82 FR 25032 - Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX Options Rule 510 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 | 25032-25033 | |
| FR Document | 2017-11146 |
[Federal Register Volume 82, Number 103 (Wednesday, May 31, 2017)] [Notices] [Pages 25032-25033] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11146] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80757; File No. SR-MIAX-2017-23] Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend MIAX Options Rule 510 To Extend the Penny Pilot Program May 24, 2017. Pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 16, 2017, Miami International Securities Exchange, LLC (``MIAX Options'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') a proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange is filing a proposal to amend Exchange Rule 510, Interpretations and Policies .01 to extend the pilot program for the quoting and trading of certain options in pennies. The text of the proposed rule change is available on the Exchange's Web site at http://www.miaxoptions.com/rule-filings, at MIAX's principal office, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange is a participant in an industry-wide pilot program that provides for the quoting and trading of certain option classes in penny increments (the ``Penny Pilot Program'' or ``Program''). The Penny Pilot Program allows the quoting and trading of certain option classes in minimum increments of $0.01 for all series in such option classes with a price of less than $3.00; and in minimum increments of $0.05 for all series in such option classes with a price of $3.00 or higher. Options overlying the PowerShares QQQTM (``QQQ''), SPDR[supreg] S&P 500[supreg] ETF (``SPY''), and iShares[supreg] Russell 2000 ETF (``IWM''), however, are quoted and traded in minimum increments of $0.01 for all series regardless of the price. The Penny Pilot Program was initiated at the then existing option exchanges in January 2007 \3\ and currently includes more than 300 of the most active option classes. The Penny Pilot Program is currently scheduled to expire on June 30, 2017.\4\ The purpose of the proposed rule change is to extend the Penny Pilot Program in its current format through December 31, 2017. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release Nos. 55154 (January 23, 2007), 72 FR 4743 (February 1, 2007) (SR-CBOE-2006-92); 55161 (January 24, 2007), 72 FR 4754 (February 1, 2007) (SR-ISE-2006-62); 54886 (December 6, 2006), 71 FR 74979 (December 13, 2006) (SR-Phlx- 2006-74); 54590 (October 12, 2006), 71 FR 61525 (October 18, 2006) (SR-NYSEArca-2006-73); and 54741 (November 9, 2006), 71 FR 67176 (November 20, 2006) (SR-Amex-2006-106). \4\ See Securities Exchange Act Release No. 79432 (November 30, 2016), 81 FR 87990 (December 6, 2016) (SR-MIAX-2016-45) (extending the Penny Pilot Program from December 31, 2016, to June 30, 2017). --------------------------------------------------------------------------- In addition to the extension of the Penny Pilot Program through December 31, 2017, the Exchange proposes to extend one other date in the Rule. [[Page 25033]] Currently, Interpretations and Policies .01 states that the Exchange will replace any Penny Pilot issues that have been delisted with the next most actively traded multiply listed option classes that are not yet included in the Penny Pilot Program, and that the replacement issues will be selected based on trading activity in the previous six months. Such option classes will be added to the Penny Pilot Program on the second trading day following January 1, 2017.\5\ Because this date has expired and the Exchange intends to continue this practice for the duration of the Penny Pilot Program, the Exchange is proposing to amend the Rule to reflect that such option classes will be added to the Penny Pilot Program on the second trading day following July 1, 2017. --------------------------------------------------------------------------- \5\ The month immediately preceding a replacement class's addition to the Pilot Program (i.e., June) is not used for purposes of the six-month analysis. For example, a replacement added on the second trading day following July 1, 2017, will be identified based on trading activity from December 1, 2016, through May 31, 2017. --------------------------------------------------------------------------- The purpose of this provision is to reflect the new date on which replacement issues may be added to the Penny Pilot Program. 2. Statutory Basis MIAX believes that its proposed rule change is consistent with Section 6(b) of the Act \6\ in general, and furthers the objectives of Section 6(b)(5) of the Act \7\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, to remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot Program for six months, allows the Exchange to continue to participate in a program that has been viewed as beneficial to traders, investors and public customers and viewed as successful by the other options exchanges participating in it. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange believes that, by extending the expiration of the Pilot Program, the proposed rule change will allow for further analysis of the Penny Pilot Program and a determination of how the Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace, facilitating investor protection, and fostering a competitive environment. In addition, consistent with previous practices, the Exchange believes the other options exchanges will be filing similar extensions of the Penny Pilot Program. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments were neither solicited nor received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to 19(b)(3)(A) of the Act \8\ and Rule 19b&4(f)(6) \9\ thereunder. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-MIAX-2017-23 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-MIAX-2017-23. 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-MIAX-2017-23 and should be submitted on or before June 21, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11146 Filed 5-30-17; 8:45 am] BILLING CODE 8011-01-P
![25032 Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices
SECURITIES AND EXCHANGE pursuant to Section 19(b)(2) of the Act,5 II. Self-Regulatory Organization’s
COMMISSION and for the reason noted above, Statement of the Purpose of, and
designates July 9, 2017 as the date by Statutory Basis for, the Proposed Rule
[Release No. 34–80753; File No. SR–NYSE–
which the Commission shall either Change
2017–07; SR–NYSEMKT–2017–16]
approve or disapprove, or institute In its filing with the Commission, the
Self-Regulatory Organizations; New proceedings to determine whether to Exchange included statements
York Stock Exchange LLC; NYSE MKT disapprove, the proposed rule changes concerning the purpose of and basis for
LLC; Notice of Designation of a Longer (File Nos. SR–NYSE–2017–07 and SR– the proposed rule change and discussed
Period for Commission Action on NYSEMKT–2017–16). any comments it received on the
Proposed Rule Changes Amending For the Commission, by the Division of proposed rule change. The text of these
NYSE Rule 36 and NYSE MKT Rule Trading and Markets, pursuant to delegated statements may be examined at the
36—Equities To Permit Exchange Floor authority.6 places specified in Item IV below. The
Brokers To Use Non-Exchange Eduardo A. Aleman, Exchange has prepared summaries, set
Provided Telephones on the Floor Assistant Secretary. forth in sections A, B, and C below, of
[FR Doc. 2017–11142 Filed 5–30–17; 8:45 am] the most significant aspects of such
May 24, 2017. statements.
BILLING CODE 8011–01–P
On March 31, 2017 and March 22,
2017, New York Stock Exchange LLC A. Self-Regulatory Organization’s
(‘‘NYSE’’) and NYSE MKT LLC (‘‘NYSE Statement of the Purpose of, and
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
MKT,’’ and each of NYSE and NYSE COMMISSION
MKT an ‘‘Exchange’’), respectively, filed Change
with the Securities and Exchange 1. Purpose
Commission (‘‘Commission’’), pursuant [Release No. 34–80757; File No. SR–MIAX–
2017–23] The Exchange is a participant in an
to Section 19(b)(1) of the Securities
industry-wide pilot program that
Exchange Act of 1934 (‘‘Act’’) 1 and Rule Self-Regulatory Organizations; Miami provides for the quoting and trading of
19b–4 thereunder,2 proposed rule International Securities Exchange LLC; certain option classes in penny
changes to permit Exchange floor Notice of Filing and Immediate increments (the ‘‘Penny Pilot Program’’
brokers to use cellular or wireless Effectiveness of a Proposed Rule or ‘‘Program’’). The Penny Pilot Program
telephones not provided by the Change To Amend MIAX Options Rule allows the quoting and trading of certain
Exchange while on the Floor of the 510 To Extend the Penny Pilot Program option classes in minimum increments
Exchange and make related changes. of $0.01 for all series in such option
The proposed rule changes were May 24, 2017.
classes with a price of less than $3.00;
published for comment in the Federal Pursuant to the provisions of Section and in minimum increments of $0.05 for
Register on April 10, 2017.3 No 19(b)(1) of the Securities Exchange Act all series in such option classes with a
comments have been received on the of 1934 (‘‘Act’’) 1 and Rule 19b–4 price of $3.00 or higher. Options
proposed rule changes. thereunder,2 notice is hereby given that overlying the PowerShares QQQTM
Section 19(b)(2) of the Act 4 provides on May 16, 2017, Miami International (‘‘QQQ’’), SPDR® S&P 500® ETF
that within 45 days of the publication of Securities Exchange, LLC (‘‘MIAX (‘‘SPY’’), and iShares® Russell 2000 ETF
notice of the filing of a proposed rule Options’’ or ‘‘Exchange’’) filed with the (‘‘IWM’’), however, are quoted and
change, or within such longer period up Securities and Exchange Commission traded in minimum increments of $0.01
to 90 days as the Commission may (‘‘Commission’’) a proposed rule change for all series regardless of the price. The
designate if it finds such longer period as described in Items I, II, and III below, Penny Pilot Program was initiated at the
to be appropriate and publishes its which Items have been prepared by the then existing option exchanges in
reasons for so finding or as to which the Exchange. The Commission is January 2007 3 and currently includes
self-regulatory organization consents, publishing this notice to solicit more than 300 of the most active option
the Commission shall either approve the comments on the proposed rule change classes. The Penny Pilot Program is
proposed rule change, disapprove the from interested persons. currently scheduled to expire on June
proposed rule change, or institute 30, 2017.4 The purpose of the proposed
proceedings to determine whether the I. Self-Regulatory Organization’s
rule change is to extend the Penny Pilot
proposed rule change should be Statement of the Terms of Substance of
Program in its current format through
disapproved. The 45th day after the Proposed Rule Change
December 31, 2017.
publication of the notices for these The Exchange is filing a proposal to In addition to the extension of the
proposed rule changes is May 25, 2017. amend Exchange Rule 510, Penny Pilot Program through December
The Commission is extending this 45- Interpretations and Policies .01 to 31, 2017, the Exchange proposes to
day time period for Commission action extend the pilot program for the quoting extend one other date in the Rule.
on the proposed rule changes. and trading of certain options in
The Commission finds it appropriate pennies. 3 See Securities Exchange Act Release Nos. 55154
to designate a longer period within (January 23, 2007), 72 FR 4743 (February 1, 2007)
The text of the proposed rule change (SR–CBOE–2006–92); 55161 (January 24, 2007), 72
which to take action on the proposed
is available on the Exchange’s Web site FR 4754 (February 1, 2007) (SR–ISE–2006–62);
rule changes so that it has sufficient 54886 (December 6, 2006), 71 FR 74979 (December
at http://www.miaxoptions.com/rule-
time to consider these proposed rule 13, 2006) (SR–Phlx–2006–74); 54590 (October 12,
filings, at MIAX’s principal office, and
nlaroche on DSK30NT082PROD with NOTICES
changes. Accordingly, the Commission, 2006), 71 FR 61525 (October 18, 2006) (SR–
at the Commission’s Public Reference NYSEArca–2006–73); and 54741 (November 9,
1 15
Room. 2006), 71 FR 67176 (November 20, 2006) (SR–
U.S.C. 78s(b)(1). Amex–2006–106).
2 17 CFR 240.19b–4. 4 See Securities Exchange Act Release No. 79432
3 See Securities Exchange Act Release Nos. 80374 5 15 U.S.C. 78s(b)(2). (November 30, 2016), 81 FR 87990 (December 6,
6 17 CFR 200.30–3(a)(31).
(April 4, 2017), 82 FR 17306; and 80375 (April 4, 2016) (SR–MIAX–2016–45) (extending the Penny
2017), 82 FR 17302. 1 15 U.S.C. 78s(b)(1).
Pilot Program from December 31, 2016, to June 30,
4 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. 2017).
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![Federal Register / Vol. 82, No. 103 / Wednesday, May 31, 2017 / Notices 25033
Currently, Interpretations and Policies the Exchange believes that, by extending Electronic Comments
.01 states that the Exchange will replace the expiration of the Pilot Program, the
any Penny Pilot issues that have been proposed rule change will allow for • Use the Commission’s Internet
delisted with the next most actively further analysis of the Penny Pilot comment form (http://www.sec.gov/
traded multiply listed option classes Program and a determination of how the rules/sro.shtml); or
that are not yet included in the Penny Program should be structured in the • Send an email to rule-
Pilot Program, and that the replacement future. In doing so, the proposed rule comments@sec.gov. Please include File
issues will be selected based on trading change will also serve to promote Number SR–MIAX–2017–23 on the
activity in the previous six months. regulatory clarity and consistency, subject line.
Such option classes will be added to the thereby reducing burdens on the
Penny Pilot Program on the second marketplace, facilitating investor Paper Comments
trading day following January 1, 2017.5 protection, and fostering a competitive
environment. In addition, consistent • Send paper comments in triplicate
Because this date has expired and the
Exchange intends to continue this with previous practices, the Exchange to Secretary, Securities and Exchange
practice for the duration of the Penny believes the other options exchanges Commission, 100 F Street NE.,
Pilot Program, the Exchange is will be filing similar extensions of the Washington, DC 20549–1090.
proposing to amend the Rule to reflect Penny Pilot Program. All submissions should refer to File
that such option classes will be added C. Self-Regulatory Organization’s Number SR–MIAX–2017–23. This file
to the Penny Pilot Program on the Statement on Comments on the number should be included on the
second trading day following July 1, Proposed Rule Change Received From subject line if email is used. To help the
2017. Members, Participants, or Others Commission process and review your
The purpose of this provision is to comments more efficiently, please use
reflect the new date on which Written comments were neither
solicited nor received. only one method. The Commission will
replacement issues may be added to the
post all comments on the Commission’s
Penny Pilot Program. III. Date of Effectiveness of the Internet Web site (http://www.sec.gov/
2. Statutory Basis Proposed Rule Change and Timing for
rules/sro.shtml).
Commission Action
MIAX believes that its proposed rule Copies of the submission, all
change is consistent with Section 6(b) of Because the foregoing proposed rule
subsequent amendments, all written
change does not: (i) Significantly affect
the Act 6 in general, and furthers the statements with respect to the proposed
the protection of investors or the public
objectives of Section 6(b)(5) of the Act 7 rule change that are filed with the
interest; (ii) impose any significant
in particular, in that it is designed to Commission, and all written
burden on competition; and (iii) become
prevent fraudulent and manipulative communications relating to the
operative for 30 days after the date of
acts and practices, to promote just and proposed rule change between the
the filing, or such shorter time as the
equitable principles of trade, to foster Commission and any person, other than
Commission may designate, it has
cooperation and coordination with those that may be withheld from the
become effective pursuant to 19(b)(3)(A)
persons engaged in facilitating public in accordance with the
of the Act 8 and Rule 19b&4(f)(6) 9
transactions in securities, to remove provisions of 5 U.S.C. 552, will be
thereunder.
impediments to and perfect the At any time within 60 days of the available for Web site viewing and
mechanisms of a free and open market filing of the proposed rule change, the printing in the Commission’s Public
and a national market system and, in Commission summarily may
general, to protect investors and the Reference Room, 100 F Street NE.,
temporarily suspend such rule change if Washington, DC 20549, on official
public interest. it appears to the Commission that such
In particular, the proposed rule business days between the hours of
action is necessary or appropriate in the 10:00 a.m. and 3:00 p.m. Copies of the
change, which extends the Penny Pilot public interest, for the protection of
Program for six months, allows the filing also will be available for
investors, or otherwise in furtherance of
Exchange to continue to participate in a inspection and copying at the principal
the purposes of the Act. If the
program that has been viewed as office of the Exchange. All comments
Commission takes such action, the
beneficial to traders, investors and Commission shall institute proceedings received will be posted without change;
public customers and viewed as to determine whether the proposed rule the Commission does not edit personal
successful by the other options should be approved or disapproved. identifying information from
exchanges participating in it. submissions. You should submit only
IV. Solicitation of Comments information that you wish to make
B. Self-Regulatory Organization’s
Statement on Burden on Competition Interested persons are invited to available publicly.
submit written data, views, and All submissions should refer to File
The Exchange does not believe that arguments concerning the foregoing,
the proposed rule change will impose Number SR–MIAX–2017–23 and should
including whether the proposed rule be submitted on or before June 21, 2017.
any burden on competition that is not change is consistent with the Act.
necessary or appropriate in furtherance For the Commission, by the Division of
Comments may be submitted by any of
of the purposes of the Act. Specifically, Trading and Markets, pursuant to
the following methods:
delegated authority.10
nlaroche on DSK30NT082PROD with NOTICES
5 The month immediately preceding a 8 15 U.S.C. 78s(b)(3)(A). Eduardo A. Aleman,
replacement class’s addition to the Pilot Program 9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
(i.e., June) is not used for purposes of the six-month 4(f)(6) requires a self-regulatory organization to give Assistant Secretary.
analysis. For example, a replacement added on the the Commission written notice of its intent to file [FR Doc. 2017–11146 Filed 5–30–17; 8:45 am]
second trading day following July 1, 2017, will be the proposed rule change at least five business days
identified based on trading activity from December BILLING CODE 8011–01–P
prior to the date of filing of the proposed rule
1, 2016, through May 31, 2017. change, or such shorter time as designated by the
6 15 U.S.C. 78f(b).
Commission. The Exchange has satisfied this
7 15 U.S.C. 78f(b)(5). requirement. 10 17 CFR 200.30–3(a)(12).
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Document Created: 2017-05-31 05:59:47
Document Modified: 2017-05-31 05:59:47
| 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 25032 |
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