81 FR 45325 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .07 to Rule 904 To Extend the Pilot Program That Eliminated the Position Limits for Options on SPDR S&P 500 ETF

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 134 (July 13, 2016)

Page Range		45325-45326
FR Document		2016-16482
Federal Register, Volume 81 Issue 134 (Wednesday, July 13, 2016)
[Federal Register Volume 81, Number 134 (Wednesday, July 13, 2016)]
[Notices]
[Pages 45325-45326]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16482]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78241; File No. SR-NYSEMKT-2016-65]


Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and 
Immediate Effectiveness of Proposed Rule Change Amending Commentary .07 
to Rule 904 To Extend the Pilot Program That Eliminated the Position 
Limits for Options on SPDR S&P 500 ETF

July 7, 2016.

    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 June 29, 2016, 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.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Commentary .07 to Rule 904 to extend 
the pilot program that eliminated the position limits for options on 
SPDR S&P 500 ETF (``SPY'') (``SPY Pilot Program''). 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 proposes to amend Commentary .07 to Rule 904 to extend 
the time period of the SPY Pilot Program,\4\ which is currently 
scheduled to expire on July 12, 2016, through July 12, 2017.
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    \4\ See Securities Exchange Act Release No. 67672 (August 15, 
2012), 77 FR 50750 (August 22, 2012). The SPY Pilot Program was 
subsequently extended. See Securities Exchange Release Nos. 70734 
(October 22, 2013), 78 FR 64255 (October 28, 2013); 73847 (December 
16, 2014), 79 FR 76426 (December 22, 2014); and 75416 (July 9, 
2015), 80 FR 41521 (July 15, 2016) (the ``July 2015 Extension'').
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    This filing does not propose any substantive changes to the SPY 
Pilot Program. In proposing to extend the SPY Pilot Program, the 
Exchange reaffirms its consideration of several factors that supported 
the original proposal of the SPY Pilot Program, including (1) the 
availability of economically equivalent products and their respective 
position limits, (2) the liquidity of the option and the underlying 
security, (3) the market capitalization of the underlying security and 
the related index, (4) the reporting of large positions and 
requirements surrounding margin, and (5) the potential for market on 
close volatility.
    In the July 2015 Extension, the Exchange stated that if it were to 
propose an extension, permanent approval or termination of the program, 
the Exchange would submit, along with any filing proposing such 
amendments to the program, a report providing an analysis of the SPY 
Pilot Program covering the period since the previous extension (the 
``Pilot Report''). Accordingly, the Exchange is submitting a Pilot 
Report detailing the Exchange's experience with the SPY Pilot Program 
for the period covering thirteen (13) months from May 2015 to May 2016. 
The Pilot Report is attached as Exhibit 3 to this filing. The Exchange 
notes that it is unaware of any problems created by the SPY Pilot 
Program and does not foresee any as a result of the proposed extension. 
In extending the SPY Pilot Program, the Exchange states that if it were 
to propose another extension, permanent approval or termination of the 
program, the Exchange would submit another Pilot Report covering the 
period since the previous extension, which would be submitted at least 
30 days before the end of the proposed extension. If the SPY Pilot 
Program is not extended or adopted on a permanent basis by July 12, 
2017, the position limits for SPY would revert to limits in effect at 
the commencement of the pilot program. The proposed extension will 
allow the Exchange and the Commission additional time to further 
evaluate the SPY Pilot Program and its effect on the market.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \6\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, 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. The Exchange 
believes that extending the SPY Pilot Program promotes just and 
equitable principles of trade by permitting market participants, 
including market makers, institutional investors and retail investors, 
to establish greater positions

[[Page 45326]]

when pursuing their investment goals and needs.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change is not 
designed to address any aspect of competition, whether between the 
Exchange and its competitors, or among market participants. Instead, 
the proposed rule change is designed to allow the SPY Pilot Program to 
continue uninterrupted. Additionally, the Exchange expects all other 
SROs that currently have rules regarding the SPY Pilot Program to also 
extend the pilot program for an additional year.

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 foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\7\
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    \7\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \8\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ 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 
believes that waiver of the operative delay is consistent with the 
protection of investors and the public interest because it will allow 
the SPY Pilot Program to continue without interruption. The Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest. Therefore, the 
Commission hereby waives the operative delay and designates the 
proposed rule change operative upon filing.\10\
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic 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-NYSEMKT-2016-65 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-2016-65. 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-2016-65, and should 
be submitted on or before August 3, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-16482 Filed 7-12-16; 8:45 am]
 BILLING CODE 8011-01-P
45326 Federal Register / Vol. 81, No. 134 / Wednesday, July 13, 2016 / Notices

when pursuing their investment goals investors and the public interest Commission and any person, other than
and needs. because it will allow the SPY Pilot those that may be withheld from the
Program to continue without public in accordance with the
B. Self-Regulatory Organization’s
interruption. The Commission believes provisions of 5 U.S.C. 552, will be
Statement on Burden on Competition
that waiving the 30-day operative delay available for Web site viewing and
The Exchange does not believe that is consistent with the protection of printing in the Commission’s Public
the proposed rule change will impose investors and the public interest. Reference Room, 100 F Street NE.,
any burden on competition not Therefore, the Commission hereby Washington, DC 20549 on official
necessary or appropriate in furtherance waives the operative delay and business days between the hours of
of the purposes of the Act. The designates the proposed rule change 10:00 a.m. and 3:00 p.m. Copies of such
proposed rule change is not designed to operative upon filing.10 filing also will be available for
address any aspect of competition, At any time within 60 days of the inspection and copying at the principal
whether between the Exchange and its filing of the proposed rule change, the office of the Exchange. All comments
competitors, or among market Commission summarily may received will be posted without change;
participants. Instead, the proposed rule temporarily suspend such rule change if the Commission does not edit personal
change is designed to allow the SPY it appears to the Commission that such identifying information from
Pilot Program to continue action is necessary or appropriate in the submissions. You should submit only
uninterrupted. Additionally, the public interest, for the protection of information that you wish to make
Exchange expects all other SROs that investors, or otherwise in furtherance of available publicly. All submissions
currently have rules regarding the SPY the purposes of the Act. If the
Pilot Program to also extend the pilot should refer to File Number SR–
Commission takes such action, the NYSEMKT–2016–65, and should be
program for an additional year. Commission shall institute proceedings submitted on or before August 3, 2016.
C. Self-Regulatory Organization’s to determine whether the proposed rule
For the Commission, by the Division of
Statement on Comments on the should be approved or disapproved.
Trading and Markets, pursuant to delegated
Proposed Rule Change Received From IV. Solicitation of Comments authority.11
Members, Participants, or Others
Interested persons are invited to Brent J. Fields,
No written comments were solicited
submit written data, views, and Secretary.
or received with respect to the proposed
arguments concerning the foregoing, [FR Doc. 2016–16482 Filed 7–12–16; 8:45 am]
rule change.
including whether the proposed rule BILLING CODE 8011–01–P
III. Date of Effectiveness of the change is consistent with the Act.
Proposed Rule Change and Timing for Comments may be submitted by any of
Commission Action the following methods: SECURITIES AND EXCHANGE
Because the foregoing proposed rule Electronic Comments COMMISSION
change does not: (i) Significantly affect
the protection of investors or the public • Use the Commission’s Internet
[Release No. 34–78248; File No. SR–CFE–
interest; (ii) impose any significant comment form (http://www.sec.gov/
2016–003]
burden on competition; and (iii) become rules/sro.shtml); or
operative for 30 days from the date on • Send an email to rule-comments@ Self-Regulatory Organizations; CBOE
which it was filed, or such shorter time sec.gov. Please include File Number SR– Futures Exchange, LLC; Notice of
as the Commission may designate, it has NYSEMKT–2016–65 on the subject line. Proposed Rule Change Regarding
become effective pursuant to Section Paper Comments Account and Order Ticket Information
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) thereunder.7 • Send paper comments in triplicate July 7, 2016.
A proposed rule change filed to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street Pursuant to Section 19(b)(7) of the
pursuant to Rule 19b–4(f)(6) under the Securities Exchange Act of 1934
Act 8 normally does not become NE., Washington, DC 20549–1090.
(‘‘Act’’),1 notice is hereby given that on
operative for 30 days after the date of its All submissions should refer to File June 10, 2016 CBOE Futures Exchange,
filing. However, Rule 19b–4(f)(6)(iii) 9 Number SR–NYSEMKT–2016–65. This LLC (‘‘CFE’’ or ‘‘Exchange’’) filed with
permits the Commission to designate a file number should be included on the the Securities and Exchange
shorter time if such action is consistent subject line if email is used. To help the Commission (‘‘SEC’’ or ‘‘Commission’’)
with the protection of investors and the Commission process and review your the proposed rule change described in
public interest. The Exchange has asked comments more efficiently, please use Items I, II, and III below, which Items
the Commission to waive the 30-day only one method. The Commission will have been prepared by CFE. The
operative delay so that the proposal may post all comments on the Commission’s Commission is publishing this notice to
become operative immediately upon Internet Web site (http://www.sec.gov/ solicit comments on the proposed rule
filing. The Exchange believes that rules/sro.shtml). Copies of the change from interested persons. CFE
waiver of the operative delay is submission, all subsequent also has filed this proposed rule change
consistent with the protection of amendments, all written statements with the Commodity Futures Trading
with respect to the proposed rule Commission (‘‘CFTC’’). CFE filed a
7 17 CFR 240.19b–4(f)(6). As required under Rule
change that are filed with the
jstallworth on DSK7TPTVN1PROD with NOTICES

19b–4(f)(6)(iii), the Exchange provided the written certification with the CFTC
Commission, and all written under Section 5c(c) of the Commodity
Commission with written notice of its intent to file
the proposed rule change, along with a brief communications relating to the Exchange Act (‘‘CEA’’) 2 on June 23,
description and the text of the proposed rule proposed rule change between the 2016.
change, at least five business days prior to the date
of filing of the proposed rule change, or such 10 For purposes only of waiving the 30-day
shorter time as designated by the Commission. operative delay, the Commission has considered the
11 17 CFR 200.30–3(a)(12).
8 17 CFR 240.19b–4(f)(6). 1 15 U.S.C. 78s(b)(7).
proposed rule’s impact on efficiency, competition,
9 17 CFR 240.19b–4(f)(6)(iii). and capital formation. See 15 U.S.C. 78c(f). 2 7 U.S.C. 7a–2(c).

VerDate Sep<11>2014 15:08 Jul 12, 2016 Jkt 238001 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 E:\FR\FM\13JYN1.SGM 13JYN1
Document Created: 2016-07-13 01:44:11
Document Modified: 2016-07-13 01:44:11
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		81 FR 45325