82 FR 25023 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 103 (May 31, 2017)
Federal Register Volume 82, Issue 103 (May 31, 2017)
| Page Range | 25023-25025 | |
| FR Document | 2017-11145 |
[Federal Register Volume 82, Number 103 (Wednesday, May 31, 2017)] [Notices] [Pages 25023-25025] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11145] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80756; File No. SR-Nasdaq-2017-049] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program May 24, 2017. 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 May 11, 2017, The NASDAQ Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Chapter VI, Section 5 (Minimum Increments) \3\ of the rules of the NASDAQ Options Market (``NOM'') to extend through December 31, 2017 or the date of permanent approval, if [[Page 25024]] earlier, the Penny Pilot Program in options classes in certain issues (``Penny Pilot'' or ``Pilot''), and to change the date when delisted classes may be replaced in the Penny Pilot.\4\ --------------------------------------------------------------------------- \3\ References herein to Chapter and Series refer to rules of the NASDAQ Options Market (``NOM''), unless otherwise noted. \4\ The Penny Pilot was established in March 2008 and was last extended in 2016. See Securities Exchange Act Release Nos. 57579 (March 28, 2008), 73 FR 18587 (April 4, 2008) (SR-NASDAQ-2008-026); 75283 (June 24, 2015), 80 FR 37347 (June 30, 2015) (SR-NASDAQ-2015- 063) (notice of filing and immediate effectiveness establishing Penny Pilot); 78037 (June 10, 2016), 81 FR 39299 (June 16, 2016) (SR-NASDAQ-2016-052) (notice of filing and immediate effectiveness extending the Penny Pilot through December 31, 2016); and 79433 (November 30, 2016), 81 FR 87995 (December 6, 2016) (SR-Nasdaq-2016- 160) (notice of filing and immediate effectiveness of proposed rule change to amend Chapter VI, Section 5 to extend the Penny Pilot Program). --------------------------------------------------------------------------- Proposed new language is underlined and proposed deleted language is [bracketed]. NASDAQ Stock Market Rules Options Rules * * * * * Chapter VI Trading Systems * * * * * Sec. 5 Minimum Increments (a) The Board may establish minimum quoting increments for options contracts traded on NOM. Such minimum increments established by the Board will be designated as a stated policy, practice, or interpretation with respect to the administration of this Section within the meaning of Section 19 of the Exchange Act and will be filed with the SEC as a rule change for effectiveness upon filing. Until such time as the Board makes a change in the increments, the following principles shall apply: (1)-(2) No Change. (3) For a pilot period scheduled to expire on [June 30, 2017] December 31, 2017 or the date of permanent approval, if earlier, if the options series is trading pursuant to the Penny Pilot program one (1) cent if the options series is trading at less than $3.00, five (5) cents if the options series is trading at $3.00 or higher, unless for QQQQs, SPY and IWM where the minimum quoting increment will be one cent for all series regardless of price. A list of such options shall be communicated to membership via an Options Trader Alert (``OTA'') posted on the Exchange's Web site. The Exchange may replace any pilot issues that have been delisted with the next most actively traded multiply listed options classes that are not yet included in the pilot, based on trading activity in the previous six months. The replacement issues may be added to the pilot on the second trading day following [January 1, 2017] July 1, 2017. (4) No Change. (b) No Change. * * * * * The text of the proposed rule change is available on the Exchange's Web site at http://nasdaq.cchwallstreet.com/nasdaq/filings/nasdaq-filings/chp_1_1/chp_1_1_1/default.asp, 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 aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this filing is to amend Chapter VI, Section 5, to extend the Penny Pilot through December 31, 2017 or the date of permanent approval, if earlier,\5\ and to change the date when delisted classes may be replaced in the Penny Pilot. The Exchange believes that extending the Penny Pilot will allow for further analysis of the Penny Pilot and a determination of how the program should be structured in the future. --------------------------------------------------------------------------- \5\ The options exchanges in the U.S. that have pilot programs similar to the Penny Pilot (together ``pilot programs'') are currently working on a proposal for permanent approval of the respective pilot programs. --------------------------------------------------------------------------- Under the Penny Pilot, the minimum price variation for all participating options classes, except for the Nasdaq-100 Index Tracking Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 increments for all options series. The Penny Pilot is currently scheduled to expire on June 30, 2017. The Exchange proposes to extend the time period of the Penny Pilot through December 31, 2017 or the date of permanent approval, if earlier, and to provide a revised date for adding replacement issues to the Penny Pilot. The Exchange proposes that any Penny Pilot Program issues that have been delisted may be replaced on the second trading day following July 1, 2017. The replacement issues will be selected based on trading activity in the previous six months.\6\ --------------------------------------------------------------------------- \6\ The replacement issues will be announced to the Exchange's membership via an Options Trader Alert (OTA) posted on the Exchange's Web site. Penny Pilot replacement issues will be selected based on trading activity in the previous six months, as is the case today. The replacement issues would be identified based on The Options Clearing Corporation's trading volume data. For example, for the July replacement, trading volume from December 1, 2016 through May 30 [sic], 2017 would be analyzed. The Commission notes that for the July replacement, the Exchange will analyze data through May 31, 2017, not May 30, 2017. The month immediately preceding the replacement issues' addition to the Pilot Program (i.e., June) would not be used for purposes of the six-month analysis. --------------------------------------------------------------------------- This filing does not propose any substantive changes to the Penny Pilot Program; all classes currently participating in the Penny Pilot will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the potential increase in quote traffic. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\8\ 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, and 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot for an additional six months through December 31, 2017 or the date of permanent approval, if earlier, and changes the date for replacing Penny Pilot issues that were delisted to the second trading day following July 1, 2017, will enable public customers and [[Page 25025]] other market participants to express their true prices to buy and sell options for the benefit of all market participants. This is consistent with the Act. 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, this proposal is pro-competitive because it allows Penny Pilot issues to continue trading on the Exchange. Moreover, the Exchange believes that the proposed rule change will allow for further analysis of the Pilot and a determination of how the Pilot should be structured in the future; and will serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Pilot is an industry-wide initiative supported by all other option exchanges. The Exchange believes that extending the Pilot will allow for continued competition between market participants on the Exchange trading similar products as their counterparts on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action 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, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\10\ --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(iii). \10\ 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 intent 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. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-Nasdaq-2017-049 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-Nasdaq-2017-049. 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-Nasdaq-2017-049 and should be submitted on or before June 21, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11145 Filed 5-30-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices 25023
of the Act 7 in particular, in that it is of the Act 8 and Rule 19b–4(f)(6) 9 printing in the Commission’s Public
designed to prevent fraudulent and thereunder. Reference Room, 100 F Street NE.,
manipulative acts and practices, to At any time within 60 days of the Washington, DC 20549, on official
promote just and equitable principles of filing of the proposed rule change, the business days between the hours of
trade, to foster cooperation and Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
coordination with persons engaged in temporarily suspend such rule change if filing also will be available for
facilitating transactions in securities, to it appears to the Commission that such inspection and copying at the principal
remove impediments to and perfect the action is necessary or appropriate in the office of the Exchange. All comments
mechanisms of a free and open market public interest, for the protection of received will be posted without change;
and a national market system and, in investors, or otherwise in furtherance of the Commission does not edit personal
general, to protect investors and the the purposes of the Act. If the identifying information from
public interest. Commission takes such action, the submissions. You should submit only
In particular, the proposed rule Commission shall institute proceedings information that you wish to make
change, which extends the Penny Pilot to determine whether the proposed rule available publicly.
Program for six months, allows the should be approved or disapproved. All submissions should refer to File
Exchange to continue to participate in a Number SR–PEARL–2017–24 and
IV. Solicitation of Comments should be submitted on or before June
program that has been viewed as
beneficial to traders, investors and Interested persons are invited to 21, 2017. For the Commission, by the
public customers and viewed as submit written data, views, and Division of Trading and Markets,
successful by the other options arguments concerning the foregoing, pursuant to delegated authority.10
exchanges participating in it. including whether the proposed rule
Eduardo A. Aleman,
change is consistent with the Act.
B. Self-Regulatory Organization’s Comments may be submitted by any of Assistant Secretary.
Statement on Burden on Competition the following methods: [FR Doc. 2017–11147 Filed 5–30–17; 8:45 am]
BILLING CODE 8011–01–P
The Exchange does not believe that Electronic Comments
the proposed rule change will impose
any burden on competition that is not • Use the Commission’s Internet
comment form (http://www.sec.gov/ SECURITIES AND EXCHANGE
necessary or appropriate in furtherance COMMISSION
of the purposes of the Act. Specifically, rules/sro.shtml); or
the Exchange believes that, by extending • Send an email to rule-comments@ [Release No. 34–80756; File No. SR–
the expiration of the Pilot Program, the sec.gov. Please include File Number SR– Nasdaq–2017–049]
proposed rule change will allow for PEARL–2017–24 on the subject line.
Self-Regulatory Organizations; The
further analysis of the Penny Pilot Paper Comments NASDAQ Stock Market LLC; Notice of
Program and a determination of how the
• Send paper comments in triplicate Filing and Immediate Effectiveness of
Program should be structured in the
to Secretary, Securities and Exchange Proposed Rule Change To Extend the
future. In doing so, the proposed rule
Commission, 100 F Street NE., Penny Pilot Program
change will also serve to promote
Washington, DC 20549–1090.
regulatory clarity and consistency, May 24, 2017.
thereby reducing burdens on the All submissions should refer to File Pursuant to Section 19(b)(1) of the
marketplace, facilitating investor Number SR–PEARL–2017–24. This file Securities Exchange Act of 1934
protection, and fostering a competitive number should be included on the (‘‘Act’’),1 and Rule 19b–4 thereunder, 2
environment. In addition, consistent subject line if email is used. To help the notice is hereby given that on May 11,
with previous practices, the Exchange Commission process and review your 2017, The NASDAQ Stock Market LLC
believes the other options exchanges comments more efficiently, please use (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
will be filing similar extensions of the only one method. The Commission will Securities and Exchange Commission
Penny Pilot Program. post all comments on the Commission’s (‘‘SEC’’ or ‘‘Commission’’) the proposed
Internet Web site (http://www.sec.gov/ rule change as described in Items I, II,
C. Self-Regulatory Organization’s rules/sro.shtml).
Statement on Comments on the and III below, which Items have been
Copies of the submission, all prepared by the Exchange. The
Proposed Rule Change Received From subsequent amendments, all written
Members, Participants, or Others Commission is publishing this notice to
statements with respect to the proposed solicit comments on the proposed rule
Written comments were neither rule change that are filed with the change from interested persons.
solicited nor received. Commission, and all written
communications relating to the I. Self-Regulatory Organization’s
III. Date of Effectiveness of the proposed rule change between the Statement of the Terms of Substance of
Proposed Rule Change and Timing for Commission and any person, other than the Proposed Rule Change
Commission Action those that may be withheld from the The Exchange proposes to amend
Because the foregoing proposed rule public in accordance with the Chapter VI, Section 5 (Minimum
change does not: (i) Significantly affect provisions of 5 U.S.C. 552, will be Increments) 3 of the rules of the
the protection of investors or the public available for Web site viewing and NASDAQ Options Market (‘‘NOM’’) to
interest; (ii) impose any significant extend through December 31, 2017 or
nlaroche on DSK30NT082PROD with NOTICES
8 15 U.S.C. 78s(b)(3)(A).
burden on competition; and (iii) become the date of permanent approval, if
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
operative for 30 days after the date of 4(f)(6) requires a self-regulatory organization to give 10 17 CFR 200.30–3(a)(12).
the filing, or such shorter time as the the Commission written notice of its intent to file
1 15 U.S.C. 78s(b)(1).
Commission may designate, it has the proposed rule change at least five business days
2 17 CFR 240.19b–4.
become effective pursuant to 19(b)(3)(A) prior to the date of filing of the proposed rule
change, or such shorter time as designated by the 3 References herein to Chapter and Series refer to
Commission. The Exchange has satisfied this rules of the NASDAQ Options Market (‘‘NOM’’),
7 15 U.S.C. 78f(b)(5). requirement. unless otherwise noted.
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![25024 Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices
earlier, the Penny Pilot Program in pilot on the second trading day The Exchange proposes to extend the
options classes in certain issues (‘‘Penny following [January 1, 2017] July 1, 2017. time period of the Penny Pilot through
Pilot’’ or ‘‘Pilot’’), and to change the (4) No Change. December 31, 2017 or the date of
date when delisted classes may be (b) No Change. permanent approval, if earlier, and to
replaced in the Penny Pilot.4 * * * * * provide a revised date for adding
Proposed new language is underlined replacement issues to the Penny Pilot.
The text of the proposed rule change
and proposed deleted language is The Exchange proposes that any Penny
is available on the Exchange’s Web site
[bracketed]. Pilot Program issues that have been
at http://nasdaq.cchwallstreet.com/
NASDAQ Stock Market Rules nasdaq/filings/nasdaq-filings/chp_1_1/ delisted may be replaced on the second
chp_1_1_1/default.asp, at the principal trading day following July 1, 2017. The
Options Rules replacement issues will be selected
office of the Exchange, and at the
* * * * * Commission’s Public Reference Room. based on trading activity in the previous
six months.6
Chapter VI Trading Systems II. Self-Regulatory Organization’s This filing does not propose any
* * * * * Statement of the Purpose of, and substantive changes to the Penny Pilot
Statutory Basis for, the Proposed Rule Program; all classes currently
Sec. 5 Minimum Increments
Change participating in the Penny Pilot will
(a) The Board may establish minimum remain the same and all minimum
quoting increments for options contracts In its filing with the Commission, the
increments will remain unchanged. The
traded on NOM. Such minimum Exchange included statements
Exchange believes the benefits to public
increments established by the Board concerning the purpose of and basis for
customers and other market participants
will be designated as a stated policy, the proposed rule change and discussed
who will be able to express their true
practice, or interpretation with respect any comments it received on the
prices to buy and sell options have been
to the administration of this Section proposed rule change. The text of these
demonstrated to outweigh the potential
within the meaning of Section 19 of the statements may be examined at the
increase in quote traffic.
Exchange Act and will be filed with the places specified in Item IV below. The
SEC as a rule change for effectiveness Exchange has prepared summaries, set 2. Statutory Basis
upon filing. Until such time as the forth in sections A, B, and C below, of The Exchange believes that its
Board makes a change in the the most significant aspects of such proposal is consistent with Section 6(b)
increments, the following principles statements. of the Act,7 in general, and furthers the
shall apply: A. Self-Regulatory Organization’s objectives of Section 6(b)(5) of the Act,8
(1)–(2) No Change. Statement of the Purpose of, and in particular, in that it is designed to
(3) For a pilot period scheduled to Statutory Basis for, the Proposed Rule prevent fraudulent and manipulative
expire on [June 30, 2017] December 31, Change acts and practices, to promote just and
2017 or the date of permanent approval, equitable principles of trade, to foster
if earlier, if the options series is trading 1. Purpose cooperation and coordination with
pursuant to the Penny Pilot program one The purpose of this filing is to amend persons engaged in facilitating
(1) cent if the options series is trading Chapter VI, Section 5, to extend the transactions in securities, and to remove
at less than $3.00, five (5) cents if the Penny Pilot through December 31, 2017 impediments to and perfect the
options series is trading at $3.00 or or the date of permanent approval, if mechanism of a free and open market
higher, unless for QQQQs, SPY and earlier,5 and to change the date when and a national market system and, in
IWM where the minimum quoting general, to protect investors and the
delisted classes may be replaced in the
increment will be one cent for all series public interest.
Penny Pilot. The Exchange believes that
regardless of price. A list of such In particular, the proposed rule
extending the Penny Pilot will allow for
options shall be communicated to change, which extends the Penny Pilot
further analysis of the Penny Pilot and
membership via an Options Trader Alert for an additional six months through
a determination of how the program
(‘‘OTA’’) posted on the Exchange’s Web December 31, 2017 or the date of
should be structured in the future.
site. permanent approval, if earlier, and
The Exchange may replace any pilot Under the Penny Pilot, the minimum
price variation for all participating changes the date for replacing Penny
issues that have been delisted with the Pilot issues that were delisted to the
next most actively traded multiply options classes, except for the Nasdaq-
100 Index Tracking Stock (‘‘QQQQ’’), second trading day following July 1,
listed options classes that are not yet 2017, will enable public customers and
included in the pilot, based on trading the SPDR S&P 500 Exchange Traded
activity in the previous six months. The Fund (‘‘SPY’’) and the iShares Russell
6 The replacement issues will be announced to
replacement issues may be added to the 2000 Index Fund (‘‘IWM’’), is $0.01 for
the Exchange’s membership via an Options Trader
all quotations in options series that are Alert (OTA) posted on the Exchange’s Web site.
4 The Penny Pilot was established in March 2008 quoted at less than $3 per contract and Penny Pilot replacement issues will be selected
and was last extended in 2016. See Securities $0.05 for all quotations in options series based on trading activity in the previous six
Exchange Act Release Nos. 57579 (March 28, 2008), that are quoted at $3 per contract or months, as is the case today. The replacement
73 FR 18587 (April 4, 2008) (SR–NASDAQ–2008– issues would be identified based on The Options
greater. QQQQ, SPY and IWM are Clearing Corporation’s trading volume data. For
026); 75283 (June 24, 2015), 80 FR 37347 (June 30,
2015) (SR–NASDAQ–2015–063) (notice of filing quoted in $0.01 increments for all example, for the July replacement, trading volume
and immediate effectiveness establishing Penny options series. The Penny Pilot is from December 1, 2016 through May 30 [sic], 2017
nlaroche on DSK30NT082PROD with NOTICES
Pilot); 78037 (June 10, 2016), 81 FR 39299 (June 16, currently scheduled to expire on June would be analyzed. The Commission notes that for
2016) (SR–NASDAQ–2016–052) (notice of filing the July replacement, the Exchange will analyze
30, 2017. data through May 31, 2017, not May 30, 2017. The
and immediate effectiveness extending the Penny
Pilot through December 31, 2016); and 79433 month immediately preceding the replacement
(November 30, 2016), 81 FR 87995 (December 6, 5 The options exchanges in the U.S. that have issues’ addition to the Pilot Program (i.e., June)
2016) (SR–Nasdaq–2016–160) (notice of filing and pilot programs similar to the Penny Pilot (together would not be used for purposes of the six-month
immediate effectiveness of proposed rule change to ‘‘pilot programs’’) are currently working on a analysis.
7 15 U.S.C. 78f(b).
amend Chapter VI, Section 5 to extend the Penny proposal for permanent approval of the respective
Pilot Program). pilot programs. 8 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices 25025
other market participants to express At any time within 60 days of the submissions. You should submit only
their true prices to buy and sell options filing of the proposed rule change, the information that you wish to make
for the benefit of all market participants. Commission summarily may available publicly.
This is consistent with the Act. temporarily suspend such rule change if All submissions should refer to File
it appears to the Commission that such Number SR–Nasdaq–2017–049 and
B. Self-Regulatory Organization’s should be submitted on or before June
action is: (i) Necessary or appropriate in
Statement on Burden on Competition the public interest; (ii) for the protection 21, 2017.
The Exchange does not believe that of investors; or (iii) otherwise in For the Commission, by the Division of
the proposed rule change will impose furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated
any burden on competition not If the Commission takes such action, the authority.11
necessary or appropriate in furtherance Commission shall institute proceedings Eduardo A. Aleman,
of the purposes of the Act. To the to determine whether the proposed rule Assistant Secretary.
contrary, this proposal is pro- should be approved or disapproved. [FR Doc. 2017–11145 Filed 5–30–17; 8:45 am]
competitive because it allows Penny
IV. Solicitation of Comments BILLING CODE 8011–01–P
Pilot issues to continue trading on the
Exchange. Interested persons are invited to
Moreover, the Exchange believes that submit written data, views, and SECURITIES AND EXCHANGE
the proposed rule change will allow for arguments concerning the foregoing, COMMISSION
further analysis of the Pilot and a including whether the proposed rule
determination of how the Pilot should change is consistent with the Act. [Release No. 34–80755; File No. SR–Phlx–
Comments may be submitted by any of 2017–36]
be structured in the future; and will
serve to promote regulatory clarity and the following methods:
Self-Regulatory Organizations;
consistency, thereby reducing burdens Electronic Comments NASDAQ PHLX LLC; Notice of Filing
on the marketplace and facilitating
investor protection. • Use the Commission’s Internet and Immediate Effectiveness of
comment form (http://www.sec.gov/ Proposed Rule Change To Extend the
The Pilot is an industry-wide Penny Pilot Program
initiative supported by all other option rules/sro.shtml); or
• Send an email to rule-comments@
exchanges. The Exchange believes that May 24, 2017.
sec.gov. Please include File Number SR–
extending the Pilot will allow for Pursuant to Section 19(b)(1) of the
Nasdaq–2017–049 on the subject line.
continued competition between market Securities Exchange Act of 1934
participants on the Exchange trading Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2
similar products as their counterparts • Send paper comments in triplicate notice is hereby given that on May 11,
on other exchanges, while at the same to Secretary, Securities and Exchange 2017, NASDAQ PHLX LLC (‘‘Phlx’’ or
time allowing the Exchange to continue Commission, 100 F Street NE., ‘‘Exchange’’) filed with the Securities
to compete for order flow with other Washington, DC 20549–1090. and Exchange Commission (‘‘SEC’’ or
exchanges in option issues trading as ‘‘Commission’’) the proposed rule
All submissions should refer to File
part of the Pilot. change as described in Items I, II, and
Number SR–Nasdaq–2017–049. This file
III below, which Items have been
C. Self-Regulatory Organization’s number should be included on the
prepared by the Exchange. The
Statement on Comments on the subject line if email is used.
To help the Commission process and Commission is publishing this notice to
Proposed Rule Change Received From
review your comments more efficiently, solicit comments on the proposed rule
Members, Participants, or Others
please use only one method. The change from interested persons.
No written comments were either
Commission will post all comments on I. Self-Regulatory Organization’s
solicited or received.
the Commission’s Internet Web site Statement of the Terms of Substance of
III. Date of Effectiveness of the (http://www.sec.gov/rules/sro.shtml). the Proposed Rule Change
Proposed Rule Change and Timing for Copies of the submission, all
The Exchange proposes to amend
Commission Action subsequent amendments, all written
Phlx Rule 1034 (Minimum Increments),3
statements with respect to the proposed
Because the foregoing proposed rule to extend through December 31, 2017 or
rule change that are filed with the
change does not: (i) Significantly affect the date of permanent approval, if
Commission, and all written
the protection of investors or the public earlier, the Penny Pilot Program in
communications relating to the
interest; (ii) impose any significant options classes in certain issues (‘‘Penny
proposed rule change between the
burden on competition; and (iii) become Pilot’’ or ‘‘Pilot’’), and to change the
Commission and any person, other than
operative for 30 days from the date on date when delisted classes may be
those that may be withheld from the
which it was filed, or such shorter time replaced in the Penny Pilot.4
public in accordance with the
as the Commission may designate, it has
provisions of 5 U.S.C. 552, will be
become effective pursuant to Section 11 17 CFR 200.30–3(a)(12).
available for Web site viewing and 1 15 U.S.C. 78s(b)(1).
19(b)(3)(A)(iii) of the Act 9 and
printing in the Commission’s Public 2 17 CFR 240.19b–4.
subparagraph (f)(6) of Rule 19b–4
Reference Room, 100 F Street NE., 3 References herein to rules refer to rules of Phlx,
thereunder.10
Washington, DC 20549, on official unless otherwise noted.
4 The Penny Pilot was established in January 2007
business days between the hours of
nlaroche on DSK30NT082PROD with NOTICES
9 15 U.S.C. 78s(b)(3)(A)(iii). and was last extended in 2016. See Securities
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
10:00 a.m. and 3:00 p.m. Copies of the Exchange Act Release Nos. 55153 (January 23,
4(f)(6) requires a self-regulatory organization to give filing also will be available for 2007), 72 FR 4553 (January 31, 2007) (SR–Phlx–
the Commission written notice of its intent to file inspection and copying at the principal 2006–74); 75286 (June 24, 2015), 80 FR 37333 (June
the proposed rule change at least five business days office of the Exchange. All comments 30, 2015) (SR–Phlx–2015–54) (notice of filing and
prior to the date of filing of the proposed rule approval order establishing Penny Pilot); 78060
change, or such shorter time as designated by the
received will be posted without change; (June 14, 2016), 81 FR 39979 (June 20, 2016) (SR–
Commission. The Exchange has satisfied this the Commission does not edit personal Phlx–2016–47) (notice of filing and immediate
requirement. identifying information from Continued
VerDate Sep<11>2014 14:54 May 30, 2017 Jkt 241001 PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 E:\FR\FM\31MYN1.SGM 31MYN1](https://thefederalregister.org/doc/82_FR_25126/page/3.svg)
Document Created: 2017-05-31 05:59:25
Document Modified: 2017-05-31 05:59:25
| 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 | 82 FR 25023 |
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