80 FR 63267 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Mini Options

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 201 (October 19, 2015)

Page Range		63267-63269
FR Document		2015-26424

Federal Register, Volume 80 Issue 201 (Monday, October 19, 2015)

[Federal Register Volume 80, Number 201 (Monday, October 19, 2015)]
[Notices]
[Pages 63267-63269]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-26424]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76135; File No. SR-BX-2015-058]

Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Mini Options

October 13, 2015.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 8, 2015, NASDAQ OMX BX, Inc. (``BX'' or ``Exchange'') 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 Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The Exchange proposes to amend Supplementary Material .08 to
Chapter IV, Section 6 (Series of Options Contracts Open for Trading),
entitled ``Mini Options Contracts.'' Specifically, the Exchange
proposes to replace the name ``Google Inc.'' with ``Alphabet Inc.''
The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\3\
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\3\ 17 CFR 240.19b-4(f)(6)(iii).
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The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxbx.cchwallstreet.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 Exchange 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 Exchange has prepared summaries, set forth in
sections A, B, and C below, of

[[Page 63268]]

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 .08 to
Chapter IV, Section 6, regarding Mini Options traded on BX, to replace
the name ``Google Inc.'' with ``Alphabet Inc.'' Google Inc.
(``Google'') recently announced plans to reorganize and create a new
public holding company, which will be called Alphabet Inc.
(``Alphabet''). As a result of the holding company reorganization, each
share of Class A Common Stock (``GOOGL''), which the Exchange has
listed as a Mini Option, will automatically convert into an equivalent
corresponding share of Alphabet Inc. stock.\4\ The symbol ``GOOGL''
remains unchanged.
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\4\ The Class C Capital Stock (``GOOG'') which is also impacted
by the reorganization are not eligible to be listed as Mini Options
on the Exchange, only the Class A Common Stock.
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The Exchange is proposing to make this change to Supplementary
Material .08 to Chapter IV, Section 6 to enable the continued trading
of Mini Options on Google's, now Alphabet's Class A shares. The
Exchange is proposing to make this change because, on October 5, 2015
Google reorganized and as a result underwent a name change.
The purpose of this change is to ensure that Supplementary Material
.08 to Chapter IV, Section 6 reflects the intention and practice of the
Exchange to trade Mini Options on only an exhaustive list of underlying
securities outlined in Supplementary Material .08. This change is meant
to continue the inclusion of Class A shares of Google in the current
list of underlying securities that Mini Options can be traded on, while
continuing to make clear that class C shares of Google are not part of
that list as that class of options has not been approved for Mini
Options trading. As a result, the proposed change will help avoid
confusion.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\5\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \6\ requirements that the rules of an exchange be
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 regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, 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. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \7\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
\7\ Id.
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In particular, the proposed rule change to change the name Google
to Alphabet to reflect the new ownership structure is consistent with
the Act because the proposed change is merely updating the current name
associated with the stock symbol GOOGL to allow for continued mini
option trading on Google's class A shares. The proposed change will
allow for continued benefit to investors by providing them with
additional investment alternatives.

B. Self-Regulatory Organization's Statement on Burden on Competition

BX does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The proposed change does not
impose any burden on intra-market competition because it applies to all
members and member organizations uniformly. There is no burden on
inter-market competition because the Exchange is merely attempting to
continue to permit trading of GOOGL as a Mini Options, as is the case
today. As a result, there will be no substantive changes to the
Exchange's operations or its rules.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

No written comments were either solicited or received.

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 if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6)
thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and 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. The
Commission deems this requirement to have been met.
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A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally
does not become operative for 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii) \11\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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\10\ 17 CFR 240.19b-4(f)(6).
\11\ 17 CFR 240.19b-4(f)(6)(iii).
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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Commission believes that waiving the 30-day operative delay
is consistent with the protection of investors and the public interest,
as it will allow the Exchange to continue to list mini options on the
Google Class A shares, now Alphabet's Class A shares, following
Google's reorganization. For this reason, the Commission designates the
proposed rule change to be operative upon filing.\12\
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\12\ 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).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

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:

[[Page 63269]]

Electronic Comments

Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BX-2015-058 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-BX-2015-058. 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-BX-2015-058, and should be
submitted on or before November 9, 2015.

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26424 Filed 10-16-15; 8:45 am]
BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Notices 63267

accurately represent the conditions of a Paper Comments SECURITIES AND EXCHANGE
Clearing Member liquidation scenario COMMISSION
since the positions are not eligible for • Send paper comments in triplicate
use in this scenario under Commission to Secretary, Securities and Exchange [Release No. 34–76135; File No. SR–BX–
rules. For the foregoing reasons, OCC Commission, 100 F Street NE., 2015–058]
believes that the proposed rule change Washington, DC 20549–1090.
is in the public interest, would be Self-Regulatory Organizations;
All submissions should refer to File NASDAQ OMX BX, Inc.; Notice of Filing
consistent with the requirements of the Number SR–OCC–2015–016. This file
Act applicable to clearing agencies and and Immediate Effectiveness of
number should be included on the Proposed Rule Change Relating to
would impose a burden on competition,
subject line if email is used. To help the Mini Options
with respect to more significant margin
Commission process and review your
increases for customer accounts, that is October 13, 2015.
necessary and appropriate in comments more efficiently, please use
only one method. The Commission will Pursuant to Section 19(b)(1) of the
furtherance of the purposes of the Act.
post all comments on the Commission’s Securities Exchange Act of 1934
(C) Clearing Agency’s Statement on Internet Web site (http://www.sec.gov/ (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Comments on the Proposed Rule rules/sro.shtml). Copies of the notice is hereby given that on October
Change Received From Members, submission, all subsequent 8, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’
Participants, or Others amendments, all written statements or ‘‘Exchange’’) filed with the Securities
Written comments on the proposed with respect to the proposed rule and Exchange Commission
rule change were not and are not change that are filed with the (‘‘Commission’’) the proposed rule
intended to be solicited with respect to Commission, and all written change as described in Items I and II
the proposed rule change and none have below, which Items have been prepared
communications relating to the
been received. by the Exchange. The Commission is
proposed rule change between the
publishing this notice to solicit
III. Date of Effectiveness of the Commission and any person, other than
comments on the proposed rule change
Proposed Rule Change and Timing for those that may be withheld from the from interested persons.
Commission Action public in accordance with the
provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s
Within 45 days of the date of Statement of the Terms of Substance of
available for Web site viewing and
publication of this notice in the Federal the Proposed Rule Change
Register or within such longer period printing in the Commission’s Public
up to 90 days (i) as the Commission may Reference Room, 100 F Street NE., The Exchange proposes to amend
designate if it finds such longer period Washington, DC 20549 on official Supplementary Material .08 to Chapter
to be appropriate and publishes its business days between the hours of IV, Section 6 (Series of Options
reasons for so finding or (ii) as to which 10:00 a.m. and 3:00 p.m. Copies of the Contracts Open for Trading), entitled
the self-regulatory organization filing also will be available for ‘‘Mini Options Contracts.’’ Specifically,
consents, the Commission will: inspection and copying at the principal the Exchange proposes to replace the
(A) By order approve or disapprove office of OCC and on OCC’s Web site at name ‘‘Google Inc.’’ with ‘‘Alphabet
the proposed rule change, or http://www.optionsclearing.com/ Inc.’’
(B) institute proceedings to determine components/docs/legal/rules_and_ The Exchange requests that the
whether the proposed rule change bylaws/sr_occ_15_016.pdf. All Commission waive the 30-day operative
should be disapproved. comments received will be posted delay period contained in Exchange Act
The proposal shall not take effect without change; the Commission does Rule 19b–4(f)(6)(iii).3
until all regulatory actions required not edit personal identifying The text of the proposed rule change
with respect to the proposal are information from submissions. You is available on the Exchange’s Web site
completed.27 at http://
should submit only information that
nasdaqomxbx.cchwallstreet.com, at the
IV. Solicitation of Comments you wish to make available publicly. All
principal office of the Exchange, and at
Interested persons are invited to submissions should refer to File
the Commission’s Public Reference
submit written data, views and Number SR–OCC–2015–016 and should Room.
arguments concerning the foregoing, be submitted on or before November 9,
including whether the proposed rule 2015. II. Self-Regulatory Organization’s
change is consistent with the Act. Statement of the Purpose of, and
For the Commission, by the Division of
Comments may be submitted by any of Statutory Basis for, the Proposed Rule
Trading and Markets, pursuant to delegated
the following methods: Change
authority.28
Robert W. Errett, In its filing with the Commission, the
Electronic Comments
Deputy Secretary.
Exchange included statements
• Use the Commission’s Internet concerning the purpose of and basis for
comment form [FR Doc. 2015–26427 Filed 10–16–15; 8:45 am]
the proposed rule change and discussed
(http://www.sec.gov/rules/sro.shtml); BILLING CODE 8011–01–P any comments it received on the
or
asabaliauskas on DSK5VPTVN1PROD with NOTICES

proposed rule change. The text of these
• Send an email to rule-comments@ statements may be examined at the
sec.gov. Please include File Number SR– places specified in Item IV below. The
OCC–2015–016 on the subject line. Exchange has prepared summaries, set
forth in sections A, B, and C below, of
27 OCC also filed this proposal as an advance

notice pursuant to Section 802(e)(1) of the Payment,
1 15 U.S.C. 78s(b)(1).
Clearing, and Settlement Supervision Act of 2010
2 17 CFR 240.19b–4.
and Rule 19b-4(n)(1) under the Act. See supra note
3. 28 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4(f)(6)(iii).

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Federal Register / Vol. 80, No. 201 / Monday, October 19, 2015 / Notices 63269

Electronic Comments SECURITIES AND EXCHANGE Risk Model Description (‘‘Risk Model
COMMISSION Description’’). ICE Clear Europe did not
• Use the Commission’s Internet propose to make any changes to its
comment form (http://www.sec.gov/ [Release No. 34–76136; File No. SR–ICEEU–
2015–010] Clearing Rules or Procedures in
rules/sro.shtml); or connection with these amendments.
• Send an email to rule-comments@ Self-Regulatory Organizations; ICE ICE Clear Europe has proposed to,
sec.gov. Please include File Number SR– Clear Europe Limited; Order Approving among other matters, (i) modify the
BX–2015–058 on the subject line. Proposed Rule Change, as Modified by credit spread response component of the
Amendment No. 1 Thereto, Relating to risk model to devolatilize returns, (ii)
Paper Comments Credit Default Swap Risk Policies enhance the portfolio spread response
• Send paper comments in triplicate October 13, 2015. component of the risk model to limit
to Brent J. Fields, Secretary, Securities procyclicality, (iii) establish a new
and Exchange Commission, 100 F Street I. Introduction framework for recovery rate sensitivity
NE., Washington, DC 20549–1090. On June 25, 2015, ICE Clear Europe requirement (‘‘RRSR’’) parameters, (iv)
Limited (‘‘ICE Clear Europe’’) filed with modify the CDS Guaranty Fund
All submissions should refer to File the Securities and Exchange
Number SR–BX–2015–058. This file allocation methodology, (v) modify
Commission (‘‘Commission’’), pursuant index liquidity and concentration
number should be included on the to Section 19(b)(1) of the Securities charges and (vi) revise procedures for
subject line if email is used. To help the Exchange Act of 1934 (‘‘Act’’) 1 and Rule intraday margin calls. The Risk Policy
Commission process and review your 19b–4 thereunder,2 a proposed rule Amendments would also include
comments more efficiently, please use change to amend certain of its credit certain other clarifications and
only one method. The Commission will default swap (‘‘CDS’’) risk policies (the
conforming changes.
post all comments on the Commission’s ‘‘Risk Policy Amendments’’) in order to
Internet Web site (http://www.sec.gov/ enhance its current risk model (SR– The following is a summary of the
rules/sro.shtml). Copies of the ICEEU–2015–010). The proposed rule principal changes to be made by the
submission, all subsequent change was published for comment in Risk Policy Amendments:
amendments, all written statements the Federal Register on July 16, 2015.3 Devolatilization of Credit Spread
with respect to the proposed rule On July 21, 2015, ICE Clear Europe filed Response. Under the revised Risk Model
change that are filed with the Amendment No. 1 to the proposed rule Description, the credit spread response
Commission, and all written change solely to reflect the formal component of the margin model would
communications relating to the approval of the Risk Policy be revised to provide that the tail
proposed rule change between the Amendments by the ICE Clear Europe estimation of the relevant fitted returns
Board.4 ICE Clear Europe consented to
Commission and any person, other than distribution is based on devolatilized
an extension of the time period in
those that may be withheld from the returns. ICE Clear Europe has
which the Commission shall approve,
public in accordance with the represented that the use of devolatilized
disapprove, or institute proceedings to
provisions of 5 U.S.C. 552, will be determine whether to disapprove the returns in this manner facilitates the
available for Web site viewing and proposed rule change to October 14, comparison of returns for periods with
printing in the Commission’s Public 2015. The Commission received no different volatilities.
Reference Room, 100 F Street NE., comment letters regarding the proposed Procyclicality of Portfolio Spread
Washington, DC 20549 on official change. For the reasons discussed Response. In order to limit
business days between the hours of below, the Commission is approving the procyclicality of the spread response
10:00 a.m. and 3:00 p.m. Copies of such proposed rule change, as modified by component of the model, ICE Clear
filing also will be available for Amendment No. 1. Europe has proposed to modify the CDS
inspection and copying at the principal II. Description of the Proposed Rule Risk Policy and Risk Model Description
office of the Exchange. All comments Change to use an additional portfolio analysis
received will be posted without change; that features price changes observed
the Commission does not edit personal ICE Clear Europe has proposed
during and immediately after the
identifying information from amending certain risk policies relating
Lehman Brothers default. According to
to the CDS product category to
submissions. You should submit only ICE Clear Europe, the analysis considers
incorporate enhancements to the
information that you wish to make price scenarios derived from the greatest
existing CDS risk model. The relevant
available publicly. All submissions policies to be modified are the CDS Risk price decrease and increase during and
should refer to File Number SR–BX– Policy (‘‘CDS Risk Policy’’) and the CDS immediately after the Lehman Brothers
2015–058, and should be submitted on default. ICE Clear Europe has designed
or before November 9, 2015. 1 15 U.S.C. 78s(b)(1). these scenarios to capture the default of
For the Commission, by the Division of
2 17 CFR 240.19b–4. a major participant in the credit market
Trading and Markets, pursuant to delegated
3 Securities Exchange Act Release No. 34–75426
and the market response to the event.
(July 10, 2015), 80 FR 42146 (July 16, 2015) (SR– ICE Clear Europe has defined the
authority.13 ICEEU–2015–010).
Robert W. Errett, introduced scenarios in price terms to
asabaliauskas on DSK5VPTVN1PROD with NOTICES

4 In its filing on June 25, 2015, ICE Clear Europe

represented that the Risk Policy Amendments maintain the stress severity during
Deputy Secretary.
would be approved by the ICE Clear Europe Board periods of low credit spread levels (high
[FR Doc. 2015–26424 Filed 10–16–15; 8:45 am] before implementation. ICE Clear Europe price) when the spread response
BILLING CODE 8011–01–P subsequently filed Amendment No. 1 to state that
the ICE Clear Europe Board approved the Risk requirements, computed under the
Policy Amendments on July 8, 2015. Amendment current framework, are expected to be
No. 1 is not subject to notice and comment because lower. Furthermore, ICE Clear Europe
it is a technical amendment that does not alter the
substance of the proposed rule change or raise any
has also incorporated the Lehman
13 17 CFR 200.30–3(a)(12). novel regulatory issues. default price scenarios into the

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Document Created: 2015-12-15 08:35:59
Document Modified: 2015-12-15 08:35:59

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 63267