81 FR 59696 - Self-Regulatory Organizations; BOX Options Exchange LLC; Order Approving a Proposed Rule Change To Expand the Short Term Option Series Program To Allow Wednesday Expirations for SPY Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 168 (August 30, 2016)
Federal Register Volume 81, Issue 168 (August 30, 2016)
| Page Range | 59696-59696 | |
| FR Document | 2016-20737 |
[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)] [Notices] [Page 59696] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-20737] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78668; File No. SR-BOX-2016-28] Self-Regulatory Organizations; BOX Options Exchange LLC; Order Approving a Proposed Rule Change To Expand the Short Term Option Series Program To Allow Wednesday Expirations for SPY Options August 24, 2016. I. Introduction On June 30, 2016, BOX Options Exchange LLC (``BOX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to amend its rules governing the Short Term Option Series Program \3\ to allow the listing and trading of options on the SPDR S&P 500 ETF Trust (``SPY'') with Wednesday expirations. The proposed rule change was published for comment in the Federal Register on July 13, 2016.\4\ The Commission received no comments on the proposal. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See IM-5050-6 to BOX Rule 5050. \4\ See Securities Exchange Act Release No. 78243 (July 7, 2016), 81 FR 45346 (July 13, 2016) (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposal Under the terms of the current Short Term Option Series Program, after an option class has been approved for listing and trading on the Exchange, the Exchange may open for trading on any Thursday or Friday that is a business day series of options on that class that expire on each of the next five Fridays, provided that such Friday is not a Friday in which monthly options series or Quarterly Options Series expire.\5\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 62505 (July 15, 2010), 75 FR 42792 (July 22, 2010). --------------------------------------------------------------------------- The Exchange's proposed rule change would expand the Short Term Option Series Program to permit BOX to open for trading, on any Tuesday or Wednesday that is a business day, series of options on SPY that expire on any Wednesday of the month that is a business day and is not a Wednesday in which Quarterly Options Series expire (``Wednesday SPY Expirations'').\6\ Wednesday SPY Expirations would be subject to the same rules as the standard Short Term Option Series program,\7\ with two exceptions. The Exchange proposes that the current limitation of no more than five Short Term Option Series expiration dates in a class \8\ would not include any Wednesday SPY Expiration. Instead, the Exchange proposes a separate limit of five consecutive Wednesday SPY expiration dates \9\ so that the Exchange could list five Short Term Option Series expiration dates for SPY expiring on Friday as well as five Wednesday SPY Expiration dates.\10\ In addition, unlike other option series in the Short Term Option Series program, Wednesday SPY Expirations could expire in the same week in which monthly option series in the same class expire.\11\ --------------------------------------------------------------------------- \6\ Under the proposal, the Exchange would expand the definition of ``Short Term Option Series'' in BOX Rule 100(a)(64) and add a description of Wednesday SPY Expirations in proposed IM-5050-6(c) to BOX Rule 5050. For further details, see Notice, supra note 4, at 45346. \7\ For example, Wednesday SPY Expirations would be subject to the same series limitations and strike interval rules as standard Short Term Option Series and would be P.M.-settled. See IM-5050-6(b) to BOX Rule 5050. See also Notice, supra note 4, at 45346-47. \8\ See IM-5050-6(a) to BOX Rule 5050. \9\ See proposed IM-5050-6(c) to BOX Rule 5050. \10\ See Notice, supra note 4, at 45346. \11\ See id. --------------------------------------------------------------------------- III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange and, in particular, with section 6(b) of the Act.\12\ In particular, the Commission finds that the proposed rule change is consistent with section 6(b)(5) of the Act,\13\ which requires, among other things, that a national securities exchange have rules 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. The Commission believes that the proposed rule change may provide the investing public and other market participants more flexibility to closely tailor their investment and hedging decisions in SPY options, thus allowing them to better manage their risk exposure. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In approving this proposal, the Commission notes that the Exchange has represented that it has an adequate surveillance program in place to detect manipulative trading in Wednesday SPY Expirations.\14\ The Exchange further states that it has the necessary systems capacity to support the new options series.\15\ --------------------------------------------------------------------------- \14\ See Notice, supra note 4, at 45347. \15\ See id. --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,\16\ that the proposed rule change (SR-BOX-2016-28) be, and hereby is, approved. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-20737 Filed 8-29-16; 8:45 am] BILLING CODE 8011-01-P
![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 11:42:08
Document Modified: 2018-02-09 11:42:08
| 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 59696 |
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