all subsequent charge imposed by the Exchange under
mstockstill on DSK4VPTVN1PROD with NOTICES

19b–4(f)(6)(iii), the Exchange provided the amendments, all written statements Section 19(b)(3)(A)(ii) of the Act 3 and
Commission with written notice of its intent to file Rule 19b–4(f)(2) thereunder,4 which
the proposed rule change, along with a brief with respect to the proposed rule
description and the text of the proposed rule change that are filed with the
11 17 CFR 200.30–3(a)(12).
change, at least five business days prior to the date
1 15 U.S.C. 78s(b)(1).
of filing of the proposed rule change, or such 10 For
purposes only of waiving the 30-day
shorter time as designated by the Commission. operative delay, the Commission has considered the
2 17 CFR 240.19b–4.
8 17 CFR 240.19b–4(f)(6). 3 15 U.S.C. 78s(b)(3)(A)(ii).
proposed rule’s impact on efficiency, competition,
9 17 CFR 240.19b–4(f)(6)(iii). and capital formation. See 15 U.S.C. 78c(f). 4 17 CFR 240.19b–4(f)(2).

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Document Created: 2015-12-15 13:32:56
Document Modified: 2015-12-15 13:32:56

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 41521