82_FR_32535 82 FR 32402 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend IM-3120-2 to Rule 3120 To Extend the Pilot Program That Eliminated the Position Limits for Options on SPDR S&P 500 ETF (“SPY”) (“SPY Pilot Program”)

82 FR 32402 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend IM-3120-2 to Rule 3120 To Extend the Pilot Program That Eliminated the Position Limits for Options on SPDR S&P 500 ETF (“SPY”) (“SPY Pilot Program”)

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 133 (July 13, 2017)

Page Range32402-32404
FR Document2017-14661

Federal Register, Volume 82 Issue 133 (Thursday, July 13, 2017) 
[Federal Register Volume 82, Number 133 (Thursday, July 13, 2017)]
[Notices]
[Pages 32402-32404]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14661]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81092; File No. SR-BOX-2017-22]


Self-Regulatory Organizations; BOX Options Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend IM-3120-2 to Rule 3120 To Extend the Pilot Program That 
Eliminated the Position Limits for Options on SPDR S&P 500 ETF 
(``SPY'') (``SPY Pilot Program'')

July 7, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on June 29, 2017, BOX Options Exchange LLC (the ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I and II below, which Items 
have been prepared by the self-regulatory organization. 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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend IM-3120-2 to Rule 3120 to extend the 
pilot program that eliminated the position

[[Page 32403]]

limits for options on SPDR S&P 500 ETF (``SPY'') (``SPY Pilot 
Program''). The text of the proposed rule change is available from the 
principal office of the Exchange, at the Commission's Public Reference 
Room and also on the Exchange's Internet Web site at http://boxexchange.com.

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 self-regulatory organization 
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 self-regulatory organization 
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 proposes to amend IM-3120-2 to Rule 3120 to extend the 
time period of the SPY Pilot Program,\3\ which is currently scheduled 
to expire on July 12, 2017, through July 12, 2018.\4\
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    \3\ See Securities Exchange Act Release No. 67936 (September 27, 
2012), 77 FR 60491 (October 3, 2012) (Notice of Filing and Immediate 
Effectiveness of SR-BOX-2012-013).
    \4\ See Securities Exchange Act Release No. 78247 (July 7, 
2016), 81 FR 45348 (July 13, 2016) (Notice of Filing and Immediate 
Effectiveness of SR-BOX-2016-31).
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    This filing does not propose any substantive changes to the SPY 
Pilot Program. In proposing to extend the SPY Pilot Program, the 
Exchange reaffirms its consideration of several factors that supported 
the original proposal of the SPY Pilot Program, including (1) the 
availability of economically equivalent products and their respective 
position limits, (2) the liquidity of the option and the underlying 
security, (3) the market capitalization of the underlying security and 
the related index, (4) the reporting of large positions and 
requirements surrounding margin, and (5) the potential for market on 
close volatility.
    In the proposal to extend the SPY Pilot Program, the Exchange 
stated that if it were to propose an extension, permanent approval or 
termination of the program, the Exchange would submit, along with any 
filing proposing such amendments to the program, a report providing an 
analysis of the SPY Pilot Program covering the period since the 
previous extension (the ``Pilot Report'').\5\ Accordingly, the Exchange 
is submitting the Pilot Report detailing the Exchange's experience with 
the SPY Pilot Program. The Pilot Report is attached as Exhibit 3 to 
this filing [sic]. The Exchange notes that it is unaware of any 
problems created by the SPY Pilot Program and does not foresee any as a 
result of the proposed extension. In extending the SPY Pilot Program, 
the Exchange states that if it were to propose another extension, 
permanent approval or termination of the program, the Exchange will 
submit another Pilot Report covering the period since the previous 
extension, which will be submitted at least 30 days before the end of 
the proposed extension. If the SPY Pilot Program is not extended or 
adopted on a permanent basis by July 12, 2018, position limits in SPY 
will revert to their Pre-Pilot levels. Extending the SPY Pilot Program 
will give the Exchange and Commission additional time to evaluate the 
pilot and its effect on the market.
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    \5\ Id.
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2. Statutory Basis
    The Exchange believes that the proposal is consistent with the 
requirements of Section 6(b) of the Act, in general, and Section 
6(b)(5) of the Act, in particular, in that it is designed to prevent 
fraudulent and manipulative acts and practices, 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. The Exchange 
believes that extending the SPY Pilot Program promotes just and 
equitable principles of trade by permitting market participants, 
including market makers, institutional investors and retail investors, 
to establish greater positions when pursuing their investment goals and 
needs.

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

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule change is not 
designed to address any aspect of competition, whether between the 
Exchange and its competitors, or among market participants. Instead, 
the proposed rule change is designed to allow the SPY Pilot Program to 
continue without interruption. Additionally, the Exchange expects other 
SROs will propose similar extensions.

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

    The Exchange has neither solicited nor received comments on the 
proposed rule change.

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) of the Act and Rule 19b-
4(f)(6) thereunder.\6\
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    \6\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its intent to file the proposed rule change, along with a 
brief description and the text of 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \7\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \8\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has asked the Commission to waive the 30-day operative delay so that 
the proposal may become operative immediately upon filing. The Exchange 
believes that waiver of the operative delay is consistent with the 
protection of investors and the public interest because it will allow 
the SPY Pilot Program to continue without interruption. The Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest. Therefore, the 
Commission hereby waives the operative delay and designates the 
proposed rule change operative upon filing.\9\
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    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 17 CFR 240.19b-4(f)(6)(iii).
    \9\ For purposes only of waiving the 30-day operative delay, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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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

[[Page 32404]]

action is necessary or appropriate in the public interest, for the 
protection of investors, or otherwise in furtherance of the purposes of 
the Act. If the Commission takes such action, the Commission shall 
institute proceedings to determine whether the proposed rule should be 
approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BOX-2017-22 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-BOX-2017-22. 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 such 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-BOX-2017-22, and should be 
submitted on or before August 3, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-14661 Filed 7-12-17; 8:45 am]
 BILLING CODE 8011-01-P

32402 Federal Register / Vol. 82, No. 133 / Thursday, July 13, 2017 / Notices 17Ad–22(e)(15)(ii) requires, in part, that As described above, the Policy would III. Conclusion the Clearing Agencies hold LNA funded identify the General Business Risk On the basis of the foregoing, the by equity equal to the greater of either Capital Requirement of each Clearing Commission finds that the Proposed (i) six months of the covered clearing Agency as a separate component of each Rule Changes are consistent with the agency’s current operating expenses, or Clearing Agency’s Total Capital requirements of the Act and in (ii) the amount determined by the board Requirement, and would provide that particular with the requirements of of directors to be sufficient to ensure a LNA funded by equity as General Section 17A(b)(3)(F) 52 and the rules and recovery or orderly wind-down of Business Risk Capital Requirement be in regulations thereunder. critical operations and services of the addition to (i) LNA funded by equity It is therefore ordered, pursuant to covered clearing agency.44 held as that Clearing Agency’s Credit Section 19(b)(2) of the Act, that As described above, pursuant to the Risk Capital Requirement; (ii) resources proposed rule changes SR–DTC–2017– Policy, each Clearing Agency would be held by that Clearing Agency in 003, SR–NSCC–2017–004, and SR– required to calculate and maintain their compliance with Rule 17Ad–22(e)(4) FICC–2017–007 be, and hereby are, respective Total Capital Requirement. under the Act for credit risk (which approved.53 The Total Capital Requirement would resources are also held in addition to For the Commission, by the Division of be calculated by summing each Clearing that Clearing Agency’s Credit Risk Trading and Markets, pursuant to delegated Agency’s respective General Business Capital Requirement); 47 and (iii) authority.54 Risk Capital Requirement and Credit resources held by that Clearing Agency Eduardo A. Aleman, Risk Capital Requirement, and would be in compliance with Rule 17Ad–22(e)(7) Assistant Secretary. satisfied by LNA funded by equity. under the Act for liquidity risk.48 [FR Doc. 2017–14671 Filed 7–12–17; 8:45 am] Specifically, as detailed above, the Additionally, the Policy would provide BILLING CODE 8011–01–P Policy would provide that the General that the Clearing Agencies must meet Business Risk Capital Requirement their Total Capital Requirement by would be calculated as the larger of (i) holding LNA funded by equity in cash, SECURITIES AND EXCHANGE an amount calculated based on the highly liquid securities, or bank COMMISSION Clearing Agency’s general business risk deposits, to comply with Rule 17Ad– profile, defined as its Risk-Based Capital 22(e)(15)(ii)(B). Moreover, the Policy [Release No. 34–81092; File No. SR–BOX– Requirement; (ii) an amount based on would provide that the available LNA 2017–22] the time estimated to execute a recovery funded by equity would be or orderly wind-down of the critical continuously monitored and managed to Self-Regulatory Organizations; BOX operations of the Clearing Agency, ensure satisfaction of the Total Capital Options Exchange LLC; Notice of defined as its Recovery/Wind-down Requirement. Therefore, the Filing and Immediate Effectiveness of Capital Requirement; and (iii) an Commission believes that adoption of a Proposed Rule Change To Amend amount based on an analysis of the the Policy is consistent with Rule IM–3120–2 to Rule 3120 To Extend the Clearing Agency’s estimated operating 17Ad–22(e)(15)(ii)(A) and (B) under the Pilot Program That Eliminated the expenses for a six-month period, Act.49 Position Limits for Options on SPDR defined as its Operating Expense Capital S&P 500 ETF (‘‘SPY’’) (‘‘SPY Pilot Rule 17Ad–22(e)(15)(iii) requires the Program’’) Requirement. Clearing Agencies to maintain a viable By requiring each Clearing Agency to plan, approved by their Boards, and July 7, 2017. calculate its General Business Risk updated at least annually, for raising Pursuant to Section 19(b)(1) of the Capital Requirement as the larger additional equity should the LNA Securities Exchange Act of 1934 (the amount of the Risk-Based Capital funded by equity fall close to or below ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Requirement, the Recovery/Wind-down the amount required.50 As described notice is hereby given that on June 29, Capital Requirement, and the Operating above, the Plan would designate to 2017, BOX Options Exchange LLC (the Expense Capital Requirement, and by Treasury the responsibilities of ‘‘Exchange’’) filed with the Securities requiring the General Business Risk monitoring the sufficiency of each and Exchange Commission Capital Requirement with LNA funded Clearing Agency’s LNA funded by (‘‘Commission’’) the proposed rule by equity, the Commission believes that equity and the triggering events for change as described in Items I and II the Policy is consistent with Rule implementation of the Plan. The Plan below, which Items have been prepared 17Ad–22(e)(15)(i) and (ii) under the also would provide tools to raise by the self-regulatory organization. The Act.45 additional LNA funded by equity, in the Commission is publishing this notice to Rule 17Ad–22(e)(15)(ii) under the Act event that such capital drops near or solicit comments on the proposed rule further requires, in part, that the LNA below the Total Capital Requirement. In change from interested persons. funded by equity held by the Clearing addition, the Plan would provide that Agencies pursuant to Rule 17Ad– I. Self-Regulatory Organization’s the respective Boards of the Clearing Statement of the Terms of the Substance 22(e)(15)(ii) shall be (A) in addition to Agencies, or such committees as may be resources held to cover participant of the Proposed Rule Change delegated authority by the respective defaults or other credits and liquidity Boards, would review and approve the The Exchange proposes to amend IM– risks; and (B) of high quality and Plan annually. Therefore, the 3120–2 to Rule 3120 to extend the pilot sufficiently liquid to allow the Clearing Commission believes that adoption of program that eliminated the position sradovich on DSK3GMQ082PROD with NOTICES Agencies to meet their current and the Plan is consistent with Rule 17Ad– projected operating expenses under a 22(e)(15)(iii) under the Act.51 52 15 U.S.C. 78q–1(b)(3)(F). 53 In approving the Proposed Rule Changes, the range of scenarios, including in adverse Commission considered the proposals’ impact on market conditions.46 47 17 CFR 240.17Ad–22(e)(4). efficiency, competition, and capital formation. 15 48 17 CFR 240.17Ad–22(e)(7). U.S.C. 78c(f). 44 17 CFR 240.17Ad–22(e)(15)(ii). 49 17 CFR 240.17Ad–22(e)(15)(ii)(A), (B). 54 17 CFR 200.30–3(a)(12). 45 17 CFR 240.17Ad–22(e)(15)(i), (ii). 50 17 CFR 240.17Ad–22(e)(15)(iii). 1 15 U.S.C. 78s(b)(1). 46 17 CFR 240.17Ad–22(e)(15)(ii)(A), (B). 51 Id. 2 17 CFR 240.19b–4. 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Federal Register / Vol. 82, No. 133 / Thursday, July 13, 2017 / Notices 32403 limits for options on SPDR S&P 500 ETF Pilot Program covering the period since Exchange expects other SROs will (‘‘SPY’’) (‘‘SPY Pilot Program’’). The text the previous extension (the ‘‘Pilot propose similar extensions. of the proposed rule change is available Report’’).5 Accordingly, the Exchange is C. Self-Regulatory Organization’s from the principal office of the submitting the Pilot Report detailing the Statement on Comments on the Exchange, at the Commission’s Public Exchange’s experience with the SPY Proposed Rule Change Received From Reference Room and also on the Pilot Program. The Pilot Report is Exchange’s Internet Web site at http:// attached as Exhibit 3 to this filing [sic]. Members, Participants, or Others boxexchange.com. The Exchange notes that it is unaware The Exchange has neither solicited of any problems created by the SPY nor received comments on the proposed II. Self-Regulatory Organization’s rule change. Pilot Program and does not foresee any Statement of the Purpose of, and as a result of the proposed extension. In III. Date of Effectiveness of the Statutory Basis for, the Proposed Rule extending the SPY Pilot Program, the Proposed Rule Change and Timing for Change Exchange states that if it were to Commission Action In its filing with the Commission, the propose another extension, permanent self-regulatory organization included approval or termination of the program, Because the foregoing proposed rule statements concerning the purpose of, the Exchange will submit another Pilot change does not: (i) Significantly affect and basis for, the proposed rule change Report covering the period since the the protection of investors or the public and discussed any comments it received previous extension, which will be interest; (ii) impose any significant on the proposed rule change. The text submitted at least 30 days before the burden on competition; and (iii) become of these statements may be examined at end of the proposed extension. If the operative for 30 days from the date on the places specified in Item IV below. SPY Pilot Program is not extended or which it was filed, or such shorter time The self-regulatory organization has adopted on a permanent basis by July as the Commission may designate, it has prepared summaries, set forth in 12, 2018, position limits in SPY will become effective pursuant to Section Sections A, B, and C below, of the most revert to their Pre-Pilot levels. 19(b)(3)(A) of the Act and Rule 19b– significant aspects of such statements. Extending the SPY Pilot Program will 4(f)(6) thereunder.6 give the Exchange and Commission A proposed rule change filed A. Self-Regulatory Organization’s additional time to evaluate the pilot and pursuant to Rule 19b–4(f)(6) under the Statement of the Purpose of, and Statutory Basis for, the Proposed Rule its effect on the market. Act 7 normally does not become Change operative for 30 days after the date of its 2. Statutory Basis filing. However, Rule 19b–4(f)(6)(iii) 8 1. Purpose The Exchange believes that the permits the Commission to designate a The Exchange proposes to amend IM– proposal is consistent with the shorter time if such action is consistent 3120–2 to Rule 3120 to extend the time requirements of Section 6(b) of the Act, with the protection of investors and the period of the SPY Pilot Program,3 which in general, and Section 6(b)(5) of the public interest. The Exchange has asked is currently scheduled to expire on July Act, in particular, in that it is designed the Commission to waive the 30-day 12, 2017, through July 12, 2018.4 to prevent fraudulent and manipulative operative delay so that the proposal may This filing does not propose any acts and practices, to promote just and become operative immediately upon substantive changes to the SPY Pilot equitable principles of trade, to remove filing. The Exchange believes that Program. In proposing to extend the impediments to and perfect the waiver of the operative delay is SPY Pilot Program, the Exchange mechanism of a free and open market consistent with the protection of reaffirms its consideration of several and a national market system, and, in investors and the public interest factors that supported the original general, to protect investors and the because it will allow the SPY Pilot proposal of the SPY Pilot Program, public interest. The Exchange believes Program to continue without including (1) the availability of that extending the SPY Pilot Program interruption. The Commission believes economically equivalent products and promotes just and equitable principles that waiving the 30-day operative delay their respective position limits, (2) the of trade by permitting market is consistent with the protection of liquidity of the option and the participants, including market makers, investors and the public interest. underlying security, (3) the market institutional investors and retail Therefore, the Commission hereby capitalization of the underlying security investors, to establish greater positions waives the operative delay and and the related index, (4) the reporting when pursuing their investment goals designates the proposed rule change of large positions and requirements and needs. operative upon filing.9 surrounding margin, and (5) the B. Self-Regulatory Organization’s At any time within 60 days of the potential for market on close volatility. Statement on Burden on Competition filing of the proposed rule change, the In the proposal to extend the SPY Commission summarily may Pilot Program, the Exchange stated that The Exchange does not believe that temporarily suspend such rule change if if it were to propose an extension, the proposed rule change will impose it appears to the Commission that such permanent approval or termination of any burden on competition not the program, the Exchange would necessary or appropriate in furtherance 6 17 CFR 240.19b–4(f)(6). As required under Rule submit, along with any filing proposing of the purposes of the Act. The 19b–4(f)(6)(iii), the Exchange provided the proposed rule change is not designed to Commission with written notice of its intent to file such amendments to the program, a the proposed rule change, along with a brief report providing an analysis of the SPY address any aspect of competition, description and the text of the proposed rule sradovich on DSK3GMQ082PROD with NOTICES whether between the Exchange and its change, at least five business days prior to the date 3 See Securities Exchange Act Release No. 67936 competitors, or among market of filing of the proposed rule change, or such (September 27, 2012), 77 FR 60491 (October 3, participants. Instead, the proposed rule shorter time as designated by the Commission. 7 17 CFR 240.19b–4(f)(6). 2012) (Notice of Filing and Immediate Effectiveness change is designed to allow the SPY of SR–BOX–2012–013). 8 17 CFR 240.19b–4(f)(6)(iii). 4 See Securities Exchange Act Release No. 78247 Pilot Program to continue without 9 For purposes only of waiving the 30-day (July 7, 2016), 81 FR 45348 (July 13, 2016) (Notice interruption. Additionally, the operative delay, the Commission has considered the of Filing and Immediate Effectiveness of SR–BOX– proposed rule’s impact on efficiency, competition, 2016–31). 5 Id. and capital formation. See 15 U.S.C. 78c(f). VerDate Sep<11>2014 17:41 Jul 12, 2017 Jkt 241001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\13JYN1.SGM 13JYN1

32404 Federal Register / Vol. 82, No. 133 / Thursday, July 13, 2017 / Notices action is necessary or appropriate in the 2017–22, and should be submitted on or II. Self-Regulatory Organization’s public interest, for the protection of before August 3, 2017. Statement of the Purpose of, and investors, or otherwise in furtherance of For the Commission, by the Division of Statutory Basis for, the Proposed Rule the purposes of the Act. If the Trading and Markets, pursuant to delegated Change Commission takes such action, the authority.10 Commission shall institute proceedings In its filing with the Commission, the Eduardo A. Aleman, Exchange included statements to determine whether the proposed rule should be approved or disapproved. Assistant Secretary. concerning the purpose of and basis for [FR Doc. 2017–14661 Filed 7–12–17; 8:45 am] the proposed rule change and discussed IV. Solicitation of Comments any comments it received on the BILLING CODE 8011–01–P Interested persons are invited to proposed rule change. The text of these submit written data, views, and statements may be examined at the arguments concerning the foregoing, SECURITIES AND EXCHANGE places specified in Item IV below. The including whether the proposed rule COMMISSION Exchange has prepared summaries, set change is consistent with the Act. forth in sections A, B, and C below, of Comments may be submitted by any of the most significant aspects of such [Release No. 34–81091; File No. SR–Phlx– the following methods: statements. 2017–52] Electronic Comments A. Self-Regulatory Organization’s Self-Regulatory Organizations; Statement of the Purpose of, and • Use the Commission’s Internet NASDAQ PHLX LLC; Notice of Filing Statutory Basis for, the Proposed Rule comment form (http://www.sec.gov/ and Immediate Effectiveness of Change rules/sro.shtml); or Proposed Rule Change To Extend the • Send an email to rule-comments@ 1. Purpose SPY Pilot Program sec.gov. Please include File Number SR– The purpose of the proposed rule BOX–2017–22 on the subject line. July 7, 2017. change is to amend the Rule 1001 Paper Comments Pursuant to Section 19(b)(1) of the (Position Limits), to extend the current pilot which expires on July 12, 2017 for • Send paper comments in triplicate Securities Exchange Act of 1934 (the an additional twelve (12) month time to Brent J. Fields, Secretary, Securities ‘‘Act’’),1 and Rule 19b–4 thereunder,2 period to July 12, 2018 (‘‘Extended and Exchange Commission, 100 F Street notice is hereby given that on June 29, Pilot’’). This filing does not propose any NE., Washington, DC 20549–1090. 2017, NASDAQ PHLX LLC (‘‘Phlx’’ or substantive changes to the SPY Pilot All submissions should refer to File ‘‘Exchange’’) filed with the Securities Program. In proposing to extend the Number SR–BOX–2017–22. This file and Exchange Commission (‘‘SEC’’ or SPY Pilot Program, the Exchange number should be included on the ‘‘Commission’’) the proposed rule reaffirms its consideration of several subject line if email is used. To help the change as described in Items I and II factors that supported the original Commission process and review your below, which Items have been prepared proposal of the SPY Pilot Program, comments more efficiently, please use by the Exchange. The Commission is including (1) the availability of only one method. The Commission will publishing this notice to solicit economically equivalent products and post all comments on the Commission’s comments on the proposed rule change their respective position limits; (2) the Internet Web site (http://www.sec.gov/ from interested persons. liquidity of the option and the rules/sro.shtml). Copies of the underlying security; (3) the market submission, all subsequent I. Self-Regulatory Organization’s capitalization of the underlying security amendments, all written statements Statement of the Terms of the Substance and the related index; (4) the reporting with respect to the proposed rule of the Proposed Rule Change of large positions and requirements change that are filed with the The Exchange proposes to extend for surrounding margin; and (5) the Commission, and all written potential for market on close volatility. another twelve (12) month time period communications relating to the With this proposal, the Exchange the pilot program to eliminate position proposed rule change between the submits the SPY report to the Commission and any person, other than limits for options on the SPDR® S&P 500® exchange-traded fund (‘‘SPY ETF’’ Commission, which report reflects, those that may be withheld from the during the time period from May 2016 public in accordance with the or ‘‘SPY’’),3 which list and trade under the symbol SPY (‘‘SPY Pilot Program’’). through May 2017, the trading of provisions of 5 U.S.C. 552, will be standardized SPY options with no available for Web site viewing and The text of the proposed rule change position limits consistent with option printing in the Commission’s Public is available on the Exchange’s Web site exchange provisions.4 The report was Reference Room, 100 F Street NE., at http://nasdaqphlx.cchwallstreet. prepared in the manner specified in the Washington, DC 20549 on official com/, at the principal office of the Exchange’s prior rule filing extending business days between the hours of Exchange, and at the Commission’s the SPY Pilot Program.5 The Exchange 10:00 a.m. and 3:00 p.m. Copies of such Public Reference Room. notes that it is unaware of any problems filing also will be available for created by the SPY Pilot Program and inspection and copying at the principal 10 17 CFR 200.30–3(a)(12). does not foresee any as a result of the office of the Exchange. All comments sradovich on DSK3GMQ082PROD with NOTICES 1 15 U.S.C. 78s(b)(1). proposed extension. The proposed received will be posted without change; 2 17 CFR 240.19b–4. extension will allow the Exchange and the Commission does not edit personal 3 ‘‘SPDR®,’’ ‘‘Standard & Poor’s®,’’ ‘‘S&P®,’’ ‘‘S&P the Commission additional time to identifying information from 500®,’’ and ‘‘Standard & Poor’s 500’’ are registered submissions. You should submit only trademarks of Standard & Poor’s Financial Services LLC. The SPY ETF represents ownership in the 4 The report is attached as Exhibit 3 [sic]. information that you wish to make SPDR S&P 500 Trust, a unit investment trust that 5 SeeSecurities Exchange Act Release No. 78124 available publicly. All submissions generally corresponds to the price and yield (June 22, 2016), 81 FR 42008 (June 28, 2016) (SR– should refer to File Number SR–BOX– performance of the SPDR S&P 500 Index. PHLX–2016–68). 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Document Created: 2017-07-13 01:00:23
Document Modified: 2017-07-13 01:00:23
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 32402 
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