82 FR 25025 - Self-Regulatory Organizations; NASDAQ PHLX 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)

Page Range		25025-25027
FR Document		2017-11144
Federal Register, Volume 82 Issue 103 (Wednesday, May 31, 2017)
[Federal Register Volume 82, Number 103 (Wednesday, May 31, 2017)]
[Notices]
[Pages 25025-25027]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11144]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80755; File No. SR-Phlx-2017-36]


Self-Regulatory Organizations; NASDAQ PHLX 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, NASDAQ PHLX LLC (``Phlx'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Phlx Rule 1034 (Minimum 
Increments),\3\ to extend through December 31, 2017 or the date of 
permanent approval, if 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\
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    \3\ References herein to rules refer to rules of Phlx, unless 
otherwise noted.
    \4\ The Penny Pilot was established in January 2007 and was last 
extended in 2016. See Securities Exchange Act Release Nos. 55153 
(January 23, 2007), 72 FR 4553 (January 31, 2007) (SR-Phlx-2006-74); 
75286 (June 24, 2015), 80 FR 37333 (June 30, 2015) (SR-Phlx-2015-54) 
(notice of filing and approval order establishing Penny Pilot); 
78060 (June 14, 2016), 81 FR 39979 (June 20, 2016) (SR-Phlx-2016-47) 
(notice of filing and immediate effectiveness extending the Penny 
Pilot through December 31, 2016); and 79425 (November 29, 2016), 81 
FR 87633 (December 5, 2016) (SR-Phlx-2016-115) (notice of filing and 
immediate effectiveness of proposed rule change to extend the Penny 
Pilot Program).

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[[Page 25026]]

    Proposed new language is underlined and proposed deleted language 
is [bracketed].

NASDAQ PHLX Rules

Options Rules

* * * * *

Rule 1034. Minimum Increments

    (a) Except as provided in sub-paragraphs (i)(B) and (iii) below, 
all options on stocks, index options, and Exchange Traded Fund Shares 
quoting in decimals at $3.00 or higher shall have a minimum increment 
of $.10, and all options on stocks and index options quoting in 
decimals under $3.00 shall have a minimum increment of $.05.
    (i)(A) No Change.
    (B) For a pilot period scheduled to expire [June 30, 2017] December 
31, 2017 or the date of permanent approval, if earlier (the ``pilot''), 
certain options shall be quoted and traded on the Exchange in minimum 
increments of $0.01 for all series in such options with a price of less 
than $3.00, and in minimum increments of $0.05 for all series in such 
options with a price of $3.00 or higher, except that options overlying 
the PowerShares QQQ Trust (``QQQQ'')[supreg], SPDR S&P 500 Exchange 
Traded Funds (``SPY''), and iShares Russell 2000 Index Funds (``IWM'') 
shall be quoted and traded in minimum increments of $0.01 for all 
series regardless of the 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.
    (C) No Change.
    (ii)-(v) No Change.
* * * * *
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxphlx.cchwallstreet.com/, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant 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 Phlx Rule 1034 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.
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    \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.
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    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\
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    \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.
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    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.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    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 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

[[Page 25027]]

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\
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    \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.
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    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 Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-Phlx-2017-36 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-2017-36. 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-Phlx-2017-36 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\
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    \11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11144 Filed 5-30-17; 8:45 am]
BILLING CODE 8011-01-P
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

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25026 Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices

Proposed new language is underlined II. Self-Regulatory Organization’s based on trading activity in the previous
and proposed deleted language is Statement of the Purpose of, and six months.6
[bracketed]. Statutory Basis for, the Proposed Rule This filing does not propose any
Change substantive changes to the Penny Pilot
NASDAQ PHLX Rules Program; all classes currently
Options Rules In its filing with the Commission, the participating in the Penny Pilot will
Exchange included statements remain the same and all minimum
* * * * * concerning the purpose of and basis for increments will remain unchanged. The
Rule 1034. Minimum Increments the proposed rule change and discussed Exchange believes the benefits to public
any comments it received on the customers and other market participants
(a) Except as provided in sub- proposed rule change. The text of these who will be able to express their true
paragraphs (i)(B) and (iii) below, all statements may be examined at the prices to buy and sell options have been
options on stocks, index options, and places specified in Item IV below. The demonstrated to outweigh the potential
Exchange Traded Fund Shares quoting Exchange has prepared summaries, set increase in quote traffic.
in decimals at $3.00 or higher shall have forth in sections A, B, and C below, of
a minimum increment of $.10, and all 2. Statutory Basis
the most significant aspects of such
options on stocks and index options statements. The Exchange believes that its
quoting in decimals under $3.00 shall proposal is consistent with Section 6(b)
have a minimum increment of $.05. A. Self-Regulatory Organization’s of the Act,7 in general, and furthers the
Statement of the Purpose of, and objectives of Section 6(b)(5) of the Act,8
(i)(A) No Change. Statutory Basis for, the Proposed Rule in particular, in that it is designed to
(B) For a pilot period scheduled to Change prevent fraudulent and manipulative
expire [June 30, 2017] December 31, acts and practices, to promote just and
2017 or the date of permanent approval, 1. Purpose
equitable principles of trade, to foster
if earlier (the ‘‘pilot’’), certain options The purpose of this filing is to amend cooperation and coordination with
shall be quoted and traded on the Phlx Rule 1034 to extend the Penny persons engaged in facilitating
Exchange in minimum increments of Pilot through December 31, 2017 or the transactions in securities, and to remove
$0.01 for all series in such options with date of permanent approval, if earlier,5 impediments to and perfect the
a price of less than $3.00, and in and to change the date when delisted mechanism of a free and open market
minimum increments of $0.05 for all classes may be replaced in the Penny and a national market system and, in
series in such options with a price of Pilot. The Exchange believes that general, to protect investors and the
$3.00 or higher, except that options extending the Penny Pilot will allow for public interest.
overlying the PowerShares QQQ Trust In particular, the proposed rule
further analysis of the Penny Pilot and
(‘‘QQQQ’’)®, SPDR S&P 500 Exchange change, which extends the Penny Pilot
a determination of how the program
Traded Funds (‘‘SPY’’), and iShares for an additional six months through
should be structured in the future.
Russell 2000 Index Funds (‘‘IWM’’) December 31, 2017 or the date of
shall be quoted and traded in minimum Under the Penny Pilot, the minimum permanent approval, if earlier, and
increments of $0.01 for all series price variation for all participating changes the date for replacing Penny
regardless of the price. A list of such options classes, except for the Nasdaq- Pilot issues that were delisted to the
options shall be communicated to 100 Index Tracking Stock (‘‘QQQQ’’), second trading day following July 1,
membership via an Options Trader Alert the SPDR S&P 500 Exchange Traded 2017, will enable public customers and
(‘‘OTA’’) posted on the Exchange’s Web Fund (‘‘SPY’’) and the iShares Russell other market participants to express
site. 2000 Index Fund (‘‘IWM’’), is $0.01 for their true prices to buy and sell options
all quotations in options series that are for the benefit of all market participants.
The Exchange may replace any pilot
quoted at less than $3 per contract and This is consistent with the Act.
issues that have been delisted with the
next most actively traded multiply $0.05 for all quotations in options series
that are quoted at $3 per contract or B. Self-Regulatory Organization’s
listed options classes that are not yet Statement on Burden on Competition
included in the pilot, based on trading greater. QQQQ, SPY and IWM are
activity in the previous six months. The quoted in $0.01 increments for all The Exchange does not believe that
replacement issues may be added to the options series. The Penny Pilot is the proposed rule change will impose
pilot on the second trading day currently scheduled to expire on June any burden on competition not
following [January 1, 2017] July 1, 2017. 30, 2017. necessary or appropriate in furtherance
(C) No Change. The Exchange proposes to extend the
6 The replacement issues will be announced to
time period of the Penny Pilot through
(ii)–(v) No Change. December 31, 2017 or the date of the Exchange’s membership via an Options Trader
Alert (OTA) posted on the Exchange’s Web site.
* * * * * permanent approval, if earlier, and to Penny Pilot replacement issues will be selected
The text of the proposed rule change provide a revised date for adding based on trading activity in the previous six
replacement issues to the Penny Pilot. months, as is the case today. The replacement
is available on the Exchange’s Web site issues would be identified based on The Options
at http://nasdaqomxphlx.cchwall The Exchange proposes that any Penny Clearing Corporation’s trading volume data. For
street.com/, at the principal office of the Pilot Program issues that have been example, for the July replacement, trading volume
Exchange, and at the Commission’s delisted may be replaced on the second from December 1, 2016 through May 30 [sic], 2017
nlaroche on DSK30NT082PROD with NOTICES

trading day following July 1, 2017. The would be analyzed. The Commission notes that for
Public Reference Room. the July replacement, the Exchange will analyze
replacement issues will be selected data through May 31, 2017, not May 30, 2017. The
effectiveness extending the Penny Pilot through month immediately preceding the replacement
December 31, 2016); and 79425 (November 29, 5 The options exchanges in the U.S. that have issues’ addition to the Pilot Program (i.e., June)
2016), 81 FR 87633 (December 5, 2016) (SR–Phlx– pilot programs similar to the Penny Pilot (together would not be used for purposes of the six-month
2016–115) (notice of filing and immediate ‘‘pilot programs’’) are currently working on a analysis.
7 15 U.S.C. 78f(b).
effectiveness of proposed rule change to extend the proposal for permanent approval of the respective
Penny 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 25027

of the purposes of the Act. To the to determine whether the proposed rule For the Commission, by the Division of
contrary, this proposal is pro- should be approved or disapproved. Trading and Markets, pursuant to delegated
competitive because it allows Penny authority.11
Pilot issues to continue trading on the IV. Solicitation of Comments Eduardo A. Aleman,
Exchange. Assistant Secretary.
Interested persons are invited to
Moreover, the Exchange believes that submit written data, views, and [FR Doc. 2017–11144 Filed 5–30–17; 8:45 am]
the proposed rule change will allow for arguments concerning the foregoing, BILLING CODE 8011–01–P
further analysis of the Pilot and a including whether the proposed rule
determination of how the Pilot should change is consistent with the Act.
be structured in the future; and will SECURITIES AND EXCHANGE
Comments may be submitted by any of
serve to promote regulatory clarity and COMMISSION
the following methods:
consistency, thereby reducing burdens [Release No. 34–80754; File No. SR–CHX–
on the marketplace and facilitating Electronic Comments 2017–10]
investor protection.
The Pilot is an industry-wide • Use the Commission’s Internet Self-Regulatory Organizations;
initiative supported by all other option comment form (http://www.sec.gov/ Chicago Stock Exchange, Inc.; Notice
exchanges. The Exchange believes that rules/sro.shtml); or of Filing and Immediate Effectiveness
extending the Pilot will allow for • Send an email to rule-comments@ of a Proposed Rule Change To Modify
continued competition between market sec.gov. Please include File Number SR– Certain Appendix B Web Site
participants on the Exchange trading Phlx–2017–36 on the subject line. Publication Requirements Pursuant to
similar products as their counterparts the Regulation NMS Plan To Implement
on other exchanges, while at the same Paper Comments a Tick Size Pilot Program
time allowing the Exchange to continue
• Send paper comments in triplicate May 24, 2017.
to compete for order flow with other
exchanges in option issues trading as to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
part of the Pilot. Commission, 100 F Street NE., Securities Exchange Act of 1934
Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 2 thereunder,
C. Self-Regulatory Organization’s notice is hereby given that on May 15,
Statement on Comments on the All submissions should refer to File
Number SR–Phlx–2017–36. This file 2017, the Chicago Stock Exchange, Inc.
Proposed Rule Change Received From (‘‘CHX’’ or the ‘‘Exchange’’) filed with
Members, Participants, or Others number should be included on the
the Securities and Exchange
subject line if email is used.
No written comments were either Commission (‘‘Commission’’) the
solicited or received. To help the Commission process and proposed rule change as described in
review your comments more efficiently, Items I, II and III below, which Items
III. Date of Effectiveness of the please use only one method. The have been prepared by the Exchange.
Proposed Rule Change and Timing for Commission will post all comments on The Commission is publishing this
Commission Action the Commission’s Internet Web site notice to solicit comments on the
Because the foregoing proposed rule (http://www.sec.gov/rules/sro.shtml). proposed rule change from interested
change does not: (i) Significantly affect Copies of the submission, all persons.
the protection of investors or the public subsequent amendments, all written I. Self-Regulatory Organization’s
interest; (ii) impose any significant statements with respect to the proposed Statement of the Terms of Substance of
burden on competition; and (iii) become rule change that are filed with the the Proposed Rule Change
operative for 30 days from the date on Commission, and all written
which it was filed, or such shorter time communications relating to the CHX proposes to amend Article 20,
as the Commission may designate, it has proposed rule change between the Rule 13(b) of the Rules of the Exchange
become effective pursuant to Section (‘‘CHX Rules’’) to modify certain
Commission and any person, other than
19(b)(3)(A)(iii) of the Act 9 and Appendix B Web site data publication
those that may be withheld from the
subparagraph (f)(6) of Rule 19b–4 requirements pursuant to the Regulation
public in accordance with the
thereunder.10 NMS Plan to Implement a Tick Size
provisions of 5 U.S.C. 552, will be
At any time within 60 days of the Pilot Program (‘‘Plan’’).
available for Web site viewing and The text of this proposed rule change
filing of the proposed rule change, the printing in the Commission’s Public
Commission summarily may is available on the Exchange’s Web site
Reference Room, 100 F Street NE., at (www.chx.com) and in the
temporarily suspend such rule change if Washington, DC 20549, on official
it appears to the Commission that such Commission’s Public Reference Room.
business days between the hours of
action is: (i) Necessary or appropriate in 10:00 a.m. and 3:00 p.m. Copies of the II. Self-Regulatory Organization’s
the public interest; (ii) for the protection Statement of the Purpose of, and
filing also will be available for
of investors; or (iii) otherwise in Statutory Basis for, the Proposed Rule
inspection and copying at the principal
furtherance of the purposes of the Act. Change
office of the Exchange. All comments
If the Commission takes such action, the
received will be posted without change; In its filing with the Commission, the
Commission shall institute proceedings
the Commission does not edit personal CHX included statements concerning
identifying information from the purpose of and basis for the
nlaroche on DSK30NT082PROD with NOTICES

9 15 U.S.C. 78s(b)(3)(A)(iii).
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– submissions. You should submit only proposed rule changes and discussed
4(f)(6) requires a self-regulatory organization to give information that you wish to make any comments it received on the
the Commission written notice of its intent to file available publicly. proposed rule change. The text of these
the proposed rule change at least five business days
prior to the date of filing of the proposed rule All submissions should refer to File 11 17 CFR 200.30–3(a)(12).
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
Number SR–Phlx–2017–36 and should 1 15 U.S.C. 78s(b)(1).
requirement. be submitted on or before June 21, 2017. 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 14:54 May 30, 2017 Jkt 241001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\31MYN1.SGM 31MYN1
Document Created: 2017-05-31 05:59:19
Document Modified: 2017-05-31 05:59:19
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 25025