82 FR 21587 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing of Amendment No. 1 and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To Permit the Listing and Trading of P.M.-Settled NASDAQ-100 Index® Options on a Pilot Basis
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 88 (May 9, 2017)
Federal Register Volume 82, Issue 88 (May 9, 2017)
| Page Range | 21587-21590 | |
| FR Document | 2017-09315 |
[Federal Register Volume 82, Number 88 (Tuesday, May 9, 2017)] [Notices] [Pages 21587-21590] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09315] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80581; File No. SR-Phlx-2017-04] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing of Amendment No. 1 and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To Permit the Listing and Trading of P.M.-Settled NASDAQ-100 Index[supreg] Options on a Pilot Basis May 3, 2017. I. Introduction On January 18, 2017, NASDAQ PHLX LLC (``Phlx'' 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 permit the listing and trading of P.M.-settled NASDAQ-100 Index[supreg] (``NASDAQ-100'') options on a pilot basis. The proposed rule change was published for comment in the Federal Register on February 3, 2017.\3\ On March 14, 2017, the Commission extended the time period within which to approve the proposed rule change, [[Page 21588]] disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.\4\ On May 2, 2017, the Exchange filed Amendment No. 1 to the proposed rule change.\5\ The Commission received no comment letters on the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 79894 (January 30, 2017), 82 FR 9259 (``Notice''). \4\ See Securities Exchange Act Release No. 80241, 82 FR 14393 (March 20, 2017). \5\ In Amendment No. 1, the Exchange revised its proposal to add that raw percentage price change data as well as percentage price change data normalized for prevailing market volatility, as measured by an appropriate index as agreed by the Commission and the Exchange, would be provided as part of the pilot data. When the Exchange filed Amendment No. 1 with the Commission, it also submitted Amendment No. 1 to the public comment file for SR-Phlx- 2017-04 (available at: www.sec.gov/comments/sr-phlx-2017-04/phlx201704.htm). --------------------------------------------------------------------------- The Commission is publishing this notice and order to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons and to institute proceedings pursuant to Section 19(b)(2)(B) of the Act \6\ to determine whether to approve or disapprove the proposed rule change, as modified by Amendment No. 1. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- II. Description of the Proposal, as Modified by Amendment No. 1 The Exchange is proposing to amend its rules to permit the listing and trading, on a pilot basis, of NASDAQ-100 options with third-Friday- of-the-month expiration dates, whose exercise settlement value will be based on the closing index value, symbol XQC, of the NASDAQ-100 on the expiration day (``P.M.-settled''). The Exchange represents that the conditions for listing the proposed contract (``NDXPM'') on Phlx will be similar to those for Full Value Nasdaq 100 Options (``NDX''), which are already listed and trading on Phlx, except that NDXPM will be P.M.-settled.\7\ In particular, NDXPM will use a $100 multiplier, and the minimum trading increment will be $0.05 for options trading below $3.00 and $0.10 for all other series. Strike price intervals will be set at no less than $5.00. Consistent with existing rules for index options, the Exchange will allow up to nine near-term expiration months, as well as LEAPS. The product will have European-style exercise and will not be subject to position limits, though there would be enhanced reporting requirements.\8\ --------------------------------------------------------------------------- \7\ See Notice, supra note 3, at 9260. \8\ For a more detailed description of the proposed NDXPM contract, see Notice, supra note 3. --------------------------------------------------------------------------- As proposed, the proposal would become effective on a pilot basis for a period of twelve months (``Pilot Program''). If the Exchange were to propose an extension of the Pilot Program or should the Exchange propose to make the Pilot Program permanent, then the Exchange would submit a filing proposing such amendments to the Pilot Program. The Exchange notes that any positions established under the pilot would not be impacted by the expiration of the pilot. For example, a position in a P.M.-settled series that expires beyond the conclusion of the pilot period could be established during the 12-month pilot. If the Pilot Program were not extended, then the position could continue to exist. However, the Exchange notes that any further trading in the series would be restricted to transactions where at least one side of the trade is a closing transaction. The Exchange proposes to submit a Pilot Program report to the Commission at least two months prior to the expiration date of the Pilot Program (the ``annual report''). The annual report would contain an analysis of volume, open interest, and trading patterns. The analysis would examine trading in the proposed option product as well as trading in the securities that comprise the NASDAQ-100. In addition, for series that exceed certain minimum open interest parameters, the annual report would provide analysis of index price volatility and share trading activity. In addition to the annual report, the Exchange would provide the Commission with periodic interim reports while the pilot is in effect that would contain some, but not all, of the information contained in the annual report. The annual report would be provided to the Commission on a confidential basis. The annual report would contain the following volume and open interest data: (1) Monthly volume aggregated for all trades; (2) monthly volume aggregated by expiration date; (3) monthly volume for each individual series; (4) month-end open interest aggregated for all series; (5) month-end open interest for all series aggregated by expiration date; and (6) month-end open interest for each individual series. In addition to the annual report, the Exchange would provide the Commission with interim reports of the information listed in Items (1) through (6) above periodically as required by the Commission while the Pilot Program is in effect. These interim reports would also be provided on a confidential basis. The annual report would also contain the information noted in Items (1) through (6) above for Expiration Friday, A.M.-settled NASDAQ-100 options traded on Phlx. In addition, the annual report would contain the following analysis of trading patterns in Expiration Friday, P.M.-settled NASDAQ-100 option series in the Pilot Program: (1) A time series analysis of open interest; and (2) an analysis of the distribution of trade sizes. Also, for series that exceed certain minimum parameters, the annual report would contain the following analysis related to index price changes and underlying share trading volume at the close on Expiration Fridays: A comparison of index price changes at the close of trading on a given Expiration Friday with comparable price changes from a control sample. The data would include a calculation of percentage price changes for various time intervals and compare that information to the respective control sample. Raw percentage price change data as well as percentage price change data normalized for prevailing market volatility, as measured by an appropriate index as agreed by the Commission and the Exchange, would be provided. The Exchange would provide a calculation of share volume for a sample set of the component securities representing an upper limit on share trading that could be attributable to expiring in-the-money series. The data would include a comparison of the calculated share volume for securities in the sample set to the average daily trading volumes of those securities over a sample period. The minimum open interest parameters, control sample, time intervals, method for randomly selecting the component securities, and sample periods would be determined by the Exchange and the Commission.\9\ --------------------------------------------------------------------------- \9\ See Notice, supra note 3, at 9261 and Amendment No. 1. The proposed Pilot Program for NDXPM options is similar to the pilot program approved for the listing and trading of P.M.-settled S&P 500 Index options (``SPXPM options''). See Securities Exchange Act Release No. 64011 (March 2, 2011), 76 FR 12775, 12776-77 (March 8, 2011) (``SPXPM Notice''). --------------------------------------------------------------------------- III. Proceedings To Determine Whether To Approve or Disapprove SR-Phlx- 2017-04, as Modified by Amendment No. 1, and Grounds for Disapproval Under Consideration The Commission is instituting proceedings pursuant to Section 19(b)(2)(B) of the Act \10\ to determine whether the proposed rule change, as modified by Amendment No. 1, should be approved or disapproved. Institution of such proceedings is appropriate at [[Page 21589]] this time in view of the legal and policy issues raised by the proposed rule change, as discussed below. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as stated below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change, as modified by Amendment No. 1. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- Pursuant to Section 19(b)(2)(B) of the Act,\11\ the Commission is providing notice of the grounds for disapproval under consideration, as discussed below. In particular, Section 6(b)(5) of the Act \12\ requires that the rules of an exchange be designed, among other things, to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \11\ Id. \12\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Commission has had concerns about the potential adverse effects and impact of P.M. settlement upon market volatility and the operation of fair and orderly markets on the underlying cash market at or near the close of trading, including for cash-settled derivatives contracts based on a broad-based index.\13\ The Commission believes that the proposal to allow P.M. settlement of an option on the NASDAQ-100 raises questions as to the potential effects on the underlying cash equities markets, and thus as to whether it is consistent with the requirements of Section 6(b)(5) of the Act, including whether the proposal is designed to prevent manipulation, promote just and equitable principles of trade, perfect the mechanism of a free and open market and the national market system, and protect investors and the public interest. --------------------------------------------------------------------------- \13\ For a detailed discussion of the history of the concerns related to such P.M. settlement, see Securities Exchange Act Release Nos. 64599 (June 3, 2011), 76 FR 33798, 33801-02 (June 9, 2011) (order instituting proceedings to determine whether to approve or disapprove a proposed rule change to allow the listing and trading of SPXPM options) and 65256 (September 2, 2011), 76 FR 55969, 55970- 76 (September 9, 2011) (order approving proposed rule change to establish a pilot program to list and trade SPXPM options). --------------------------------------------------------------------------- Accordingly, the Commission solicits comment, analysis, and data concerning whether the Exchange's proposal is consistent with the Act. The Commission is asking commenters to address the merits of Phlx's statements in support of its proposal, in addition to any other comments they may wish to submit about the proposed rule change or any data or analysis that commenters think may be relevant to the Commission's consideration of the proposal. Specifically, the Commission seeks input from commenters to inform its evaluation of whether P.M. settlement for Phlx's proposed options on the NASDAQ-100 could impact volume and volatility on the underlying cash equities markets at the close of the trading day, and the potential consequences this might have for investors and the overall stability of the markets. In addition, the Commission seeks input from commenters with respect to the operation and structure of the markets today in comparison to their operation and structure at the time of the shift to A.M. settlement of cash-settled index options, and whether the current operation and structure of the markets support, or do not support, allowing NASDAQ-100 options on Phlx to be P.M.-settled. More generally, the Commission seeks commenters' views on whether there are differences between Phlx's proposed product and other P.M.- settled, cash-settled options that raise novel issues and, if so, whether commenters believe such differences warrant different treatment or a different pilot design. As noted above, the Exchange's proposal seeks to allow the listing and trading of NDXPM options on a pilot basis, and the Pilot Program, including its associated data and reports, are key in assisting the Commission and its staff to analyze the impact of the proposal, including with respect to the concerns described above. Thus, the Commission is considering and requesting comment on whether commenters believe the proposed Pilot Program is appropriate. As noted above, the proposed Pilot Program is similar to the pilot program for the listing and trading of SPXPM options.\14\ The Commission requests commenters' views on whether the proposed Pilot Program would adequately demonstrate whether the Commission's concerns about the adverse effect and impact of P.M. settlement are, or are not, implicated by the listing and trading of P.M.-settled options on the NASDAQ-100 and, if not, what information or data the pilot should include. The Commission seeks public comment on whether there are differences between the listing and trading of SPXPM options and the proposed NDXPM options that would warrant differences in the data, analyses, or reports that should be required for the Exchange's proposed pilot. In addition, Amendment No. 1 of the proposal added that ``[r]aw percentage price change data as well as percentage price change data normalized for prevailing market volatility, as measured by an appropriate index as agreed by the Commission and the Exchange'' would be included as part of the pilot. The Commission seeks input on what commenters believe would be appropriate data to use with respect to measuring volatility for the proposed pilot. --------------------------------------------------------------------------- \14\ See SPXPM Notice, supra note 9. --------------------------------------------------------------------------- Finally, the Commission requests any comment, data, or analysis that commenters think may be relevant to the Commission's consideration of the Exchange's proposal for P.M.-settled options on the NASDAQ-100. IV. Procedure: Request for Written Comments The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal. In particular, the Commission invites the written views of interested persons concerning whether the proposal, as modified by Amendment No. 1, is consistent with Section 6(b)(5) or any other provision of the Act, or the rules and regulations thereunder. Although there do not appear to be any issues relevant to approval or disapproval that would be facilitated by an oral presentation of views, data, and arguments, the Commission will consider, pursuant to Rule 19b-4, any request for an opportunity to make an oral presentation.\15\ --------------------------------------------------------------------------- \15\ Section 19(b)(2) of the Act, as amended by the Securities Act Amendments of 1975, Public Law 94-29 (June 4, 1975), grants the Commission flexibility to determine what type of proceeding--either oral or notice and opportunity for written comments--is appropriate for consideration of a particular proposal by a self-regulatory organization. See Securities Act Amendments of 1975, Senate Comm. on Banking, Housing & Urban Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30 (1975). --------------------------------------------------------------------------- Interested persons are invited to submit written data, views, and arguments regarding whether the proposal, as modified by Amendment No. 1, should be approved or disapproved by May 30, 2017. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal by June 13, 2017. 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 [[Page 21590]] Send an email to [email protected]. Please include File Number SR-Phlx-2017-04 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-Phlx-2017-04. 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 these filings 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-2017-04 and should be submitted on or before May 30, 2017. Rebuttal comments should be submitted by June 13, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(57). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-09315 Filed 5-8-17; 8:45 am] BILLING CODE 8011-01-P
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Exchange believes that the proposal will 4 thereunder,19 the Exchange has provisions of 5 U.S.C. 552, will be
promote competition by enabling the designated this rule filing as non- available for Web site viewing and
Exchange to offer a market data product controversial. The Exchange has given printing in the Commission’s Public
similar to that currently offered by the Commission written notice of its Reference Room, 100 F Street NE.,
Nasdaq and NYSE Arca.17 Thus, the intent to file the proposed rule change, Washington, DC 20549, on official
Exchange believes this proposed rule along with a brief description and text business days between the hours of
change is necessary to permit fair of the proposed rule change at least five 10:00 a.m. and 3:00 p.m. Copies of the
competition among national securities business days prior to the date of filing filing also will be available for
exchanges. of the proposed rule change, or such inspection and copying at the principal
shorter time as designated by the office of the Exchange. All comments
C. Self-Regulatory Organization’s Commission. received will be posted without change;
Statement on Comments on the At any time within 60 days of the the Commission does not edit personal
Proposed Rule Change Received From filing of the proposed rule change, the identifying information from
Members, Participants, or Others Commission summarily may submissions. You should submit only
The Exchange has neither solicited temporarily suspend such rule change if information that you wish to make
nor received written comments on the it appears to the Commission that such available publicly. All submissions
proposed rule change. action is: (1) Necessary or appropriate in should refer to File Number SR–
the public interest; (2) for the protection BatsBZX–2017–25 and should be
III. Date of Effectiveness of the
of investors; or (3) otherwise in submitted on or before May 30, 2017.
Proposed Rule Change and Timing for
furtherance of the purposes of the Act.
Commission Action For the Commission, by the Division of
If the Commission takes such action, the Trading and Markets, pursuant to delegated
Because the foregoing proposed rule Commission shall institute proceedings authority.20
change does not: (A) Significantly affect to determine whether the proposed rule Eduardo A. Aleman,
the protection of investors or the public should be approved or disapproved. Assistant Secretary.
interest; (B) impose any significant
burden on competition; and (C) by its IV. Solicitation of Comments [FR Doc. 2017–09314 Filed 5–8–17; 8:45 am]
terms, become operative for 30 days Interested persons are invited to BILLING CODE 8011–01–P
from the date on which it was filed or submit written data, views, and
such shorter time as the Commission arguments concerning the foregoing,
may designate it has become effective including whether the proposed rule SECURITIES AND EXCHANGE
pursuant to Section 19(b)(3)(A) of the change is consistent with the Act. COMMISSION
Act 18 and paragraph (f)(6) of Rule 19b– Comments may be submitted by any of [Release No. 34–80581; File No. SR–Phlx–
the following methods: 2017–04]
BYX–2014–030) (Notice of Amendment No. 2 and
Order Granting Accelerated Approval to Proposed Electronic Comments Self-Regulatory Organizations;
Rule Changes, as Modified by Amendments Nos. 1 • Use the Commission’s Internet NASDAQ PHLX LLC; Notice of Filing of
and 2, to Establish a New Market Data Product
called the Bats One Feed) (‘‘Bats One Approval
comment form (http://www.sec.gov/ Amendment No. 1 and Order Instituting
Order’’). The Exchange would provide the aggregate rules/sro.shtml); or Proceedings To Determine Whether To
BBO disseminated via the Bats One Summary Feed • Send an email to rule-comments@ Approve or Disapprove a Proposed
as part of the ETF Implied Liquidity feed. The sec.gov. Please include File Number SR– Rule Change, as Modified by
Exchange utilizes the following data feeds to create BatsBZX–2017–25 on the subject line.
the Bats One Summary Feed’s aggregated BBO, each
Amendment No. 1, To Permit the
of which are available to vendors: EDGX Depth, Listing and Trading of P.M.-Settled
Paper Comments
EDGA Depth, BYX PITCH Feed, and BZX PITCH NASDAQ–100 Index® Options on a
Feed. Rather than these depth-of-book feeds, the • Send paper comments in triplicate Pilot Basis
Exchange notes that a vendor seeking to build a to Brent J. Fields, Secretary, Securities
competing product to the proposed ETF Implied and Exchange Commission, 100 F Street May 3, 2017.
Liquidity feed could simply utilize the top-of-book
data feeds from each of the Bats Exchange’s to NE., Washington, DC 20549–1090. I. Introduction
create an aggregated BBO. These top-of-book feeds All submissions should refer to File
are EDGA Top, EDGX Top, BYX Top and BZX Top. On January 18, 2017, NASDAQ PHLX
Number SR–BatsBZX–2017–25. This file
The Exchange represents that a competing vendor LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with
could obtain these top-of-book data feeds from each number should be included on the
the Securities and Exchange
of the Bats Exchanges on the same latency basis as subject line if email is used. To help the
Commission (‘‘Commission’’), pursuant
the system that performs the aggregation and Commission process and review your
consolidation of the Bats One Summary Feed. See to Section 19(b)(1) of the Securities
comments more efficiently, please use
Bats One Approval Order. While the proposed ETF Exchange Act of 1934 (‘‘Act’’),1 and
Implied Liquidity feed does not separately provide only one method. The Commission will
Rule 19b–4 thereunder,2 a proposed rule
the ETF’s NBBO, the number of shares of securities post all comments on the Commission’s
change to permit the listing and trading
underlying one creation unit of the ETF, or the Internet Web site (http://www.sec.gov/
estimated cash included in one creation unit of the of P.M.-settled NASDAQ–100 Index®
rules/sro.shtml). Copies of the
ETF, a vendor could obtain this information from (‘‘NASDAQ–100’’) options on a pilot
the securities information processors and other submission, all subsequent
basis. The proposed rule change was
publicly available sources to perform its own amendments, all written statements
published for comment in the Federal
calculation of an ETF’s implied liquidity to include with respect to the proposed rule
as part of a competing product. Therefore, a vendor Register on February 3, 2017.3 On
change that are filed with the
could create a product to compete with the March 14, 2017, the Commission
Commission, and all written
mstockstill on DSK30JT082PROD with NOTICES
proposed ETF Implied Liquidity feed on the same extended the time period within which
terms as the Exchange. With regard to cost, as stated communications relating to the
to approve the proposed rule change,
above, the Exchange will file a separate rule filing proposed rule change between the
with the Commission to establish fees for the ETF Commission and any person, other than 20 17 CFR 200.30–3(a)(12).
Implied Liquidity feed that would be designed to
ensure that vendors could compete with the those that may be withheld from the 1 15 U.S.C. 78s(b)(1).
Exchange by creating a similar product. public in accordance with the 2 17 CFR 240.19b–4.
17 See supra note 14. 3 See Securities Exchange Act Release No. 79894
18 15 U.S.C. 78s(b)(3)(A). 19 17 CFR 240.19b–4. (January 30, 2017), 82 FR 9259 (‘‘Notice’’).
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this time in view of the legal and policy or any data or analysis that commenters the proposal added that ‘‘[r]aw
issues raised by the proposed rule think may be relevant to the percentage price change data as well as
change, as discussed below. Institution Commission’s consideration of the percentage price change data
of proceedings does not indicate that the proposal. Specifically, the Commission normalized for prevailing market
Commission has reached any seeks input from commenters to inform volatility, as measured by an
conclusions with respect to any of the its evaluation of whether P.M. appropriate index as agreed by the
issues involved. Rather, as stated below, settlement for Phlx’s proposed options Commission and the Exchange’’ would
the Commission seeks and encourages on the NASDAQ–100 could impact be included as part of the pilot. The
interested persons to provide comments volume and volatility on the underlying Commission seeks input on what
on the proposed rule change, as cash equities markets at the close of the commenters believe would be
modified by Amendment No. 1. trading day, and the potential appropriate data to use with respect to
Pursuant to Section 19(b)(2)(B) of the consequences this might have for measuring volatility for the proposed
Act,11 the Commission is providing investors and the overall stability of the pilot.
notice of the grounds for disapproval markets. Finally, the Commission requests any
under consideration, as discussed In addition, the Commission seeks comment, data, or analysis that
below. In particular, Section 6(b)(5) of input from commenters with respect to commenters think may be relevant to
the Act 12 requires that the rules of an the operation and structure of the the Commission’s consideration of the
exchange be designed, among other markets today in comparison to their Exchange’s proposal for P.M.-settled
things, to prevent fraudulent and operation and structure at the time of options on the NASDAQ–100.
manipulative acts and practices, to the shift to A.M. settlement of cash-
promote just and equitable principles of settled index options, and whether the IV. Procedure: Request for Written
trade, to remove impediments to and current operation and structure of the Comments
perfect the mechanism of a free and markets support, or do not support, The Commission requests that
open market and a national market allowing NASDAQ–100 options on Phlx interested persons provide written
system and, in general, to protect to be P.M.-settled. submissions of their views, data, and
investors and the public interest. More generally, the Commission seeks arguments with respect to the issues
The Commission has had concerns commenters’ views on whether there are identified above, as well as any other
about the potential adverse effects and differences between Phlx’s proposed concerns they may have with the
impact of P.M. settlement upon market product and other P.M.-settled, cash- proposal. In particular, the Commission
volatility and the operation of fair and settled options that raise novel issues invites the written views of interested
orderly markets on the underlying cash and, if so, whether commenters believe persons concerning whether the
market at or near the close of trading, such differences warrant different proposal, as modified by Amendment
including for cash-settled derivatives treatment or a different pilot design. No. 1, is consistent with Section 6(b)(5)
contracts based on a broad-based As noted above, the Exchange’s or any other provision of the Act, or the
index.13 The Commission believes that proposal seeks to allow the listing and rules and regulations thereunder.
the proposal to allow P.M. settlement of trading of NDXPM options on a pilot Although there do not appear to be any
an option on the NASDAQ–100 raises basis, and the Pilot Program, including issues relevant to approval or
questions as to the potential effects on its associated data and reports, are key disapproval that would be facilitated by
the underlying cash equities markets, in assisting the Commission and its staff an oral presentation of views, data, and
and thus as to whether it is consistent to analyze the impact of the proposal, arguments, the Commission will
with the requirements of Section 6(b)(5) including with respect to the concerns consider, pursuant to Rule 19b-4, any
of the Act, including whether the described above. Thus, the Commission request for an opportunity to make an
proposal is designed to prevent is considering and requesting comment oral presentation.15
manipulation, promote just and on whether commenters believe the Interested persons are invited to
equitable principles of trade, perfect the proposed Pilot Program is appropriate. submit written data, views, and
mechanism of a free and open market As noted above, the proposed Pilot arguments regarding whether the
and the national market system, and Program is similar to the pilot program proposal, as modified by Amendment
protect investors and the public interest. for the listing and trading of SPXPM No. 1, should be approved or
Accordingly, the Commission solicits options.14 The Commission requests disapproved by May 30, 2017. Any
comment, analysis, and data concerning commenters’ views on whether the person who wishes to file a rebuttal to
whether the Exchange’s proposal is proposed Pilot Program would any other person’s submission must file
consistent with the Act. The adequately demonstrate whether the that rebuttal by June 13, 2017.
Commission is asking commenters to Commission’s concerns about the Comments may be submitted by any
address the merits of Phlx’s statements adverse effect and impact of P.M. of the following methods:
in support of its proposal, in addition to settlement are, or are not, implicated by
the listing and trading of P.M.-settled Electronic Comments
any other comments they may wish to
submit about the proposed rule change options on the NASDAQ–100 and, if • Use the Commission’s Internet
not, what information or data the pilot comment form (http://www.sec.gov/
11 Id. should include. The Commission seeks rules/sro.shtml); or
12 15 U.S.C. 78f(b)(5). public comment on whether there are
13 For a detailed discussion of the history of the differences between the listing and 15 Section 19(b)(2) of the Act, as amended by the
concerns related to such P.M. settlement, see trading of SPXPM options and the Securities Act Amendments of 1975, Public Law
mstockstill on DSK30JT082PROD with NOTICES
Securities Exchange Act Release Nos. 64599 (June 94–29 (June 4, 1975), grants the Commission
3, 2011), 76 FR 33798, 33801–02 (June 9, 2011) proposed NDXPM options that would flexibility to determine what type of proceeding—
(order instituting proceedings to determine whether warrant differences in the data, either oral or notice and opportunity for written
to approve or disapprove a proposed rule change to analyses, or reports that should be comments—is appropriate for consideration of a
allow the listing and trading of SPXPM options) and required for the Exchange’s proposed particular proposal by a self-regulatory
65256 (September 2, 2011), 76 FR 55969, 55970–76 organization. See Securities Act Amendments of
(September 9, 2011) (order approving proposed rule pilot. In addition, Amendment No. 1 of 1975, Senate Comm. on Banking, Housing & Urban
change to establish a pilot program to list and trade Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
SPXPM options). 14 See SPXPM Notice, supra note 9. (1975).
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• Send an email to rule-comments@ ACTION: Amendment 1. Economic Injury (EIDL) Loan
sec.gov. Please include File Number SR– Application Deadline Date: 02/02/2018
Phlx–2017–04 on the subject line. SUMMARY: This is an amendment of the
ADDRESSES: Submit completed loan
Presidential declaration of a major
Paper Comments disaster for Public Assistance Only for applications to: U.S. Small Business
Administration, Processing And
• Send paper comments in triplicate the State of CALIFORNIA (FEMA–4305–
Disbursement Center, 14925 Kingsport
to Secretary, Securities and Exchange DR), dated 03/16/2017.
Incident: Severe Winter Storms, Road, Fort Worth, TX 76155.
Commission, 100 F Street NE.,
Flooding, and Mudslides. FOR FURTHER INFORMATION CONTACT: A.
Washington, DC 20549–1090.
Incident Period: 01/18/2017 through Escobar, Office of Disaster Assistance,
All submissions should refer to File
01/23/2017. U.S. Small Business Administration,
Number SR–Phlx–2017–04. This file
Effective Date: 05/03/2017. 409 3rd Street SW., Suite 6050,
number should be included on the Physical Loan Application Deadline Washington, DC 20416, (202) 205–6734.
subject line if email is used. To help the Date: 05/15/2017.
Commission process and review your SUPPLEMENTARY INFORMATION: Notice is
Economic Injury (EIDL) Loan hereby given that as a result of the
comments more efficiently, please use Application Deadline Date: 12/18/2017.
only one method. The Commission will President’s major disaster declaration on
ADDRESSES: Submit completed loan 05/02/2017, Private Non-Profit
post all comments on the Commission’s applications to: U.S. Small Business
Internet Web site (http://www.sec.gov/ organizations that provide essential
Administration, Processing And services of governmental nature may file
rules/sro.shtml). Copies of the Disbursement Center, 14925 Kingsport
submission, all subsequent disaster loan applications at the address
Road, Fort Worth, TX 76155. listed above or other locally announced
amendments, all written statements
FOR FURTHER INFORMATION CONTACT: A. locations.
with respect to the proposed rule
change that are filed with the Escobar, Office of Disaster Assistance, The following areas have been
Commission, and all written U.S. Small Business Administration, determined to be adversely affected by
communications relating to the 409 3rd Street SW., Suite 6050, the disaster:
proposed rule change between the Washington, DC 20416, (202) 205–6734. Primary Area: Resighini Rancheria
Commission and any person, other than SUPPLEMENTARY INFORMATION: The notice
The Interest Rates are:
those that may be withheld from the of the President’s major disaster
public in accordance with the declaration for Private Non-Profit Percent
provisions of 5 U.S.C. 552, will be organizations in the State of
available for Web site viewing and CALIFORNIA, dated 03/16/2017, is For Physical Damage:
printing in the Commission’s Public hereby amended to include the Non-Profit Organizations With
following areas as adversely affected by Credit Available Elsewhere ... 2.500
Reference Room, 100 F Street NE., Non-Profit Organizations With-
Washington, DC 20549, on official the disaster.
out Credit Available Else-
business days between the hours of Primary Counties: Alameda, Calaveras, where ..................................... 2.500
10:00 a.m. and 3:00 p.m. Copies of these Contra Costa Inyo, Modoc, Mono. For Economic Injury:
filings also will be available for All other information in the original Non-Profit Organizations With-
inspection and copying at the principal declaration remains unchanged. out Credit Available Else-
office of the Exchange. All comments where ..................................... 2.500
(Catalog of Federal Domestic Assistance
received will be posted without change; Number 59008)
the Commission does not edit personal The number assigned to this disaster
identifying information from Rafaela Monchek, for physical damage is 151256 and for
submissions. You should submit only Acting Associate Administrator for Disaster economic injury is 151266.
information that you wish to make Assistance. (Catalog of Federal Domestic Assistance
available publicly. All submissions [FR Doc. 2017–09347 Filed 5–8–17; 8:45 am] Number 59008)
should refer to File Number SR–Phlx– BILLING CODE 8025–01–P
2017–04 and should be submitted on or Rafaela Monchek,
before May 30, 2017. Rebuttal comments Acting Associate Administrator for Disaster
should be submitted by June 13, 2017. SMALL BUSINESS ADMINISTRATION Assistance.
For the Commission, by the Division of [FR Doc. 2017–09346 Filed 5–8–17; 8:45 am]
[Disaster Declaration #15125 and #15126]
Trading and Markets, pursuant to delegated BILLING CODE 8025–01–P
authority.16 Resighini Rancheria Disaster #CA–
Eduardo A. Aleman, 00273
Assistant Secretary. DEPARTMENT OF STATE
AGENCY: U.S. Small Business
[FR Doc. 2017–09315 Filed 5–8–17; 8:45 am]
Administration. [Delegation of Authority: 424]
BILLING CODE 8011–01–P
ACTION: Notice.
Authority To Accept Volunteer
SUMMARY: This is a Notice of the Services From Students
SMALL BUSINESS ADMINISTRATION Presidential declaration of a major
disaster for Public Assistance Only for By virtue of the authority vested in
[Disaster Declaration #15088 and #15089] the Secretary of State by the laws of the
mstockstill on DSK30JT082PROD with NOTICES
the Resighini Rancheria (FEMA–4312–
DR), dated 05/02/2017. United States, including 22 U.S.C.
CALIFORNIA Disaster Number CA– 2651a and 5 U.S.C. 3111 (‘‘Section
00264 Incident: Flooding
Incident Period: 02/08/2017 through 3111’’), and delegated pursuant to
AGENCY:U.S. Small Business 02/11/2017 Delegation of Authority 372, dated April
Administration. Effective Date: 05/02/2017 4, 2014, to the extent authorized by law
Physical Loan Application Deadline and pursuant to subsection (b) of
16 17 CFR 200.30–3(a)(57). Date: 07/03/2017 Section 3111, I hereby delegate the
VerDate Sep<11>2014 18:19 May 08, 2017 Jkt 241001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 E:\FR\FM\09MYN1.SGM 09MYN1](https://thefederalregister.org/doc/82_FR_21675/page/4.svg)
Document Created: 2018-11-08 08:41:39
Document Modified: 2018-11-08 08:41:39
| 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 | 82 FR 21587 |
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