80 FR 41541 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .06 to Rule 6.8 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)
Federal Register Volume 80, Issue 135 (July 15, 2015)
| Page Range | 41541-41543 | |
| FR Document | 2015-17303 |
[Federal Register Volume 80, Number 135 (Wednesday, July 15, 2015)] [Notices] [Pages 41541-41543] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17303] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75415; File No. SR-NYSEArca-2015-61] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .06 to Rule 6.8 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 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of the Substance of the Proposed Rule Change The Exchange proposes to amend Commentary .06 to Rule 6.8 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 [[Page 41542]] 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 .06 to Rule 6.8 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. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 68001 (October 5, 2012), 77 FR 62303 (October 12, 2012). The SPY Pilot Program was subsequently extended. See Securities Exchange Act Release Nos. 70968 (December 3, 2013), 78 FR 73899 (December 9, 2013); and 74029 (January 9, 2015), 80 FR 2161 (January 15, 2015) (the ``January 2015 Extension''). --------------------------------------------------------------------------- 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 January 2015 Extension, the Exchange submitted a report providing an analysis of the SPY Pilot Program covering prior ten (10) months from January 2014 to October 2014 during which the SPY Pilot Program was in effect (the ``Pilot Report''). In the January 2015 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 participants, including market makers, institutional investors and retail investors, to establish greater positions when pursuing their investment goals and needs. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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 [[Page 41543]] the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2015-61 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-NYSEArca-2015-61. 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-NYSEArca-2015-61, 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\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-17303 Filed 7-14-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Notices 41541
C. Self-Regulatory Organization’s the purposes of the Act. If the For the Commission, by the Division of
Statement on Comments on the Commission takes such action, the Trading and Markets, pursuant to delegated
Proposed Rule Change Received From Commission shall institute proceedings authority.10
Members, Participants, or Others to determine whether the proposed rule Brent J. Fields,
The Exchange has neither solicited should be approved or disapproved. Secretary.
nor received comments on the proposed [FR Doc. 2015–17298 Filed 7–14–15; 8:45 am]
IV. Solicitation of Comments
rule change. BILLING CODE 8011–01–P
Interested persons are invited to
III. Date of Effectiveness of the submit written data, views, and
Proposed Rule Change and Timing for arguments concerning the foregoing, SECURITIES AND EXCHANGE
Commission Action including whether the proposed rule COMMISSION
Because the foregoing proposed rule change is consistent with the Act. [Release No. 34–75415; File No. SR–
change does not: (i) Significantly affect Comments may be submitted by any of NYSEArca–2015–61]
the protection of investors or the public the following methods:
interest; (ii) impose any significant Self-Regulatory Organizations; NYSE
burden on competition; and (iii) become Electronic Comments
Arca, Inc.; Notice of Filing and
operative for 30 days from the date on • Use the Commission’s Internet Immediate Effectiveness of Proposed
which it was filed, or such shorter time comment form (http://www.sec.gov/ Rule Change Amending Commentary
as the Commission may designate, it has rules/sro.shtml); or .06 to Rule 6.8 To Extend the Pilot
become effective pursuant to Section Program That Eliminated the Position
• Send an email to rule-comments@
19(b)(3)(A) of the Act and Rule 19b– Limits for Options on SPDR S&P 500
sec.gov. Please include File Number SR–
4(f)(6) thereunder.6 ETF
A proposed rule change filed BOX–2015–25 on the subject line.
pursuant to Rule 19b–4(f)(6) under the Paper Comments July 9, 2015.
Act 7 normally does not become Pursuant to Section 19(b)(1) 1 of the
operative for 30 days after the date of its • Send paper comments in triplicate Securities Exchange Act of 1934 (the
filing. However, Rule 19b–4(f)(6)(iii) 8 to Brent J. Fields, Secretary, Securities ‘‘Act’’),2 and Rule 19b–4 thereunder,3
permits the Commission to designate a and Exchange Commission, 100 F Street notice is hereby given that on July 8,
shorter time if such action is consistent NE., Washington, DC 20549–1090. 2015, NYSE Arca, Inc. (the ‘‘Exchange’’
with the protection of investors and the All submissions should refer to File or ‘‘NYSE Arca’’) filed with the
public interest. The Exchange has asked Number SR–BOX–2015–25. This file Securities and Exchange Commission
the Commission to waive the 30-day number should be included on the (the ‘‘Commission’’) the proposed rule
operative delay so that the proposal may subject line if email is used. To help the change as described in Items I and II
become operative immediately upon Commission process and review your below, which Items have been prepared
filing. The Exchange believes that comments more efficiently, please use by the self-regulatory organization. The
waiver of the operative delay is only one method. The Commission will Commission is publishing this notice to
consistent with the protection of post all comments on the Commission’s solicit comments on the proposed rule
investors and the public interest Internet Web site (http://www.sec.gov/ change from interested persons.
because it will allow the SPY Pilot rules/sro.shtml). Copies of the
Program to continue without I. Self-Regulatory Organization’s
submission, all subsequent Statement of the Terms of the Substance
interruption. The Commission believes amendments, all written statements
that waiving the 30-day operative delay of the Proposed Rule Change
with respect to the proposed rule
is consistent with the protection of change that are filed with the The Exchange proposes to amend
investors and the public interest. Commission, and all written Commentary .06 to Rule 6.8 to extend
Therefore, the Commission hereby communications relating to the the pilot program that eliminated the
waives the operative delay and proposed rule change between the position limits for options on SPDR S&P
designates the proposed rule change Commission and any person, other than 500 ETF (‘‘SPY’’) (‘‘SPY Pilot Program’’).
operative upon filing.9 those that may be withheld from the The text of the proposed rule change is
At any time within 60 days of the public in accordance with the available on the Exchange’s Web site at
filing of the proposed rule change, the provisions of 5 U.S.C. 552, will be www.nyse.com, at the principal office of
Commission summarily may available for Web site viewing and the Exchange, and at the Commission’s
temporarily suspend such rule change if printing in the Commission’s Public Public Reference Room.
it appears to the Commission that such Reference Room, 100 F Street NE.,
action is necessary or appropriate in the II. Self-Regulatory Organization’s
Washington, DC 20549 on official Statement of the Purpose of, and
public interest, for the protection of business days between the hours of
investors, or otherwise in furtherance of Statutory Basis for, the Proposed Rule
10:00 a.m. and 3:00 p.m. Copies of such Change
filing also will be available for
6 17 CFR 240.19b–4(f)(6). As required under Rule
inspection and copying at the principal In its filing with the Commission, the
19b–4(f)(6)(iii), the Exchange provided the self-regulatory organization included
Commission with written notice of its intent to file office of the Exchange. All comments
the proposed rule change, along with a brief received will be posted without change; statements concerning the purpose of,
description and the text of the proposed rule the Commission does not edit personal and basis for, the proposed rule change
mstockstill on DSK4VPTVN1PROD with NOTICES
change, at least five business days prior to the date
identifying information from and discussed any comments it received
of filing of the proposed rule change, or such on the proposed rule change. The text
shorter time as designated by the Commission. submissions. You should submit only
7 17 CFR 240.19b–4(f)(6). information that you wish to make of those statements may be examined at
8 17 CFR 240.19b–4(f)(6)(iii).
available publicly. All submissions 10 17
9 For purposes only of waiving the 30-day CFR 200.30–3(a)(12).
should refer to File Number SR–BOX– 1 15 U.S.C. 78s(b)(1).
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
2015–25, and should be submitted on or 2 15 U.S.C. 78a.
and capital formation. See 15 U.S.C. 78c(f). before August 5, 2015. 3 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Notices 41543
the purposes of the Act. If the For the Commission, by the Division of The self-regulatory organization has
Commission takes such action, the Trading and Markets, pursuant to delegated prepared summaries, set forth in
Commission shall institute proceedings authority.11 sections A, B and C below, of the most
to determine whether the proposed rule Brent J. Fields, significant aspects of such statements.
should be approved or disapproved. Secretary.
A. Self-Regulatory Organization’s
[FR Doc. 2015–17303 Filed 7–14–15; 8:45 am]
IV. Solicitation of Comments Statement of the Purpose of, and
BILLING CODE 8011–01–P
Statutory Basis for, the Proposed Rule
Interested persons are invited to Change
submit written data, views, and
arguments concerning the foregoing, SECURITIES AND EXCHANGE 1. Purpose
including whether the proposed rule COMMISSION The Exchange proposes to amend
change is consistent with the Act. [Release No. 34–75411; File No. SR–ISE– Supplementary Material .01 to Rule 412
Comments may be submitted by any of 2015–22] and Supplementary Material .01 to Rule
the following methods: 414 to extend the duration of the SPY
Self-Regulatory Organizations; Pilot Program through July 12, 2016.
Electronic Comments
International Securities Exchange, This filing does not propose any
• Use the Commission’s Internet LLC; Notice of Filing and Immediate substantive changes to the SPY Pilot
comment form (http://www.sec.gov/ Effectiveness of Proposed Rule Program. In proposing to extend the
rules/sro.shtml); or Change To Extend the SPY Pilot SPY Pilot Program, the Exchange
• Send an email to rule-comments@ Program reaffirms its consideration of several
sec.gov. Please include File Number SR– July 9, 2015. factors that supported the original
NYSEArca–2015–61 on the subject line. Pursuant to Section 19(b)(1) of the proposal of the SPY Pilot Program,
Securities Exchange Act of 1934 (the including (1) the liquidity of the option
Paper Comments and the underlying security, (2) the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
• Send paper comments in triplicate notice is hereby given that on July 6, market capitalization of the underlying
to Brent J. Fields, Secretary, Securities 2015, the International Securities security and the related index, (3) the
and Exchange Commission, 100 F Street Exchange, LLC (the ‘‘Exchange’’ or the reporting of large positions and
NE., Washington, DC 20549–1090. ‘‘ISE’’) filed with the Securities and requirements surrounding margin, and
Exchange Commission (‘‘Commission’’) (4) financial requirements imposed by
All submissions should refer to File ISE and the Commission.
Number SR–NYSEArca–2015–61. This the proposed rule change as described
With this proposed extension to the
file number should be included on the in Items I and II below, which Items
SPY Pilot Program, the Exchange has
subject line if email is used. To help the have been prepared by the self-
submitted a report to the Commission
Commission process and review your regulatory organization. The
reflecting the trading of standardized
comments more efficiently, please use Commission is publishing this notice to
SPY options without position limits
only one method. The Commission will solicit comments on the proposed rule
from January through May 2015. The
post all comments on the Commission’s change from interested persons.
report was prepared in the manner
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s specified in the filing extending the SPY
rules/sro.shtml). Copies of the Statement of the Terms of the Substance Pilot Program to the current pilot end
submission, all subsequent of the Proposed Rule Change date of July 12, 2015. The Exchange
amendments, all written statements notes that it is unaware of any problems
with respect to the proposed rule The ISE proposes to amend its rules
to extend the pilot program that created by the SPY Pilot Program and
change that are filed with the does not foresee any as a result of the
Commission, and all written eliminated position and exercise limits
for physically-settled options on the proposed extension. The proposed
communications relating to the extension will allow the Exchange and
proposed rule change between the SPDR S&P ETF Trust (‘‘SPY’’) (‘‘SPY
Pilot Program’’). The text of the the Commission to further evaluate the
Commission and any person, other than SPY Pilot Program and the effect it has
those that may be withheld from the proposed rule change is available on the
Exchange’s Web site (http:// on the market.
public in accordance with the The Exchange represents that, should
provisions of 5 U.S.C. 552, will be www.ise.com), at the principal office of
the Exchange, and at the Commission’s the Exchange propose to extend the
available for Web site viewing and pilot program, adopt on a permanent
printing in the Commission’s Public Public Reference Room.
basis the pilot program or terminate the
Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s pilot program, it will submit a new pilot
Washington, DC 20549 on official Statement of the Purpose of, and report at least thirty (30) days before the
business days between the hours of Statutory Basis for, the Proposed Rule end of the extended SPY Pilot Program,
10:00 a.m. and 3:00 p.m. Copies of such Change which will cover the extended pilot
filing also will be available for period. The Pilot Report will detail the
In its filing with the Commission, the
inspection and copying at the principal size and different types of strategies
self-regulatory organization included
office of the Exchange. All comments employed with respect to positions
statements concerning the purpose of,
received will be posted without change; established as a result of the elimination
and basis for, the proposed rule change
the Commission does not edit personal
mstockstill on DSK4VPTVN1PROD with NOTICES
and discussed any comments it received of position limits in SPY. In addition,
identifying information from the Pilot Report will note whether any
on the proposed rule change. The text
submissions. You should submit only problems resulted due to the no limit
of these statements may be examined at
information that you wish to make approach and any other information that
the places specified in Item IV below.
available publicly. All submissions may be useful in evaluating the
should refer to File Number SR– 11 17 CFR 200.30–3(a)(12). effectiveness of the SPY Pilot Program.
NYSEArca–2015–61, and should be 1 15 U.S.C. 78s(b)(1). The Pilot Report will compare the
submitted on or before August 5, 2015. 2 17 CFR 240.19b–4. impact of the SPY Pilot Program, if any,
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Document Created: 2015-12-15 13:32:57
Document Modified: 2015-12-15 13:32:57
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 41541 |
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