82 FR 32908 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .06 to Rule 6.8 To Extend the Pilot Program That Eliminated the Position Limits for Options on SPDR S&P 500 ETF

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 136 (July 18, 2017)

Page Range		32908-32910
FR Document		2017-14982
Federal Register, Volume 82 Issue 136 (Tuesday, July 18, 2017)
[Federal Register Volume 82, Number 136 (Tuesday, July 18, 2017)]
[Notices]
[Pages 32908-32910]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14982]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81129; File No. SR-NYSEArca-2017-76]


Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Commentary 
.06 to Rule 6.8 To Extend the Pilot Program That Eliminated the 
Position Limits for Options on SPDR S&P 500 ETF

July 12, 2017.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act''),\2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on July 10, 2017, NYSE Arca, Inc. (the ``Exchange'' or 
``NYSE Arca'') filed with the Securities and Exchange Commission (the 
``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\ 15 U.S.C. 78a.
    \3\ 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 Commentary .06 to Rule 6.8 to extend 
the pilot program that eliminated the position limits for options on 
SPDR S&P 500 ETF (``SPY'') (``SPY Pilot Program''). The proposed rule 
change is available on the Exchange's Web site at www.nyse.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 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 those 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 parts 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 Commentary .06 to Rule 6.8 to extend 
the time period of the SPY Pilot Program,\4\ which is currently 
scheduled to expire on July 12, 2017, through July 12, 2018.
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    \4\ See Securities Exchange Act Release No. 68001 (October 5, 
2012), 77 FR 62303 (October 12, 2012). The SPY Pilot Program was 
subsequently extended. See Securities Exchange Act Release Nos. 
70968 (December 3, 2013), 78 FR 73899 (December 9, 2013); 74029 
(January 9, 2015), 80 FR 2161 (January 15, 2015); 75415 (July 9, 
2015), 80 FR 41541 (July 15, 2015); and 78242 (July 7, 2016), 81 FR 
45330 (July 13, 2016) (the ``July 2016 Extension'').
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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 July 2016 Extension, 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

[[Page 32909]]

extension (the ``Pilot Report''). Accordingly, the Exchange is 
submitting a Pilot Report detailing the Exchange's experience with the 
SPY Pilot Program for the period covering twelve (12) months from June 
2016 to May 2017. 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, the position limits for SPY would 
revert to limits in effect at the commencement of the pilot program. 
The proposed extension will allow the Exchange and the Commission 
additional time to further evaluate the SPY Pilot Program and its 
effect on the market.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \6\ 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.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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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 uninterrupted. Additionally, the Exchange expects all other 
SROs that currently have rules regarding the SPY Pilot Program to also 
extend the pilot program for an additional year.

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

    No written comments were solicited or received with respect to 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.\7\
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    \7\ 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 \8\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ 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.\10\
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    \8\ 17 CFR 240.19b-4(f)(6).
    \9\ 17 CFR 240.19b-4(f)(6)(iii).
    \10\ 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 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-NYSEArca-2017-76 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-NYSEArca-2017-76. 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

[[Page 32910]]

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-NYSEArca-2017-76, and should 
be submitted on or before August 8, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14982 Filed 7-17-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 136 / Tuesday, July 18, 2017 / Notices 32909

extension (the ‘‘Pilot Report’’). participants. Instead, the proposed rule At any time within 60 days of the
Accordingly, the Exchange is submitting change is designed to allow the SPY filing of the proposed rule change, the
a Pilot Report detailing the Exchange’s Pilot Program to continue Commission summarily may
experience with the SPY Pilot Program uninterrupted. Additionally, the temporarily suspend such rule change if
for the period covering twelve (12) Exchange expects all other SROs that it appears to the Commission that such
months from June 2016 to May 2017. currently have rules regarding the SPY action is necessary or appropriate in the
The Pilot Report is attached as Exhibit Pilot Program to also extend the pilot public interest, for the protection of
3 to this filing [sic]. The Exchange notes program for an additional year. investors, or otherwise in furtherance of
that it is unaware of any problems the purposes of the Act. If the
created by the SPY Pilot Program and C. Self-Regulatory Organization’s
Commission takes such action, the
does not foresee any as a result of the Statement on Comments on the
Commission shall institute proceedings
proposed extension. In extending the Proposed Rule Change Received From
to determine whether the proposed rule
SPY Pilot Program, the Exchange states Members, Participants, or Others
should be approved or disapproved.
that if it were to propose another No written comments were solicited
extension, permanent approval or IV. Solicitation of Comments
or received with respect to the proposed
termination of the program, the rule change. Interested persons are invited to
Exchange will submit another Pilot submit written data, views, and
Report covering the period since the III. Date of Effectiveness of the arguments concerning the foregoing,
previous extension, which will be Proposed Rule Change and Timing for including whether the proposed rule
submitted at least 30 days before the Commission Action change is consistent with the Act.
end of the proposed extension. If the Because the foregoing proposed rule Comments may be submitted by any of
SPY Pilot Program is not extended or change does not: (i) Significantly affect the following methods:
adopted on a permanent basis by July the protection of investors or the public Electronic Comments
12, 2018, the position limits for SPY interest; (ii) impose any significant
would revert to limits in effect at the • Use the Commission’s Internet
burden on competition; and (iii) become
commencement of the pilot program. comment form (http://www.sec.gov/
operative for 30 days from the date on
The proposed extension will allow the rules/sro.shtml); or
which it was filed, or such shorter time
Exchange and the Commission • Send an email to rule-comments@
as the Commission may designate, it has
additional time to further evaluate the sec.gov. Please include File Number SR–
become effective pursuant to Section
SPY Pilot Program and its effect on the NYSEArca–2017–76 on the subject line.
19(b)(3)(A) of the Act and Rule 19b–
market. 4(f)(6) thereunder.7 Paper Comments
2. Statutory Basis A proposed rule change filed • Send paper comments in triplicate
The Exchange believes that its pursuant to Rule 19b–4(f)(6) under the to Brent J. Fields, Secretary, Securities
proposal is consistent with Section 6(b) Act 8 normally does not become and Exchange Commission, 100 F Street
of the Act 5 in general, and furthers the operative for 30 days after the date of its NE., Washington, DC 20549–1090.
objectives of Section 6(b)(5) of the Act 6 filing. However, Rule 19b–4(f)(6)(iii) 9 All submissions should refer to File
in particular, in that it is designed to permits the Commission to designate a Number SR–NYSEArca–2017–76. This
prevent fraudulent and manipulative shorter time if such action is consistent file number should be included on the
acts and practices, to promote just and with the protection of investors and the subject line if email is used. To help the
equitable principles of trade, to remove public interest. The Exchange has asked Commission process and review your
impediments to and perfect the the Commission to waive the 30-day comments more efficiently, please use
mechanism of a free and open market operative delay so that the proposal may only one method. The Commission will
and a national market system, and, in become operative immediately upon post all comments on the Commission’s
general, to protect investors and the filing. The Exchange believes that Internet Web site (http://www.sec.gov/
public interest. The Exchange believes waiver of the operative delay is rules/sro.shtml). Copies of the
that extending the SPY Pilot Program consistent with the protection of submission, all subsequent
promotes just and equitable principles investors and the public interest amendments, all written statements
of trade by permitting market because it will allow the SPY Pilot with respect to the proposed rule
participants, including market makers, Program to continue without change that are filed with the
institutional investors and retail interruption. The Commission believes Commission, and all written
investors, to establish greater positions that waiving the 30-day operative delay communications relating to the
when pursuing their investment goals is consistent with the protection of proposed rule change between the
and needs. investors and the public interest. Commission and any person, other than
Therefore, the Commission hereby those that may be withheld from the
B. Self-Regulatory Organization’s waives the operative delay and public in accordance with the
Statement on Burden on Competition designates the proposed rule change provisions of 5 U.S.C. 552, will be
The Exchange does not believe that operative upon filing.10 available for Web site viewing and
the proposed rule change will impose printing in the Commission’s Public
7 17 CFR 240.19b–4(f)(6). As required under Rule
any burden on competition not Reference Room, 100 F Street NE.,
19b–4(f)(6)(iii), the Exchange provided the
necessary or appropriate in furtherance Commission with written notice of its intent to file Washington, DC 20549 on official
sradovich on DSK3GMQ082PROD with NOTICES

of the purposes of the Act. The the proposed rule change, along with a brief business days between the hours of
proposed rule change is not designed to description and the text of the proposed rule 10:00 a.m. and 3:00 p.m. Copies of such
address any aspect of competition, change, at least five business days prior to the date
of filing of the proposed rule change, or such
filing also will be available for
whether between the Exchange and its shorter time as designated by the Commission. inspection and copying at the principal
competitors, or among market 8 17 CFR 240.19b–4(f)(6). office of the Exchange. All comments
9 17 CFR 240.19b–4(f)(6)(iii).
5 15 U.S.C. 78f(b). 10 For purposes only of waiving the 30-day proposed rule’s impact on efficiency, competition,
6 15 U.S.C. 78f(b)(5). operative delay, the Commission has considered the and capital formation. See 15 U.S.C. 78c(f).

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32910 Federal Register / Vol. 82, No. 136 / Tuesday, July 18, 2017 / Notices

received will be posted without change; general partner or non-resident Dated: July 11, 2017.
the Commission does not edit personal managing agent of an SEC-registered Jill M. Peterson,
identifying information from adviser and each non-resident general Assistant Secretary.
submissions. You should submit only partner or non-resident managing agent [FR Doc. 2017–14966 Filed 7–17–17; 8:45 am]
information that you wish to make of an exempt reporting adviser. The BILLING CODE 8011–01–P
available publicly. All submissions Commission has estimated that
should refer to File Number SR– compliance with the requirement to
NYSEArca–2017–76, and should be complete Form ADV–NR imposes a total SECURITIES AND EXCHANGE
submitted on or before August 8, 2017. burden of approximately 1.0 hours for COMMISSION
For the Commission, by the Division of an adviser. Based on our experience
Trading and Markets, pursuant to delegated Sunshine Act Meeting
with these filings, we estimate that we
authority.11
will receive 36 Form ADV–NR filings Notice is hereby given, pursuant to
Jill M. Peterson,
annually. Based on the 1.0 hours per the provisions of the Government in the
Assistant Secretary. Sunshine Act, Public Law 94–409, that
respondent estimate, the Commission
[FR Doc. 2017–14982 Filed 7–17–17; 8:45 am] staff estimates a total annual burden of the Securities and Exchange
BILLING CODE 8011–01–P
36 hours for this collection of Commission will hold a closed meeting
information. on Thursday, July 20, 2017 at 2 p.m.
Commissioners, Counsel to the
SECURITIES AND EXCHANGE Rule 0–2 and Form ADV–NR do not
Commissioners, the Secretary to the
COMMISSION require recordkeeping or records Commission, and recording secretaries
retention. The collection of information will attend the closed meeting. Certain
Proposed Collection; Comment requirements under the rule and form is
Request staff members who have an interest in
mandatory. The information collected the matters also may be present.
Upon Written Request, Copies Available pursuant to the rule and Form ADV–NR The General Counsel of the
From: Securities and Exchange is a filing with the Commission. This Commission, or his designee, has
Commission, Office of FOIA Services, filing is not kept confidential and must certified that, in his opinion, one or
100 F Street NE, Washington, DC be preserved until at least three years more of the exemptions set forth in 5
20549–2736 after termination of the enterprise. An U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
Extension: agency may not conduct or sponsor, and and 17 CFR 200.402(a)(3), (a)(5), (a)(7),
Rule 0–2; Form ADV–NR; SEC File No. a person is not required to respond to, (a)(9)(ii) and (a)(10), permit
270–214, OMB Control No. 3235–0240 a collection of information unless it consideration of the scheduled matters
Notice is hereby given that, pursuant displays a currently valid control at the closed meeting.
to the Paperwork Reduction Act of 1995 number. Commissioner Stein, as duty officer,
(44 U.S.C. 3501 et seq.), the Securities voted to consider the items listed for the
Written comments are invited on: (a)
and Exchange Commission closed meeting in closed session.
Whether the proposed collection of The subject matters of the closed
(‘‘Commission’’) is soliciting comments information is necessary for the proper
on the collection of information meeting will be:
performance of the functions of the Institution and settlement of
summarized below. The Commission agency, including whether the
plans to submit this existing collection injunctive actions;
information will have practical utility; Institution and settlement of
of information to the Office of
(b) the accuracy of the agency’s estimate administrative proceedings;
Management and Budget for extension
of the burden of the collection of Resolution of litigation claims; and
and approval.
The title for the collection of information; (c) ways to enhance the Other matters relating to enforcement
information is ‘‘Rule 0–2 and Form quality, utility, and clarity of the proceedings.
ADV–NR under the Investment Advisers information collected; and (d) ways to At times, changes in Commission
Act of 1940.’’ Rule 0–2 and Form ADV– minimize the burden of the collection of priorities require alterations in the
NR facilitate service of process to non- information on respondents, including scheduling of meeting items.
resident investment advisers and through the use of automated collection For further information and to
exempt reporting advisers and their techniques or other forms of information ascertain what, if any, matters have been
non-resident general partners or non- technology. Consideration will be given added, deleted or postponed; please
resident managing agents. The Form to comments and suggestions submitted contact Brent J. Fields from the Office of
requires these persons to designate the in writing within 60 days of this the Secretary at (202) 551–5400.
Commission as agent for service of publication. An agency may not conduct Dated: July 13, 2017.
process. The purpose of this collection or sponsor a collection of information Brent J. Fields,
of information to obtain appropriate unless it displays a currently valid OMB Secretary.
consent to permit the Commission and control number. No person shall be [FR Doc. 2017–15104 Filed 7–14–17; 11:15 am]
other parties to bring actions against subject to any penalty for failing to BILLING CODE 8011–01–P
non-resident partners and agents for comply with a collection of information
violations of the federal securities laws subject to the PRA that does not display
and to enable the commencement of a valid OMB control number. SECURITIES AND EXCHANGE
sradovich on DSK3GMQ082PROD with NOTICES

legal and/or regulatory actions against
Please direct your written comments COMMISSION
investment advisers that are doing
business in the United States, but are to Pamela Dyson, Director/Chief
Submission for OMB Review;
not residents. Information Officer, Securities and
Comment Request
The respondents to this information Exchange Commission, C/O Remi
collection would be each non-resident Pavlik-Simon, 100 F Street NE., Upon Written Request, Copies Available
Washington, DC 20549; or send an email From: Securities and Exchange
11 17 CFR 200.30–3(a)(12). to: PRA_Mailbox@sec.gov. Commission, Office of FOIA Services,

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Document Created: 2018-10-24 11:24:29
Document Modified: 2018-10-24 11:24:29
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 32908