82 FR 26169 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program To Quote and To Trade Certain Options Classes in Penny Increments
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 107 (June 6, 2017)
Federal Register Volume 82, Issue 107 (June 6, 2017)
| Page Range | 26169-26171 | |
| FR Document | 2017-11607 |
[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)] [Notices] [Pages 26169-26171] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11607] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80823; File No. SR-MRX-2017-06] Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot Program To Quote and To Trade Certain Options Classes in Penny Increments May 31, 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 25, 2017, Nasdaq MRX, LLC (``MRX'' 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 extend a pilot program to quote and to trade certain options classes in penny increments (``Penny Pilot Program''). The text of the proposed rule change is available on the Exchange's Web site at www.ise.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 [[Page 26170]] 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 Under the Penny Pilot Program, 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 Program is currently scheduled to expire on June 30, 2017.\3\ The Exchange proposes to extend the Penny Pilot Program through December 31, 2017, and to provide a revised date for adding replacement issues to the Penny Pilot Program. 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 for the most recent six month period excluding the month immediately preceding the replacement (i.e., beginning December 1, 2016, and ending May 31, 2017). This filing does not propose any substantive changes to the Penny Pilot Program: All classes currently participating 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 any increase in quote traffic. --------------------------------------------------------------------------- \3\ See Exchange Act Release No. 79740 (January 4, 2017), 82 FR 3059 (January 10, 2017) (SR-ISE Mercury-2016-26). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\4\ Specifically, the proposed rule change is consistent with Section 6(b)(5) of the Act,\5\ because it is designed to promote just and equitable principles of trade, 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. In particular, the proposed rule change, which extends the Penny Pilot Program for an additional six months, will enable public customers and other market participants to express their true prices to buy and sell options to the benefit of all market participants. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\6\ the Exchange does not believe that the proposed rule change will impose any burden on intermarket or intramarket 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 Penny Pilot Program, the proposed rule change will allow for further analysis of the Penny Pilot Program and a determination of how the Penny Pilot 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 and facilitating investor protection. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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 \7\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\8\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19-4(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 rule-comments@sec.gov. Please include File Number SR-MRX-2017-06 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-MRX-2017-06. 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 [[Page 26171]] submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-MRX-2017-06 and should be submitted on or before June 27, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-11607 Filed 6-5-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices 26169
mechanisms of a free and open market it appears to the Commission that such All submissions should refer to File
and a national market system and, in action is: (i) Necessary or appropriate in Number SR–ISE–2017–48 and should be
general, to protect investors and the the public interest; (ii) for the protection submittedon or before June 27, 2017.
public interest. In particular, the of investors; or (iii) otherwise in For the Commission, by the Division of
proposed rule change, which extends furtherance of the purposes of the Act. Trading and Markets, pursuant to delegated
the Penny Pilot Program for an If the Commission takes such action, the authority.9
additional six months, will enable Commission shall institute proceedings Eduardo A. Aleman,
public customers and other market to determine whether the proposed rule Assistant Secretary.
participants to express their true prices should be approved or disapproved. [FR Doc. 2017–11611 Filed 6–5–17; 8:45 am]
to buy and sell options to the benefit of
all market participants. IV. Solicitation of Comments BILLING CODE 8011–01–P
B. Self-Regulatory Organization’s Interested persons are invited to
Statement on Burden on Competition submit written data, views, and SECURITIES AND EXCHANGE
arguments concerning the foregoing, COMMISSION
In accordance with Section 6(b)(8) of including whether the proposed rule
the Act,6 the Exchange does not believe change is consistent with the Act. [Release No. 34–80823; File No. SR–MRX–
that the proposed rule change will 2017–06]
Comments may be submitted by any of
impose any burden on intermarket or the following methods:
intramarket competition that is not Self-Regulatory Organizations; Nasdaq
necessary or appropriate in furtherance Electronic Comments MRX, LLC; Notice of Filing and
of the purposes of the Act. Specifically, Immediate Effectiveness of Proposed
• Use the Commission’s Internet Rule Change To Extend a Pilot
the Exchange believes that, by extending comment form (http://www.sec.gov/
the expiration of the Penny Pilot Program To Quote and To Trade
rules/sro.shtml); or Certain Options Classes in Penny
Program, the proposed rule change will • Send an email to rule-comments@
allow for further analysis of the Penny Increments
sec.gov. Please include File Number SR–
Pilot Program and a determination of ISE–2017–48 on the subject line. May 31, 2017.
how the Penny Pilot Program should be Pursuant to Section 19(b)(1) of the
structured in the future. In doing so, the Paper Comments
Securities Exchange Act of 1934
proposed rule change will also serve to • Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
promote regulatory clarity and to Secretary, Securities and Exchange notice is hereby given that on May 25,
consistency, thereby reducing burdens Commission, 100 F Street NE., 2017, Nasdaq MRX, LLC (‘‘MRX’’ or
on the marketplace and facilitating Washington, DC 20549–1090. ‘‘Exchange’’) filed with the Securities
investor protection. All submissions should refer to File and Exchange Commission (‘‘SEC’’ or
C. Self-Regulatory Organization’s Number SR–ISE–2017–48. This file ‘‘Commission’’) the proposed rule
Statement on Comments on the number should be included on the change as described in Items I, II, and
Proposed Rule Change Received From subject line if email is used. To help the III, below, which Items have been
Members, Participants, or Others Commission process and review your prepared by the Exchange. The
No written comments were either comments more efficiently, please use Commission is publishing this notice to
solicited or received. only one method. The Commission will solicit comments on the proposed rule
post all comments on the Commission’s change from interested persons.
III. Date of Effectiveness of the Internet Web site (http://www.sec.gov/
Proposed Rule Change and Timing for I. Self-Regulatory Organization’s
rules/sro.shtml).
Commission Action Statement of the Terms of Substance of
Copies of the submission, all the Proposed Rule Change
Because the foregoing proposed rule subsequent amendments, all written
change does not: (i) Significantly affect statements with respect to the proposed The Exchange proposes to extend a
the protection of investors or the public rule change that are filed with the pilot program to quote and to trade
interest; (ii) impose any significant Commission, and all written certain options classes in penny
burden on competition; and (iii) become communications relating to the increments (‘‘Penny Pilot Program’’).
operative for 30 days from the date on proposed rule change between the The text of the proposed rule change
which it was filed, or such shorter time Commission and any person, other than is available on the Exchange’s Web site
as the Commission may designate, it has those that may be withheld from the at www.ise.com, at the principal office
become effective pursuant to Section public in accordance with the of the Exchange, and at the
19(b)(3)(A)(iii) of the Act 7 and provisions of 5 U.S.C. 552, will be Commission’s Public Reference Room.
subparagraph (f)(6) of Rule 19b–4 available for Web site viewing and II. Self-Regulatory Organization’s
thereunder.8 printing in the Commission’s Public Statement of the Purpose of, and
At any time within 60 days of the Reference Room, 100 F Street NE., Statutory Basis for, the Proposed Rule
filing of the proposed rule change, the Washington, DC 20549, on official Change
Commission summarily may business days between the hours of
temporarily suspend such rule change if In its filing with the Commission, the
10:00 a.m. and 3:00 p.m. Copies of the
Exchange included statements
filing also will be available for
6 15 U.S.C. 78f(b)(8). concerning the purpose of and basis for
inspection and copying at the principal
mstockstill on DSK30JT082PROD with NOTICES
7 15 U.S.C. 78s(b)(3)(A)(iii). the proposed rule change and discussed
office of the Exchange. All comments
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– any comments it received on the
received will be posted without change;
4(f)(6) requires a self-regulatory organization to give proposed rule change. The text of these
the Commission written notice of its intent to file the Commission does not edit personal
statements may be examined at the
the proposed rule change at least five business days identifying information from
prior to the date of filing of the proposed rule submissions. You should submit only 9 17 CFR 200.30–3(a)(12).
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
information that you wish to make 1 15 U.S.C. 78s(b)(1).
requirement. available publicly. 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices 26171
submissions. You should submit only published for comment in the Federal ‘‘Exchange’’) filed with the Securities
information that you wish to make Register on March 28, 2017.5 The and Exchange Commission
available publicly. Commission received eleven comment (‘‘Commission’’) the proposed rule
All submissions should refer to File letters 6 on the Amendments and a change as described in Items I, II, and
Number SR–MRX–2017–06 and should response letter filed by the III, below, which Items have been
be submitted on or before June 27, 2017. Participants.7 prepared by the Exchange. The
For the Commission, by the Division of The Commission is publishing this Commission is publishing this notice to
Trading and Markets, pursuant to delegated notice to reflect that on April 27, 2017, solicit comments on the proposed rule
authority.9 prior to the end of the 60-day period change from interested persons.
Eduardo A. Aleman, provided for in Exchange Act Rule
608(b)(iii), the Participants withdrew I. Self-Regulatory Organization’s
Assistant Secretary.
the Amendments.8 Statement of the Terms of Substance of
[FR Doc. 2017–11607 Filed 6–5–17; 8:45 am] the Proposed Rule Change
BILLING CODE 8011–01–P By the Commission.
The Exchange proposes to amend
Eduardo A. Aleman,
Rule 1017, Openings in Options, to
Assistant Secretary.
SECURITIES AND EXCHANGE conform this rule to recently filed
[FR Doc. 2017–11580 Filed 6–5–17; 8:45 am] Nasdaq ISE, LLC (‘‘ISE’’) Rule 701.
COMMISSION
BILLING CODE 8011–01–P The text of the proposed rule change
[Release No. 34–80819; File No. SR–CTA/ is available on the Exchange’s Web site
CQ–2017–02] at http://nasdaqphlx.cchwallstreet.
SECURITIES AND EXCHANGE com/, at the principal office of the
Consolidated Tape Association; Notice COMMISSION
of Withdrawal of the Twenty-Second Exchange, and at the Commission’s
Charges Amendment to the Second [Release No. 34–80820; File No. SR–Phlx– Public Reference Room.
2017–40]
Restatement of the CTA Plan and the II. Self-Regulatory Organization’s
Thirteenth Charges Amendment to the Self-Regulatory Organizations; Statement of the Purpose of, and
Restated CQ Plan NASDAQ PHLX LLC; Notice of Filing Statutory Basis for, the Proposed Rule
May 31, 2017. and Immediate Effectiveness of Change
Proposed Rule Change To Amend In its filing with the Commission, the
I. Introduction Openings in Options Rule Exchange included statements
On March 2, 2017, the participants concerning the purpose of and basis for
(‘‘Participants’’) 1 of the Second May 31, 2017.
the proposed rule change and discussed
Restatement of the Consolidated Tape Pursuant to Section 19(b)(1) of the
any comments it received on the
Association (‘‘CTA’’) Plan and the Securities Exchange Act of 1934
proposed rule change. The text of these
Restated Consolidated Quotation (‘‘CQ’’) (‘‘Act’’),1 and Rule 19b–4 thereunder,2
statements may be examined at the
Plan (collectively, ‘‘Plans’’) filed with notice is hereby given that on May 22,
places specified in Item IV below. The
the Securities and Exchange 2017, NASDAQ PHLX LLC (‘‘Phlx’’ or
Exchange has prepared summaries, set
Commission (‘‘Commission’’) pursuant forth in sections A, B, and C below, of
5 See Securities Exchange Act Release No. 80300
to Section 11A of the of the Securities the most significant aspects of such
(March 23, 2017), 82 FR 15404 (March 28, 2017)
Exchange Act of 1934 2 and Rule 608 (SR–CTA/CQ–2017–02) (Notice of Filing and statements.
thereunder,3 amendments to the Plans Immediate Effectiveness for the Amendments).
(‘‘Amendments’’) to modify and clarify 6 See Letter to Brent J. Fields, Secretary, A. Self-Regulatory Organization’s
certain fees.4 The Amendments were Commission, from Brad Ward, dated April 17, 2017; Statement of the Purpose of, and
Letter to Brent J. Fields, Secretary, Commission, Statutory Basis for, the Proposed Rule
9 17
from Marcus Mitchell, dated April 17, 2017; Letter Change
CFR 200.30–3(a)(12). to Brent J. Fields, Secretary, Commission, from
1 The Participants are: BATS Exchange, Inc., Melissa MacGregor, Managing Director and 1. Purpose
BATS–Y Exchange, Inc., Chicago Board Options Associate General Counsel, SIFMA, dated April 18,
Exchange, Inc., Chicago Stock Exchange, Inc., 2017; Letter to Brent J. Fields, Secretary, The Exchange is proposing to amend
EDGA Exchange, Inc., EDGX Exchange, Inc., Commission, from Greg Babyak, Global Regulatory
Financial Industry Regulatory Authority, Inc.,
its rules relating to its opening process
and Policy Group, Bloomberg LP, dated April 18,
International Securities Exchange, LLC, Investors’ 2017; Letter to Brent J. Fields, Secretary,
to conform the rule to a recently filed
Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ Commission, from Jay Froscheiser, Vice President, ISE rule change.3
OMX PHLX, Inc., Nasdaq Stock Market LLC, DTN/Schneider Electric, dated April 18, 2017;
National Stock Exchange, New York Stock
Letter to Brent J. Fields, Secretary, Commission, Conform Rule Text to ISE Rule
Exchange LLC, NYSE MKT LLC, and NYSE Arca,
from Edward Foda, dated April 19, 2017; Letter to ISE recently filed to adopt Phlx’s
Inc.
Brent J. Fields, Secretary Commission, from
2 15 U.S.C. 78k–1.
Anonymous, dated April 20, 2017; Letter to Brent
Opening Process.4 In adopting this rule,
3 17 CFR 242.608.
J. Fields, Secretary, Commission, from David Craig, certain non-substantive modifications
4 See Securities Exchange Act Release Nos. 10787
President, Thompson Reuters, dated April 21, 2017; were made to the ISE rule text to further
(May 10, 1974), 39 FR 17799 (May 20, 1974) Letter to Brent J. Fields, Secretary, Commission,
(declaring the CTA Plan effective); 15009 (July 28,
clarify the manner in which the
from Sefano Durdic, Managing Director, R2G, dated
1978), 43 FR 34851 (August 7, 1978) (temporarily April 24, 2017; Letter to Brent J. Fields, Secretary,
Opening Process occurs. At this time,
authorizing the CQ Plan); and 16518 (January 22, Commission, from David Jenkins, received April 26, the Exchange proposes to amend Phlx
1980), 45 FR 6521 (January 28, 1980) (permanently 2017; and, Letter to Brent J. Fields, Secretary, Rule 1017 to conform certain rule text
authorizing the CQ Plan). The most recent Commission, from Sihyang Lee dated April 27,
restatement of both Plans was in 1995. The CTA to ISE Rule 701.
mstockstill on DSK30JT082PROD with NOTICES
2017.
Plan, pursuant to which markets collect and 7 Letter to Brent J. Fields, Secretary, Commission,
With respect to the definitions at Rule
disseminate last sale price information for non-
from Emily Kasparov, Chairman, CTA/CQ 1017(a), ISE alphabetized the
NASDAQ listed securities, is a ‘‘transaction definitions. Phlx proposes to reorder the
reporting plan’’ under Rule 601 under the Act, 17 Operating Committee, dated April 24, 2017.
8 Letter to Brent J. Fields, Secretary, Commission,
CFR 242.601, and a ‘‘national market system plan’’
under Rule 608 under the Act, 17 CFR 242.608. The from Emily Kasparov, Chairman, CTA/CQ 3 See Securities Exchange Act Release No. 80225
CQ Plan, pursuant to which markets collect and Operating Committee, dated April 27, 2017. (March 13, 2017), 82 FR 14243 (March 17,
1 15 U.S.C. 78s(b)(1). 2017)(SR–ISE–2017–02).
disseminate bid/ask quotation information for listed
securities, is a national market system plan. 2 17 CFR 240.19b–4. 4 See note 3 above.
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Document Created: 2017-06-06 06:21:12
Document Modified: 2017-06-06 06:21:12
| Category | Regulatory Information | |
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| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 26169 |
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