82 FR 26171 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Openings in Options Rule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 107 (June 6, 2017)
Federal Register Volume 82, Issue 107 (June 6, 2017)
| Page Range | 26171-26175 | |
| FR Document | 2017-11604 |
[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)] [Notices] [Pages 26171-26175] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11604] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80820; File No. SR-Phlx-2017-40] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Openings in Options Rule 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 22, 2017, NASDAQ PHLX LLC (``Phlx'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 1017, Openings in Options, to conform this rule to recently filed Nasdaq ISE, LLC (``ISE'') Rule 701. 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 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 proposing to amend its rules relating to its opening process to conform the rule to a recently filed ISE rule change.\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 80225 (March 13, 2017), 82 FR 14243 (March 17, 2017)(SR-ISE-2017-02). --------------------------------------------------------------------------- Conform Rule Text to ISE Rule ISE recently filed to adopt Phlx's Opening Process.\4\ In adopting this rule, certain non-substantive modifications were made to the ISE rule text to further clarify the manner in which the Opening Process occurs. At this time, the Exchange proposes to amend Phlx Rule 1017 to conform certain rule text to ISE Rule 701. --------------------------------------------------------------------------- \4\ See note 3 above. --------------------------------------------------------------------------- With respect to the definitions at Rule 1017(a), ISE alphabetized the definitions. Phlx proposes to reorder the [[Page 26172]] definitions to alphabetize them as well, so they are ordered in the same manner as ISE Rule 701, where applicable.\5\ Please note that the Phlx definitions remain the same referring to Phlx specific definitions and the applicable cross-references except for the changes noted hereafter. The definition of Quality Opening Market at proposed Rule 1017(a)(viii) is being expanded to conform to ISE's Rule. The Exchange proposes to add more information in this definition about what the calculation for Quality Opening Market is based on, namely the best bid and offer of Valid Width Quotes. Also, the Exchange notes that the differential between the best bid and offer are compared to reach this determination. The Exchange makes clear that the allowable differential, as determined by the Exchange, takes into account the type of security (for example, Penny Pilot versus non-Penny Pilot issue), volatility, option premium, and liquidity. The Exchange notes that the Quality Opening Market differential is intended to ensure the price at which the Exchange opens reflects current market conditions. This proposal does not change the calculation of Quality Opening Market, but provides more context to market participants to understand the manner in which the Exchange arrives at a Quality Opening Market for further clarity. --------------------------------------------------------------------------- \5\ Phlx market makers have different titles as compared to ISE market makers. --------------------------------------------------------------------------- Rule 1017(b) proposes to amend text explaining what interest is included in the Opening Process. The rule today specifies what may be submitted, the elimination of redundant text simply makes clear what will not be included in the Opening Process. Quotes other than Valid Width Quotes will not be included in the Opening Process. The purpose of this change was to make the rule text simple and clear. The rule continues to make clear what interest will be included within the Opening Process. Phlx Rule 1017(b)(ii) is adding a reference to Rule 1014 for allocation purposes similar to ISE Rule 713. Rule 1017(d)(i) proposes to amend the rule text to clarify that any of the options for opening with a Valid Width Quote in Rule 1017(d)(i)(A)-(C) may apply. The word ``either'' was not as clear that there were three choices for opening the market. In addition, the Exchange proposes to add the words ``for the underlying currency'' to describe that for U.S. dollar-settled foreign currency options it would be within two minutes of the market opening for the underlying currency. The reference should help readers understand which security is being discussed for the opening. Finally within this paragraph the Exchange is removing the capitalization from ``Opening Price'' because the opening price being referenced is the opening price for the undelying [sic] index, not the Opening Price as defined in Rule 1017. Rule 1017(d)(ii) proposes to rearrange the rule text for clarity to make clear that for all options, for the Opening Process to commence the underlying security must be open on the primary market. The Exchange is not proposing to substantively amend the process. The proposed text changes make clear the purpose of the paragraph by explaining that the text explains a prerequisite for the Opening Process. Rule 1017(d)(iv) proposes to add a ``this'' before Rule 1017 for emphasis. The Exchange proposes to segregate Rule 1017(d)(v) rule text to explain when an ABBO becomes crossed. Other minor changes are proposed to this section to simply clarify the rule text. Rule 1017(f) proposes to amend the rule text to account for three conditions that must all exist to open with a PBBO. The change emphasizes the conditions, three of them, that must be met to open with a PBBO. Rule 1017(h) proposes to amend the rule text to clarify that orders include Opening Sweeps. Opening Sweeps is already mentioned in the rule text, the placement of its mention is changed so that it is subcategorized in thinking about orders. The rule text also cross- references to Potential Opening Price to provide a roadmap within the rule. Rule 1017(h)(C) proposes to add clarifying text to specify the Potential Opening Price is bounded by the better away market. The word ``limited'' was previously used and is being replaced by another word ``bounded'' to describe the same process. The ``better'' is added to clarify that it is the away market that is being considered. Rule 1017(i) proposes to clarify the rule text with respect to the manner in which Opening with a Trade will occur. The proposed rule text simplifies the language in the rule. Rule 1017(i)(B)(2) proposes to insert the words ``would cross'' in place of ``that crosses.'' Also, additional language is proposed to be added to Rule 1017(i)(B)(2)(b) regarding the mid-point calculation. The current text simply notes that Exchange would open the option series for trading with an execution and use the best price which the Potential Opening Price crosses as a boundary price for the purposes of the mid-point calculation. The new text is more explicit, and makes clear that in order to calculate the midpoint, the Exchange will use the better of the Pre-Market BBO or ABBO as a boundary price, which is more specific than simply ``best price.'' Instead of stating the Exchange will open the option series for trading with an execution, the amendment adds ``at the resulting Potential Opening Price,'' which makes clear what price it would open with when opening with a trade. The current text does not explain what happens if the conditions described in Rule 1017(i)(B)(2) are not met. The proposed text once again provides a guidepost within the rule to make clear that if the conditions are not met, the text leads to paragraph (j) which describes the Opening Quote Range and thereafter, the Price Discovery Mechanism in paragraph (k). Rule 1017(j) proposes to amend to clarify that the system will calculate an Opening Quote Range if the Exchange has not opened under any of the provisions from 1017(a)-(i). The word ``sub'' is proposed to be removed before the word ``paragraph'' in certain places throughout Rule 1017 because it is unnecessary. Rule 1017(j)(3) proposes to amend the rule text to add more context to this paragraph. Currently, the rule text provides that if one or more away markets have disseminated opening quotes that are not crossed and there are Valid Width Quotes on the Exchange that cross each other or that cross away market quotes then the information in subparagraph (a) and (b) below would apply. The proposed new text uses the word ``disseminating'' for accuracy, because quotes are disseminated and instead of ``opening quotes'' the more precise ``BBO'' is utilized. A parenthetical is added to note that the Opening Process stops, because the market is crossed, and the series will not open if the ABBO becomes crossed as previously noted in Rule 1017(d)(v). This is another guidepost, in this case to emphasize again that the Exchange will not open with an ABBO that is crossed. The BBO cannot be crossed because it is indicative of uncertainty in the marketplace of where the option series should be valued. In this case, the Exchange will wait for the ABBO to become uncrossed before initiating the Opening Process to ensure that there is stability in the marketplace in order to assist the Exchange in determining the Opening Price. Rule 1017(j) indicates that the existence of all three conditions in Rule 1017(j)(1)-(3) warrant further price discovery to validate or perhaps update the Potential Opening Price and to attract additional interest to perhaps render an opening trade possible, because in the case of paragraph (2) [[Page 26173]] specifically, the lack of an ABBO means there is no external check on the Exchange's market for that options series. If there are Valid Width Quotes on the Exchange that are executable against (which language replaces the word ``cross'' which the Exchange believes has the same meaning as ``executable against'') each other or the ABBO (the ABBO is added for clarity in place of ``that cross away market quotes'') then subparagraphs (a) and (b) apply to determine an Opening Quote Range for a particular options series. These additions are intended to provide additional detail to the rule that the Exchange believes will be helpful to the reader. Furthermore, the words ``away bid'' and ``away offer'' are replacements for the concepts of quote bid/offer among quotes on away markets in Rules 1017(j)(3)(a) and (b). The Exchange does not believe there is any difference in those words, simply a more efficient word usage choice. Rule 1017(j)(4) proposes to replace the word ``opening quotes'' with the more specific defined term ``Valid Width Quotes.'' The Exchange recognizes that opening quotes was intended to have the meaning that is intended in Valid Width Quotes and incorrectly did not utilize the definition in the initial filing. The term Valid Width Quote is what was intended when the Exchange utilized the more general term ``opening quote.'' The word cross is being replaced with ``are executable against.'' The Exchange used the term cross in the Phlx original filing and is now conforming these words to the approved words in the ISE rule change ``are executable against'' to signify that no difference was intended. The Exchange believes that this is an example of different word choice. The words ``disseminating a BBO'' are being added in this paragraph to more clearly express that each exchange disseminates a BBO. An exchange broadcasts its market's best bid or offer by disseminating it publically so that other exchanges are aware of what is the away market BBO. This more specific language simply provides more context to the sentence. Rule 1017(j)(5) proposes to replace certain language in that rule text with more clarifying language. The new rule text replaces the words ``through the'' OQR with ``wider than the'' OQR. The words were intended to mean that the OQR must be exceeded. The word choice was amended to ``wider than'' in the ISE filing to make this point. The same language is being amended in this rule for consistency. Also, the Exchange notes in this paragraph that ``If there is more than one Potential Opening Price possible where no contracts would be left unexecuted, any price used for the mid-point calculation (which is described in subparagraph (h) above) that is wider than the OQR will be restricted to the OQR price on that side of the market for the purposes of the mid-point calculation.'' The calculation is now being more specifically defined as the ``mid-point'' calculation to be clear at this point in the rule the mid-point is the calculation being discussed. Rule 1017(j)(6) is being amended to add clarifying language. Currently the paragraph states ``[i]f there is more than one Potential Opening Price possible where no contracts would be left unexecuted and any price used for the mid-point calculation (which is described in subparagraph (h) above) an away market price when contracts will be routed, the system will use the away market price as the Potential Opening Price.'' The Exchange proposes to instead remove the reference ``and any price used for the mid-point calculation (which is described in subparagraph (h) above)'' and instead simply state ``pursuant to paragraph (h)(C)'' which describes the Potential Opening Price. The Exchange believes that the replacement language avoids confusion to the reader because as proposed it would reference the specific language in the rule. Rule 1017(j)(7) is being amended to add clarifying language. Currently the paragraph states, ``If non-routable interest can be maximum executable against Exchange interest after routable interest has been determined by the system to satisfy the away market . . .'' The purpose of this sentence was intended to convey that the Exchange will attempt to execute as much interest as possible at the opening. It was suggested in the ISE filing that another way to state this concept was ``If the Exchange determines that non-routable interest can execute the maximum number of contracts against Exchange interest, after routable interest has been determined by the system to satisfy the away market . . .'' The Exchange amended the language in the ISE filing to be clear. The Exchange proposes the same revision in the Phlx rule text. This is not a substantive change. The current sentence goes on to state, ``then the Potential Opening Price is the price at which the maximum volume, excluding the volume which will be routed to an away market . . .'' The ISE rule change removed the references to ``volume'' and instead replaced the concept of volume as follows, ``then the Potential Opening Price is the price at which the maximum number of contacts can execute, excluding the interest which will be routed to an away market . . .'' The Exchange notes that the new language is more specific because instead of volume in the first instance, the concept is expanded to the number of contracts executed and instead of volume in the second instance, the concept of interest is more accurate. Rule 1017(k)(A) proposes to add language for clarity. The paragraph starts, ``First, the system will broadcast an Imbalance Message.'' It was noted in the ISE filing that adding ``for the affected series'' would be more specific, because the message concerns a certain series. The sentence then states, ``(which includes the symbol, side of the imbalance (unmatched contracts), size of matched contracts, size of the imbalance, and price of the affected series which must be within the Pre-Market BBO) . . .'' Instead of just stating price, the revision includes the more specific reference to the defined term ``Potential Opening Price,'' which is the actual price being discussed in the paragraph. Because ``the affected series'' was added to the beginning of the sentence, where it was relocated, it is no longer needed at this point in the sentence. Finally, a sentence is being added to the end of the paragraph to simply make clear in the rule text, as was explained in the 19b-4, that each Imbalance Message is subject to an Imbalance Timer. Rule 1017(k)(B) proposes to replace certain language in that rule text with more clarifying language. The current rule text states, ``If during or at the end of the Imbalance Timer, the Opening Price is at or within the OQR, the Imbalance Timer will execute at the Opening Price . . .'' The ISE filing replaces the words ``execute at'' with more explicit language ``open with a trade at'' to convey that the trade is the manner in which the Phlx opens the market. This is not a substantive change, but different word usage. The current rule text continues later, ``If no new interest comes in during the Imbalance Timer and the Opening Price is at or within OQR, the Exchange will open at the end of the Imbalance Timer.'' The ``Opening Price'' is again being more specifically changed to the defined term ``Potential Opening Price'' here and the concept is again added to the end of the sentence to make clear that the Exchange will open with a trade at the end of the Imbalance Timer at the Potential Opening Price. The new language makes clear again that the trade is the manner in which the Phlx opens the market at the Potential Opening Price. [[Page 26174]] Rule 1017(k)(C)(1) proposes to replace the words ``without trading'' with ``and would not trade'' for clarity. This is simply a change in word choice and is not a substantive change. Rule 1017(k)(C)(2) replaces the word ``other'' with ``away'' to describe a market other than Phlx. The word ``simultaneously'' is added to describe the order in which the trade will occur and the timer will end. The word ``Potential Opening Price'' was added to demonstrate the effect on this price more clearly as described herein in Rule 1017(k)(B). The Exchange also proposes to amend language that references ``will trade'' to instead more accurately states ``will open with trades'' to more precisely express that the system will open with the trade. Rule 1017(k)(C)(3) proposes to add a clause at the beginning of the text ``If no trade occurred pursuant to (2) above'' as a roadmap to connect the rule. The words ``without trading'' are proposed to be replaced with ``and would not trade'' for clarity. Also, the word ``series'' is being added after the word ``options'' for more specificity. Rule 1017(k)(C)(3)(i) proposes to add the words ``better priced away'' to the beginning of the sentence. Currently, the sentence reads, ``If the total number of displayed contracts at better prices than the Exchange's Potential Opening Price on away markets (``better priced away contracts'') . . .'' The ISE filings just noted ``better priced away contracts'' rather than the more in depth explanation of displayed at better prices than the Exchange's Potential Opening Price on away markets (``better priced away contracts''), for simplicity. The language is being relocated to modify the term contract at the beginning of the sentence rather than at the end of the sentence. Finally, the language in the last sentence of this paragraph is being amended to replace ``routed to other away markets'' to ``routed to away markets.'' This is simply a verbiage change to match the ISE rule. Rule 1017(k)(C)(3)(ii) proposes to amend the rule text to add a clause ``based on price/time priority of routable interest'' for clarity as to the allocation method being utilized in this instance to route the orders. By adding the allocation method to the rule text, it makes it clear to market participants the order in which the Exchange will route orders. Further, the term ``other'' is proposed to be replaced by ``away'' to describe markets other than ``Phlx''. References to ``Phlx'' and ``at the Exchange Opening Price'' is proposed to be removed as unnecessary and superfluous. Rule 1017(k)(C)(3)(iii) proposes to amend the rule text to add a clause ``based on price/time priority of routable interest'' for clarity, as described in Rule 1017(k)(C)(3)(ii). Further, the term ``other'' is proposed to be replaced by ``away'' to describe markets other than ``Phlx''. Rule 1017(k)(C)(5) proposes to add a term ``paragraph'' to provide more context to the reference to ``(4) above.'' Also, the words ``the series by executing'' is proposed to be added to the rule text to refer to what is being opened, which is the open series and the manner in which that will happen is with an execution. The language is more explicit. The term ``other'' is proposed to be replaced by ``away'' to describe markets other than ``Phlx''. A sentence is proposed to be added to the end of this rule text, ``All other interest will be eligible for trading after opening'' to provide context to the manner in which interest will be handled by the system. Rule 1017(k)(D) proposes to remove the numbering as unnecessary and superfluous. Rule 1017(k)(E) proposes to reword this rule text to add more clarity by adding the phrase, ``During the opening of the option series, where there is an execution possible,'' to give context to what follows, which is the manner in which the system will allocate order. The rule states the system will give priority to market orders first, in time priority. The words ``in time priority'' were removed as unnecessary because the Exchange references the specific allocation provision in Rule 1014(g)(vii). Quotes are added to the rule text because only limit orders were mentioned and quotes should have also been included to complete the interest that is available to trade. Finally, Rule 1017(k)(F) proposes to reword the text to state, ``Upon opening of an option series'', instead of ``When the open series opens'' to provide a more accurate representation of the timing of that process. Also, the Exchange proposes to insert the phrase ``regardless of an execution'' to explain that an opening can occur with or without a trade. This language matches the ISE language. As noted, the Exchange believes that these proposed amendments add clarity to the rule text, but the proposed amendments do not substantively amend the manner in which the Opening Process occurs. 2. Statutory Basis The Exchange believes that its proposal 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 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 conforming Phlx Rule 1017 to ISE Rule 701. The proposed language is non-substantive in nature and does not amend the manner in which Phlx's Opening Process occurs. Rather, the proposed language clarifies the existing language and provides more context to the manner in which the rule operates which amendments provide investors and the public interest with greater clarity as to the operation of the Opening Process. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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. Conforming Phlx's Rule to that of ISE is not a substantive amendment, the Phlx Opening Process will continue to operate in the same manner as today. The proposal does not change the intense competition that exists among the options markets for options business including on the opening. Nor does the Exchange believe that the proposal will impose any burden on intra-market competition; the Opening Process involves many types of participants and interest. 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 \8\ and [[Page 26175]] subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-Phlx-2017-40 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-2017-40. 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-2017-40 and should be submitted on or before June 27, 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. 2017-11604 Filed 6-5-17; 8:45 am] BILLING CODE 8011-01-P
![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.
VerDate Sep<11>2014 20:52 Jun 05, 2017 Jkt 241001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4703 E:\FR\FM\06JNN1.SGM 06JNN1](https://thefederalregister.org/doc/82_FR_26278/page/1.svg)
![26172 Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices
definitions to alphabetize them as well, understand which security is being midpoint, the Exchange will use the
so they are ordered in the same manner discussed for the opening. Finally better of the Pre-Market BBO or ABBO
as ISE Rule 701, where applicable.5 within this paragraph the Exchange is as a boundary price, which is more
Please note that the Phlx definitions removing the capitalization from specific than simply ‘‘best price.’’
remain the same referring to Phlx ‘‘Opening Price’’ because the opening Instead of stating the Exchange will
specific definitions and the applicable price being referenced is the opening open the option series for trading with
cross-references except for the changes price for the undelying [sic] index, not an execution, the amendment adds ‘‘at
noted hereafter. The definition of the Opening Price as defined in Rule the resulting Potential Opening Price,’’
Quality Opening Market at proposed 1017. which makes clear what price it would
Rule 1017(a)(viii) is being expanded to Rule 1017(d)(ii) proposes to rearrange open with when opening with a trade.
conform to ISE’s Rule. The Exchange the rule text for clarity to make clear The current text does not explain what
proposes to add more information in that for all options, for the Opening happens if the conditions described in
this definition about what the Process to commence the underlying Rule 1017(i)(B)(2) are not met. The
calculation for Quality Opening Market security must be open on the primary proposed text once again provides a
is based on, namely the best bid and market. The Exchange is not proposing guidepost within the rule to make clear
offer of Valid Width Quotes. Also, the to substantively amend the process. The that if the conditions are not met, the
Exchange notes that the differential proposed text changes make clear the text leads to paragraph (j) which
between the best bid and offer are purpose of the paragraph by explaining describes the Opening Quote Range and
compared to reach this determination. that the text explains a prerequisite for thereafter, the Price Discovery
The Exchange makes clear that the the Opening Process. Mechanism in paragraph (k).
allowable differential, as determined by Rule 1017(d)(iv) proposes to add a Rule 1017(j) proposes to amend to
the Exchange, takes into account the ‘‘this’’ before Rule 1017 for emphasis. clarify that the system will calculate an
type of security (for example, Penny The Exchange proposes to segregate Opening Quote Range if the Exchange
Pilot versus non-Penny Pilot issue), Rule 1017(d)(v) rule text to explain has not opened under any of the
volatility, option premium, and when an ABBO becomes crossed. Other provisions from 1017(a)–(i). The word
liquidity. The Exchange notes that the minor changes are proposed to this ‘‘sub’’ is proposed to be removed before
Quality Opening Market differential is section to simply clarify the rule text. the word ‘‘paragraph’’ in certain places
intended to ensure the price at which Rule 1017(f) proposes to amend the throughout Rule 1017 because it is
the Exchange opens reflects current rule text to account for three conditions unnecessary.
market conditions. This proposal does that must all exist to open with a PBBO. Rule 1017(j)(3) proposes to amend the
not change the calculation of Quality The change emphasizes the conditions, rule text to add more context to this
Opening Market, but provides more three of them, that must be met to open paragraph. Currently, the rule text
context to market participants to with a PBBO. provides that if one or more away
understand the manner in which the Rule 1017(h) proposes to amend the markets have disseminated opening
Exchange arrives at a Quality Opening rule text to clarify that orders include quotes that are not crossed and there are
Market for further clarity. Opening Sweeps. Opening Sweeps is Valid Width Quotes on the Exchange
Rule 1017(b) proposes to amend text already mentioned in the rule text, the that cross each other or that cross away
explaining what interest is included in placement of its mention is changed so market quotes then the information in
the Opening Process. The rule today that it is subcategorized in thinking subparagraph (a) and (b) below would
specifies what may be submitted, the about orders. The rule text also cross- apply. The proposed new text uses the
elimination of redundant text simply references to Potential Opening Price to word ‘‘disseminating’’ for accuracy,
makes clear what will not be included provide a roadmap within the rule. because quotes are disseminated and
in the Opening Process. Quotes other Rule 1017(h)(C) proposes to add instead of ‘‘opening quotes’’ the more
than Valid Width Quotes will not be clarifying text to specify the Potential precise ‘‘BBO’’ is utilized. A
included in the Opening Process. The Opening Price is bounded by the better parenthetical is added to note that the
purpose of this change was to make the away market. The word ‘‘limited’’ was Opening Process stops, because the
rule text simple and clear. The rule previously used and is being replaced market is crossed, and the series will
continues to make clear what interest by another word ‘‘bounded’’ to describe not open if the ABBO becomes crossed
will be included within the Opening the same process. The ‘‘better’’ is added as previously noted in Rule 1017(d)(v).
Process. Phlx Rule 1017(b)(ii) is adding to clarify that it is the away market that This is another guidepost, in this case
a reference to Rule 1014 for allocation is being considered. to emphasize again that the Exchange
purposes similar to ISE Rule 713. Rule 1017(i) proposes to clarify the will not open with an ABBO that is
Rule 1017(d)(i) proposes to amend the rule text with respect to the manner in crossed. The BBO cannot be crossed
rule text to clarify that any of the which Opening with a Trade will occur. because it is indicative of uncertainty in
options for opening with a Valid Width The proposed rule text simplifies the the marketplace of where the option
Quote in Rule 1017(d)(i)(A)–(C) may language in the rule. Rule 1017(i)(B)(2) series should be valued. In this case, the
apply. The word ‘‘either’’ was not as proposes to insert the words ‘‘would Exchange will wait for the ABBO to
clear that there were three choices for cross’’ in place of ‘‘that crosses.’’ Also, become uncrossed before initiating the
opening the market. In addition, the additional language is proposed to be Opening Process to ensure that there is
Exchange proposes to add the words added to Rule 1017(i)(B)(2)(b) regarding stability in the marketplace in order to
‘‘for the underlying currency’’ to the mid-point calculation. The current assist the Exchange in determining the
text simply notes that Exchange would Opening Price. Rule 1017(j) indicates
mstockstill on DSK30JT082PROD with NOTICES
describe that for U.S. dollar-settled
foreign currency options it would be open the option series for trading with that the existence of all three conditions
within two minutes of the market an execution and use the best price in Rule 1017(j)(1)–(3) warrant further
opening for the underlying currency. which the Potential Opening Price price discovery to validate or perhaps
The reference should help readers crosses as a boundary price for the update the Potential Opening Price and
purposes of the mid-point calculation. to attract additional interest to perhaps
5 Phlx market makers have different titles as The new text is more explicit, and render an opening trade possible,
compared to ISE market makers. makes clear that in order to calculate the because in the case of paragraph (2)
VerDate Sep<11>2014 20:52 Jun 05, 2017 Jkt 241001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4703 E:\FR\FM\06JNN1.SGM 06JNN1](https://thefederalregister.org/doc/82_FR_26278/page/2.svg)
![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices 26173
specifically, the lack of an ABBO means more than one Potential Opening Price excluding the interest which will be
there is no external check on the possible where no contracts would be routed to an away market . . .’’ The
Exchange’s market for that options left unexecuted, any price used for the Exchange notes that the new language is
series. If there are Valid Width Quotes mid-point calculation (which is more specific because instead of volume
on the Exchange that are executable described in subparagraph (h) above) in the first instance, the concept is
against (which language replaces the that is wider than the OQR will be expanded to the number of contracts
word ‘‘cross’’ which the Exchange restricted to the OQR price on that side executed and instead of volume in the
believes has the same meaning as of the market for the purposes of the second instance, the concept of interest
‘‘executable against’’) each other or the mid-point calculation.’’ The calculation is more accurate.
ABBO (the ABBO is added for clarity in is now being more specifically defined Rule 1017(k)(A) proposes to add
place of ‘‘that cross away market as the ‘‘mid-point’’ calculation to be language for clarity. The paragraph
quotes’’) then subparagraphs (a) and (b) clear at this point in the rule the mid- starts, ‘‘First, the system will broadcast
apply to determine an Opening Quote point is the calculation being discussed. an Imbalance Message.’’ It was noted in
Range for a particular options series. Rule 1017(j)(6) is being amended to the ISE filing that adding ‘‘for the
These additions are intended to provide add clarifying language. Currently the affected series’’ would be more specific,
additional detail to the rule that the paragraph states ‘‘[i]f there is more than because the message concerns a certain
Exchange believes will be helpful to the one Potential Opening Price possible series. The sentence then states,
reader. where no contracts would be left ‘‘(which includes the symbol, side of the
Furthermore, the words ‘‘away bid’’ unexecuted and any price used for the imbalance (unmatched contracts), size
and ‘‘away offer’’ are replacements for mid-point calculation (which is of matched contracts, size of the
the concepts of quote bid/offer among described in subparagraph (h) above) an imbalance, and price of the affected
quotes on away markets in Rules away market price when contracts will series which must be within the Pre-
1017(j)(3)(a) and (b). The Exchange does be routed, the system will use the away Market BBO) . . .’’ Instead of just
not believe there is any difference in market price as the Potential Opening stating price, the revision includes the
those words, simply a more efficient Price.’’ The Exchange proposes to more specific reference to the defined
word usage choice. instead remove the reference ‘‘and any term ‘‘Potential Opening Price,’’ which
Rule 1017(j)(4) proposes to replace the price used for the mid-point calculation is the actual price being discussed in the
word ‘‘opening quotes’’ with the more (which is described in subparagraph (h) paragraph. Because ‘‘the affected series’’
specific defined term ‘‘Valid Width above)’’ and instead simply state was added to the beginning of the
Quotes.’’ The Exchange recognizes that ‘‘pursuant to paragraph (h)(C)’’ which
sentence, where it was relocated, it is no
opening quotes was intended to have describes the Potential Opening Price.
longer needed at this point in the
the meaning that is intended in Valid The Exchange believes that the
Width Quotes and incorrectly did not sentence. Finally, a sentence is being
replacement language avoids confusion
utilize the definition in the initial filing. added to the end of the paragraph to
to the reader because as proposed it
The term Valid Width Quote is what simply make clear in the rule text, as
would reference the specific language in
was intended when the Exchange was explained in the 19b–4, that each
the rule.
utilized the more general term ‘‘opening Rule 1017(j)(7) is being amended to Imbalance Message is subject to an
quote.’’ The word cross is being add clarifying language. Currently the Imbalance Timer.
replaced with ‘‘are executable against.’’ paragraph states, ‘‘If non-routable Rule 1017(k)(B) proposes to replace
The Exchange used the term cross in the interest can be maximum executable certain language in that rule text with
Phlx original filing and is now against Exchange interest after routable more clarifying language. The current
conforming these words to the approved interest has been determined by the rule text states, ‘‘If during or at the end
words in the ISE rule change ‘‘are system to satisfy the away market . . .’’ of the Imbalance Timer, the Opening
executable against’’ to signify that no The purpose of this sentence was Price is at or within the OQR, the
difference was intended. The Exchange intended to convey that the Exchange Imbalance Timer will execute at the
believes that this is an example of will attempt to execute as much interest Opening Price . . .’’ The ISE filing
different word choice. The words as possible at the opening. It was replaces the words ‘‘execute at’’ with
‘‘disseminating a BBO’’ are being added suggested in the ISE filing that another more explicit language ‘‘open with a
in this paragraph to more clearly way to state this concept was ‘‘If the trade at’’ to convey that the trade is the
express that each exchange disseminates Exchange determines that non-routable manner in which the Phlx opens the
a BBO. An exchange broadcasts its interest can execute the maximum market. This is not a substantive change,
market’s best bid or offer by number of contracts against Exchange but different word usage. The current
disseminating it publically so that other interest, after routable interest has been rule text continues later, ‘‘If no new
exchanges are aware of what is the away determined by the system to satisfy the interest comes in during the Imbalance
market BBO. This more specific away market . . .’’ The Exchange Timer and the Opening Price is at or
language simply provides more context amended the language in the ISE filing within OQR, the Exchange will open at
to the sentence. to be clear. The Exchange proposes the the end of the Imbalance Timer.’’ The
Rule 1017(j)(5) proposes to replace same revision in the Phlx rule text. This ‘‘Opening Price’’ is again being more
certain language in that rule text with is not a substantive change. The current specifically changed to the defined term
more clarifying language. The new rule sentence goes on to state, ‘‘then the ‘‘Potential Opening Price’’ here and the
text replaces the words ‘‘through the’’ Potential Opening Price is the price at concept is again added to the end of the
OQR with ‘‘wider than the’’ OQR. The which the maximum volume, excluding sentence to make clear that the
mstockstill on DSK30JT082PROD with NOTICES
words were intended to mean that the the volume which will be routed to an Exchange will open with a trade at the
OQR must be exceeded. The word away market . . .’’ The ISE rule change end of the Imbalance Timer at the
choice was amended to ‘‘wider than’’ in removed the references to ‘‘volume’’ and Potential Opening Price. The new
the ISE filing to make this point. The instead replaced the concept of volume language makes clear again that the
same language is being amended in this as follows, ‘‘then the Potential Opening trade is the manner in which the Phlx
rule for consistency. Also, the Exchange Price is the price at which the maximum opens the market at the Potential
notes in this paragraph that ‘‘If there is number of contacts can execute, Opening Price.
VerDate Sep<11>2014 20:52 Jun 05, 2017 Jkt 241001 PO 00000 Frm 00132 Fmt 4703 Sfmt 4703 E:\FR\FM\06JNN1.SGM 06JNN1](https://thefederalregister.org/doc/82_FR_26278/page/3.svg)
![Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices 26175
subparagraph (f)(6) of Rule 19b–4 Reference Room, 100 F Street NE., Exchange’s Internet Web site at http://
thereunder.9 Washington, DC 20549, on official boxexchange.com.
At any time within 60 days of the business days between the hours of
II. Self-Regulatory Organization’s
filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the
Statement of the Purpose of, and
Commission summarily may filing also will be available for
Statutory Basis for, the Proposed Rule
temporarily suspend such rule change if inspection and copying at the principal
Change
it appears to the Commission that such office of the Exchange. All comments
action is: (i) Necessary or appropriate in received will be posted without change; In its filing with the Commission, the
the public interest; (ii) for the protection the Commission does not edit personal self-regulatory organization included
of investors; or (iii) otherwise in identifying information from statements concerning the purpose of,
furtherance of the purposes of the Act. submissions. You should submit only and basis for, the proposed rule change
If the Commission takes such action, the information that you wish to make and discussed any comments it received
Commission shall institute proceedings available publicly. All submissions on the proposed rule change. The text
to determine whether the proposed rule should refer to File Number SR–Phlx– of these statements may be examined at
should be approved or disapproved. 2017–40 and should be submitted on or the places specified in Item IV below.
before June 27, 2017. The self-regulatory organization has
IV. Solicitation of Comments prepared summaries, set forth in
For the Commission, by the Division of
Interested persons are invited to Trading and Markets, pursuant to delegated Sections A, B, and C below, of the most
submit written data, views, and authority.10 significant aspects of such statements.
arguments concerning the foregoing, Eduardo A. Aleman, A. Self-Regulatory Organization’s
including whether the proposed rule Assistant Secretary. Statement of the Purpose of, and
change is consistent with the Act. [FR Doc. 2017–11604 Filed 6–5–17; 8:45 am] Statutory Basis for, the Proposed Rule
Comments may be submitted by any of BILLING CODE 8011–01–P Change
the following methods:
1. Purpose
Electronic Comments
SECURITIES AND EXCHANGE The Exchange proposes to extend the
• Use the Commission’s Internet COMMISSION effective time period of the Penny Pilot
comment form (http://www.sec.gov/ Program that is currently scheduled to
rules/sro.shtml); or [Release No. 34–80828; File No. SR–BOX– expire on June 30, 2017, until December
• Send an email to rule-comments@ 2017–18]
31, 2017.3 The Penny Pilot Program
sec.gov. Please include File Number SR– permits certain classes to be quoted in
Self-Regulatory Organizations; BOX
Phlx–2017–40 on the subject line. penny increments. The minimum price
Options Exchange LLC; Notice of
Paper Comments Filing and Immediate Effectiveness of variation for all classes included in the
a Proposed Rule Change To Amend Penny Pilot Program, except for
• Send paper comments in triplicate PowerShares QQQ Trust (‘‘QQQQ’’)®,
to Secretary, Securities and Exchange Rule 7260 by Extending the Penny
Pilot Program Through December 31, SPDR S&P 500 Exchange Traded Funds
Commission, 100 F Street NE., (‘‘SPY’’), and iShares Russell 2000 Index
Washington, DC 20549–1090. 2017
Funds (‘‘IWM’’), will continue to be
All submissions should refer to File May 31, 2017. $0.01 for all quotations in options series
Number SR–Phlx–2017–40. This file Pursuant to Section 19(b)(1) of the that are quoted at less than $3 per
number should be included on the Securities Exchange Act of 1934 contract and $0.05 for all quotations in
subject line if email is used. To help the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 options series that are quoted at $3 per
Commission process and review your notice is hereby given that on May 23, contract or greater. QQQQ, SPY, and
comments more efficiently, please use 2017, BOX Options Exchange LLC (the IWM will continue to be quoted in $0.01
only one method. The Commission will ‘‘Exchange’’) filed with the Securities increments for all options series.
post all comments on the Commission’s and Exchange Commission The Exchange may replace, on a semi-
Internet Web site (http://www.sec.gov/ (‘‘Commission’’) the proposed rule annual basis, any Pilot Program classes
rules/sro.shtml). Copies of the change as described in Items I, II, and
submission, all subsequent III below, which Items have been 3 The Penny Pilot Program has been in effect on
amendments, all written statements prepared by the self-regulatory the Exchange since its inception in May 2012. See
Securities Exchange Act Release Nos. 66871 (April
with respect to the proposed rule organization. The Commission is 27, 2012), 77 FR 26323 (May 3, 2012) (File No.10–
change that are filed with the publishing this notice to solicit 206, In the Matter of the Application of BOX
Commission, and all written comments on the proposed rule from Options Exchange LLC for Registration as a
National Securities Exchange Findings, Opinion,
communications relating to the interested persons. and Order of the Commission), 67328 (June 29,
proposed rule change between the 2012), 77 FR 40123 (July 6, 2012) (SR–BOX–2012–
I. Self-Regulatory Organization’s
Commission and any person, other than 007), 68425 (December 13, 2012), 77 FR 75234
Statement of the Terms of Substance of (December 19, 2013) (SR–BOX–2012–021), 69789
those that may be withheld from the
the Proposed Rule Change (June 18, 2013), 78 FR 37854 (June 24, 2013) (SR–
public in accordance with the BOX–2013–31), 71056 (December 12, 2013), 78 FR
provisions of 5 U.S.C. 552, will be The Exchange proposes to amend 76691 (December 18, 2013) (SR–BOX–2013–56),
available for Web site viewing and Rule 7260 by extending the Penny Pilot 72348 (June 9, 2014), 79 FR 33976 (June 13, 2014)
Program through December 31, 2017. (SR–BOX–2014–17), 73822 (December 11, 2014), 79
printing in the Commission’s Public FR 75606 (December 18, 2014) (SR–BOX–2014–29),
mstockstill on DSK30JT082PROD with NOTICES
The text of the proposed rule change is 75295 (June 25, 2015), 80 FR 37690 (July 1,
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– available from the principal office of the 2015)(SR–BOX–2015–23), 78172 (June 28, 2016), 81
4(f)(6) requires a self-regulatory organization to give Exchange, at the Commission’s Public FR 43325 (July 1, 2016)(SR–BOX–2016–24) and
the Commission written notice of its intent to file Reference Room and also on the 79429 (November 30, 2016), 81 FR 87991
the proposed rule change at least five business days (December 6, 2016)(SR–BOX–2016–55). The
prior to the date of filing of the proposed rule extension of the effective date and the revision of
10 17 CFR 200.30–3(a)(12).
change, or such shorter time as designated by the the date to replace issues that have been delisted
1 15 U.S.C. 78s(b)(1).
Commission. The Exchange has satisfied this are the only changes to the Penny Pilot Program
requirement. 2 17 CFR 240.19b–4. being proposed at this time.
VerDate Sep<11>2014 20:52 Jun 05, 2017 Jkt 241001 PO 00000 Frm 00134 Fmt 4703 Sfmt 4703 E:\FR\FM\06JNN1.SGM 06JNN1](https://thefederalregister.org/doc/82_FR_26278/page/5.svg)
Document Created: 2017-06-06 06:20:50
Document Modified: 2017-06-06 06:20:50
| 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 26171 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR