81 FR 87990 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 510 To Extend the Penny Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 234 (December 6, 2016)
Federal Register Volume 81, Issue 234 (December 6, 2016)
| Page Range | 87990-87991 | |
| FR Document | 2016-29161 |
[Federal Register Volume 81, Number 234 (Tuesday, December 6, 2016)] [Notices] [Pages 87990-87991] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-29161] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79432; File No. SR-MIAX-2016-45] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 510 To Extend the Penny Pilot Program November 30, 2016. Pursuant to the provisions of 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 November 21, 2016, Miami International Securities Exchange LLC (``MIAX'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a 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 is filing a proposal to amend Rule 510, Interpretations and Policies .01 to extend the pilot program for the quoting and trading of certain options in pennies (the ``Penny Pilot Program''). The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/filter/wotitle/rule_filing, at MIAX's principal office, 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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is a participant in an industry-wide pilot program that provides for the quoting and trading of certain option classes in penny increments (the ``Penny Pilot Program'' or ``Program''). The Penny Pilot Program allows the quoting and trading of certain option classes in minimum increments of $0.01 for all series in such option classes with a price of less than $3.00; and in minimum increments of $0.05 for all series in such option classes with a price of $3.00 or higher. Options overlying the PowerShares QQQTM (``QQQ''), SPDR[supreg] S&P 500[supreg] ETF (``SPY''), and iShares[supreg] Russell 2000 ETF (``IWM''), however, are quoted and traded in minimum increments of $0.01 for all series regardless of the price. The Penny Pilot Program was initiated at the then existing option exchanges in January 2007 \3\ and currently includes more than 300 of the most active option classes. The Penny Pilot Program is currently scheduled to expire on December 31, 2016.\4\ The purpose of the proposed rule change is to extend the Penny Pilot Program in its current format through June 30, 2017. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 55154 (January 23, 2007), 72 FR 4743 (February 1, 2007) (SR-CBOE-2006-92); 55161 (January 24, 2007), 72 FR 4754 (February 1, 2007) (SR-ISE-2006-62); 54688 (December 6, 2006), 71 FR 74979 (December 13, 2006) (SR-Phlx- 2006-74); 54590 (October 12, 2006), 71 FR 61525 (October 18, 2006) (SR-NYSEArca-2006-73); and 54741 (November 9, 2006), 71 FR 67176 (November 20, 2006) (SR-Amex-2006-106). \4\ See Securities Exchange Act Release No. 78080 (June 15, 2016), 81 FR 40377 (June 21, 2016) (SR-MIAX-2016-16) (extending the Penny Pilot Program from June 30, 2016, to December 31, 2016). --------------------------------------------------------------------------- In addition to the extension of the Penny Pilot Program through June 30, 2017, the Exchange proposes to extend one other date in the Rule. Currently, Interpretations and Policies .01 states that the Exchange will replace any Penny Pilot issues that have been delisted with the next most actively traded multiply listed option classes that are not yet included in the Penny Pilot Program, and that the replacement issues will be selected based on trading activity in the previous six months. Such option classes will be added to the Penny Pilot Program on the second trading day following July 1, 2016.\5\ Because this date has expired and the Exchange intends to continue this practice for the duration of the Penny Pilot Program, the Exchange is proposing to amend the Rule to reflect that such option classes will be added to the Penny Pilot Program on the second trading day following January 1, 2017. --------------------------------------------------------------------------- \5\ The month immediately preceding a replacement class's addition to the Pilot Program (i.e., June) is not used for purposes of the six-month analysis. For example, a replacement added on the second trading day following July 1, 2016, will be identified based on trading activity from December 1, 2015, through May 31, 2016. --------------------------------------------------------------------------- The purpose of this provision is to reflect the new date on which replacement issues may be added to the Penny Pilot Program. 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act \6\ in general, and furthers the objectives of Section 6(b)(5) of the Act \7\ in particular, in that it 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 facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. In particular, the proposed rule change, which extends the Penny Pilot Program for six months, allows the Exchange to continue to participate in a program that has been viewed as beneficial to traders, investors and public customers and viewed as successful by the other options exchanges participating in it. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- [[Page 87991]] 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 that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange believes that, by extending the expiration of the Pilot Program, the proposed rule change will allow for further analysis of the Penny Pilot Program and a determination of how the Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace, facilitating investor protection, and fostering a competitive environment. In addition, consistent with previous practices, the Exchange believes the other options exchanges will be filing similar extensions of the Penny Pilot Program. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. 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 after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires a self-regulatory organization to give the Commission 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic 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-MIAX-2016-45 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-MIAX-2016-45. 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 20549-1090, 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-MIAX-2016-45 and should be submitted on or before December 27, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-29161 Filed 12-5-16; 8:45 am] BILLING CODE 8011-01-P
![87990 Federal Register / Vol. 81, No. 234 / Tuesday, December 6, 2016 / Notices
portion of the meeting reserved for an for the quoting and trading of certain proposed rule change is to extend the
administrative work session during options in pennies (the ‘‘Penny Pilot Penny Pilot Program in its current
lunch), and inviting the public to Program’’). format through June 30, 2017.
submit written comments to the The text of the proposed rule change In addition to the extension of the
Committee. This Sunshine Act notice is is available on the Exchange’s Web site Penny Pilot Program through June 30,
being issued because a quorum of the at http://www.miaxoptions.com/filter/ 2017, the Exchange proposes to extend
Commission may attend the meeting. wotitle/rule_filing, at MIAX’s principal one other date in the Rule. Currently,
The agenda for the meeting includes: office, and at the Commission’s Public Interpretations and Policies .01 states
Remarks from Commissioners; a Reference Room. that the Exchange will replace any
discussion regarding investor protection II. Self-Regulatory Organization’s Penny Pilot issues that have been
priorities for the New Year; the Statement of the Purpose of, and delisted with the next most actively
announcement of election results for Statutory Basis for, the Proposed Rule traded multiply listed option classes
open officer positions; an update on the Change that are not yet included in the Penny
Commission’s response to the Pilot Program, and that the replacement
rulemaking mandate of the Fixing In its filing with the Commission, the issues will be selected based on trading
America’s Surface Transportation Act Exchange included statements activity in the previous six months.
concerning public company disclosure concerning the purpose of and basis for Such option classes will be added to the
requirements; and a nonpublic the proposed rule change and discussed Penny Pilot Program on the second
administrative work session during any comments it received on the trading day following July 1, 2016.5
lunch. proposed rule change. The text of these Because this date has expired and the
For further information, please statements may be examined at the Exchange intends to continue this
contact Brent J. Fields from the Office of places specified in Item IV below. The
practice for the duration of the Penny
Exchange has prepared summaries, set
the Secretary at (202) 551–5400. Pilot Program, the Exchange is
forth in sections A, B, and C below, of
Dated: December 1, 2016. proposing to amend the Rule to reflect
the most significant aspects of such
Brent J. Fields,
that such option classes will be added
statements.
to the Penny Pilot Program on the
Secretary.
A. Self-Regulatory Organization’s second trading day following January 1,
[FR Doc. 2016–29295 Filed 12–2–16; 11:15 am]
Statement of the Purpose of, and the 2017.
BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule The purpose of this provision is to
Change reflect the new date on which
1. Purpose replacement issues may be added to the
SECURITIES AND EXCHANGE
Penny Pilot Program.
COMMISSION The Exchange is a participant in an
industry-wide pilot program that 2. Statutory Basis
[Release No. 34–79432; File No. SR–MIAX–
2016–45] provides for the quoting and trading of MIAX believes that its proposed rule
certain option classes in penny change is consistent with Section 6(b) of
Self-Regulatory Organizations; Miami increments (the ‘‘Penny Pilot Program’’ the Act 6 in general, and furthers the
International Securities Exchange LLC; or ‘‘Program’’). The Penny Pilot Program objectives of Section 6(b)(5) of the Act 7
Notice of Filing and Immediate allows the quoting and trading of certain in particular, in that it is designed to
Effectiveness of a Proposed Rule option classes in minimum increments prevent fraudulent and manipulative
Change To Amend Exchange Rule 510 of $0.01 for all series in such option acts and practices, to promote just and
To Extend the Penny Pilot Program classes with a price of less than $3.00; equitable principles of trade, to foster
and in minimum increments of $0.05 for cooperation and coordination with
November 30, 2016. all series in such option classes with a persons engaged in facilitating
Pursuant to the provisions of Section price of $3.00 or higher. Options transactions in securities, to remove
19(b)(1) of the Securities Exchange Act overlying the PowerShares QQQTM impediments to and perfect the
of 1934 (‘‘Act’’) 1 and Rule 19b–4 (‘‘QQQ’’), SPDR® S&P 500® ETF mechanisms of a free and open market
thereunder,2 notice is hereby given that, (‘‘SPY’’), and iShares® Russell 2000 ETF and a national market system and, in
on November 21, 2016, Miami (‘‘IWM’’), however, are quoted and general, to protect investors and the
International Securities Exchange LLC traded in minimum increments of $0.01 public interest. In particular, the
(‘‘MIAX’’ or ‘‘Exchange’’) filed with the for all series regardless of the price. The proposed rule change, which extends
Securities and Exchange Commission Penny Pilot Program was initiated at the the Penny Pilot Program for six months,
(‘‘Commission’’) a proposed rule change then existing option exchanges in allows the Exchange to continue to
as described in Items I, II, and III below, January 2007 3 and currently includes participate in a program that has been
which Items have been prepared by the more than 300 of the most active option viewed as beneficial to traders, investors
Exchange. The Commission is classes. The Penny Pilot Program is and public customers and viewed as
publishing this notice to solicit currently scheduled to expire on successful by the other options
comments on the proposed rule change December 31, 2016.4 The purpose of the exchanges participating in it.
from interested persons.
3 See Securities Exchange Act Release Nos. 55154
I. Self-Regulatory Organization’s (January 23, 2007), 72 FR 4743 (February 1, 2007) MIAX–2016–16) (extending the Penny Pilot
Statement of the Terms of Substance of (SR–CBOE–2006–92); 55161 (January 24, 2007), 72 Program from June 30, 2016, to December 31, 2016).
mstockstill on DSK3G9T082PROD with NOTICES
5 The month immediately preceding a
the Proposed Rule Change FR 4754 (February 1, 2007) (SR–ISE–2006–62);
54688 (December 6, 2006), 71 FR 74979 (December replacement class’s addition to the Pilot Program
The Exchange is filing a proposal to 13, 2006) (SR–Phlx–2006–74); 54590 (October 12, (i.e., June) is not used for purposes of the six-month
2006), 71 FR 61525 (October 18, 2006) (SR– analysis. For example, a replacement added on the
amend Rule 510, Interpretations and second trading day following July 1, 2016, will be
NYSEArca–2006–73); and 54741 (November 9,
Policies .01 to extend the pilot program 2006), 71 FR 67176 (November 20, 2006) (SR– identified based on trading activity from December
Amex–2006–106). 1, 2015, through May 31, 2016.
1 15 U.S.C. 78s(b)(1). 4 See Securities Exchange Act Release No. 78080 6 15 U.S.C. 78f(b).
2 17 CFR 240.19b–4. (June 15, 2016), 81 FR 40377 (June 21, 2016) (SR– 7 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 81, No. 234 / Tuesday, December 6, 2016 / Notices 87991
B. Self-Regulatory Organization’s IV. Solicitation of Comments For the Commission, by the Division of
Statement on Burden on Competition Trading and Markets, pursuant to delegated
Interested persons are invited to authority.10
The Exchange does not believe that submit written data, views, and Eduardo A. Aleman,
the proposed rule change will impose
arguments concerning the foregoing, Assistant Secretary.
any burden on competition that is not
including whether the proposed rule [FR Doc. 2016–29161 Filed 12–5–16; 8:45 am]
necessary or appropriate in furtherance
change is consistent with the Act.
of the purposes of the Act. Specifically, BILLING CODE 8011–01–P
the Exchange believes that, by extending Comments may be submitted by any of
the expiration of the Pilot Program, the the following methods:
proposed rule change will allow for SECURITIES AND EXCHANGE
Electronic Comments COMMISSION
further analysis of the Penny Pilot
Program and a determination of how the • Use the Commission’s Internet
Program should be structured in the comment form (http://www.sec.gov/ [Release No. 34–79429; File No. SR–BOX–
future. In doing so, the proposed rule rules/sro.shtml); or 2016–55]
change will also serve to promote • Send an email to rule-comments@ Self-Regulatory Organizations; BOX
regulatory clarity and consistency, sec.gov. Please include File Number SR– Options Exchange LLC; Notice of
thereby reducing burdens on the MIAX–2016–45 on the subject line. Filing and Immediate Effectiveness of
marketplace, facilitating investor
a Proposed Rule Change To Amend
protection, and fostering a competitive Paper Comments
Rule 7260 by Extending the Penny
environment. In addition, consistent
with previous practices, the Exchange • Send paper comments in triplicate Pilot Program Through June 30, 2017
believes the other options exchanges to Secretary, Securities and Exchange November 30, 2016.
will be filing similar extensions of the Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the
Penny Pilot Program. Washington, DC 20549–1090. Securities Exchange Act of 1934
C. Self-Regulatory Organization’s All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Statement on Comments on the Number SR–MIAX–2016–45. This file notice is hereby given that on November
Proposed Rule Change Received From number should be included on the 29, 2016, BOX Options Exchange LLC
Members, Participants, or Others subject line if email is used. To help the (the ‘‘Exchange’’) filed with the
Commission process and review your Securities and Exchange Commission
Written comments were neither (‘‘Commission’’) the proposed rule
solicited nor received. comments more efficiently, please use
only one method. The Commission will change as described in Items I and II
III. Date of Effectiveness of the below, which Items have been prepared
post all comments on the Commission’s
Proposed Rule Change and Timing for by the self-regulatory organization. The
Internet Web site (http://www.sec.gov/
Commission Action Commission is publishing this notice to
rules/sro.shtml). Copies of the
solicit comments on the proposed rule
Because the foregoing proposed rule submission, all subsequent from interested persons.
change does not: (i) Significantly affect amendments, all written statements
the protection of investors or the public with respect to the proposed rule I. Self-Regulatory Organization’s
interest; (ii) impose any significant change that are filed with the Statement of the Terms of Substance of
burden on competition; and (iii) become Commission, and all written the Proposed Rule Change
operative for 30 days after the date of communications relating to the The Exchange proposes to amend
the filing, or such shorter time as the proposed rule change between the Rule 7260 by extending the Penny Pilot
Commission may designate, it has Commission and any person, other than Program through June 30, 2017. The text
become effective pursuant to 19(b)(3)(A) those that may be withheld from the of the proposed rule change is available
of the Act 8 and Rule 19b–4(f)(6) 9 public in accordance with the from the principal office of the
thereunder. Exchange, at the Commission’s Public
provisions of 5 U.S.C. 552, will be
At any time within 60 days of the Reference Room and also on the
filing of the proposed rule change, the available for Web site viewing and
printing in the Commission’s Public Exchange’s Internet Web site at http://
Commission summarily may boxexchange.com.
temporarily suspend such rule change if Reference Room, 100 F Street NE.,
it appears to the Commission that such Washington, DC 20549–1090, on official II. Self-Regulatory Organization’s
action is necessary or appropriate in the business days between the hours of Statement of the Purpose of, and
public interest, for the protection of 10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule
investors, or otherwise in furtherance of filing also will be available for Change
the purposes of the Act. If the inspection and copying at the principal
In its filing with the Commission, the
Commission takes such action, the office of the Exchange. All comments self-regulatory organization included
Commission shall institute proceedings received will be posted without change; statements concerning the purpose of,
to determine whether the proposed rule the Commission does not edit personal and basis for, the proposed rule change
should be approved or disapproved. identifying information from and discussed any comments it received
submissions. You should submit only on the proposed rule change. The text
8 15 U.S.C. 78s(b)(3)(A). information that you wish to make
mstockstill on DSK3G9T082PROD with NOTICES
9 17
of these statements may be examined at
CFR 240.19b–4(f)(6). In addition, Rule 19b– available publicly. All submissions
4(f)(6)(iii) requires a self-regulatory organization to the places specified in Item IV below.
give the Commission written notice of its intent to should refer to File Number SR–MIAX– The self-regulatory organization has
file the proposed rule change along with a brief 2016–45 and should be submitted on or prepared summaries, set forth in
description and the text of the proposed rule before December 27, 2016.
change, at least five business days prior to the date
10 17 CFR 200.30–3(a)(12).
of filing of the proposed rule change, or such
1 15 U.S.C. 78s(b)(1).
shorter time as designated by the Commission. The
Exchange has satisfied this requirement. 2 17 CFR 240.19b–4.
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Document Created: 2016-12-06 02:18:26
Document Modified: 2016-12-06 02:18:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 87990 |
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