80 FR 42579 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Allowing the Listing of Options Overlying Portfolio Depositary Receipts and Index Fund Shares That Are Listed Pursuant to Generic Listing Standards on Equities Exchanges for Series of ETFs Based on International or Global Indexes Under Which a Comprehensive Surveillance Sharing Agreement Is Not Required
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 137 (July 17, 2015)
Federal Register Volume 80, Issue 137 (July 17, 2015)
| Page Range | 42579-42582 | |
| FR Document | 2015-17495 |
[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)] [Notices] [Pages 42579-42582] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17495] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75441; File No. SR-NYSEMKT-2015-47] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Allowing the Listing of Options Overlying Portfolio Depositary Receipts and Index Fund Shares That Are Listed Pursuant to Generic Listing Standards on Equities Exchanges for Series of ETFs Based on International or Global Indexes Under Which a Comprehensive Surveillance Sharing Agreement Is Not Required July 13, 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 2, 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. --------------------------------------------------------------------------- \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 allow the listing of options overlying portfolio depositary receipts and index fund shares (collectively, ``ETFs'') that are listed pursuant to generic listing standards on equities exchanges for series of ETFs based on international or global indexes under which a comprehensive surveillance sharing agreement is not required. 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 is proposing to amend Commentary .06 to Rule 915 (Criteria for Underlying Securities) to list options overlying ETFs that are listed pursuant to generic listing standards on equities exchanges for series of ETFs based on international or global indexes under which a comprehensive surveillance sharing agreement (``CSSA'' or ``comprehensive surveillance agreement'') is not required.\4\ This proposal will enable the Exchange to list and trade options on ETFs without a CSSA provided that the ETF is listed on an equities exchange pursuant to the [[Page 42580]] generic listing standards that do not require a CSSA pursuant to Rule 19b-4(e) of the Exchange Act.\5\ Rule 19b-4(e) provides that the listing and trading of a new derivative securities product by a self- regulatory organization (``SRO'') shall not be deemed a proposed rule change, pursuant to paragraph (c)(1) of Rule 19b-4, if the Commission has approved, pursuant to Section 19(b) of the Act, the SRO's trading rules, procedures and listing standards for the product class that would include the new derivatives securities product, and the SRO has a surveillance program for the product class.\6\ In other words, this proposal will amend the listing standards to allow the Exchange to list and trade options on ETFs based on international or global indexes to a similar degree that they are allowed to be listed on several equities exchanges.\7\ --------------------------------------------------------------------------- \4\ See, e.g., NYSE Arca Equities Rule 5.2(j)(3), Commentary .01(a)(B); NYSE MKT Rule 1000, Commentary .03(a)(B); NASDAQ Rule 5705(a)(3)(A)(ii); and BATS Rule 14.11(b)(3)(A)(ii). \5\ 17 CFR 240.19b-4(e). \6\ When relying on Rule 19b-4(e), the SRO must submit Form 19b- 4(e) to the Commission within five business days after the SRO begins trading the new derivative securities products. See Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR 70952 (December 22, 1998). \7\ See, e.g., NYSE Arca Equities Rule 5.2(j)(3) Commentary .01(a)(B); NYSE MKT Rule 1000 Commentary .03(a)(B); NASDAQ Rule 5705(a)(3)(A)(ii) and (b)(3)(A)(ii); and BATS Rule 14.11(b)(3)(A)(ii). See also Securities Exchange Act Release Nos. 55621 (April 12, 2007), 72 FR 19571 (April 18, 2007) (SR-NYSEArca- 2006-86); 54739 (November 9, 2006), 71 FR 66993 (SR-Amex-2006-78); 55269 (February 9, 2007), 72 FR 7490 (February 15, 2007) (SR-NASDAQ- 2006-050). --------------------------------------------------------------------------- Exchange-Traded Funds: Current Commentary .06 to Rule 915 Currently, the Exchange allows for the listing and trading of options on ETFs. Commentary .06 to Rule 915 provides the listings standards for options on ETFs, such as ETFs based on international or global indexes.\8\ Commentary .06(b)(i) to Rule 915 requires that any non-U.S. component securities of an index or portfolio of securities on which the Exchange-Traded Fund Shares are based that are not subject to a CSSA do not in the aggregate represent more than 50% of the weight of the index or portfolio. Commentary .06(b)(ii) to Rule 915 requires that any component securities of an index or portfolio of securities on which the Exchange-Traded Fund Shares are based for which the primary market is in any one country that is not subject to a CSSA do not represent 20% or more of the weight of the index. And, Commentary .06(b)(iii) to Rule 915 requires that any component securities of an index or portfolio of securities on which the Exchange-Traded Fund Shares are based for which the primary market is in any two countries that are not subject to a CSSA do not represent 33% or more of the weight of the index. --------------------------------------------------------------------------- \8\ See Commentary .06(b)(i)-(v) to Rule 915, to be re-numbered as proposed Commentary .06(b)(ii)(A)-(E) to Rule 915 as discussed herein. --------------------------------------------------------------------------- Generic Listing Standards for Exchange-Traded Funds The Exchange notes that the Commission has previously approved generic listing standards pursuant to Rule 19b-4(e) of the Exchange Act for ETFs based on indexes that consist of stocks listed on U.S. exchanges.\9\ In general, the criteria for the underlying component securities in the international and global indexes are similar to those for the domestic indexes, but with modifications as appropriate for the issues and risks associated with non-U.S. securities. In addition, the Commission has previously approved the listing and trading of ETFs based on international indexes--those based on non-U.S. component stocks, as well as global indexes--those based on non-U.S. and U.S. component stocks.\10\ --------------------------------------------------------------------------- \9\ See Commentary .03 to Amex Rule 1000 and Commentary .02 to Amex Rule1000A. See also Securities Exchange Act Release No. 42787 (May 15, 2000), 65 FR 33598 (May 24, 2000). \10\ See, e.g., Securities Exchange Act Release Nos. 50189 (August 12, 2004), 69 FR 51723 (August 20, 2004) (approving the listing and trading of certain Vanguard International Equity Index Funds); 44700 (August 14, 2001), 66 FR 43927 (August 21, 2001) (approving the listing and trading of series of the iShares Trust based on certain S&P global indexes). --------------------------------------------------------------------------- In approving ETFs for equities exchange trading, the Commission thoroughly considered the structure of the ETFs, their usefulness to investors and to the markets, and SRO rules that govern their trading. The Exchange believes that allowing the listing of options overlying ETFs that are listed pursuant to the generic listing standards on equities exchanges for ETFs based on international and global indexes and applying Rule 19b-4(e) should fulfill the intended objective of that rule by allowing options on those ETFs that have satisfied the generic listing standards to commence trading, without the need for the public comment period and Commission approval. The proposed rule has the potential to reduce the time frame for bringing options on ETFs to market, thereby reducing the burdens on issuers and other market participants. The failure of a particular ETF to comply with the generic listing standards under Rule 19b-4(e) would not, however, preclude the Exchange from submitting a separate filing pursuant to Section 19(b)(2),\11\ requesting Commission approval to list and trade options on a particular ETF. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- Requirements for Listing and Trading Options Overlying ETFs Based on International and Global Indexes Options on ETFs listed pursuant to these generic standards for international and global indexes would be traded, in all other respects, under the Exchange's existing trading rules and procedures that apply to options on ETFs and would be covered under the Exchange's surveillance program for options on ETFs. Pursuant to the proposed rule, the Exchange may list and trade options on an ETF without a CSSA provided that the ETF is listed pursuant to generic listing standards for series of ETFs based on international or global indexes under which a comprehensive surveillance agreement is not required.\12\ The Exchange believes that these generic listing standards are intended to ensure that stocks with substantial market capitalization and trading volume account for a substantial portion of the weight of an index or portfolio. --------------------------------------------------------------------------- \12\ See proposed Commentary .06(b)(i) to Rule 915. --------------------------------------------------------------------------- The Exchange believes that this proposed listing standard for options on ETFs is reasonable for international and global indexes, and, when applied in conjunction with the other listing requirements,\13\ will result in options overlying ETFs that are sufficiently broad-based in scope and not readily susceptible to manipulation. The Exchange also believes that allowing the Exchange to list options overlying ETFs that are listed on equities exchanges pursuant to generic standards for series of portfolio depositary receipts or index fund shares \14\ based on international or global indexes under which a CSSA is not required, will result in options overlying ETFs that are adequately diversified in weighting for any single security or small group of securities to significantly reduce concerns that trading in options overlying ETFs based on international or global indexes could become a surrogate for trading in unregistered securities. --------------------------------------------------------------------------- \13\ All of the other listing criteria under the Exchange's rules will continue to apply to any options listed pursuant to the proposed rule change. \14\ The Exchange notes that the proposed rule text differs slightly from that of other exchanges, with the exception of BATS Exchange, in order to make clear that the rule applies to ETFs that have been listed on equities exchanges pursuant to generic listing standards for series of ``portfolio depositary receipts or index fund shares'' rather than ``portfolio depositary receipts and index fund shares.'' Such difference does not represent a substantive difference from the rules of other exchanges. See infra n. 18. --------------------------------------------------------------------------- The Exchange believes that ETFs based on international and global [[Page 42581]] indexes that have been listed pursuant to the generic standards are sufficiently broad-based enough so as to make options overlying such ETFs not susceptible instruments for manipulation. The Exchange believes that the threat of manipulation is sufficiently mitigated for underlying ETFs that have been listed on equities exchanges pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required and for the overlying options, that the Exchange does not see the need for a CSSA to be in place before listing and trading options on such ETFs. The Exchange notes that its proposal does not replace the need for a CSSA as provided in the current rule. The provisions of the current rule, including the need for a CSSA, remain materially unchanged in the proposed rule and will continue to apply to options on ETFs that are not listed on an equities exchange pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. Instead, the proposed rule adds an additional listing mechanism for certain qualifying options on ETFs to be listed on the Exchange. Finally, the Exchange is also proposing to make several non- substantive changes to the rule text in order to make it easier to read and understand. Specifically, to account for proposed Commentary .06(b)(i) to Rule 915, the Exchange proposes to re-number current Commentary .06(b)(i)-(v) as proposed Commentary .06(b)(ii)(A)-(E), and to make clear that each of the proposed newly numbered paragraphs apply to the series of Exchange-Traded Fund Shares that do not meet the criteria in proposed Commentary .06(b)(i) to Rule 915. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \15\ of the Securities Exchange Act of 1934 (the ``Act''), in general, and furthers the objectives of Section 6(b)(5),\16\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b). \16\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change has the potential to reduce the time frame for bringing options on ETFs to market, thereby reducing the burdens on issuers and other market participants. The Exchange also believes that enabling the listing and trading of options on ETFs pursuant to this new listing standard will benefit investors by providing them with valuable risk management tools. The Exchange notes that its proposal does not replace the need for a comprehensive surveillance agreement as provided in the current rule. The provisions of the current rule, including the need for a CSSA, remain materially unchanged and will continue to apply to options on ETFs that are not listed on an equities exchange pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. Instead, proposed Commentary .06(b)(i) to Rule 915 adds an additional listing mechanism for certain qualifying options on ETFs to be listed on the Exchange in a manner that is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. The Exchange also believes that the proposed non-substantive organizational changes are reasonable, fair, and equitable because they are designed to make the rule easier to comprehend. As noted above, the proposed non-substantive changes do not change the need for a CSSA as provided in the current rule. The provisions of the current rule, including the need for a CSSA, remain materially unchanged in the proposed rule and will continue to apply to options on ETFs that are not listed on an equities exchange pursuant to generic listing standards for series of portfolio depositary receipts or index fund shares based on international or global indexes under which a comprehensive surveillance agreement is not required. These non- substantive changes to the rules are intended to make the rules clearer and less confusing for participants and investors and to eliminate potential confusion, thereby removing impediments to and perfecting the mechanism of a free and open market and a national market system, and, in general, protecting investors and the public interest. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\17\ the Exchange does not believe that the proposed rule change would impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the proposed rule change is a competitive change that is substantially similar to recent rule changes filed by MIAX Options Exchange (``MIAX''), NASDAQ OMX PHLX LLC (``Phlx''), International Securities Exchange LLC (``ISE''), BOX Options Exchange LLC (``BOX'') and BATS Exchange (``BATS'').\18\ Furthermore, the Exchange believes this proposed rule change will benefit investors by providing additional methods to trade options on ETFs, and by providing them with valuable risk management tools. Specifically, the Exchange believes that market participants on the Exchange would benefit from the introduction and availability of options on ETFs in a manner that is similar to equities exchanges and will provide investors with a venue on which to trade options on these products. For all the reasons stated above, the Exchange does not believe that the proposed rule changes will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act, and believes the proposed change will enhance competition --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f(b)(8). \18\ See Securities Exchange Act Release Nos. 74509 (March 13, 2015), 80 FR 14425 (March 19, 2015) (SR-MIAX-2015-04); 74553 (March 20, 2015) 80 FR 16072 (March 26, 2015) (SR-Phlx-2015-27); 74832 (April 29, 2015), 80 FR 25738 (May 5, 2015) (SR-ISE-2015-16); 75132 (June 9, 2015), 80 FR 34175 (June 15, 2015) (SR-BOX-2015-21), 75166, (June 12, 2015), 80 FR 34946 (June 18, 2015) (SR-BATS-2015-43). --------------------------------------------------------------------------- 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 proposed rule change does not (i) significantly affect the protection of investors or the public [[Page 42582]] 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 \19\ and Rule 19b- 4(f)(6) thereunder.\20\ --------------------------------------------------------------------------- \19\ 15 U.S.C. 78s(b)(3)(A). \20\ 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. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \21\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \22\ 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 stated that waiver of the operative delay will permit the Exchange to list and trade certain ETF options on the same basis as other options markets.\23\ The Commission believes the waiver of the operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\24\ --------------------------------------------------------------------------- \21\ 17 CFR 240.19b-4(f)(6). \22\ 17 CFR 240.19b-4(f)(6)(iii). \23\ See supra note 18. \24\ For purposes only of waiving the 30-day operative delay, the Commission has also 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 change 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-NYSEMKT-2015-47 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-2015-47. 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-2015-47, and should be submitted on or before August 7, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\25\ --------------------------------------------------------------------------- \25\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-17495 Filed 7-16-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices 42579
The Exchange also proposes to amend 70, or 104, orders and modifiers are (the ‘‘Commission’’) the proposed rule
Rule 70 to: (1) Delete current rule text available for all member organizations, change as described in Items I and II
in Rule 70(a)(i) indicating that Floor coupled with the proposed addition of below, which Items have been prepared
Brokers can only enter e-Quotes at or subparagraph (b)(vi) to Rule 104 that by the self-regulatory organization. The
outside the Exchange BBO; (2) add text specifically enumerates which orders Commission is publishing this notice to
to Rule 70(a)(i) stating that e-Quotes and modifiers a DMM may not enter solicit comments on the proposed rule
shall not include unelected Stop orders, into the Exchange’s systems, should change from interested persons.
Market Orders, ISOs, GTC modifiers, help member organizations better
I. Self-Regulatory Organization’s
DNR modifiers, or DNI modifiers; (3) understand which orders and modifiers
Statement of the Terms of the Substance
add text to Rule 70.25(a)(ii) explaining they can and cannot enter into the
of the Proposed Rule Change
that discretionary instructions may Exchange’s systems. Therefore, the
include instructions to participate in the Commission finds that Amendment No. The Exchange proposes to allow the
Exchange’s opening or closing 2 is consistent with the protection of listing of options overlying portfolio
transaction only; (4) make non- investors and the public interest. depositary receipts and index fund
substantive changes to Rules 70(a)(i) Accordingly, the Commission finds shares (collectively, ‘‘ETFs’’) that are
and 70(b)(i) by replacing the term good cause, pursuant to Section 19(b)(2) listed pursuant to generic listing
‘‘Display Book’’ with the term of the Act,22 to approve the proposed standards on equities exchanges for
‘‘Exchange systems;’’ and (5) update rule change, as modified by Amendment series of ETFs based on international or
cross references in Rule 70(f). No. 2, on an accelerated basis. global indexes under which a
The Exchange proposes to amend comprehensive surveillance sharing
Rule 72(c)(i) to: (1) Set forth that all VI. Conclusion agreement is not required. The text of
non-displayable interest, which It is therefore ordered, pursuant to the proposed rule change is available on
includes certain types of reserve interest Section 19(b)(2) of the Act,23 that the the Exchange’s Web site at
and MPL Orders, trades on parity; and proposed rule change (NYSE–2015–15), www.nyse.com, at the principal office of
(2) to change the phrase ‘‘the displayed as modified by Amendment No. 2, be, the Exchange, and at the Commission’s
bid (offer)’’ to ‘‘displayable bids (offers)’’ and it hereby is, approved on an Public Reference Room.
and change the phrase ‘‘displayed accelerated basis.
volume’’ to ‘‘displayable volume.’’ The II. Self-Regulatory Organization’s
For the Commission, by the Division of Statement of the Purpose of, and
Exchange also proposes to amend Rule Trading and Markets, pursuant to delegated
72(c)(x) to add MPL Orders to the orders Statutory Basis for, the Proposed Rule
authority.24
identified as being eligible to trade at Change
Robert W. Errett,
price points between the Exchange BBO Deputy Secretary.
In its filing with the Commission, the
and delete a cross reference to Rule 13. self-regulatory organization included
[FR Doc. 2015–17536 Filed 7–16–15; 8:45 am]
The Exchange also proposes to add statements concerning the purpose of,
BILLING CODE 8011–01–P
text to Rule 104(b)(ii) explaining that and basis for, the proposed rule change
the Exchange’s systems will prevent and discussed any comments it received
incoming DMM interest from trading on the proposed rule change. The text
SECURITIES AND EXCHANGE
with resting DMM interest. of those statements may be examined at
COMMISSION
Furthermore, the Exchange proposes to the places specified in Item IV below.
add new Rule 104(b)(vi) to specify that [Release No. 34–75441; File No. SR– The Exchange has prepared summaries,
DMMs may not enter the following NYSEMKT–2015–47] set forth in sections A, B, and C below,
orders and modifiers: (1) Market Orders; of the most significant parts of such
(2) GTC modifiers; (3) MOO orders; (4) Self-Regulatory Organizations; NYSE statements.
CO orders; (5) MOC orders; (6) LOC MKT LLC; Notice of Filing and
orders; (7) DNR modifiers; (8) DNI Immediate Effectiveness of Proposed A. Self-Regulatory Organization’s
modifiers; (9) Sell ‘‘Plus’’—Buy Rule Change Allowing the Listing of Statement of the Purpose of, and
‘‘Minus’’ instructions; and (10) Stop Options Overlying Portfolio Depositary Statutory Basis for, the Proposed Rule
orders. Receipts and Index Fund Shares That Change
Finally, the Exchange proposes to Are Listed Pursuant to Generic Listing 1. Purpose
amend Rule 1000(a) to provide cross Standards on Equities Exchanges for
references to other Exchange rules Series of ETFs Based on International The Exchange is proposing to amend
applicable to automatic executions. or Global Indexes Under Which a Commentary .06 to Rule 915 (Criteria for
The Commission believes that the Comprehensive Surveillance Sharing Underlying Securities) to list options
revisions proposed in Amendment No. Agreement Is Not Required overlying ETFs that are listed pursuant
2 do not raise any novel regulatory to generic listing standards on equities
July 13, 2015. exchanges for series of ETFs based on
issues. The Commission further believes
that the proposed revisions to the rule Pursuant to Section 19(b)(1) 1 of the international or global indexes under
text set forth in Amendment No. 2 do Securities Exchange Act of 1934 (the which a comprehensive surveillance
not represent any significant changes to ‘‘Act’’),2 and Rule 19b–4 thereunder,3 sharing agreement (‘‘CSSA’’ or
the current functionality of the notice is hereby given that on July 2, ‘‘comprehensive surveillance
Exchange’s order types and modifiers. 2015, NYSE MKT LLC (the ‘‘Exchange’’ agreement’’) is not required.4 This
Rather, these proposed rule text changes or ‘‘NYSE MKT’’) filed with the proposal will enable the Exchange to list
srobinson on DSK5SPTVN1PROD with NOTICES
primarily help clarify and better explain Securities and Exchange Commission and trade options on ETFs without a
how the Exchange’s order types and CSSA provided that the ETF is listed on
22 15 U.S.C. 78s(b)(2).
modifiers currently operate and interact. an equities exchange pursuant to the
23 15 U.S.C. 78s(b)(2).
For instance, the Commission believes 24 17 CFR 200.30–3(a)(12).
4 See, e.g., NYSE Arca Equities Rule 5.2(j)(3),
that the Exchange’s proposal to add text 1 15 U.S.C. 78s(b)(1).
Commentary .01(a)(B); NYSE MKT Rule 1000,
at the beginning of Rule 13 stating that, 2 15 U.S.C. 78a.
Commentary .03(a)(B); NASDAQ Rule
unless otherwise specified in Rules 13, 3 17 CFR 240.19b–4. 5705(a)(3)(A)(ii); and BATS Rule 14.11(b)(3)(A)(ii).
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![42582 Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices
interest; (ii) impose any significant Electronic Comments SECURITIES AND EXCHANGE
burden on competition; and (iii) become COMMISSION
operative for 30 days from the date on • Use the Commission’s Internet
which it was filed, or such shorter time comment form (http://www.sec.gov/ [Release No. 34–75433; File No. SR–EDGA–
as the Commission may designate, it has rules/sro.shtml); or 2015–27]
become effective pursuant to Section • Send an email to rule-comments@ Self-Regulatory Organizations; EDGA
19(b)(3)(A) of the Act 19 and Rule 19b– sec.gov. Please include File Number SR– Exchange, Inc.; Notice of Filing and
4(f)(6) thereunder.20 NYSEMKT–2015–47 on the subject line. Immediate Effectiveness of a Proposed
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the Paper Comments Rule Change Related to Fees for Use
Act 21 normally does not become of EDGA Exchange, Inc.
operative for 30 days after the date of its • Send paper comments in triplicate
July 13, 2015.
filing. However, Rule 19b–4(f)(6)(iii) 22 to Brent J. Fields, Secretary, Securities
Pursuant to section 19(b)(1) of the
permits the Commission to designate a and Exchange Commission, 100 F Street
Securities Exchange Act of 1934 (the
shorter time if such action is consistent NE., Washington, DC 20549–1090.
‘‘Act’’),1 and Rule 19b–4 thereunder,2
with the protection of investors and the All submissions should refer to File notice is hereby given that on July 2,
public interest. The Exchange has asked Number SR–NYSEMKT–2015–47. This 2015, EDGA Exchange, Inc. (the
the Commission to waive the 30-day ‘‘Exchange’’ or ‘‘EDGA’’) filed with the
file number should be included on the
operative delay so that the proposal may Securities and Exchange Commission
subject line if email is used. To help the
become operative immediately upon (‘‘Commission’’) the proposed rule
filing. The Exchange stated that waiver Commission process and review your
comments more efficiently, please use change as described in Items I, II and III
of the operative delay will permit the below, which Items have been prepared
Exchange to list and trade certain ETF only one method. The Commission will
post all comments on the Commission’s by the Exchange. The Exchange has
options on the same basis as other designated the proposed rule change as
options markets.23 The Commission Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the one establishing or changing a member
believes the waiver of the operative due, fee, or other charge imposed by the
delay is consistent with the protection submission, all subsequent
Exchange under section 19(b)(3)(A)(ii)
of investors and the public interest. amendments, all written statements
of the Act 3 and Rule 19b–4(f)(2)
Therefore, the Commission hereby with respect to the proposed rule
thereunder,4 which renders the
waives the operative delay and change that are filed with the proposed rule change effective upon
designates the proposal operative upon Commission, and all written filing with the Commission. The
filing.24 communications relating to the
At any time within 60 days of the Commission is publishing this notice to
proposed rule change between the solicit comments on the proposed rule
filing of the proposed rule change, the Commission and any person, other than
Commission summarily may change from interested persons.
those that may be withheld from the
temporarily suspend such rule change if public in accordance with the I. Self-Regulatory Organization’s
it appears to the Commission that such provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of
action is necessary or appropriate in the the Proposed Rule Change
available for Web site viewing and
public interest, for the protection of
printing in the Commission’s Public The Exchange filed a proposal to
investors, or otherwise in furtherance of
Reference Room, 100 F Street NE., amend its fees and rebates applicable to
the purposes of the Act. If the
Washington, DC 20549 on official Members 5 of the Exchange pursuant to
Commission takes such action, the
Commission shall institute proceedings business days between the hours of EDGA Rule 15.1(a) and (c) (‘‘Fee
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of such Schedule’’) to amend fee code MT,
change should be approved or filing also will be available for which routes to EDGX Exchange, Inc.
disapproved. inspection and copying at the principal (‘‘EDGX’’) using the ICMT, IOCM, ROCO
office of the Exchange. All comments or ROUC routing strategy and removes
IV. Solicitation of Comments liquidity against MidPoint Match
received will be posted without change;
Interested persons are invited to the Commission does not edit personal Orders 6 on EDGX by: (i) Revising the
submit written data, views, and identifying information from description of the orders eligible to
arguments concerning the foregoing, yield fee code MT; and (ii) increasing
submissions. You should submit only
including whether the proposed rule the fee for orders yielding fee code MT.
information that you wish to make
change is consistent with the Act. The text of the proposed rule change
available publicly. All submissions is available at the Exchange’s Web site
Comments may be submitted by any of should refer to File Number SR–
the following methods: at www.batstrading.com, at the
NYSEMKT–2015–47, and should be principal office of the Exchange, and at
19 15 U.S.C. 78s(b)(3)(A). submitted on or before August 7, 2015. the Commission’s Public Reference
20 17 CFR 240.19b–4(f)(6). As required under Rule For the Commission, by the Division of Room.
19b–4(f)(6)(iii), the Exchange provided the
Trading and Markets, pursuant to delegated
Commission with written notice of its intent to file 1 15
the proposed rule change, along with a brief authority.25 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
description and the text of the proposed rule Brent J. Fields, 3 15 U.S.C. 78s(b)(3)(A)(ii).
change, at least five business days prior to the date
srobinson on DSK5SPTVN1PROD with NOTICES
of filing of the proposed rule change. Secretary. 4 17 CFR 240.19b–4(f)(2).
21 17 CFR 240.19b–4(f)(6). [FR Doc. 2015–17495 Filed 7–16–15; 8:45 am] 5 The term ‘‘Member’’ is defined as ‘‘any
22 17 CFR 240.19b–4(f)(6)(iii).
BILLING CODE 8011–01–P
registered broker or dealer, or any person associated
23 See supra note 18. with a registered broker or dealer, that has been
24 For purposes only of waiving the 30-day admitted to membership in the Exchange. A
operative delay, the Commission has also Member will have the status of a ‘‘member’’ of the
considered the proposed rule’s impact on Exchange as that term is defined in section 3(a)(3)
efficiency, competition, and capital formation. See of the Act.’’ See Exchange Rule 1.5(n).
15 U.S.C. 78c(f). 25 17 CFR 200.30–3(a)(12). 6 See Exchange Rule 11.8(d).
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Document Created: 2018-02-23 09:21:41
Document Modified: 2018-02-23 09:21:41
| 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 42579 |
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