81 FR 60097 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 19.6, Series of Options Contracts Open for Trading, To Allow Wednesday Expirations for SPY Options

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 169 (August 31, 2016)

Page Range		60097-60099
FR Document		2016-20964
Federal Register, Volume 81 Issue 169 (Wednesday, August 31, 2016)
[Federal Register Volume 81, Number 169 (Wednesday, August 31, 2016)]
[Notices]
[Pages 60097-60099]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20964]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78697; File No. SR-BatsBZX-2016-53]


Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Rule 19.6, Series of Options Contracts Open for Trading, To Allow 
Wednesday Expirations for SPY Options

August 26, 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 25, 2016, Bats BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The Exchange 
has designated this proposal as a ``non-controversial'' proposed rule 
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6) thereunder,\4\ which renders it effective upon filing with the 
Commission. 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\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange filed a proposal to amend Rule 19.6, entitled ``Series 
of Options Contracts Open for Trading,'' related to the Short Term 
Option Series (``STOS'') Program to allow Wednesday expirations for SPY 
options. The Exchange also proposes to make corresponding changes to 
Rule 16.1, entitled ``Definitions.'' The text of the proposed rule 
change is available at the Exchange's Web site at www.batstrading.com, 
at the principal office of the Exchange, and at the Commission's Public 
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
Sections A, B, and C below, of the most significant 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 purpose of the proposed rule change is to harmonize the 
Exchange's rules with the rules governing Short Term Options Series 
programs of other options exchanges. Specifically, the Exchange 
proposes to amend Rule 19.6, entitled ``Series of Options Contracts 
Open for Trading,'' related to the STOS Program to allow Wednesday 
expirations for SPY options. The Exchange also proposes to make certain 
corresponding changes to 16.1, entitled ``Definitions.'' The proposed 
rule change is based on the recent approval of a filing submitted by 
the BOX Options Exchange LLC (``BOX'').\5\
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    \5\ See Securities and Exchange Act Release No. 78668 (August 
24, 2016) (SR-BOX-2016-28).
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    Currently, under the STOS Program, 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 (``Short Term Option 
Series''). The Exchange is now proposing to amend its rule to permit 
the listing of options expiring on Wednesdays. Specifically, the 
Exchange is proposing that it may open for trading on any Tuesday or 
Wednesday that is a business day, series of options on the SPDR S&P 500 
ETF Trust (``SPY'') to 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\ The proposed Wednesday SPY 
Expiration series will be similar to the current Short Term Option 
Series, with certain exceptions, as explained in greater detail below. 
The Exchange notes that having Wednesday expirations is not a novel 
proposal. Specifically, the Chicago Board Options Exchange, 
Incorporated (``CBOE'') recently received approval to list Wednesday 
expirations for broad-based indexes.\7\
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    \6\ See proposed paragraph (g) of Interpretation and Policy .05 
to Rule 19.6.
    \7\ See Securities Exchange Act Release No. 76909 (January 14, 
2016), 81 FR 3512 (January 21, 2016) (SR-CBOE-2015-106).
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    In regards to Wednesday SPY Expirations, the Exchange is proposing 
to remove the current restriction preventing it from listing Short Term 
Option Series that expire in the same week in which monthly option 
series in the same class expire. Specifically, the Exchange will be 
allowed to list Wednesday SPY Expirations in the same week in which 
monthly option series in SPY expire. The current restriction to 
prohibit the expiration of monthly and Short Term Option Series from 
expiring on the same trading day is reasonable to avoid investor 
confusion. This confusion will not apply with Wednesday SPY Expirations 
and standard monthly options because they will not expire on the same 
trading day, as standard monthly options do not expire on Wednesdays. 
Additionally, it would lead to investor confusion if Wednesday SPY 
Expirations were not listed for one week every month because there was 
a monthly SPY expiration on the Friday of that week.
    Under the proposed Wednesday SPY Expirations, the Exchange may list 
up to five consecutive Wednesday SPY Expirations at one time. The 
Exchange may have no more than a total of five Wednesday SPY 
Expirations listed. This is the same listing procedure as Short Term 
Option Series that expire on Fridays. The Exchange is also proposing to 
clarify that the five series limit in the current Short Term Option 
Series Program Rule will not include any Wednesday SPY Expirations.\8\ 
This means, under the proposal, the Exchange would be allowed to list 
five Short Term Option Series expirations for SPY expiring on Friday 
under the current rule and five Wednesday SPY Expirations. The interval 
between strike prices for the proposed Wednesday SPY Expirations will 
be the same as those for the current Short Term Option Series. 
Specifically, the Wednesday SPY Expirations will have $0.50 strike 
intervals.
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    \8\ See proposed changes to Interpretation and Policy .05 to 
Rule 19.6.
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    Currently, for each Short Term Option Expiration Date,\9\ the 
Exchange is

[[Page 60098]]

limited to opening thirty (30) series for each expiration date for the 
specific class. The thirty (30) series restriction does not include 
series that are open by other securities exchanges under their 
respective short term option rules; the Exchange may list these 
additional series that are listed by other exchanges.\10\ The thirty 
(30) series restriction shall apply to Wednesday SPY Expiration series 
as well. In addition, the Exchange will be able to list series that are 
listed by other exchanges, assuming they file similar rules with the 
Commission to list SPY options expiring on Wednesdays. As is the case 
with current Short Term Option Series, the Wednesday SPY Expiration 
series will be P.M.-settled. The Exchange does not believe that any 
market disruptions will be encountered with the introduction of P.M.-
settled Wednesday SPY Expirations. The Exchange currently trades P.M.-
settled Short Term Option Series that expire almost every Friday, which 
provide market participants a tool to hedge special events and to 
reduce the premium cost of buying protection. The Exchange seeks to 
introduce Wednesday SPY Expirations to, among other things, expand 
hedging tools available to market participants and to continue the 
reduction of the premium cost of buying protection. The Exchange 
believes that Wednesday expirations, similar to Friday expirations, 
would allow market participants to purchase an option based on their 
timing as needed and allow them to tailor their investment and hedging 
needs more effectively.
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    \9\ 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 that are business days and are not 
Fridays in which monthly options series or Quarterly Options Series 
expire (``Short Term Option Expiration Dates''). See Interpretation 
and Policy .05 to Rule 19.6.
    \10\ See current paragraph (a) of Interpretation and Policy .05 
to Rule 19.6.
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    The Exchange is also proposing to amend the definition of Short 
Term Option Series contained in Exchange Rule 16.1(a)(57) to make clear 
that STOS includes Wednesday expirations and to conform to BOX Rule 
100(a)(64). Specifically, the Exchange is amending the definition to 
expand Short Term Option Series to those listed on any Tuesday or 
Wednesday and that expire on the Wednesday of the next business week. 
If a Tuesday or Wednesday is not a business day, the series may be 
opened (or shall expire) on the first business day immediately prior to 
that Tuesday or Wednesday.
    The Exchange believes that the introduction of Wednesday SPY 
Expirations will provide investors with a flexible and valuable tool to 
manage risk exposure, minimize capital outlays, and be more responsive 
to the timing of events affecting the industry. The proposed rule 
change is a competitive proposal designed to enable the Exchange to 
compete equally and fairly with other options exchanges in satisfying 
high market demand for weekly options and continuing strong customer 
demand to use STOS to execute hedging and trading strategies.
2. Statutory Basis
    The rule changes proposed herein are consistent with the 
requirements of the Act and the rules and regulations thereunder that 
are applicable to a national securities exchange, and, in particular, 
with the requirements of Section 6(b) of the Act.\11\ Specifically, the 
proposed change is consistent with Section 6(b)(5) of the Act,\12\ 
because it is designed to promote just and equitable principles of 
trade, to remove impediments to, and perfect the mechanism of, a free 
and open market and, in general, to protect investors and the public 
interest. Additionally, the Exchange believes that the proposed rule 
change is consistent with the Section 6(b)(5) \13\ requirement that the 
rules of an exchange not be designed to permit unfair discrimination 
between customers, issuers, brokers, or dealers.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
    \13\ Id.
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    In particular, the Exchange believes the Short Term Option Series 
Program has been successful to date and that Wednesday SPY Expirations 
simply expand the ability of investors to hedge risk against market 
movements stemming from economic releases or market events that occur 
throughout the month in the same way that the Short Term Option Series 
Program has expanded the landscape of hedging. Similarly, the Exchange 
believes Wednesday SPY Expirations should create greater trading and 
hedging opportunities and flexibility, and provide customers with the 
ability to more closely tailor their investment objectives. The 
Exchange believes that allowing Wednesday SPY Expirations and monthly 
SPY expirations in the same week will benefit investors and minimize 
investor confusion by providing Wednesday SPY Expirations in a 
continuous and uniform manner. Finally, the Exchange represents that it 
has an adequate surveillance program in place to detect manipulative 
trading in Wednesday SPY Expirations in the same way it monitors 
trading in the current Short Term Option Series. The Exchange also 
represents that it has the necessary systems capacity to support the 
new options series.

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. To the contrary, with respect 
to intermarket competition, the Exchange believes the proposal is pro-
competitive and will allow the Exchange to compete more effectively 
with BOX, which has already adopted changes to its STOS programs that 
are substantially identical to the changes proposed by this filing.\14\ 
In addition to BOX, the Exchange expects that other options exchanges 
will file similar proposals to adopt the changes in order to provide 
Wednesday SPY Expirations.
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    \14\ See supra note 5.
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    The Exchange does not believe the proposal will impose any burden 
on intramarket competition, as all market participants will be treated 
in the same manner as existing Short Term Option Series. The Exchange 
believes that the proposal will result in additional investment options 
and opportunities to achieve the investment objectives of market 
participants seeking efficient trading and hedging vehicles, to the 
benefit of investors, market participants, and the marketplace in 
general.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any written comments from members or other interested parties.

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, the proposed rule 
change has become effective pursuant to Section 19(b)(3)(A) of the Act 
\15\ and Rule 19b-4(f)(6) thereunder.\16\
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    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intention to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.

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[[Page 60099]]

    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative for 30 days from the date of filing. However, Rule 
19b-4(f)(6)(iii) \17\ 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 Commission notes that it recently approved 
BOX's substantially similar proposal to list and trade Wednesday SPY 
Expirations.\18\ The Exchange has stated that waiver of the operative 
delay will allow the Exchange to list and trade Wednesday SPY 
Expirations as soon as possible, and therefore, promote competition 
among the option exchanges. For these reasons, the Commission believes 
that the proposed rule change presents no novel issues and that waiver 
of the 30-day operative delay is consistent with the protection of 
investors and the public interest, and will allow the Exchange to 
remain competitive with other exchanges. Therefore, the Commission 
hereby waives the 30-day operative delay and designates the proposal 
effective upon filing.\19\ 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.
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    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ See supra note 5.
    \19\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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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-BatsBZX-2016-53 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-BatsBZX-2016-53. 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-BatsBZX-2016-53 and should 
be submitted on or before September 21, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-20964 Filed 8-30-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices 60097

For the Commission, by the Division of II. Self-Regulatory Organization’s detail below. The Exchange notes that
Trading and Markets, pursuant to delegated Statement of the Purpose of, and having Wednesday expirations is not a
authority.16 Statutory Basis for, the Proposed Rule novel proposal. Specifically, the
Brent J. Fields, Change Chicago Board Options Exchange,
Secretary. In its filing with the Commission, the Incorporated (‘‘CBOE’’) recently
[FR Doc. 2016–20959 Filed 8–30–16; 8:45 am] Exchange included statements received approval to list Wednesday
expirations for broad-based indexes.7
BILLING CODE 8011–01–P concerning the purpose of and basis for
In regards to Wednesday SPY
the proposed rule change and discussed
Expirations, the Exchange is proposing
any comments it received on the
SECURITIES AND EXCHANGE to remove the current restriction
proposed rule change. The text of these
COMMISSION preventing it from listing Short Term
statements may be examined at the
Option Series that expire in the same
places specified in Item IV below. The
week in which monthly option series in
[Release No. 34–78697; File No. SR– Exchange has prepared summaries, set
the same class expire. Specifically, the
BatsBZX–2016–53] forth in Sections A, B, and C below, of
Exchange will be allowed to list
the most significant parts of such
Self-Regulatory Organizations; Bats Wednesday SPY Expirations in the same
statements.
BZX Exchange, Inc.; Notice of Filing week in which monthly option series in
and Immediate Effectiveness of A. Self-Regulatory Organization’s SPY expire. The current restriction to
Proposed Rule Change To Amend Rule Statement of the Purpose of, and prohibit the expiration of monthly and
19.6, Series of Options Contracts Open Statutory Basis for, the Proposed Rule Short Term Option Series from expiring
for Trading, To Allow Wednesday Change on the same trading day is reasonable to
Expirations for SPY Options avoid investor confusion. This
1. Purpose
confusion will not apply with
August 26, 2016. The purpose of the proposed rule Wednesday SPY Expirations and
change is to harmonize the Exchange’s standard monthly options because they
Pursuant to Section 19(b)(1) of the
rules with the rules governing Short will not expire on the same trading day,
Securities Exchange Act of 1934
Term Options Series programs of other as standard monthly options do not
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
options exchanges. Specifically, the expire on Wednesdays. Additionally, it
notice is hereby given that, on August
Exchange proposes to amend Rule 19.6, would lead to investor confusion if
25, 2016, Bats BZX Exchange, Inc. (the
entitled ‘‘Series of Options Contracts Wednesday SPY Expirations were not
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Open for Trading,’’ related to the STOS listed for one week every month because
Securities and Exchange Commission
Program to allow Wednesday there was a monthly SPY expiration on
(‘‘Commission’’) the proposed rule
expirations for SPY options. The the Friday of that week.
change as described in Items I and II
Exchange also proposes to make certain Under the proposed Wednesday SPY
below, which Items have been prepared
corresponding changes to 16.1, entitled Expirations, the Exchange may list up to
by the Exchange. The Exchange has
‘‘Definitions.’’ The proposed rule five consecutive Wednesday SPY
designated this proposal as a ‘‘non-
change is based on the recent approval Expirations at one time. The Exchange
controversial’’ proposed rule change
of a filing submitted by the BOX may have no more than a total of five
pursuant to Section 19(b)(3)(A) of the
Options Exchange LLC (‘‘BOX’’).5 Wednesday SPY Expirations listed. This
Act 3 and Rule 19b–4(f)(6) thereunder,4
Currently, under the STOS Program, is the same listing procedure as Short
which renders it effective upon filing
the Exchange may open for trading on Term Option Series that expire on
with the Commission. The Commission
any Thursday or Friday that is a Fridays. The Exchange is also proposing
is publishing this notice to solicit
business day series of options on that to clarify that the five series limit in the
comments on the proposed rule change
class that expire on each of the next five current Short Term Option Series
from interested persons.
Fridays, provided that such Friday is Program Rule will not include any
I. Self-Regulatory Organization’s not a Friday in which monthly options Wednesday SPY Expirations.8 This
Statement of the Terms of Substance of series or Quarterly Options Series expire means, under the proposal, the
the Proposed Rule Change (‘‘Short Term Option Series’’). The Exchange would be allowed to list five
Exchange is now proposing to amend its Short Term Option Series expirations
The Exchange filed a proposal to rule to permit the listing of options for SPY expiring on Friday under the
amend Rule 19.6, entitled ‘‘Series of expiring on Wednesdays. Specifically, current rule and five Wednesday SPY
Options Contracts Open for Trading,’’ the Exchange is proposing that it may Expirations. The interval between strike
related to the Short Term Option Series open for trading on any Tuesday or prices for the proposed Wednesday SPY
(‘‘STOS’’) Program to allow Wednesday Wednesday that is a business day, series Expirations will be the same as those for
expirations for SPY options. The of options on the SPDR S&P 500 ETF the current Short Term Option Series.
Exchange also proposes to make Trust (‘‘SPY’’) to expire on any Specifically, the Wednesday SPY
corresponding changes to Rule 16.1, Wednesday of the month that is a Expirations will have $0.50 strike
entitled ‘‘Definitions.’’ The text of the business day and is not a Wednesday in intervals.
proposed rule change is available at the which Quarterly Options Series expire Currently, for each Short Term Option
Exchange’s Web site at (‘‘Wednesday SPY Expirations’’).6 The Expiration Date,9 the Exchange is
www.batstrading.com, at the principal proposed Wednesday SPY Expiration
mstockstill on DSK3G9T082PROD with NOTICES

office of the Exchange, and at the series will be similar to the current 7 See Securities Exchange Act Release No. 76909

Commission’s Public Reference Room. Short Term Option Series, with certain (January 14, 2016), 81 FR 3512 (January 21, 2016)
(SR–CBOE–2015–106).
exceptions, as explained in greater 8 See proposed changes to Interpretation and
16 17 CFR 200.30–3(a)(12). Policy .05 to Rule 19.6.
1 15 U.S.C. 78s(b)(1). 5 See Securities and Exchange Act Release No. 9 The Exchange may open for trading on any
2 17 CFR 240.19b–4.
78668 (August 24, 2016) (SR–BOX–2016–28). Thursday or Friday that is a business day series of
3 15 U.S.C. 78s(b)(3)(A). 6 See proposed paragraph (g) of Interpretation and options on that class that expire on each of the next
4 17 CFR 240.19b–4(f)(6). Policy .05 to Rule 19.6. Continued

VerDate Sep<11>2014 21:59 Aug 30, 2016 Jkt 238001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1
Federal Register / Vol. 81, No. 169 / Wednesday, August 31, 2016 / Notices 60099

A proposed rule change filed under • Send an email to rule-comments@ SECURITIES AND EXCHANGE
Rule 19b–4(f)(6) normally does not sec.gov. Please include File Number SR– COMMISSION
become operative for 30 days from the BatsBZX–2016–53 on the subject line. [Release No. 34–78675; File No. SR–OCC–
date of filing. However, Rule 19b– 2016–009]
4(f)(6)(iii) 17 permits the Commission to Paper Comments
designate a shorter time if such action • Send paper comments in triplicate Self-Regulatory Organizations; the
is consistent with the protection of Options Clearing Corporation; Notice
to Secretary, Securities and Exchange
investors and the public interest. The of Filing of Proposed Rule Change
Commission, 100 F Street NE.,
Exchange has asked the Commission to Concerning the Options Clearing
waive the 30-day operative delay so that Washington, DC 20549–1090.
Corporation’s Escrow Deposit
the proposal may become operative All submissions should refer to File Program
immediately upon filing. The Number SR–BatsBZX–2016–53. This file
Commission notes that it recently number should be included on the August 25, 2016.
approved BOX’s substantially similar subject line if email is used. To help the Pursuant to Section 19(b)(1) of the
proposal to list and trade Wednesday Commission process and review your Securities Exchange Act of 1934
SPY Expirations.18 The Exchange has (‘‘Act’’),1 and Rule 19b–4 thereunder,2
comments more efficiently, please use
stated that waiver of the operative delay notice is hereby given that on August
only one method. The Commission will
will allow the Exchange to list and trade 15, 2016, The Options Clearing
post all comments on the Commission’s Corporation (‘‘OCC’’) filed with the
Wednesday SPY Expirations as soon as
Internet Web site (http://www.sec.gov/ Securities and Exchange Commission
possible, and therefore, promote
competition among the option rules/sro.shtml). Copies of the (‘‘Commission’’) the proposed rule
exchanges. For these reasons, the submission, all subsequent change as described in Items I, II and III
Commission believes that the proposed amendments, all written statements below, which Items have been prepared
rule change presents no novel issues with respect to the proposed rule by OCC. The Commission is publishing
and that waiver of the 30-day operative change that are filed with the this notice to solicit comments on the
delay is consistent with the protection Commission, and all written proposed rule change from interested
of investors and the public interest, and communications relating to the persons.
will allow the Exchange to remain proposed rule change between the
I. Clearing Agency’s Statement of the
competitive with other exchanges. Commission and any person, other than
Terms of Substance of the Proposed
Therefore, the Commission hereby those that may be withheld from the
Rule Change
waives the 30-day operative delay and public in accordance with the
designates the proposal effective upon provisions of 5 U.S.C. 552, will be The purpose of this proposed rule
filing.19 At any time within 60 days of available for Web site viewing and change by OCC is to improve the
the filing of the proposed rule change, printing in the Commission’s Public resiliency of OCC’s escrow deposit
the Commission summarily may Reference Room, 100 F Street NE., program. OCC is proposing changes that
temporarily suspend such rule change if Washington, DC 20549, on official are designed to: (1) Increase OCC’s
it appears to the Commission that such visibility into and control over collateral
business days between the hours of
action is necessary or appropriate in the deposits made under the escrow deposit
10:00 a.m. and 3:00 p.m. Copies of the
public interest, for the protection of program; (2) strengthen clearing
filing also will be available for members’ rights to collateral in the
investors, or otherwise in furtherance of
the purposes of the Act. If the inspection and copying at the principal escrow deposit program in the event of
Commission takes such action, the office of the Exchange. All comments a customer default to the clearing
Commission shall institute proceedings received will be posted without change; member; (3) provide more specificity
to determine whether the proposed rule the Commission does not edit personal concerning the manner in which OCC or
should be approved or disapproved. identifying information from clearing members would take
submissions. You should submit only possession of collateral in OCC’s escrow
IV. Solicitation of Comments information that you wish to make deposit program; and (4) improve the
Interested persons are invited to available publicly. All submissions readability of the rules governing OCC’s
submit written data, views and should refer to File Number SR– escrow deposit program by
arguments concerning the foregoing, BatsBZX–2016–53 and should be consolidating all such rules into a single
including whether the proposed rule submitted on or before September 21, location in OCC’s Rulebook.
change is consistent with the Act. 2016.
Comments may be submitted by any of II. Clearing Agency’s Statement of the
the following methods: For the Commission, by the Division of Purpose of, and Statutory Basis for, the
Trading and Markets, pursuant to delegated Proposed Rule Change
Electronic Comments authority.20
In its filing with the Commission,
• Use the Commission’s Internet Brent J. Fields, OCC included statements concerning
comment form (http://www.sec.gov/ Secretary. the purpose of and basis for the
rules/sro.shtml); or [FR Doc. 2016–20964 Filed 8–30–16; 8:45 am] proposed rule change and discussed any
BILLING CODE 8011–01–P comments it received on the proposed
days prior to the date of filing of the proposed rule rule change. The text of these statements
change, or such shorter time as designated by the
mstockstill on DSK3G9T082PROD with NOTICES

Commission. The Exchange has satisfied this may be examined at the places specified
requirement. in Item IV below. OCC has prepared
17 17 CFR 240.19b–4(f)(6)(iii).
summaries, set forth in sections (A), (B),
18 See supra note 5.
and (C) below, of the most significant
19 For purposes only of waiving the 30-day
aspects of these statements.
operative delay, the Commission has also
considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 20 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 21:59 Aug 30, 2016 Jkt 238001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 E:\FR\FM\31AUN1.SGM 31AUN1
Document Created: 2018-02-02 12:15:25
Document Modified: 2018-02-02 12:15:25
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 60097