82 FR 26201 - Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter VI, Section 5

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 107 (June 6, 2017)

Page Range		26201-26203
FR Document		2017-11608
Federal Register, Volume 82 Issue 107 (Tuesday, June 6, 2017)
[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)]
[Notices]
[Pages 26201-26203]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11608]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80824; File No. SR-BX-2017-026]


Self-Regulatory Organizations; NASDAQ BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Chapter 
VI, Section 5

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 24, 2017, NASDAQ BX, Inc. (``BX'' 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 Chapter VI, Section 5 (Minimum 
Increments),\3\ to extend through December 31, 2017 or the date of 
permanent approval, if earlier, the Penny Pilot Program in options 
classes in certain issues (``Penny Pilot'' or ``Pilot''), and to change 
the date when delisted classes may be replaced in the Penny Pilot.\4\
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    \3\ References herein to Chapter and Series refer to rules of 
the BX Options Market (``BX Options''), unless otherwise noted.
    \4\ The Penny Pilot was established in June 2012 and extended in 
2016. See Securities Exchange Act Release Nos. 67256 (June 26, 
2012), 77 FR 39277 (July 2, 2012) (SR-BX-2012-030); 75326 (June 29, 
2015), 80 FR 38481 (July 6, 2015) (SR-BX-2015-037); 78036 (June 10, 
2016), 81 FR 39308 (June 16, 2016) (SR-BX-2016-021) (notice of 
filing and immediate effectiveness of a proposed rule change 
relating to extension of the Exchange's Penny Pilot Program and 
replacement of Penny Pilot Issues that have been delisted); and 
79420 (November 29, 2016), 81 FR 87639 (December 5, 2016) (SR-BX-
2016-062) (notice of filing and immediate effectiveness of proposed 
rule change to amend Chapter VI, Section 5 to extend the Penny Pilot 
Program).
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    Proposed new language is underlined and deleted text is in 
brackets.
* * * * *

NASDAQ BX Rules

Options Rules

* * * * *

Chapter VI Trading Systems

* * * * *

Sec. 5 Minimum Increments

    (a) The Board may establish minimum quoting increments for options 
contracts traded on BX Options. Such minimum increments established by 
the Board will be designated as a stated policy, practice, or 
interpretation with respect to the administration of this Section 
within the meaning of Section 19 of the Exchange Act and will be filed 
with the SEC as a rule change for effectiveness upon filing. Until such 
time as the Board makes a change in the increments, the following 
principles shall apply:
    (1)-(2) No Change.
    (3) For a pilot period scheduled to expire on [June 30, 2017] 
December 31, 2017 or the date of permanent approval, if earlier, if the 
options series is trading pursuant to the Penny Pilot program one (1) 
cent if the options series is trading at less than $3.00, five (5) 
cents if the options series is trading at $3.00 or higher, unless for 
QQQQs, SPY and IWM where the minimum quoting increment will be one cent 
for all series regardless of price. A list of such

[[Page 26202]]

options shall be communicated to membership via an Options Trader Alert 
(``OTA'') posted on the Exchange's web site.
    The Exchange may replace any pilot issues that have been delisted 
with the next most actively traded multiply listed options classes that 
are not yet included in the pilot, based on trading activity in the 
previous six months. The replacement issues may be added to the pilot 
on the second trading day following [January 1, 2017] July 1, 2017.
    (4) No Change.
    (b) No Change.
* * * * *
    The text of the proposed rule change is also available on the 
Exchange's website at http://nasdaqomxbx.cchwallstreet.com, at the 
principal office of the Exchange, and at the Commission's Public 
Reference Room.

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

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

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

1. Purpose
    The purpose of this filing is to amend Chapter VI, Section 5, to 
extend the Penny Pilot through December 31, 2017 or the date of 
permanent approval, if earlier,\5\ and to change the date when delisted 
classes may be replaced in the Penny Pilot. The Exchange believes that 
extending the Penny Pilot will allow for further analysis of the Penny 
Pilot and a determination of how the program should be structured in 
the future.
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    \5\ The options exchanges in the U.S. that have pilot programs 
similar to the Penny Pilot (together ``pilot programs'') are 
currently working on a proposal for permanent approval of the 
respective pilot programs.
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    Under the Penny Pilot, the minimum price variation for all 
participating options classes, except for the Nasdaq-100 Index Tracking 
Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and 
the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all 
quotations in options series that are quoted at less than $3 per 
contract and $0.05 for all quotations in options series that are quoted 
at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 
increments for all options series. The Penny Pilot is currently 
scheduled to expire on June 30, 2017.
    The Exchange proposes to extend the time period of the Penny Pilot 
through December 31, 2017 or the date of permanent approval, if 
earlier, and to provide a revised date for adding replacement issues to 
the Penny Pilot. The Exchange proposes that any Penny Pilot Program 
issues that have been delisted may be replaced on the second trading 
day following July 1, 2017. The replacement issues will be selected 
based on trading activity in the previous six months.\6\
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    \6\ The replacement issues will be announced to the Exchange's 
membership via an Options Trader Alert (OTA) posted on the 
Exchange's Web site. Penny Pilot replacement issues will be selected 
based on trading activity in the previous six months, as is the case 
today. The replacement issues would be identified based on The 
Options Clearing Corporation's trading volume data. For example, for 
the July replacement, trading volume from December 1, 2016 through 
May 31, 2017 would be analyzed. The month immediately preceding the 
replacement issues' addition to the Pilot Program (i.e., June) would 
not be used for purposes of the six-month analysis.
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    This filing does not propose any substantive changes to the Penny 
Pilot Program; all classes currently participating in the Penny Pilot 
will remain the same and all minimum increments will remain unchanged. 
The Exchange believes the benefits to public customers and other market 
participants who will be able to express their true prices to buy and 
sell options have been demonstrated to outweigh the potential increase 
in quote traffic.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\8\ in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, to promote just and 
equitable principles of trade, to foster cooperation and coordination 
with persons engaged in facilitating transactions in securities, and to 
remove impediments to and perfect the mechanism of a free and open 
market and a national market system and, in general, to protect 
investors and the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    In particular, the proposed rule change, which extends the Penny 
Pilot for an additional six months through December 31, 2017 or the 
date of permanent approval, if earlier, and changes the date for 
replacing Penny Pilot issues that were delisted to the second trading 
day following July 1, 2017, will enable public customers and other 
market participants to express their true prices to buy and sell 
options for the benefit of all market participants. This is consistent 
with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. To the contrary, this proposal 
is pro-competitive because it allows Penny Pilot issues to continue 
trading on the Exchange.
    Moreover, the Exchange believes that the proposed rule change will 
allow for further analysis of the Pilot and a determination of how the 
Pilot should be structured in the future; and will serve to promote 
regulatory clarity and consistency, thereby reducing burdens on the 
marketplace and facilitating investor protection.
    The Pilot is an industry-wide initiative supported by all other 
option exchanges. The Exchange believes that extending the Pilot will 
allow for continued competition between market participants on the 
Exchange trading similar products as their counterparts on other 
exchanges, while at the same time allowing the Exchange to continue to 
compete for order flow with other exchanges in option issues trading as 
part of the Pilot.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and

[[Page 26203]]

subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to [email protected]. Please include 
File Number SR-BX-2017-026 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-BX-2017-026. This file 
number should be included on the subject line if e-mail 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 website (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 website 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-BX-2017-026 and 
should be submitted on or before June 27, 2017.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-11608 Filed 6-5-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices 26201

burden on competition that is written communications relating to the I. Self-Regulatory Organization’s
inappropriate in furtherance of the proposed rule change, security-based Statement of the Terms of Substance of
purposes of the Act. swap submission, or advance notice the Proposed Rule Change
between the Commission and any The Exchange proposes to amend
C. Clearing Agency’s Statement on
person, other than those that may be Chapter VI, Section 5 (Minimum
Comments on the Proposed Rule
withheld from the public in accordance Increments),3 to extend through
Change, Received From Members,
with the provisions of 5 U.S.C. 552, will December 31, 2017 or the date of
Participants or Others
be available for Web site viewing and permanent approval, if earlier, the
Written comments relating to the printing in the Commission’s Public Penny Pilot Program in options classes
proposed rule change have not been Reference Room, 100 F Street NE., in certain issues (‘‘Penny Pilot’’ or
solicited or received. ICC will notify the Washington, DC 20549, on official ‘‘Pilot’’), and to change the date when
Commission of any written comments business days between the hours of delisted classes may be replaced in the
received by ICC. 10:00 a.m. and 3:00 p.m. Copies of such Penny Pilot.4
III. Date of Effectiveness of the filings will also be available for Proposed new language is underlined
Proposed Rule Change inspection and copying at the principal and deleted text is in brackets.
office of ICE Clear Credit and on ICE * * * * *
Within 45 days of the date of Clear Credit’s Web site at https://
publication of this notice in the Federal www.theice.com/clear-credit/regulation. NASDAQ BX Rules
Register or within such longer period
All comments received will be posted Options Rules
up to 90 days (i) as the Commission may
designate if it finds such longer period without change; the Commission does * * * * *
to be appropriate and publishes its not edit personal identifying
information from submissions. You Chapter VI Trading Systems
reasons for so finding or (ii) as to which
the self-regulatory organization should submit only information that * * * * *
consents, the Commission will: you wish to make available publicly. All
submissions should refer to File Sec. 5 Minimum Increments
(A) By order approve or disapprove
such proposed rule change, or Number SR–ICC–2017–005 and should (a) The Board may establish minimum
(B) institute proceedings to determine be submitted on or before June 27, 2017. quoting increments for options contracts
whether the proposed rule change traded on BX Options. Such minimum
For the Commission, by the Division of
should be disapproved. increments established by the Board
Trading and Markets, pursuant to delegated
will be designated as a stated policy,
authority.19
IV. Solicitation of Comments practice, or interpretation with respect
Eduardo A. Aleman, to the administration of this Section
Interested persons are invited to
Assistant Secretary. within the meaning of Section 19 of the
submit written data, views, and
arguments concerning the foregoing, [FR Doc. 2017–11603 Filed 6–5–17; 8:45 am] Exchange Act and will be filed with the
including whether the proposed rule BILLING CODE 8011–01–P SEC as a rule change for effectiveness
change is consistent with the Act. upon filing. Until such time as the
Comments may be submitted by any of Board makes a change in the
the following methods: SECURITIES AND EXCHANGE increments, the following principles
COMMISSION shall apply:
Electronic Comments (1)–(2) No Change.
• Use the Commission’s Internet (3) For a pilot period scheduled to
[Release No. 34–80824; File No. SR–BX–
comment form (http://www.sec.gov/ expire on [June 30, 2017] December 31,
2017–026]
rules/sro.shtml); or 2017 or the date of permanent approval,
• Send an email to rule-comments@ Self-Regulatory Organizations; if earlier, if the options series is trading
sec.gov. Please include File Number SR– NASDAQ BX, Inc.; Notice of Filing and pursuant to the Penny Pilot program one
ICC–2017–005 on the subject line. Immediate Effectiveness of Proposed (1) cent if the options series is trading
Rule Change To Amend Chapter VI, at less than $3.00, five (5) cents if the
Paper Comments options series is trading at $3.00 or
Section 5
Send paper comments in triplicate to higher, unless for QQQQs, SPY and
Secretary, Securities and Exchange May 31, 2017. IWM where the minimum quoting
Commission, 100 F Street NE., increment will be one cent for all series
Pursuant to Section 19(b)(1) of the
Washington, DC 20549–1090. regardless of price. A list of such
Securities Exchange Act of 1934
All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2 3 References herein to Chapter and Series refer to
Number SR–ICC–2017–005. This file notice is hereby given that on May 24, rules of the BX Options Market (‘‘BX Options’’),
number should be included on the 2017, NASDAQ BX, Inc. (‘‘BX’’ or unless otherwise noted.
subject line if email is used. To help the ‘‘Exchange’’) filed with the Securities 4 The Penny Pilot was established in June 2012

Commission process and review your and Exchange Commission (‘‘SEC’’ or and extended in 2016. See Securities Exchange Act
Release Nos. 67256 (June 26, 2012), 77 FR 39277
comments more efficiently, please use ‘‘Commission’’) the proposed rule (July 2, 2012) (SR–BX–2012–030); 75326 (June 29,
only one method. The Commission will change as described in Items I, II, and 2015), 80 FR 38481 (July 6, 2015) (SR–BX–2015–
post all comments on the Commission’s III below, which Items have been 037); 78036 (June 10, 2016), 81 FR 39308 (June 16,
Internet Web site (http://www.sec.gov/ prepared by the Exchange. The 2016) (SR–BX–2016–021) (notice of filing and
mstockstill on DSK30JT082PROD with NOTICES

immediate effectiveness of a proposed rule change
rules/sro.shtml). Copies of the Commission is publishing this notice to relating to extension of the Exchange’s Penny Pilot
submission, all subsequent solicit comments on the proposed rule Program and replacement of Penny Pilot Issues that
amendments, all written statements change from interested persons. have been delisted); and 79420 (November 29,
with respect to the proposed rule 2016), 81 FR 87639 (December 5, 2016) (SR–BX–
2016–062) (notice of filing and immediate
change, security-based swap 19 17 CFR 200.30–3(a)(12). effectiveness of proposed rule change to amend
submission, or advance notice that are 1 15 U.S.C. 78s(b)(1). Chapter VI, Section 5 to extend the Penny Pilot
filed with the Commission, and all 2 17 CFR 240.19b–4. Program).

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26202 Federal Register / Vol. 82, No. 107 / Tuesday, June 6, 2017 / Notices

options shall be communicated to 2000 Index Fund (‘‘IWM’’), is $0.01 for for an additional six months through
membership via an Options Trader Alert all quotations in options series that are December 31, 2017 or the date of
(‘‘OTA’’) posted on the Exchange’s web quoted at less than $3 per contract and permanent approval, if earlier, and
site. $0.05 for all quotations in options series changes the date for replacing Penny
The Exchange may replace any pilot that are quoted at $3 per contract or Pilot issues that were delisted to the
issues that have been delisted with the greater. QQQQ, SPY and IWM are second trading day following July 1,
next most actively traded multiply quoted in $0.01 increments for all 2017, will enable public customers and
listed options classes that are not yet options series. The Penny Pilot is other market participants to express
included in the pilot, based on trading currently scheduled to expire on June their true prices to buy and sell options
activity in the previous six months. The 30, 2017. for the benefit of all market participants.
replacement issues may be added to the The Exchange proposes to extend the This is consistent with the Act.
pilot on the second trading day time period of the Penny Pilot through
following [January 1, 2017] July 1, 2017. December 31, 2017 or the date of B. Self-Regulatory Organization’s
(4) No Change. permanent approval, if earlier, and to Statement on Burden on Competition
(b) No Change. provide a revised date for adding The Exchange does not believe that
* * * * * replacement issues to the Penny Pilot. the proposed rule change will impose
The text of the proposed rule change The Exchange proposes that any Penny any burden on competition not
is also available on the Exchange’s Pilot Program issues that have been necessary or appropriate in furtherance
website at http:// delisted may be replaced on the second of the purposes of the Act. To the
nasdaqomxbx.cchwallstreet.com, at the trading day following July 1, 2017. The contrary, this proposal is pro-
principal office of the Exchange, and at replacement issues will be selected competitive because it allows Penny
the Commission’s Public Reference based on trading activity in the previous
Pilot issues to continue trading on the
Room. six months.6
Exchange.
This filing does not propose any
II. Self-Regulatory Organization’s substantive changes to the Penny Pilot Moreover, the Exchange believes that
Statement of the Purpose of, and Program; all classes currently the proposed rule change will allow for
Statutory Basis for, the Proposed Rule participating in the Penny Pilot will further analysis of the Pilot and a
Change remain the same and all minimum determination of how the Pilot should
In its filing with the Commission, the increments will remain unchanged. The be structured in the future; and will
Exchange included statements Exchange believes the benefits to public serve to promote regulatory clarity and
concerning the purpose of and basis for customers and other market participants consistency, thereby reducing burdens
the proposed rule change and discussed who will be able to express their true on the marketplace and facilitating
any comments it received on the prices to buy and sell options have been investor protection.
proposed rule change. The text of these demonstrated to outweigh the potential The Pilot is an industry-wide
statements may be examined at the increase in quote traffic. initiative supported by all other option
places specified in Item IV below. The 2. Statutory Basis exchanges. The Exchange believes that
Exchange has prepared summaries, set extending the Pilot will allow for
forth in sections A, B, and C below, of The Exchange believes that its continued competition between market
proposal is consistent with Section 6(b) participants on the Exchange trading
the most significant aspects of such
of the Act,7 in general, and furthers the similar products as their counterparts
statements.
objectives of Section 6(b)(5) of the Act,8 on other exchanges, while at the same
A. Self-Regulatory Organization’s in particular, in that it is designed to
time allowing the Exchange to continue
Statement of the Purpose of, and prevent fraudulent and manipulative
to compete for order flow with other
Statutory Basis for, the Proposed Rule acts and practices, to promote just and
exchanges in option issues trading as
Change equitable principles of trade, to foster
part of the Pilot.
cooperation and coordination with
1. Purpose
persons engaged in facilitating C. Self-Regulatory Organization’s
The purpose of this filing is to amend transactions in securities, and to remove Statement on Comments on the
Chapter VI, Section 5, to extend the impediments to and perfect the Proposed Rule Change Received From
Penny Pilot through December 31, 2017 mechanism of a free and open market Members, Participants, or Others
or the date of permanent approval, if and a national market system and, in
earlier,5 and to change the date when general, to protect investors and the No written comments were either
delisted classes may be replaced in the public interest. solicited or received.
Penny Pilot. The Exchange believes that In particular, the proposed rule III. Date of Effectiveness of the
extending the Penny Pilot will allow for change, which extends the Penny Pilot Proposed Rule Change and Timing for
further analysis of the Penny Pilot and Commission Action
a determination of how the program 6 The replacement issues will be announced to

should be structured in the future. the Exchange’s membership via an Options Trader Because the foregoing proposed rule
Alert (OTA) posted on the Exchange’s Web site.
Under the Penny Pilot, the minimum Penny Pilot replacement issues will be selected change does not: (i) Significantly affect
price variation for all participating based on trading activity in the previous six the protection of investors or the public
options classes, except for the Nasdaq- months, as is the case today. The replacement interest; (ii) impose any significant
100 Index Tracking Stock (‘‘QQQQ’’), issues would be identified based on The Options burden on competition; and (iii) become
mstockstill on DSK30JT082PROD with NOTICES

Clearing Corporation’s trading volume data. For
the SPDR S&P 500 Exchange Traded example, for the July replacement, trading volume operative for 30 days from the date on
Fund (‘‘SPY’’) and the iShares Russell from December 1, 2016 through May 31, 2017 which it was filed, or such shorter time
would be analyzed. The month immediately as the Commission may designate, it has
5 The options exchanges in the U.S. that have preceding the replacement issues’ addition to the become effective pursuant to Section
pilot programs similar to the Penny Pilot (together Pilot Program (i.e., June) would not be used for
purposes of the six-month analysis. 19(b)(3)(A)(iii) of the Act 9 and
‘‘pilot programs’’) are currently working on a
7 15 U.S.C. 78f(b).
proposal for permanent approval of the respective
pilot programs. 8 15 U.S.C. 78f(b)(5). 9 15 U.S.C. 78s(b)(3)(A)(iii).

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subparagraph (f)(6) of Rule 19b–4 Reference Room, 100 F Street NE., For further information and to
thereunder.10 Washington, DC 20549, on official ascertain what, if any, matters have been
At any time within 60 days of the business days between the hours of added, deleted or postponed; please
filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the contact Brent J. Fields from the Office of
Commission summarily may filing also will be available for the Secretary at (202) 551–5400.
temporarily suspend such rule change if inspection and copying at the principal Dated: June 1, 2017.
it appears to the Commission that such office of the Exchange. All comments Lynn M. Powalski,
action is: (i) Necessary or appropriate in received will be posted without change; Deputy Secretary.
the public interest; (ii) for the protection the Commission does not edit personal
[FR Doc. 2017–11769 Filed 6–2–17; 11:15 am]
of investors; or (iii) otherwise in identifying information from
BILLING CODE 8011–01–P
furtherance of the purposes of the Act. submissions. You should submit only
If the Commission takes such action, the information that you wish to make
Commission shall institute proceedings available publicly. SECURITIES AND EXCHANGE
to determine whether the proposed rule All submissions should refer to File COMMISSION
should be approved or disapproved. Number SR–BX–2017–026 and should
be submitted on or before June 27, 2017. [Release No. 34–80826; File No. SR–GEMX–
IV. Solicitation of Comments 2017–21]
For the Commission, by the Division of
Interested persons are invited to Trading and Markets, pursuant to delegated
submit written data, views, and Self-Regulatory Organizations; Nasdaq
authority.11
arguments concerning the foregoing, GEMX, LLC; Notice of Filing and
Eduardo A. Aleman, Immediate Effectiveness of Proposed
including whether the proposed rule Assistant Secretary.
change is consistent with the Act. Rule Change To Extend a Pilot
Comments may be submitted by any of
[FR Doc. 2017–11608 Filed 6–5–17; 8:45 am] Program To Quote and To Trade
the following methods: BILLING CODE 8011–01–P Certain Options Classes in Penny
Increments
Electronic Comments
SECURITIES AND EXCHANGE May 31, 2017.
• Use the Commission’s Internet Pursuant to Section 19(b)(1) of the
comment form (http://www.sec.gov/ COMMISSION
Securities Exchange Act of 1934
rules/sro.shtml); or Sunshine Act Meeting (‘‘Act’’),1 and Rule 19b-4 thereunder,2
• Send an e-mail to rule-comments@ notice is hereby given that on May 25,
sec.gov. Please include File Number SR– Notice is hereby given, pursuant to 2017, Nasdaq GEMX, LLC (‘‘GEMX’’ or
BX–2017–026 on the subject line. the provisions of the Government in the ‘‘Exchange’’) filed with the Securities
Sunshine Act, Public Law 94–409, that and Exchange Commission (‘‘SEC’’ or
Paper Comments
the Securities and Exchange ‘‘Commission’’) the proposed rule
• Send paper comments in triplicate Commission will hold a closed meeting change as described in Items I, II, and
to Secretary, Securities and Exchange on Thursday, June 8, 2017 at 2 p.m. III, below, which Items have been
Commission, 100 F Street NE., Commissioners, Counsel to the prepared by the Exchange. The
Washington, DC 20549–1090. Commissioners, the Secretary to the Commission is publishing this notice to
All submissions should refer to File Commission, and recording secretaries solicit comments on the proposed rule
Number SR–BX–2017–026. This file will attend the closed meeting. Certain change from interested persons.
number should be included on the staff members who have an interest in
subject line if e-mail is used. the matters also may be present. I. Self-Regulatory Organization’s
To help the Commission process and The General Counsel of the Statement of the Terms of Substance of
review your comments more efficiently, Commission, or his designee, has the Proposed Rule Change
please use only one method. The certified that, in his opinion, one or The Exchange proposes to extend a
Commission will post all comments on more of the exemptions set forth in 5 pilot program to quote and to trade
the Commission’s Internet website U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) certain options classes in penny
(http://www.sec.gov/rules/sro.shtml). and 17 CFR 200.402(a)(3), (a)(5), (a)(7), increments (‘‘Penny Pilot Program’’).
Copies of the submission, all (a)(9)(ii) and (a)(10), permit The text of the proposed rule change
subsequent amendments, all written consideration of the scheduled matter at is available on the Exchange’s Web site
statements with respect to the proposed the closed meeting. at www.ise.com, at the principal office
rule change that are filed with the Commissioner Stein, as duty officer, of the Exchange, and at the
Commission, and all written voted to consider the items listed for the Commission’s Public Reference Room.
communications relating to the closed meeting in closed session.
The subject matter of the closed II. Self-Regulatory Organization’s
proposed rule change between the Statement of the Purpose of, and
Commission and any person, other than meeting will be:
Institution and settlement of Statutory Basis for, the Proposed Rule
those that may be withheld from the Change
public in accordance with the injunctive actions;
provisions of 5 U.S.C. 552, will be Institution and settlement of In its filing with the Commission, the
available for website viewing and administrative proceedings; Exchange included statements
printing in the Commission’s Public Consideration of amici participation; concerning the purpose of and basis for
and the proposed rule change and discussed
mstockstill on DSK30JT082PROD with NOTICES

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Other matters relating to enforcement any comments it received on the
4(f)(6) requires a self-regulatory organization to give proceedings. proposed rule change. The text of these
the Commission written notice of its intent to file At times, changes in Commission statements may be examined at the
the proposed rule change at least five business days priorities require alterations in the
prior to the date of filing of the proposed rule
places specified in Item IV below. The
change, or such shorter time as designated by the scheduling of meeting items.
1 15 U.S.C. 78s(b)(1).
Commission. The Exchange has satisfied this
requirement. 11 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.

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Document Created: 2017-06-06 06:21:41
Document Modified: 2017-06-06 06:21:41
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 26201