80 FR 41543 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the SPY Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 135 (July 15, 2015)
Federal Register Volume 80, Issue 135 (July 15, 2015)
| Page Range | 41543-41545 | |
| FR Document | 2015-17299 |
[Federal Register Volume 80, Number 135 (Wednesday, July 15, 2015)] [Notices] [Pages 41543-41545] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17299] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75411; File No. SR-ISE-2015-22] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the SPY Pilot Program July 9, 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 July 6, 2015, the International Securities Exchange, LLC (the ``Exchange'' or the ``ISE'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the 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 the Substance of the Proposed Rule Change The ISE proposes to amend its rules to extend the pilot program that eliminated position and exercise limits for physically-settled options on the SPDR S&P ETF Trust (``SPY'') (``SPY Pilot Program''). The text of the proposed rule change is available on the Exchange's Web site (http://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. 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 The Exchange proposes to amend Supplementary Material .01 to Rule 412 and Supplementary Material .01 to Rule 414 to extend the duration of the SPY Pilot Program through July 12, 2016. 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 liquidity of the option and the underlying security, (2) the market capitalization of the underlying security and the related index, (3) the reporting of large positions and requirements surrounding margin, and (4) financial requirements imposed by ISE and the Commission. With this proposed extension to the SPY Pilot Program, the Exchange has submitted a report to the Commission reflecting the trading of standardized SPY options without position limits from January through May 2015. The report was prepared in the manner specified in the filing extending the SPY Pilot Program to the current pilot end date of July 12, 2015. 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. The proposed extension will allow the Exchange and the Commission to further evaluate the SPY Pilot Program and the effect it has on the market. The Exchange represents that, should the Exchange propose to extend the pilot program, adopt on a permanent basis the pilot program or terminate the pilot program, it will submit a new pilot report at least thirty (30) days before the end of the extended SPY Pilot Program, which will cover the extended pilot period. The Pilot Report will detail the size and different types of strategies employed with respect to positions established as a result of the elimination of position limits in SPY. In addition, the Pilot Report will note whether any problems resulted due to the no limit approach and any other information that may be useful in evaluating the effectiveness of the SPY Pilot Program. The Pilot Report will compare the impact of the SPY Pilot Program, if any, [[Page 41544]] on the volumes of SPY options and the volatility in the price of the underlying SPY shares, particularly at expiration. In preparing the report the Exchange will utilize various data elements such as volume and open interest. In addition the Exchange will make available to Commission staff data elements relating to the effectiveness of the SPY Pilot Program. Conditional on the findings in the Pilot Report, the Exchange will file with the Commission a proposal to extend the pilot program, adopt the pilot program on a permanent basis or terminate the pilot. If the SPY Pilot Program is not extended or adopted on a permanent basis by the expiration of the extended pilot, the position limits for SPY would revert to limits that were in effect prior to the commencement of the SPY Pilot Program. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\3\ In particular, the proposal is consistent with Section 6(b)(5) of the Act,\4\ because it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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. The Exchange also believes that economically equivalent products should be treated in an equivalent manner so as to avoid regulatory arbitrage, especially with respect to position limits. Treating SPY and SPX options differently by virtue of imposing different position limits is inconsistent with the notion of promoting just and equitable principles of trade and removing impediments to perfect the mechanisms of a free and open market. At the same time, the Exchange believes that the elimination of position limits for SPY options would not increase market volatility or facilitate the ability to manipulate the market. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange believes the proposal is consistent with Section 6(b)(8) of the Act \5\ in that it does not impose any burden on competition that is 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 as all other self-regulatory organizations currently participating in the SPY Pilot Program are expected to extend it for an additional year. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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 unsolicited written comments from members or other interested parties. 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.\6\ --------------------------------------------------------------------------- \6\ 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 \7\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \8\ 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. 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 uninterrupted. 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.\9\ --------------------------------------------------------------------------- \7\ 17 CFR 240.19b-4(f)(6). \8\ 17 CFR 240.19b-4(f)(6)(iii). \9\ 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 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-ISE-2015-22 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-ISE-2015-22. 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 [[Page 41545]] 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-ISE-2015-22, and should be submitted on or before August 5, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-17299 Filed 7-14-15; 8:45 am] BILLING CODE 8011-01-P
![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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![Federal Register / Vol. 80, No. 135 / Wednesday, July 15, 2015 / Notices 41545
Commission and any person, other than on or about October 10, 2015, until on allocate the in-quota quantity of a TRQ
those that may be withheld from the or about January 10, 2016, and at for any agricultural product among
public in accordance with the possible additional exhibitions or supplying countries or customs areas.
provisions of 5 U.S.C. 552, will be venues yet to be determined, is in the The President delegated this authority
available for Web site viewing and national interest. I have ordered that to the United States Trade
printing in the Commission’s Public Public Notice of these Determinations Representative under Presidential
Reference Room, 100 F Street NE., be published in the Federal Register. Proclamation 6763 (60 FR 1007).
Washington, DC 20549 on official FOR FURTHER INFORMATION CONTACT: For On June 15, 2015 (80 FR 34129), the
business days between the hours of further information, including a list of Secretary of Agriculture (Secretary)
10:00 a.m. and 3:00 p.m. Copies of such the imported objects, contact the Office announced the sugar program
filing also will be available for of Public Diplomacy and Public Affairs provisions for Fiscal Year (FY) 2016.
inspection and copying at the principal in the Office of the Legal Adviser, U.S. The Secretary announced an in-quota
office of the Exchange. All comments Department of State (telephone: 202– quantity of the TRQ for raw cane sugar
received will be posted without change; 632–6471; email: section2459@ for FY 2016 of 1,117,195 metric tons *
the Commission does not edit personal state.gov). The mailing address is U.S. raw value (MTRV), which is the
identifying information from Department of State, L/PD, SA–5, Suite minimum amount to which the United
submissions. You should submit only 5H03, Washington, DC 20522–0505. States is committed under the World
information that you wish to make Trade Organization (WTO) Uruguay
Dated: July 2, 2015.
available publicly. All submissions Round Agreements. USTR is allocating
Kelly Keiderling, this quantity (1,117,195 MTRV) to the
should refer to File Number SR–ISE–
2015–22, and should be submitted on or Principal Deputy Assistant Secretary, Bureau following countries in the amounts
of Educational and Cultural Affairs, specified below:
before August 5, 2015. Department of State.
For the Commission, by the Division of [FR Doc. 2015–17366 Filed 7–14–15; 8:45 am]
Trading and Markets, pursuant to delegated FY 2016
BILLING CODE 4710–05–P raw cane
authority.10 Country sugar
Brent J. Fields, allocations
Secretary. (MTRV)
OFFICE OF THE UNITED STATES
[FR Doc. 2015–17299 Filed 7–14–15; 8:45 am]
TRADE REPRESENTATIVE Argentina .............................. 45,281
BILLING CODE 8011–01–P Australia ................................ 87,402
Fiscal Year 2016 Tariff-Rate Quota Barbados .............................. 7,371
Allocations for Raw Cane Sugar, Belize .................................... 11,584
DEPARTMENT OF STATE Refined and Specialty Sugar and Bolivia ................................... 8,424
Brazil ..................................... 152,691
[Public Notice: 9191]
Sugar-Containing Products
Colombia ............................... 25,273
AGENCY: Office of Agricultural Affairs, Congo ................................... 7,258
Culturally Significant Objects Imported Office of the United States Trade Costa Rica ............................ 15,796
for Exhibition Determinations: Cote d’Ivoire ......................... 7,258
Representative.
‘‘Gauguin to Picasso: Masterworks Dominican Republic .............. 185,335
ACTION: Notice. Ecuador ................................ 11,584
From Switzerland, The Staechelin & Im
El Salvador ........................... 27,379
Obersteg Collections’’ Exhibition SUMMARY: The Office of the United Fiji ......................................... 9,477
SUMMARY: Notice is hereby given of the States Trade Representative (USTR) is Gabon ................................... 7,258
following Determinations: Pursuant to providing notice of country-by-country Guatemala ............................ 50,546
the authority vested in me by the Act of allocations of the Fiscal Year (FY) 2016 Guyana ................................. 12,636
(Oct. 1, 2015 through Sept. 30, 2016) in- Haiti ....................................... 7,258
October 19, 1965 (79 Stat. 985; 22 U.S.C. Honduras .............................. 10,530
2459), Executive Order 12047 of March quota quantity of the tariff-rate quotas
for imported raw cane sugar, certain India ...................................... 8,424
27, 1978, the Foreign Affairs Reform and Jamaica ................................ 11,584
Restructuring Act of 1998 (112 Stat. sugars, syrups and molasses (also Madagascar .......................... 7,258
2681, et seq.; 22 U.S.C. 6501 note, et known as refined sugar), specialty sugar, Malawi ................................... 10,530
seq.), Delegation of Authority No. 234 of and sugar-containing products. Mauritius ............................... 12,636
October 1, 1999, Delegation of Authority DATES: Effective date: July 15, 2015. Mexico .................................. 7,258
FOR FURTHER INFORMATION CONTACT: Mozambique ......................... 13,690
No. 236–3 of August 28, 2000 (and, as
Nicaragua ............................. 22,114
appropriate, Delegation of Authority No. Ronald Baumgarten, Office of
Panama ................................ 30,538
257 of April 15, 2003), I hereby Agricultural Affairs, telephone: 202– Papua New Guinea .............. 7,258
determine that the objects to be 395–9583 or facsimile: 202–395–4579. Paraguay .............................. 7,258
included in the exhibition ‘‘Gauguin to SUPPLEMENTARY INFORMATION: Pursuant Peru ...................................... 43,175
Picasso: Masterworks from Switzerland, to Additional U.S. Note 5 to chapter 17 Philippines ............................ 142,160
The Staechelin & Im Obersteg of the Harmonized Tariff Schedule of South Africa .......................... 24,220
Collections,’’ imported from abroad for the United States (HTS), the United St. Kitts & Nevis ................... 7,258
Swaziland ............................. 16,849
temporary exhibition within the United States maintains tariff-rate quotas
Taiwan .................................. 12,636
States, are of cultural significance. The (TRQs) for imports of raw cane sugar Thailand ................................ 14,743
mstockstill on DSK4VPTVN1PROD with NOTICES
objects are imported pursuant to a loan and refined sugar. Pursuant to Trinidad & Tobago ................ 7,371
agreement with the foreign owners or Additional U.S. Note 8 to chapter 17 of Uruguay ................................ 7,258
custodians. I also determine that the the HTS, the United States maintains a Zimbabwe ............................. 12,636
exhibition or display of the exhibit TRQ for imports of sugar-containing
objects at The Phillips Collection, products. These allocations are based on the
Washington, District of Columbia, from Section 404(d)(3) of the Uruguay countries’ historical shipments to the
Round Agreements Act (19 U.S.C. United States. The allocations of the in-
10 17 CFR 200.30–3(a)(12). 3601(d)(3)) authorizes the President to quota quantities of the raw cane sugar
VerDate Sep<11>2014 18:52 Jul 14, 2015 Jkt 235001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\15JYN1.SGM 15JYN1](https://thefederalregister.org/doc/80_FR_41678/page/3.svg)
Document Created: 2015-12-15 13:32:20
Document Modified: 2015-12-15 13:32:20
| 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 41543 |
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