81 FR 59693 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Exchange's Connectivity Fees at Chapter VIII of the NASDAQ PHLX LLC Pricing Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 168 (August 30, 2016)
Federal Register Volume 81, Issue 168 (August 30, 2016)
| Page Range | 59693-59696 | |
| FR Document | 2016-20734 |
[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)] [Notices] [Pages 59693-59696] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-20734] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78665; File No. SR-Phlx-2016-85) Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Exchange's Connectivity Fees at Chapter VIII of the NASDAQ PHLX LLC Pricing Schedule August 24, 2016. 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 August 12, 2016, NASDAQ PHLX LLC (''Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (''SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, 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. --------------------------------------------------------------------------- \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 The Exchange proposes to amend the Exchange's connectivity fees at Chapter VIII of the NASDAQ PHLX LLC Pricing Schedule to: (i) limit the total monthly fee a PSX Participant may be assessed for connectivity under the rule; and (ii) provide a waiver of all connectivity fees to new PSX Participants for a limited time; (iii) eliminate prorated billing; and (iv) change the name of the fees assessed under the rule. The text of the proposed rule change is available on the Exchange's Web site at http://nasdaqphlx.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. 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 purpose of the proposed rule change is to amend the Exchange's connectivity fees under ``Access Services Fees'' at Chapter VIII of the NASDAQ PHLX LLC Pricing Schedule to: (i) limit the total monthly fee a PSX Participant may be assessed for connectivity under the rule; (ii) provide a waiver of all connectivity fees to new PSX Participants for a limited time; (iii) eliminate prorated billing; and (iv) change the name of the fees assessed [[Page 59694]] under the rule from ``Access Services Fees'' to ``Port Fees,'' as described further below. Access Services Fees include the choices for connecting to PSX and receipt of data therefrom, together with the fees assessed for that connectivity. First Change The purpose of the first change is to limit the overall costs to Participants for connecting to the Exchange by capping the total monthly fee a Participant may be assessed at $30,000. The Exchange believes that the proposed fee cap will make PSX a more attractive venue for Participants, and help PSX both retain and attract new Participants. The proposed fee cap will apply to all Access Services \3\ fees assessed under the rule, in aggregate and per Participant. Thus, a Participant may meet the $30,000 per month fee cap with any combination of subscriptions provided under the rule. --------------------------------------------------------------------------- \3\ As discussed below, the Exchange is proposing to rename ``Access Services Fees'' under the rule as ``Port Fees.'' --------------------------------------------------------------------------- Second Change Similar to the first change, the purpose of the second change is to reduce the costs of connecting to the Exchange for market participants that are not currently Participants on PSX by providing a waiver of all connectivity fees under the rule to new PSX Participants for a limited time. Specifically, the Exchange is proposing to waive all Access Services Fees for every Participant that is a ``new PSX Participant'' through August 1, 2017. The Exchange is defining a ``new PSX Participant'' as a Participant that was not a Participant after July 1, 2016. The Exchange believes that the proposed fee waiver will make PSX a more attractive venue for prospective Participants. Third Change The purpose of the third change is to harmonize the billing practices for subscription to PSX ports under Access Services Fees with those of the Exchange's Options Market by no longer applying a prorated fee for subscriptions that are effective other than the first of any given month.\4\ The Exchange does not prorate options market connectivity subscriptions; thus, options participants would be assessed a full month's fee for a connectivity subscription if they direct the Exchange to make the subscribed connectivity live on any day of the month, including the last day thereof.\5\ --------------------------------------------------------------------------- \4\ See NASDAQ PHLX LLC Pricing Schedule, Chapters VI.A, VI.B, VI.C, VII.A and VII.B. Chapter VII.B. is titled ``Port Fees'' and sets forth the connectivity choices for the Phlx Options market. \5\ For example, in a filing increasing an Order Entry Port Fee the Exchange noted: The Exchange currently assesses an Order Entry Port Fee per month, per mnemonic of $500. This fee is assessed on members regardless of whether the order entry mnemonic is active during the billing month. The fee is assessed regardless of usage, and solely on the number of order entry ports assigned to each member organization. See Securities Exchange Act Release No. 68473 (December 19, 2012), 77 FR 76128 (December 26, 2012) (SR-Phlx-2012-140). --------------------------------------------------------------------------- Currently, connectivity on PSX under the rule is prorated based on the day that it is activated, with the PSX Participant only fee liable for the remaining days of the partial month. The Exchange has found that prorating billing has inserted complexity into the billing process. As a consequence, the Exchange is harmonizing the billing process with that of the Exchange's Options market and not permitting prorated billing. Fourth Change The purpose of the fourth change is to rename the title of the section from ``Access Services Fees'' to ``Port Fees,'' which the Exchange believes is a more accurate description of the connectivity provided by the rule. In this regard, the Exchange notes that each connectivity option under the rule provides the Participant with a specific port, which is noted in the rule. The proposed name change in no way alters what is offered under the rule. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\7\ in particular, in that it provides for the equitable allocation of reasonable dues, fees, and other charges among members and issuers and other persons using any facility or system which the Exchange operates or controls, and is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in 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; and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- First Change The Exchange believes that the first change is reasonable because it will limit the overall costs to Participants for connecting to the Exchange and may, in turn, attract new Participants and retain existing Participants. Attracting and retaining Participants will benefit all market participants on PSX by ensuring that the market remains deep and liquid. The fee cap may also provide incentive to Participants to subscribe to additional ports, potentially for the purpose of increasing their activity on PSX. Moreover, the proposed fee cap is set a level that will allow the Exchange to continue to cover costs associated with providing connectivity to PSX. For these reasons, the Exchange believes that the proposed fee cap is reasonable. The Exchange believes that the first change is an equitable allocation and is not unfairly discriminatory because the Exchange will uniformly apply the same fee to all similarly situated members. In this regard, all Participants have the opportunity to take advantage of the fee cap to the extent their subscriptions exceed the $30,000 per month level. Participants that are unwilling to subscribe to connectivity at a level that exceeds the fee cap will still benefit from the liquidity provided by Participants that have increased their connectivity and participation in the PSX market. Second Change The Exchange believes that the second change is reasonable because it will limit the overall costs incurred by new Participants in connecting to the Exchange, which may as a consequence attract new Participants. Attracting new Participants will benefit all market participants on PSX by ensuring that PSX remains deep and liquid. The Exchange believes that the second change is an equitable allocation and is not unfairly discriminatory because the Exchange will uniformly apply the same fee to all similarly situated Participants. In this regard, the Exchange is proposing to apply the fee waiver to new PSX Participants, which the Exchange proposes to define as a Participant that was not a Participant prior to July 1, 2016. Limiting eligibility for the fee waiver, as described, will ensure that the waiver is only available to market participants that were not already considering becoming a Participant imminently, thus limiting the incentive to attracting truly new Participants. Waiving the fees for new Participants will ease the [[Page 59695]] burden of participating on PSX, which may be a significant reason that such market participants have historically declined to become Participants. Thus, to the extent this waiver is successful, the proposed change will broaden participation on PSX, which will benefit all Participants by providing more liquidity. Third Change The Exchange believes that the third change is reasonable because it will reduce a complexity in the billing process and will harmonize it with the process applied to Exchange Options market participants. As noted above, Participants choose when they want a new connectivity subscription to begin and thus may make the determination of when they wish to be fee liable. Participants will continue to choose when they become fee liable under the proposed change, but now the Exchange will assess the full month's fee regardless of when the port is subscribed. The Exchange believes that the third change is an equitable allocation and is not unfairly discriminatory because it will apply the same fee to all similarly situated Participants. Moreover, the Exchange believes the proposed change is an equitable allocation and is not unfairly discriminatory because it will harmonize the billing process with that of the Exchange's Options market. Thus, the Exchange will apply the same process to both its Options and Equities market Participants. Fourth Change The Exchange believes that the proposed renaming of the fee section under the rule further perfects the mechanism of a free and open market and a national market system, and, in general, promotes the public interest because the proposed new name is more reflective of the type of connectivity provided under the rule. Therefore, the Exchange believes that the proposed change will promote better market participant understanding over the scope and nature of the fees. 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. In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited. In this instance, the proposed changes generally reduce the fee burdens on Participants in an effort to attract and retain Participants, which benefits all market participants on PSX to the extent the incentives are effective. Although eliminating prorated fees for subscriptions under the rule will result in an increase in fees for new subscriptions, the Exchange notes that it is doing so to both simplify the process and harmonize it with the process applied to the Exchange's Options Participants. The Exchange notes that participation on PSX is completely voluntary and subject to extensive competition both from other exchanges and from off-exchange venues. Thus, to the extent that the proposed changes to the connectivity fees proposed herein are unattractive to market participants, it is likely that the Exchange will lose market share and Participants as a result. Accordingly, the Exchange does not believe that the proposed changes will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets. 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.\8\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- 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: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-Phlx-2016-85 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-Phlx-2016-85. 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 the 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-Phlx-2016-85 and should [[Page 59696]] be submitted on or before September 20, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-20734 Filed 8-29-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Notices 59693
appropriateness of the relevant Fund’s or superseded from time to time, for (’’Act’’),1 and Rule 19b–4 thereunder,2
participation in the Facility. each year that the Fund participates in notice is hereby given that on August
15. In the event an Interfund Loan is the Facility, that certifies that the Fund 12, 2016, NASDAQ PHLX LLC (’’Phlx’’
not paid according to its terms and the and CIM have established procedures or ‘‘Exchange’’) filed with the Securities
default is not cured within two business reasonably designed to achieve and Exchange Commission (’’SEC’’ or
days from its maturity or from the time compliance with the terms and ‘‘Commission’’) the proposed rule
the lending Fund makes a demand for conditions of the order. In particular, change as described in Items I, II, and
payment under the provisions of the such certification will address III, below, which Items have been
Interfund Lending Agreement, CIM will procedures designed to achieve the prepared by the Exchange. The
promptly refer the loan for arbitration to following objectives: (a) That the Commission is publishing this notice to
an independent arbitrator selected by Interfund Loan Rate will be higher than solicit comments on the proposed rule
the Board of each Fund involved in the the Repo Rate, but lower than the Bank change from interested persons.
loan who will serve as arbitrator of Loan Rate; (b) compliance with the I. Self-Regulatory Organization’s
disputes concerning Interfund Loans.2 collateral requirements as set forth in Statement of the Terms of Substance of
The arbitrator will resolve any problem the application; (c) compliance with the the Proposed Rule Change
promptly, and the arbitrator’s decision percentage limitations on interfund
will be binding on both Funds. The borrowing and lending; (d) allocation of The Exchange proposes to amend the
arbitrator will submit, at least annually, interfund borrowing and lending Exchange’s connectivity fees at Chapter
a written report to the Board of each demand in an equitable manner and in VIII of the NASDAQ PHLX LLC Pricing
Fund setting forth a description of the accordance with procedures established Schedule to: (i) limit the total monthly
nature of any dispute and the actions by the Board of each Fund; and (e) that fee a PSX Participant may be assessed
taken by the Funds involved to resolve the Interfund Loan Rate does not exceed for connectivity under the rule; and (ii)
the dispute. the interest rate on any third party provide a waiver of all connectivity fees
16. Each Fund will maintain, and borrowings of a borrowing Fund at the to new PSX Participants for a limited
preserve for a period of not less than six time of the Interfund Loan. time; (iii) eliminate prorated billing; and
years from the end of the fiscal year in Additionally, each Fund’s (iv) change the name of the fees assessed
which any transaction by it under the independent public accountants, in under the rule.
Facility occurred, the first two years in The text of the proposed rule change
connection with their audit
an easily accessible place, written is available on the Exchange’s Web site
examinations of the Fund, will review
records of all such transactions setting at http://nasdaqphlx.cchwallstreet.
the operation of the Facility for
forth a description of the terms of the com/, at the principal office of the
compliance with the conditions of the Exchange, and at the Commission’s
transactions, including the amount, the application and their review will form Public Reference Room.
maturity and the Interfund Loan Rate, the basis, in part, of the auditor’s report
the rate of interest available at the time on internal accounting controls in Form II. Self-Regulatory Organization’s
each Interfund Loan is made on N–SAR. Statement of the Purpose of, and
overnight repurchase agreements and 18. No Fund will participate in the Statutory Basis for, the Proposed Rule
bank borrowings, and such other Facility upon receipt of requisite Change
information presented to the Fund’s regulatory approval unless it has fully In its filing with the Commission, the
Board in connection with the review disclosed in its prospectus and/or Exchange included statements
required by conditions 13 and 14. statement of additional information all concerning the purpose of and basis for
17. The Fund Administration material facts about its intended the proposed rule change. The text of
Department will prepare and submit participation. these statements may be examined at
(through CIM) to the Board of each Fund the places specified in Item IV below.
For the Commission, by the Division of
for review an initial report describing Investment Management, under delegated The Exchange has prepared summaries,
the operations of the Facility and the authority. set forth in sections A, B, and C below,
procedures to be implemented to ensure Robert W. Errett, of the most significant aspects of such
that all Funds are treated fairly. After statements.
Deputy Secretary.
commencement of the Facility, the Fund
[FR Doc. 2016–20738 Filed 8–29–16; 8:45 am] A. Self-Regulatory Organization’s
Administration Department will report
on the operations of the credit facility at BILLING CODE 8011–01–P Statement of the Purpose of, and
each Board’s quarterly meetings. In Statutory Basis for, the Proposed Rule
addition, each Fund’s chief compliance Change
SECURITIES AND EXCHANGE
officer, as defined in rule 38a–1(a)(4) 1. Purpose
COMMISSION
under the Act, shall prepare an annual
The purpose of the proposed rule
report for its Board each year that the
[Release No. 34–78665; File No. SR–Phlx– change is to amend the Exchange’s
Fund participates in the Facility, which
2016–85) connectivity fees under ‘‘Access
report evaluates the Fund’s compliance
Services Fees’’ at Chapter VIII of the
with the terms and conditions of the Self-Regulatory Organizations; NASDAQ PHLX LLC Pricing Schedule
application and the procedures NASDAQ PHLX LLC; Notice of Filing to: (i) limit the total monthly fee a PSX
established to achieve such compliance. and Immediate Effectiveness of Participant may be assessed for
Each Fund’s chief compliance officer
mstockstill on DSK3G9T082PROD with NOTICES
Proposed Rule Change to Amend the connectivity under the rule; (ii) provide
will also annually file a certification Exchange’s Connectivity Fees at a waiver of all connectivity fees to new
pursuant to Item 77Q3 of Form N–SAR, Chapter VIII of the NASDAQ PHLX LLC PSX Participants for a limited time; (iii)
as such Form may be revised, amended, Pricing Schedule eliminate prorated billing; and (iv)
2 If the dispute involves Funds with different
change the name of the fees assessed
August 24, 2016.
Boards, the Board of each Fund will select an
independent arbitrator that is satisfactory to each
Pursuant to Section 19(b)(1) of the 1 15 U.S.C. 78s(b)(1).
Fund. Securities Exchange Act of 1934 2 17 CFR 240.19b–4.
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![59696 Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Notices
be submitted on or before September 20, for trading, on any Tuesday or facilitating transactions in securities, to
2016. Wednesday that is a business day, series remove impediments to and perfect the
For the Commission, by the Division of of options on SPY that expire on any mechanism of a free and open market
Trading and Markets, pursuant to delegated Wednesday of the month that is a and a national market system, and, in
authority.9 business day and is not a Wednesday in general, to protect investors and the
Robert W. Errett, which Quarterly Options Series expire public interest. The Commission
Deputy Secretary. (‘‘Wednesday SPY Expirations’’).6 believes that the proposed rule change
[FR Doc. 2016–20734 Filed 8–29–16; 8:45 am]
Wednesday SPY Expirations would be may provide the investing public and
BILLING CODE 8011–01–P
subject to the same rules as the standard other market participants more
Short Term Option Series program,7 flexibility to closely tailor their
with two exceptions. The Exchange investment and hedging decisions in
SECURITIES AND EXCHANGE proposes that the current limitation of SPY options, thus allowing them to
COMMISSION no more than five Short Term Option better manage their risk exposure.
Series expiration dates in a class 8 In approving this proposal, the
[Release No. 34–78668; File No. SR–BOX– would not include any Wednesday SPY Commission notes that the Exchange
2016–28] Expiration. Instead, the Exchange has represented that it has an adequate
Self-Regulatory Organizations; BOX proposes a separate limit of five surveillance program in place to detect
Options Exchange LLC; Order consecutive Wednesday SPY expiration manipulative trading in Wednesday
Approving a Proposed Rule Change To dates 9 so that the Exchange could list SPY Expirations.14 The Exchange
Expand the Short Term Option Series five Short Term Option Series further states that it has the necessary
Program To Allow Wednesday expiration dates for SPY expiring on systems capacity to support the new
Friday as well as five Wednesday SPY options series.15
Expirations for SPY Options
Expiration dates.10 In addition, unlike
August 24, 2016. other option series in the Short Term IV. Conclusion
Option Series program, Wednesday SPY It is therefore ordered, pursuant to
I. Introduction Expirations could expire in the same section 19(b)(2) of the Act,16 that the
On June 30, 2016, BOX Options week in which monthly option series in proposed rule change (SR–BOX–2016–
Exchange LLC (‘‘BOX’’ or ‘‘Exchange’’) the same class expire.11 28) be, and hereby is, approved.
filed with the Securities and Exchange For the Commission, by the Division of
Commission (‘‘Commission’’), pursuant III. Discussion and Commission
Findings Trading and Markets, pursuant to delegated
to section 19(b)(1) of the Securities authority.17
Exchange Act of 1934 (‘‘Act’’) 1 and Rule After careful review, the Commission Robert W. Errett,
19b–4 thereunder,2 a proposed rule finds that the proposed rule change is
Deputy Secretary.
change to amend its rules governing the consistent with the requirements of the
[FR Doc. 2016–20737 Filed 8–29–16; 8:45 am]
Short Term Option Series Program 3 to Act and the rules and regulations
thereunder applicable to a national BILLING CODE 8011–01–P
allow the listing and trading of options
on the SPDR S&P 500 ETF Trust securities exchange and, in particular,
(‘‘SPY’’) with Wednesday expirations. with section 6(b) of the Act.12 In
SECURITIES AND EXCHANGE
The proposed rule change was particular, the Commission finds that
COMMISSION
published for comment in the Federal the proposed rule change is consistent
Register on July 13, 2016.4 The with section 6(b)(5) of the Act,13 which [Release No. 34–78663; File No. SR–
Commission received no comments on requires, among other things, that a NYSEMKT–2016–80]
the proposal. This order approves the national securities exchange have rules
proposed rule change. designed to prevent fraudulent and Self-Regulatory Organizations; NYSE
manipulative acts and practices, to MKT LLC; Notice of Filing of Proposed
II. Description of the Proposal promote just and equitable principles of Rule Change Amending and Restating
Under the terms of the current Short trade, to foster cooperation and the Second Amended and Restated
Term Option Series Program, after an coordination with persons engaged in Certificate of Incorporation of the
option class has been approved for regulating, clearing, settling, processing Exchange’s Ultimate Parent Company,
listing and trading on the Exchange, the information with respect to, and Intercontinental Exchange, Inc.
Exchange may open for trading on any August 24, 2016.
Thursday or Friday that is a business 6 Under the proposal, the Exchange would
Pursuant to Section 19(b)(1) 1 of the
day series of options on that class that expand the definition of ‘‘Short Term Option
Securities Exchange Act of 1934 (the
expire on each of the next five Fridays, Series’’ in BOX Rule 100(a)(64) and add a
description of Wednesday SPY Expirations in ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
provided that such Friday is not a proposed IM–5050–6(c) to BOX Rule 5050. For notice is hereby given that, on August
Friday in which monthly options series further details, see Notice, supra note 4, at 45346.
17, 2016, NYSE MKT LLC (the
or Quarterly Options Series expire.5 7 For example, Wednesday SPY Expirations
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
The Exchange’s proposed rule change would be subject to the same series limitations and
strike interval rules as standard Short Term Option the Securities and Exchange
would expand the Short Term Option Series and would be P.M.-settled. See IM–5050–6(b) Commission (the ‘‘Commission’’) the
Series Program to permit BOX to open to BOX Rule 5050. See also Notice, supra note 4, proposed rule change as described in
at 45346–47.
Items I and II below, which Items have
mstockstill on DSK3G9T082PROD with NOTICES
9 17 CFR 200.30–3(a)(12). 8 See IM–5050–6(a) to BOX Rule 5050.
1 15 U.S.C. 78s(b)(1). 9 See proposed IM–5050–6(c) to BOX Rule 5050.
14 See Notice, supra note 4, at 45347.
2 17 CFR 240.19b–4. 10 See Notice, supra note 4, at 45346.
15 See id.
3 See IM–5050–6 to BOX Rule 5050. 11 See id.
16 15 U.S.C. 78s(b)(2).
4 See Securities Exchange Act Release No. 78243 12 15 U.S.C. 78f(b). In approving this proposed
17 17 CFR 200.30–3(a)(12).
(July 7, 2016), 81 FR 45346 (July 13, 2016) rule change, the Commission has considered the
1 15 U.S.C. 78s(b)(1).
(‘‘Notice’’). proposed rule’s impact on efficiency, competition,
5 See Securities Exchange Act Release No. 62505 and capital formation. See 15 U.S.C. 78c(f). 2 15 U.S.C. 78a.
(July 15, 2010), 75 FR 42792 (July 22, 2010). 13 15 U.S.C. 78f(b)(5). 3 17 CFR 240.19b–4.
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Document Created: 2018-02-09 11:41:57
Document Modified: 2018-02-09 11:41:57
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| FR Citation | 81 FR 59693 |
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