82 FR 32218 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend the Generic Listing Criteria Applicable to Index-Linked Securities

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 132 (July 12, 2017)

Page Range		32218-32219
FR Document		2017-14554

Federal Register, Volume 82 Issue 132 (Wednesday, July 12, 2017)

[Federal Register Volume 82, Number 132 (Wednesday, July 12, 2017)]
[Notices]
[Pages 32218-32219]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14554]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81081; File No. SR-NYSEArca-2017-54]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of 
Designation of a Longer Period for Commission Action on a Proposed Rule 
Change To Amend the Generic Listing Criteria Applicable to Index-Linked 
Securities

July 6, 2017.
    On May 4, 2017, NYSE Arca, Inc. (``Exchange'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ 
and Rule 19b-4 thereunder,\2\ a proposed rule change to amend the 
generic listing criteria applicable to Equity Index-Linked 
Securities.\3\ The proposed rule change was published for comment in 
the Federal Register on May 23, 2017.\4\ The Commission has received no 
comments on the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Equity Index-Linked Securities are securities that provide 
for the payment at maturity (or earlier redemption) based on the 
performance of an underlying index or indexes of equity securities, 
securities of closed-end management investment companies registered 
under the Investment Company Act of 1940 and/or Investment Company 
Units. See NYSE Arca Equities Rule 5.2(j)(6)(B)(I)(1).
    \4\ See Securities Exchange Act Release No. 80707 (May 17, 
2017), 82 FR 23636.
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    Section 19(b)(2) of the Act \5\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for this proposed rule change 
is July 7, 2017.

[[Page 32219]]

The Commission is extending this 45-day time period.
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    \5\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change. 
Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\6\ designates August 21, 2017, as the date by which the Commission 
should either approve or disapprove or institute proceedings to 
determine whether to disapprove the proposed rule change (File Number 
SR-NYSEArca-2017-54).
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    \6\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(31).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-14554 Filed 7-11-17; 8:45 am]
BILLING CODE 8011-01-P

32218 Federal Register / Vol. 82, No. 132 / Wednesday, July 12, 2017 / Notices

options exchanges.29 In turn, the promote just and equitable principles of proposed rule change (SR–BatsBZX–
Exchange would verify with such other trade, to remove impediments to and 2017–35) be, and hereby is, approved.
options exchanges that such quotations perfect the mechanism of a free and For the Commission, by the Division of
were indeed submitted by such party.30 open market and a national market Trading and Markets, pursuant to delegated
system, and, in general, to protect authority.40
D. Trading Halts
investors and the public interest. Eduardo A. Aleman,
Rule 20.3 describes the Exchange’s Assistant Secretary.
The Commission believes that the
authority to declare trading halts in one
proposal to amend Rule 20.6 will help [FR Doc. 2017–14556 Filed 7–11–17; 8:45 am]
or more options traded on the Exchange.
assure greater objectivity, transparency, BILLING CODE 8011–01–P
Currently, Rule 20.3 states that the
and clarity with respect to the
Exchange shall nullify any transaction
that occurs during a trading halt in the adjustment and nullification of
erroneous options transactions. The SECURITIES AND EXCHANGE
affected option on the Exchange or, with
Commission notes that the proposal is COMMISSION
respect to equity options, during a
trading halt on the primary listing designed to achieve more consistent [Release No. 34–81081; File No. SR–
market for the underlying security. The results for participants across U.S. NYSEArca–2017–54]
Exchange proposes to nullify any equity options exchanges than under the initial
options transaction that occurs during a harmonized rules, while maintaining a Self-Regulatory Organizations; NYSE
regulatory halt as declared by the fair and orderly market, protecting Arca, Inc.; Notice of Designation of a
primary listing market for the investors, and protecting the public Longer Period for Commission Action
underlying security.31 The Exchange interest. In particular, the proposal is on a Proposed Rule Change To Amend
believes this change is necessary to designed to increase the consistency the Generic Listing Criteria Applicable
distinguish a declared regulatory halt, and transparency in the handling of to Index-Linked Securities
where the underlying security should erroneous options transactions in
July 6, 2017.
not be actively trading on any venue, situations where the NBBO is
On May 4, 2017, NYSE Arca, Inc.
from an operational issue on the unavailable or deemed unreliable
(‘‘Exchange’’) filed with the Securities
primary listing exchange where the pursuant to Rule 20.6(b).
and Exchange Commission
security continues to safely trade on The Commission also believes that the (‘‘Commission’’), pursuant to Section
other trading venues.32 Exchange’s proposed change to its no 19(b)(1) of the Securities Exchange Act
valid quotes provision, as described in of 1934 (‘‘Act’’) 1 and Rule 19b–4
E. Implementation Date
greater detail above, is consistent with thereunder,2 a proposed rule change to
In order to ensure that other options the Act and would further the goal of amend the generic listing criteria
exchanges are able to adopt rules providing increased transparency and applicable to Equity Index-Linked
consistent with this proposal and to uniformity in the handling of erroneous Securities.3 The proposed rule change
coordinate the effectiveness of such options transactions in a timely and was published for comment in the
harmonized rules, the Exchange organized fashion. Finally, the Federal Register on May 23, 2017.4 The
proposes to delay the effectiveness of Commission believes that the Commission has received no comments
this proposal to a date within ninety Exchange’s proposed change to Rule on the proposed rule change.
days following this approval.33 20.3 would provide increased Section 19(b)(2) of the Act 5 provides
III. Discussion and Commission transparency to its trading halt rule. that, within 45 days of the publication
Findings Based on the foregoing, the of notice of the filing of a proposed rule
Commission believes that the proposed change, or within such longer period up
The Commission finds that the to 90 days as the Commission may
proposed rule change is consistent with rule change is consistent with Section
6(b)(5) of the Act 37 in that proposed designate if it finds such longer period
the requirements of the Act and the to be appropriate and publishes its
rules and regulations thereunder Rules 20.3 and 20.6 will foster
cooperation and coordination with reasons for so finding or as to which the
applicable to a national securities self-regulatory organization consents,
exchange.34 In particular, the persons engaged in regulating and
facilitating transactions. the Commission shall either approve the
Commission finds that the proposed proposed rule change, disapprove the
rule change is consistent with the The Commission notes that the proposed rule change, or institute
requirements of Section 6(b) of the proposed rule change will become proceedings to determine whether the
Act 35 and with Section 6(b)(5) of the operative within ninety days following proposed rule change should be
Act,36 which requires, among other its approval, on a date to be announced disapproved. The 45th day after
things, that the Exchange’s rules be in a Regulatory Circular made available publication of the notice for this
designed to prevent fraudulent and by the Exchange to its Members. This proposed rule change is July 7, 2017.
manipulative acts and practices, to delayed implementation is to ensure
that other options exchanges will have 40 17 CFR 200.30–3(a)(12).
29 See id. at 23688. sufficient time to adopt rules consistent 1 15 U.S.C. 78s(b)(1).
30 See id. with this proposal and to coordinate the 2 17 CFR 240.19b–4.
31 See proposed paragraph (b) of Interpretation
date of implementation of such 3 Equity Index-Linked Securities are securities
and Policy .01 to Rule 20.3.
harmonized rules.38 that provide for the payment at maturity (or earlier
asabaliauskas on DSKBBXCHB2PROD with NOTICES

32 See Notice, supra note 3, at 23688.
redemption) based on the performance of an
33 See id. The Exchange will announce the
IV. Conclusion underlying index or indexes of equity securities,
operative date in a Regulatory Circular made securities of closed-end management investment
available to its Members. See id. It is therefore ordered, pursuant to companies registered under the Investment
34 In approving this proposed rule change, the Company Act of 1940 and/or Investment Company
Section 19(b)(2) of the Act,39 that the
Commission notes that it has considered the Units. See NYSE Arca Equities Rule
proposed rule’s impact on efficiency, competition, 5.2(j)(6)(B)(I)(1).
and capital formation. See 15 U.S.C. 78c(f). 37 15 U.S.C. 78f(b)(5). 4 See Securities Exchange Act Release No. 80707
35 15 U.S.C. 78f(b). 38 See Notice, supra note 3, at 23688. (May 17, 2017), 82 FR 23636.
36 15 U.S.C. 78f(b)(5). 39 15 U.S.C. 78s(b)(2). 5 15 U.S.C. 78s(b)(2).

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Federal Register / Vol. 82, No. 132 / Wednesday, July 12, 2017 / Notices 32219

The Commission is extending this 45- 10 takes 25 hours per response and is ‘‘CBOE’’) filed with the Securities and
day time period. filed by 77 respondents. We further Exchange Commission (the
The Commission finds that it is estimate that 25% of the 25 hours per ‘‘Commission’’) the proposed rule
appropriate to designate a longer period response (6.25 hours) is prepared by the change as described in Items I, II, and
within which to take action on the issuer for an annual reporting burden of III below, which Items have been
proposed rule change so that it has 481 hours (6.25 hours per response × 77 prepared by the Exchange. The
sufficient time to consider the proposed responses). Exchange filed the proposal as a ‘‘non-
rule change. Accordingly, the Written comments are invited on: (a) controversial’’ proposed rule change
Commission, pursuant to Section Whether this proposed collections of pursuant to Section 19(b)(3)(A)(iii) of
19(b)(2) of the Act,6 designates August information is necessary for the proper the Act 3 and Rule 19b–4(f)(6)
21, 2017, as the date by which the performance of the functions of the thereunder.4 The Commission is
Commission should either approve or agency, including whether the publishing this notice to solicit
disapprove or institute proceedings to information will have practical utility; comments on the proposed rule change
determine whether to disapprove the (b) the accuracy of the agency’s estimate from interested persons.
proposed rule change (File Number SR– of the burden imposed by the collection
NYSEArca–2017–54). I. Self-Regulatory Organization’s
of information; (c) ways to enhance the Statement of the Terms of Substance of
For the Commission, by the Division of quality, utility, and clarity of the the Proposed Rule Change
Trading and Markets, pursuant to delegated information collected; and (d) ways to
authority.7 minimize the burden of the collection of CBOE proposes to amend Rule 12.3 by
Eduardo A. Aleman, information on respondents, including extending the Credit Option Margin
Assistant Secretary. through the use of automated collection Pilot Program through July 18, 2018.
techniques or other forms of information The text of the proposed rule change
[FR Doc. 2017–14554 Filed 7–11–17; 8:45 am]
technology. Consideration will be given is available on the Exchange’s Web site
BILLING CODE 8011–01–P
(http://www.cboe.com/AboutCBOE/
to comments and suggestions submitted
CBOELegalRegulatoryHome.aspx), at
in writing within 60 days of this
the Exchange’s Office of the Secretary,
SECURITIES AND EXCHANGE publication.
and at the Commission’s Public
COMMISSION An agency may not conduct or
Reference Room.
sponsor, and a person is not required to
Proposed Collection; Comment respond to, a collection of information II. Self-Regulatory Organization’s
Request unless it displays a currently valid Statement of the Purpose of, and
Upon Written Request Copies Available control number. Statutory Basis for, the Proposed Rule
From: Securities and Exchange Please direct your written comment to Change
Commission, Office of FOIA Services, Pamela Dyson, Director/Chief In its filing with the Commission, the
100 F Street NE., Washington, DC Information Officer, Securities and Exchange included statements
20549–2736 Exchange Commission, c/o Remi Pavlik- concerning the purpose of and basis for
Simon, 100 F Street NE., Washington, the proposed rule change and discussed
Extension: Form F–10
SEC File No. 270–334, OMB Control No. DC 20549 or send an email to: PRA_ any comments it received on the
3235–0380 Mailbox@sec.gov. proposed rule change. The text of these
Notice is hereby given that, pursuant Dated: July 7. 2017. statements may be examined at the
to the Paperwork Reduction Act of 1995 Eduardo A. Aleman, places specified in Item IV below. The
(44 U.S.C. 3501 et seq.), the Securities Assistant Secretary. Exchange has prepared summaries, set
and Exchange Commission [FR Doc. 2017–14568 Filed 7–11–17; 8:45 am]
forth in sections A, B, and C below, of
(‘‘Commission’’) is soliciting comments the most significant aspects of such
BILLING CODE 8011–01–P
on the collection of information statements.
summarized below. The Commission A. Self-Regulatory Organization’s
plans to submit this existing collection SECURITIES AND EXCHANGE Statement of the Purpose of, and
of information to the Office of COMMISSION Statutory Basis for, the Proposed Rule
Management and Budget for extension Change
[Release No. 34–81083; File No. SR–CBOE–
and approval. 2017–051]
Form F–10 (17 CFR 239.40) is a 1. Purpose
registration statement under the Self-Regulatory Organizations; On February 2, 2011, the Commission
Securities Act of 1933 (15 U.S.C. 77a et Chicago Board Options Exchange, approved the Exchange’s proposal to
seq.) that may be used by a foreign Incorporated; Notice of Filing and establish a Credit Option Margin Pilot
private issuer that: Is incorporated or Immediate Effectiveness of a Proposed Program (‘‘Program’’).5 The proposal
organized in Canada; has been subject Rule Change To Extend the Credit became effective on a pilot basis to run
to, and in compliance with, Canadian Option Margin Pilot Program Through on a parallel track with Financial
reporting requirements for at least 12 July 18, 2018
months; and has an aggregate market 3 15 U.S.C. 78s(b)(3)(A)(iii).
value of common stock held by non- July 6, 2017. 4 17 CFR 240.19b–4(f)(6).
asabaliauskas on DSKBBXCHB2PROD with NOTICES

5 See Securities Exchange Act Release No. 63819
affiliates of at least $75 million. The Pursuant to Section 19(b)(1) of the
(February 2, 2011), 76 FR 6838 (February 8, 2011)
purpose of this information collection is Securities Exchange Act of 1934 (the order approving (SR–CBOE–2010–106). To
to permit verification of compliance ‘‘Act’’),1 and Rule 19b–4 thereunder,2 implement the Program, the Exchange amended
with securities law requirements and notice is hereby given that on June 22, Rule 12.3(l), Margin Requirements, to make CBOE’s
assure the public availability of such 2017, Chicago Board Options Exchange, margin requirements for Credit Options consistent
with Financial Industry Regulatory Authority
information. We estimate that Form F– Incorporated (the ‘‘Exchange’’ or (‘‘FINRA’’) Rule 4240, Margin Requirements for
Credit Default Swaps. CBOE’s Credit Options (i.e.,
6 Id. 1 15 U.S.C. 78s(b)(1). Credit Default Options and Credit Default Basket
7 17 CFR 200.30–3(a)(31). 2 17 CFR 240.19b–4. Options) are analogous to credit default swaps.

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Document Created: 2017-07-12 03:00:14
Document Modified: 2017-07-12 03:00:14

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 32218