81 FR 45330 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .06 to Rule 6.8 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		45330-45332
FR Document		2016-16483
Federal Register, Volume 81 Issue 134 (Wednesday, July 13, 2016)
[Federal Register Volume 81, Number 134 (Wednesday, July 13, 2016)]
[Notices]
[Pages 45330-45332]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16483]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78242; File No. SR-NYSEArca-2016-92]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Amending Commentary 
.06 to Rule 6.8 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 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.
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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 .06 to Rule 6.8 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

[[Page 45331]]

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 .06 to Rule 6.8 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. 68001 (October 5, 
2012), 77 FR 62303 (October 12, 2012). The SPY Pilot Program was 
subsequently extended. See Securities Exchange Act Release Nos. 
70968 (December 3, 2013), 78 FR 73899 (December 9, 2013); 74029 
(January 9, 2015), 80 FR 2161 (January 15, 2015); and 75415 (July 9, 
2015), 80 FR 41541 (July 15, 2015) (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 will submit another Pilot Report covering the 
period since the previous extension, which will 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 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

[[Page 45332]]

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-NYSEArca-2016-92 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-2016-92. 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-2016-92, and should 
be submitted on or before August 3, 2016.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Brent J. Fields,
Secretary.
[FR Doc. 2016-16483 Filed 7-12-16; 8:45 am]
 BILLING CODE 8011-01-P
45330 Federal Register / Vol. 81, No. 134 / Wednesday, July 13, 2016 / Notices

consistent application of the day operative delay and designates the Washington, DC 20549, on official
communications with the public rules proposed rule change to be operative on business days between the hours of 10
and provide greater clarity to members July 16, 2016.17 a.m. and 3 p.m. Copies of such filing
and the public regarding FINRA’s rules. At any time within 60 days of the also will be available for inspection and
filing of the proposed rule change, the copying at the principal office of
B. Self-Regulatory Organization’s
Commission summarily may FINRA. All comments received will be
Statement on Burden on Competition
temporarily suspend such rule change if posted without change; the Commission
FINRA does not believe that the it appears to the Commission that such does not edit personal identifying
proposed rule change will result in any action is necessary or appropriate in the information from submissions. You
burden on competition that is not public interest, for the protection of should submit only information that
necessary or appropriate in furtherance investors, or otherwise in furtherance of you wish to make available publicly. All
of the purposes of the Act. The the purposes of the Act. If the submissions should refer to File
proposed rule change brings clarity and Commission takes such action, the Number SR–FINRA–2016–021 and
consistency to FINRA rules without Commission shall institute proceedings should be submitted on or before
adding any burden on firms. to determine whether the proposed rule August 3, 2016.
C. Self-Regulatory Organization’s should be approved or disapproved. For the Commission, by the Division of
Statement on Comments on the Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.18
Proposed Rule Change Received From
Members, Participants, or Others Interested persons are invited to Brent J. Fields,
submit written data, views and Secretary.
Written comments were neither arguments concerning the foregoing,
solicited nor received. [FR Doc. 2016–16478 Filed 7–12–16; 8:45 am]
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. 34–78242; File No. SR–
NYSEArca–2016–92]
interest; (ii) impose any significant comment form (http://www.sec.gov/
burden on competition; and (iii) become rules/sro.shtml); or Self-Regulatory Organizations; NYSE
operative for 30 days from the date on • Send an email to rule-comments@ Arca, Inc.; Notice of Filing and
which it was filed, or such shorter time sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed
as the Commission may designate, it has FINRA–2016–021 on the subject line. Rule Change Amending Commentary
become effective pursuant to Section Paper Comments .06 to Rule 6.8 To Extend the Pilot
19(b)(3)(A) of the Act 11 and Rule 19b– Program That Eliminated the Position
4(f)(6) thereunder.12 • Send paper comments in triplicate Limits for Options on SPDR S&P 500
A proposed rule change filed under to Robert W. Errett, Deputy Secretary, ETF
Rule 19b–4(f)(6) under the Act 13 Securities and Exchange Commission,
normally does not become operative 100 F Street NE., Washington, DC July 7, 2016.
before 30 days from the date of the 20549–1090. Pursuant to Section 19(b)(1) 1 of the
filing. However, pursuant to Rule 19b– All submissions should refer to File Securities Exchange Act of 1934 (the
4(f)(6)(iii),14 the Commission may Number SR–FINRA–2016–021. This file ‘‘Act’’),2 and Rule 19b–4 thereunder,3
designate a shorter time if such action number should be included on the notice is hereby given that on June 29,
is consistent with the protection of subject line if email is used. To help the 2016, NYSE Arca, Inc. (the ‘‘Exchange’’
investors and the public interest. FINRA Commission process and review your or ‘‘NYSE Arca’’) filed with the
has asked the Commission to waiver the comments more efficiently, please use Securities and Exchange Commission
30-day operative delay. The only one method. The Commission will (the ‘‘Commission’’) the proposed rule
Commission believes that waiving the post all comments on the Commission’s change as described in Items I and II
30-day operative delay is consistent Internet Web site (http://www.sec.gov/ below, which Items have been prepared
with the protection of investors and the rules/sro.shtml). Copies of the by the self-regulatory organization. The
public interest. The proposed rule submission, all subsequent Commission is publishing this notice to
change is designed to clarify the amendments, all written statements solicit comments on the proposed rule
application of FINRA Rule 2210 to debt with respect to the proposed rule change from interested persons.
research reports as the result of the change that are filed with the I. Self-Regulatory Organization’s
Commission’s approval of a new FINRA Commission, and all written Statement of the Terms of the Substance
debt research conflict of interest rule communications relating to the of the Proposed Rule Change
(Rule 2242).15 A waiver of the 30-day proposed rule change between the
operative delay will allow the proposed Commission and any person, other than The Exchange proposes to amend
rule change to become operative on July those that may be withheld from the Commentary .06 to Rule 6.8 to extend
16, 2016, the same date on which Rule public in accordance with the the pilot program that eliminated the
2242 will be implemented.16 Therefore, provisions of 5 U.S.C. 552, will be position limits for options on SPDR S&P
jstallworth on DSK7TPTVN1PROD with NOTICES

the Commission hereby waives the 30- available for Web site viewing and 500 ETF (‘‘SPY’’) (‘‘SPY Pilot Program’’).
printing in the Commission’s Public The proposed rule change is available
11 15 U.S.C. 78s(b)(3)(A). Reference Room, 100 F Street NE., on the Exchange’s Web site at
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6). 18 17 CFR 200.30–3(a)(12).
17 For purposes of waiving the operative delay for
14 17 CFR 240.19b–4(f)(6)(iii). 1 15 U.S.C. 78s(b)(1).
this proposal, the Commission has considered the
15 See note 4 supra. 2 15 U.S.C. 78a.
proposed rule’s impact on efficiency, competition,
16 See note 5 supra. and capital formation. See 15 U.S.C. 78c(f). 3 17 CFR 240.19b–4.

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45332 Federal Register / Vol. 81, No. 134 / Wednesday, July 13, 2016 / Notices

temporarily suspend such rule change if should refer to File Number SR– proposed rule change should be
it appears to the Commission that such NYSEArca–2016–92, and should be disapproved. The Commission is
action is necessary or appropriate in the submitted on or before August 3, 2016. extending this 45-day time period. The
public interest, for the protection of For the Commission, by the Division of Commission finds that it is appropriate
investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated to designate a longer period within
the purposes of the Act. If the authority.11 which to take action on the proposed
Commission takes such action, the Brent J. Fields, rule change so that it has sufficient time
Commission shall institute proceedings Secretary. to consider the proposed rule change.
to determine whether the proposed rule [FR Doc. 2016–16483 Filed 7–12–16; 8:45 am] Accordingly, the Commission,
should be approved or disapproved. BILLING CODE 8011–01–P
pursuant to section 19(b)(2) of the Act,6
IV. Solicitation of Comments designates August 21, 2016 as the date
by which the Commission shall either
Interested persons are invited to approve or disapprove or institute
SECURITIES AND EXCHANGE
submit written data, views, and proceedings to determine whether to
COMMISSION
arguments concerning the foregoing, disapprove the proposed rule change
including whether the proposed rule [Release No. 34–78240; File No. SR– (File Number SR–NYSEArca–2016–64).
change is consistent with the Act. NYSEArca–2016–64]
Comments may be submitted by any of For the Commission, by the Division of
Self-Regulatory Organizations; NYSE Trading and Markets, pursuant to delegated
the following methods:
Arca, Inc.; Notice of Designation of a authority.7
Electronic Comments Longer Period for Commission Action Brent J. Fields,
• Use the Commission’s Internet on Proposed Rule Change, as Modified Secretary.
comment form (http://www.sec.gov/ by Amendment Nos. 1 and 2, To List [FR Doc. 2016–16481 Filed 7–12–16; 8:45 am]
rules/sro.shtml); or and Trade Shares of the BILLING CODE 8011–01–P
• Send an email to rule-comments@ AdvisorShares KIM Korea Equity ETF
sec.gov. Please include File Number SR– July 7, 2016.
NYSEArca–2016–92 on the subject line. SECURITIES AND EXCHANGE
On May 2, 2016, NYSE Arca, Inc.
COMMISSION
Paper Comments (‘‘Exchange’’) filed with the Securities
• Send paper comments in triplicate and Exchange Commission [Release No. 34–78246; File No. SR–
to Brent J. Fields, Secretary, Securities (‘‘Commission’’), pursuant to section NASDAQ–2016–067]
and Exchange Commission, 100 F Street 19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4 Self-Regulatory Organizations; The
NE., Washington, DC 20549–1090.
thereunder,2 a proposed rule change to Nasdaq Stock Market LLC; Notice of
All submissions should refer to File Filing of Proposed Rule Change To
list and trade shares (‘‘Shares’’) of the
Number SR–NYSEArca–2016–92. This Adopt Limit Order Protection
AdvisorShares KIM Korea Equity ETF
file number should be included on the
(‘‘Fund’’) under NYSE Arca Equities
subject line if email is used. To help the July 7, 2016.
Rule 8.600. On May 13, 2016, the
Commission process and review your Pursuant to Section 19(b)(1) of the
Exchange submitted Amendment No. 1
comments more efficiently, please use Securities Exchange Act of 1934
to the proposed rule change. The
only one method. The Commission will (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Commission published notice of the
post all comments on the Commission’s notice is hereby given that on June 24,
proposed rule change, as modified by
Internet Web site (http://www.sec.gov/ 2016, The Nasdaq Stock Market LLC
Amendment No. 1, in the Federal
rules/sro.shtml). Copies of the Register on May 23, 2016.3 On May 23, (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
submission, all subsequent 2016, the Exchange submitted Securities and Exchange Commission
amendments, all written statements Amendment No. 2 to the proposed rule (‘‘SEC’’ or ‘‘Commission’’) the proposed
with respect to the proposed rule change.4 The Commission received no rule change as described in Items I and
change that are filed with the comments on the proposed rule change. II below, which Items have been
Commission, and all written Section 19(b)(2) of the Act 5 provides prepared by the Exchange. The
communications relating to the that, within 45 days of the publication Commission is publishing this notice to
proposed rule change between the of notice of the filing of a proposed rule solicit comments on the proposed rule
Commission and any person, other than change, or within such longer period up change from interested persons.
those that may be withheld from the to 90 days as the Commission may
public in accordance with the designate if it finds such longer period I. Self-Regulatory Organization’s
provisions of 5 U.S.C. 552, will be to be appropriate and publishes its Statement of the Terms of Substance of
available for Web site viewing and reasons for so finding or as to which the the Proposed Rule Change
printing in the Commission’s Public self-regulatory organization consents, The Exchange proposes to amend
Reference Room, 100 F Street NE., the Commission shall either approve the Nasdaq’s Rule 4757, entitled ‘‘Book
Washington, DC 20549 on official proposed rule change, disapprove the Processing’’ to adopt a Limit Order
business days between the hours of proposed rule change, or institute Protection or ‘‘LOP’’ for members
10:00 a.m. and 3:00 p.m. Copies of such proceedings to determine whether the accessing the Nasdaq Market Center.
filing also will be available for The text of the proposed rule change
inspection and copying at the principal
jstallworth on DSK7TPTVN1PROD with NOTICES

11 17
CFR 200.30–3(a)(12). is available on the Exchange’s Web site
office of the Exchange. All comments 1 15
U.S.C. 78s(b)(1). at http://nasdaq.cchwallstreet.com, at
received will be posted without change; 2 17 CFR 240.19b–4.
the principal office of the Exchange, and
3 See Securities Exchange Act Release No. 77847
the Commission does not edit personal
(May 17, 2016), 81 FR 32364 (NYSEArca–2016–64).
identifying information from 4 Amendment No. 2 is available at https:// 6 Id.
submissions. You should submit only www.sec.gov/comments/sr-nysearca-2016-64/ 7 17 CFR 200.30–3(a)(31).
information that you wish to make nysearca201664-2.pdf. 1 15 U.S.C. 78s(b)(1).
available publicly. All submissions 5 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 15:08 Jul 12, 2016 Jkt 238001 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\13JYN1.SGM 13JYN1
Document Created: 2016-07-13 01:44:00
Document Modified: 2016-07-13 01:44:00
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 45330