82 FR 25472 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1012

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 104 (June 1, 2017)

Page Range		25472-25473
FR Document		2017-11252
Federal Register, Volume 82 Issue 104 (Thursday, June 1, 2017)
[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)]
[Notices]
[Pages 25472-25473]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11252]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80769; File No. SR-Phlx-2017-41]


Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1012

May 25, 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 22, 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 Rule 1012, Series of Options Open 
for Trading, with respect to long term options.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqphlx.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

[[Page 25473]]

the most significant aspects of such statements.

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

1. Purpose
    The purpose of this rule filing is to make three simple clarifying 
changes to Rule 1012, Series of Options Open for Trading, with respect 
to long term options. Pursuant to current subsection (a)(i)(D) of Rule 
1012, the Exchange may list, with respect to any class of stock or 
Exchange-Traded Fund Share options series, options having up to thirty-
nine months from the time they are listed until expiration.
    The Exchange proposes to amend subsection (a)(i)(D) of Rule 1012 by 
adding a caption to the section to make clear that it deals with long 
term options. It is also amending that subsection to specify, 
consistent with the proposed rule change filings which adopted it, that 
the expirations to which the subsection refers may have from twelve to 
thirty-nine months until expiration.\3\ Finally, the rule currently 
states that there may be ``up to six additional expiration months''. 
Because the rule does not specify which expiration months the six 
months are in addition to, and thus is ambiguous, the Exchange proposes 
to delete the word ``additional.'' As amended, the rule would clearly 
and simply provide that the Exchange may list six expiration months 
having from twelve up to thirty-nine months from the time they are 
listed until expiration.
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    \3\ See Securities Exchange Act Release Nos. 28910 (February 22, 
1991), 56 FR 9032 (March 4, 1991) (SR-Phlx-90-38) (adopting Rule 
1012 Commentary .03), and 29103 (April 18, 1991), 56 FR 19132 (April 
25, 1991) (SR-Phlx-91-18). The provision was subsequently relocated 
to subsection (a)(i)(D) of Rule 1012. See Securities Exchange Act 
Release No. 63700 (January 11, 2011), 76 FR 2931 (January 18, 2011) 
(SR-Phlx-2011-04).
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\4\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\5\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
by clarifying rule language associated with permitted listings of long 
term options.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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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. The proposed changes to Rule 
1012(a)(i)(D) are intended simply to provide clarity in the rule.

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 \6\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
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    \6\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \7\ 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 No. SR-Phlx-2017-41 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 No. SR-Phlx-2017-41. 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 No. SR-Phlx-2017-41, and should be 
submitted on or before June 22, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11252 Filed 5-31-17; 8:45 am]
BILLING CODE 8011-01-P
25472 Federal Register / Vol. 82, No. 104 / Thursday, June 1, 2017 / Notices

regard to the retirement of duplicative rule change, or (b) institute proceedings For the Commission, by the Division of
systems more generally, FIF to determine whether the proposed rule Trading and Markets, pursuant to delegated
recommended that the Participants change should be disapproved. authority.29
continue the effort to incorporate Eduardo A. Aleman,
current reporting obligations into the IV. Solicitation of Comments Assistant Secretary.
CAT in order to replace existing Interested persons are invited to [FR Doc. 2017–11363 Filed 5–31–17; 8:45 am]
reportable systems with the CAT. In submit written data, views, and BILLING CODE 8011–01–P
addition, FIF further recommended that, arguments concerning the foregoing,
once a CAT Reporter achieved
including whether the proposed rule
satisfactory reporting data quality, the SECURITIES AND EXCHANGE
change is consistent with the Act.
CAT Reporter should be exempt from COMMISSION
Comments may be submitted by any of
reporting to any duplicative reporting
systems. FIF believed that these the following methods:
[Release No. 34–80769; File No. SR–Phlx–
recommendations ‘‘would serve both an Electronic Comments 2017–41]
underlying regulatory objective of more
immediate and accurate access to data • Use the Commission’s Internet Self-Regulatory Organizations;
as well as an industry objective of comment form (http://www.sec.gov/ NASDAQ PHLX LLC; Notice of Filing
reduced costs and burdens of regulatory rules/sro.shtml); or and Immediate Effectiveness of
oversight.’’ 26 In its comments about • Send an email to rule-comments@ Proposed Rule Change To Amend Rule
EBS specifically, FIF stated that the sec.gov. Please include File Number SR– 1012
retirement of the EBS requirements ISE–2017–46 on the subject line.
should be a high priority, and that the May 25, 2017.
CAT should be designed to include the Paper Comments Pursuant to Section 19(b)(1) of the
requisite data elements to permit the Securities Exchange Act of 1934
rapid retirement of EBS.27 Similarly, • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
SIFMA stated that ‘‘the establishment of to Secretary, Securities and Exchange notice is hereby given that on May 22,
the CAT must be accompanied by the Commission, 100 F Street NE., 2017, NASDAQ PHLX LLC (‘‘Phlx’’ or
prompt elimination of duplicative Washington, DC 20549–1090. ‘‘Exchange’’) filed with the Securities
systems,’’ and ‘‘recommend[ed] that the and Exchange Commission (‘‘SEC’’ or
All submissions should refer to File
initial technical specifications be ‘‘Commission’’) the proposed rule
Number SR–ISE–2017–46. This file change as described in Items I, II, and
designed to facilitate the immediate number should be included on the
retirement of . . . duplicative reporting III, below, which Items have been
subject line if email is used. To help the prepared by the Exchange. The
systems.’’ 28 Commission process and review your
As discussed above in Section 3 [sic], Commission is publishing this notice to
comments more efficiently, please use solicit comments on the proposed rule
the Exchange agrees with the
commenters that the EBS reporting only one method. The Commission will change from interested persons.
requirements should be replaced by the post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s
CAT reporting requirements as soon as Statement of the Terms of Substance of
accurate and reliable CAT Data is rules/sro.shtml).
the Proposed Rule Change
available. To this end, the Exchange Copies of the submission, all
anticipates that the CAT will be subsequent amendments, all written The Exchange proposes to amend
designed to collect the data necessary to statements with respect to the proposed Rule 1012, Series of Options Open for
permit the retirement of EBS. However, rule change that are filed with the Trading, with respect to long term
as discussed above, the Exchange Commission, and all written options.
disagrees with the recommendation to communications relating to the The text of the proposed rule change
provide individual exemptions to those proposed rule change between the is available on the Exchange’s Web site
CAT Reporters who obtain satisfactory Commission and any person, other than at http://nasdaqphlx.cchwallstreet.
data reporting quality. those that may be withheld from the com/, at the principal office of the
public in accordance with the Exchange, and at the Commission’s
III. Date of Effectiveness of the
provisions of 5 U.S.C. 552, will be Public Reference Room.
Proposed Rule Change and Timing for
Commission Action available for Web site viewing and II. Self-Regulatory Organization’s
printing in the Commission’s Public Statement of the Purpose of, and
Within 45 days of the date of
publication of this notice in the Federal Reference Room, 100 F Street NE., Statutory Basis for, the Proposed Rule
Register or within such longer period (i) Washington, DC 20549, on official Change
as the Commission may designate up to business days between the hours of
In its filing with the Commission, the
90 days of such date if it finds such 10:00 a.m. and 3:00 p.m. Copies of the Exchange included statements
longer period to be appropriate and filing also will be available for concerning the purpose of and basis for
publishes its reasons for so finding or inspection and copying at the principal the proposed rule change and discussed
(ii) as to which the Exchange consents, office of the Exchange. All comments any comments it received on the
the Commission shall: (a) By order received will be posted without change; proposed rule change. The text of these
approve or disapprove such proposed the Commission does not edit personal statements may be examined at the
mstockstill on DSK30JT082PROD with NOTICES

identifying information from places specified in Item IV below. The
modify duplicative rules (Apr. 12, 2017); and Letter submissions. You should submit only Exchange has prepared summaries, set
from Kenneth E. Bentsen, Jr., SIFMA, to information that you wish to make forth in sections A, B, and C below, of
Participants re: Selection of Thesys as CAT available publicly. All submissions
Processor (Apr. 4, 2017) (‘‘SIFMA Letter’’) at 2.
26 FIF Letter at 2.
should refer to File Number SR–ISE– 29 17 CFR 200.30–3(a)(12).
27 FIF Letter at 2. 2017–46 and should be submitted on or 1 15 U.S.C. 78s(b)(1).
28 SIFMA Letter at 2. before June 22, 2017. 2 17 CFR 240.19b–4.

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Document Created: 2017-06-01 03:05:00
Document Modified: 2017-06-01 03:05:00
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 25472