80 FR 63627 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Mini Options

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 202 (October 20, 2015)

Page Range		63627-63628
FR Document		2015-26515
Federal Register, Volume 80 Issue 202 (Tuesday, October 20, 2015)
[Federal Register Volume 80, Number 202 (Tuesday, October 20, 2015)]
[Notices]
[Pages 63627-63628]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-26515]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76139; File No. SR-NASDAQ-2015-116]


Self-Regulatory Organizations; The NASDAQ Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change 
Relating to Mini Options

October 14, 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, The NASDAQ Stock Market LLC (``NASDAQ'' 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 NASDAQ. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    NASDAQ 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\
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The text of the proposed rule change is available on the Exchange's 
Web site at http://www.nasdaq.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 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 Nasdaq, 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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
    \7\ Id.
---------------------------------------------------------------------------

    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

[[Page 63628]]

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

    NASDAQ 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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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:

Electronic Comments

     Use 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-NASDAQ-2015-116 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-NASDAQ-2015-116. 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-NASDAQ-2015-116, and should 
be submitted on or before November 10, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-26515 Filed 10-19-15; 8:45 am]
BILLING CODE 8011-01-P
63628 Federal Register / Vol. 80, No. 202 / Tuesday, October 20, 2015 / Notices

with the stock symbol GOOGL to allow action is consistent with the protection communications relating to the
for continued mini option trading on of investors and the public interest. proposed rule change between the
Google’s class A shares. The proposed The Exchange has asked the Commission and any person, other than
change will allow for continued benefit Commission to waive the 30-day those that may be withheld from the
to investors by providing them with operative delay so that the proposal may public in accordance with the
additional investment alternatives. become operative immediately upon provisions of 5 U.S.C. 552, will be
filing. The Commission believes that available for Web site viewing and
B. Self-Regulatory Organization’s waiving the 30-day operative delay is printing in the Commission’s Public
Statement on Burden on Competition consistent with the protection of Reference Room, 100 F Street NE.,
NASDAQ does not believe that the investors and the public interest, as it Washington, DC 20549 on official
proposed rule change will impose any will allow the Exchange to continue to business days between the hours of
burden on competition that is not list mini options on the Google Class A 10:00 a.m. and 3:00 p.m. Copies of such
necessary or appropriate in furtherance shares, now Alphabet’s Class A shares, filing also will be available for
of the purposes of the Act. The following Google’s reorganization. For inspection and copying at the principal
proposed change does not impose any this reason, the Commission designates office of the Exchange. All comments
burden on intra-market competition the proposed rule change to be operative received will be posted without change;
upon filing.12 the Commission does not edit personal
because it applies to all members and
At any time within 60 days of the identifying information from
member organizations uniformly. There
filing of the proposed rule change, the submissions. You should submit only
is no burden on inter-market Commission summarily may
competition because the Exchange is information that you wish to make
temporarily suspend such rule change if available publicly. All submissions
merely attempting to continue to permit it appears to the Commission that such
trading of GOOGL as a Mini Options, as should refer to File Number SR–
action is necessary or appropriate in the NASDAQ–2015–116, and should be
is the case today. As a result, there will public interest, for the protection of
be no substantive changes to the submitted on or before November 10,
investors, or otherwise in furtherance of 2015.
Exchange’s operations or its rules. the purposes of the Act.
For the Commission, by the Division of
C. Self-Regulatory Organization’s IV. Solicitation of Comments Trading and Markets, pursuant to delegated
Statement on Comments on the authority.13
Proposed Rule Change Received From Interested persons are invited to
submit written data, views, and Robert W. Errett,
Members, Participants, or Others
arguments concerning the foregoing, Deputy Secretary.
No written comments were either including whether the proposed rule [FR Doc. 2015–26515 Filed 10–19–15; 8:45 am]
solicited or received. change is consistent with the Act. BILLING CODE 8011–01–P
Comments may be submitted by any of
III. Date of Effectiveness of the
the following methods:
Proposed Rule Change and Timing for SECURITIES AND EXCHANGE
Commission Action Electronic Comments COMMISSION
• Use the Commission’s Internet
Because the proposed rule change [SEC File No. 270–641, OMB Control No.
comment form (http://www.sec.gov/ 3235–0685]
does not (i) significantly affect the
rules/sro.shtml); or
protection of investors or the public
• Send an email to rule-comments@ Submission for OMB Review;
interest; (ii) impose any significant
sec.gov. Please include File Number SR– Comment Request
burden on competition; and (iii) become
NASDAQ–2015–116 on the subject line.
operative for 30 days from the date on Upon Written Request, Copies Available
which it was filed, or such shorter time Paper Comments From: U.S. Securities and Exchange
as the Commission may designate if • Send paper comments in triplicate Commission, Office of FOIA Services,
consistent with the protection of to Brent J. Fields, Secretary, Securities 100 F Street NE., Washington, DC
investors and the public interest, the and Exchange Commission, 100 F Street 20549–2736.
proposed rule change has become NE., Washington, DC 20549–1090. Extension:
effective pursuant to Section 19(b)(3)(A) All submissions should refer to File Rules 3a68–2 and 3a68–4(c).
of the Act 8 and Rule 19b–4(f)(6) Number SR–NASDAQ–2015–116. This
thereunder.9 Notice is hereby given that pursuant
file number should be included on the to the Paperwork Reduction Act of 1995
A proposed rule change filed under subject line if email is used. To help the (44 U.S.C. 3501 et seq.), the Securities
Rule 19b–4(f)(6) 10 normally does not Commission process and review your and Exchange Commission (‘‘SEC’’) has
become operative for 30 days after the comments more efficiently, please use submitted to the Office of Management
date of filing. However, pursuant to only one method. The Commission will and Budget (‘‘OMB’’) a request for
Rule 19b–4(f)(6)(iii) 11 the Commission post all comments on the Commission’s approval of extension of the previously
may designate a shorter time if such Internet Web site (http://www.sec.gov/ approved collection of information
rules/sro.shtml). Copies of the provided for the following rules: Rules
8 15 U.S.C. 78s(b)(3)(A). submission, all subsequent 3a68–2 and 3a68–4(c) under the
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– amendments, all written statements Securities Exchange Act of 1934 (15
4(f)(6)(iii) requires the Exchange to give the with respect to the proposed rule
mstockstill on DSK4VPTVN1PROD with NOTICES

Commission written notice of the Exchange’s intent U.S.C. 78a et seq.).
to file the proposed rule change, along with a brief change that are filed with the Rule 3a68–2 creates a process for
description and text of the proposed rule change, Commission, and all written interested persons to request a joint
at least five business days prior to the date of filing interpretation by the SEC and the
of the proposed rule change, or such shorter time 12 For purposes only of waiving the 30-day
as designated by the Commission. The Commission Commodity Futures Trading
operative delay, the Commission has also
deems this requirement to have been met. considered the proposed rule’s impact on Commission (‘‘CFTC’’) (together with
10 17 CFR 240.19b–4(f)(6).
efficiency, competition, and capital formation. See
11 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 17:55 Oct 19, 2015 Jkt 238001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\20OCN1.SGM 20OCN1
Document Created: 2015-12-14 15:25:09
Document Modified: 2015-12-14 15:25:09
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 63627