80 FR 42587 - Self-Regulatory Organizations; NYSE Arca, Inc.; 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 | 42587-42590 | |
| FR Document | 2015-17494 |
[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)] [Notices] [Pages 42587-42590] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-17494] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75440; File No. SR-NYSEArca-2015-60] Self-Regulatory Organizations; NYSE Arca, Inc.; 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 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 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. [[Page 42588]] 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 Rule 5.3(g) (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 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 Rule 5.3(g) Currently, the Exchange allows for the listing and trading of options on ETFs. Rule 5.3(g) provides the listings standards for options on ETFs, such as ETFs based on international or global indexes.\8\ Rule 5.3(g)(2)(A) requires that any non-U.S. component securities in an index or portfolio of securities on which the 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. Rule 5.3(g)(2)(B) requires that any component securities of an index or portfolio of securities on which 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, Rule 5.3(g)(2)(C) requires that any component securities of an index or portfolio of securities on which 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 Rule 5.3(g)(2)(A)-(D), to be re-numbered as proposed Rule 5.3(g)(2)(B)(i)-(iv) 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 Rule 1000A. 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 [[Page 42589]] portion of the weight of an index or portfolio. --------------------------------------------------------------------------- \12\ See proposed Rule 5.3(g)(2)(A). --------------------------------------------------------------------------- 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 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, the Exchange is proposing to move Rule 5.3(g)(1)(C) (regarding Commodity Pool Units) to become Rule 5.3(g)(2)(B)(v). In addition, to account for proposed Rule 5.3(g)(2)(A), the Exchange proposes to re-number paragraphs (g)(2)(A)- (D) as paragraphs (g)(2)(B)(i)-(iv), and to make clear that each of the proposed newly numbered paragraphs (i.e., Rule 5.3(g)(2)(B)(i)-(v)) apply to the series of Exchange-Traded Fund Shares that do not meet the criteria in proposed Rule 5.3(g)(2)(A). 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 Rule 5.3(g)(2)(A) 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 [[Page 42590]] 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 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-NYSEArca-2015-60 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-2015-60. 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-2015-60, 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. 2015-17494 Filed 7-16-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices 42587
liquidity to the Exchange, which will determine whether the proposed rule For the Commission, by the Division of
make the Exchange a more competitive change should be approved or Trading and Markets, pursuant to delegated
venue for, among other things, order disapproved. authority.12
execution and price discovery. In Brent J. Fields,
IV. Solicitation of Comments
general, ETP Holders impacted by the Secretary.
proposed change may readily adjust Interested persons are invited to [FR Doc. 2015–17489 Filed 7–16–15; 8:45 am]
their trading behavior to maintain or submit written data, views and BILLING CODE 8011–01–P
increase their credits or decrease their arguments concerning the foregoing,
fees in a favorable manner, and will including whether the proposed rule
therefore not be disadvantaged in their change is consistent with the Act. SECURITIES AND EXCHANGE
ability to compete. Specifically, an ETP Comments may be submitted by any of COMMISSION
Holder could qualify for the proposed the following methods:
new Routable Retail Order Type by
providing sufficient liquidity to satisfy Electronic Comments [Release No. 34–75440; File No. SR–
the applicable proposed volume NYSEArca–2015–60]
• Use the Commission’s Internet
requirements. Additionally, all ETP comment form (http://www.sec.gov/
Holders have the ability to designate Self-Regulatory Organizations; NYSE
rules/sro.shtml); or Arca, Inc.; Notice of Filing and
their orders as Routable Orders and
• Send an email to rule-comments@ Immediate Effectiveness of Proposed
therefore any ETP Holder could qualify
sec.gov. Please include File Number SR– Rule Change Allowing the Listing of
for the proposed Routable Retail Order
NYSEArca–2015–57 on the subject line. Options Overlying Portfolio Depositary
Tier by satisfying the proposed liquidity
thresholds. Paper Comments Receipts and Index Fund Shares That
Finally, the Exchange notes that it are Listed Pursuant to Generic Listing
operates in a highly competitive market • Send paper comments in triplicate Standards on Equities Exchanges for
in which market participants can to Secretary, Securities and Exchange Series of ETFs Based on International
readily favor competing venues. In such Commission, 100 F Street NE., or Global Indexes Under Which a
an environment, the Exchange must Washington, DC 20549–1090. Comprehensive Surveillance Sharing
continually review, and consider All submissions should refer to File Agreement Is Not Required
adjusting, its fees and credits to remain Number SR–NYSEArca–2015–57. This
competitive with other exchanges. For July 13, 2015.
file number should be included on the
the reasons described above, the subject line if email is used. To help the Pursuant to section 19(b)(1) 1 of the
Exchange believes that the proposed Commission process and review your Securities Exchange Act of 1934 (the
rule change promotes a competitive comments more efficiently, please use ‘‘Act’’),2 and Rule 19b–4 thereunder,3
environment. only one method. The Commission will notice is hereby given that on July 2,
C. Self-Regulatory Organization’s post all comments on the Commission’s 2015, NYSE Arca, Inc. (the ‘‘Exchange’’
Statement on Comments on the Internet Web site (http://www.sec.gov/ or ‘‘NYSE Arca’’) filed with the
Proposed Rule Change Received From rules/sro.shtml). Copies of the Securities and Exchange Commission
Members, Participants, or Others submission, all subsequent (the ‘‘Commission’’) the proposed rule
amendments, all written statements change as described in Items I and II
No written comments were solicited with respect to the proposed rule
or received with respect to the proposed below, which Items have been prepared
change that are filed with the by the self-regulatory organization. The
rule change. Commission, and all written Commission is publishing this notice to
III. Date of Effectiveness of the communications relating to the solicit comments on the proposed rule
Proposed Rule Change and Timing for proposed rule change between the change from interested persons.
Commission Action Commission and any person, other than
The foregoing rule change is effective those that may be withheld from the I. Self-Regulatory Organization’s
upon filing pursuant to Section public in accordance with the Statement of the Terms of the Substance
19(b)(3)(A) 9 of the Act and provisions of 5 U.S.C. 552, will be of the Proposed Rule Change
subparagraph (f)(2) of Rule 19b–4 10 available for Web site viewing and
printing in the Commission’s Public The Exchange proposes to allow the
thereunder, because it establishes a due, listing of options overlying portfolio
fee, or other charge imposed by the Reference Room, 100 F Street NE.,
Washington, DC 20549, on official depositary receipts and index fund
Exchange. shares (collectively, ‘‘ETFs’’) that are
At any time within 60 days of the business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the listed pursuant to generic listing
filing of such proposed rule change, the
Commission summarily may filing also will be available for standards on equities exchanges for
temporarily suspend such rule change if inspection and copying at the principal series of ETFs based on international or
it appears to the Commission that such office of the Exchange. All comments global indexes under which a
action is necessary or appropriate in the received will be posted without change; comprehensive surveillance sharing
public interest, for the protection of the Commission does not edit personal agreement is not required. The text of
investors, or otherwise in furtherance of identifying information from the proposed rule change is available on
submissions. You should submit only the Exchange’s Web site at
srobinson on DSK5SPTVN1PROD with NOTICES
the purposes of the Act. If the
Commission takes such action, the information that you wish to make www.nyse.com, at the principal office of
Commission shall institute proceedings available publicly. All submissions the Exchange, and at the Commission’s
under Section 19(b)(2)(B) 11 of the Act to should refer to File Number SR– Public Reference Room.
NYSEArca–2015–57 and should be
9 15 U.S.C. 78s(b)(3)(A). submitted on or before August 7, 2015. 1 15 U.S.C. 78s(b)(1).
10 17 CFR 240.19b–4(f)(2). 2 15 U.S.C. 78a.
11 15 U.S.C. 78s(b)(2)(B). 12 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4.
VerDate Sep<11>2014 20:59 Jul 16, 2015 Jkt 235001 PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1](https://thefederalregister.org/doc/80_FR_42724/page/1.svg)
![42590 Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices
Options Exchange LLC (‘‘BOX’’) and shorter time if such action is consistent Internet Web site (http://www.sec.gov/
BATS Exchange ‘‘BATS’’).18 with the protection of investors and the rules/sro.shtml). Copies of the
Furthermore, the Exchange believes this public interest. The Exchange has asked submission, all subsequent
proposed rule change will benefit the Commission to waive the 30-day amendments, all written statements
investors by providing additional operative delay so that the proposal may with respect to the proposed rule
methods to trade options on ETFs, and become operative immediately upon change that are filed with the
by providing them with valuable risk filing. The Exchange stated that waiver Commission, and all written
management tools. Specifically, the of the operative delay will permit the communications relating to the
Exchange believes that market Exchange to list and trade certain ETF proposed rule change between the
participants on the Exchange would options on the same basis as other Commission and any person, other than
benefit from the introduction and options markets.23 The Commission those that may be withheld from the
availability of options on ETFs in a believes the waiver of the operative public in accordance with the
manner that is similar to equities delay is consistent with the protection provisions of 5 U.S.C. 552, will be
exchanges and will provide investors of investors and the public interest. available for Web site viewing and
with a venue on which to trade options Therefore, the Commission hereby printing in the Commission’s Public
on these products. For all the reasons waives the operative delay and Reference Room, 100 F Street NE.,
stated above, the Exchange does not designates the proposal operative upon Washington, DC 20549 on official
believe that the proposed rule changes filing.24 business days between the hours of
will impose any burden on competition At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such
not necessary or appropriate in filing of the proposed rule change, the filing also will be available for
furtherance of the purposes of the Act, Commission summarily may inspection and copying at the principal
and believes the proposed change will temporarily suspend such rule change if office of the Exchange. All comments
enhance competition. it appears to the Commission that such received will be posted without change;
action is necessary or appropriate in the the Commission does not edit personal
C. Self-Regulatory Organization’s public interest, for the protection of
Statement on Comments on the identifying information from
investors, or otherwise in furtherance of submissions. You should submit only
Proposed Rule Change Received From the purposes of the Act. If the
Members, Participants, or Others information that you wish to make
Commission takes such action, the available publicly. All submissions
No written comments were solicited Commission shall institute proceedings should refer to File Number SR–
or received with respect to the proposed to determine whether the proposed rule NYSEArca–2015–60, and should be
rule change. change should be approved or submitted on or before August 7, 2015.
disapproved.
III. Date of Effectiveness of the For the Commission, by the Division of
Proposed Rule Change and Timing for IV. Solicitation of Comments Trading and Markets, pursuant to delegated
Commission Action authority.25
Interested persons are invited to
Because the proposed rule change submit written data, views, and Brent J. Fields,
does not (i) significantly affect the arguments concerning the foregoing, Secretary.
protection of investors or the public including whether the proposed rule [FR Doc. 2015–17494 Filed 7–16–15; 8:45 am]
interest; (ii) impose any significant change is consistent with the Act. BILLING CODE 8011–01–P
burden on competition; and (iii) become Comments may be submitted by any of
operative for 30 days from the date on the following methods:
which it was filed, or such shorter time SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
as the Commission may designate, it has
become effective pursuant to section • Use the Commission’s Internet
comment form (http://www.sec.gov/ [Release No. 34–75438; File No. SR–Phlx–
19(b)(3)(A) of the Act 19 and Rule 19b– 2015–57]
4(f)(6) thereunder.20 rules/sro.shtml); or
A proposed rule change filed • Send an email to rule-comments@ Self-Regulatory Organizations;
pursuant to Rule 19b–4(f)(6) under the sec.gov. Please include File Number SR– NASDAQ OMX PHLX LLC; Notice of
Act 21 normally does not become NYSEArca–2015–60 on the subject line. Filing and Immediate Effectiveness of
operative for 30 days after the date of its Paper Comments Proposed Rule Change Relating to
filing. However, Rule 19b–4(f)(6)(iii) 22 Section II of the Pricing Schedule
permits the Commission to designate a • Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities July 13, 2015.
18 See Securities Exchange Act Release Nos.
and Exchange Commission, 100 F Street Pursuant to section 19(b)(1) of the
74509 (March 13, 2015), 80 FR 14425 (March 19, NE., Washington, DC 20549–1090. Securities Exchange Act of 1934
2015) (SR–MIAX–2015–04); 74553 (March 20, 2015) All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
80 FR 16072 (March 26, 2015) (SR–Phlx–2015–27);
74832 (April 29, 2015), 80 FR 25738 (May 5, 2015)
Number SR–NYSEArca–2015–60. This notice is hereby given that on June 30,
(SR–ISE–2015–16); 75132 (June 9, 2015), 80 FR file number should be included on the 2015, NASDAQ OMX PHLX LLC
34175 (June 15, 2015) (SR–BOX–2015–21), 75166, subject line if email is used. To help the (‘‘Phlx’’ or ‘‘Exchange’’) filed with the
(June 12, 2015), 80 FR 34946 (June 18, 2015) (SR– Commission process and review your Securities and Exchange Commission
BATS–2015–43).
19 15 U.S.C. 78s(b)(3)(A).
comments more efficiently, please use (‘‘SEC’’ or ‘‘Commission’’) the proposed
only one method. The Commission will
srobinson on DSK5SPTVN1PROD with NOTICES
20 17 CFR 240.19b–4(f)(6). As required under Rule rule change as described in Items I, II,
19b–4(f)(6)(iii), the Exchange provided the post all comments on the Commission’s and III below, which Items have been
Commission with written notice of its intent to file prepared by the Exchange. The
the proposed rule change, along with a brief 23 See
supra note 18. Commission is publishing this notice to
description and the text of the proposed rule 24 For
purposes only of waiving the 30-day
change, at least five business days prior to the date operative delay, the Commission has also
of filing of the proposed rule change. considered the proposed rule’s impact on
25 17 CFR 200.30–3(a)(12).
21 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
22 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
VerDate Sep<11>2014 20:59 Jul 16, 2015 Jkt 235001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1](https://thefederalregister.org/doc/80_FR_42724/page/4.svg)
Document Created: 2018-02-23 09:21:12
Document Modified: 2018-02-23 09:21:12
| 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 42587 |
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