82 FR 39636 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Supplementary Material .14 of Rule 504, Entitled “Series of Options Contracts Open for Trading”
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 160 (August 21, 2017)
Federal Register Volume 82, Issue 160 (August 21, 2017)
| Page Range | 39636-39639 | |
| FR Document | 2017-17550 |
[Federal Register Volume 82, Number 160 (Monday, August 21, 2017)] [Notices] [Pages 39636-39639] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-17550] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81403; File No. SR-ISE-2017-79] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Supplementary Material .14 of Rule 504, Entitled ``Series of Options Contracts Open for Trading'' August 15, 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 August 10, 2017, Nasdaq ISE, LLC (``ISE'' or ``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 Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes a proposal to amend Supplementary Material .14 of Rule 504, entitled ``Series of Options Contracts Open for Trading.'' The text of the proposed rule change is set forth below. Proposed new language is italicized; deleted text is in brackets. * * * * * Rule 504. Series of Options Contracts Open for Trading (a)-(h) No change. Supplementary Material to Rule 504 .01-.13 No change. .14 Notwithstanding any other provision regarding the interval of strike prices of series of options on Exchange-Traded Fund Shares in this rule, the interval of strike prices on SPDR S&P 500 ETF (``SPY''), iShares Core S&P 500 ETF (``IVV''), and the SPDR Dow Jones Industrial Average ETF (``DIA'') options will be $1 or greater. * * * * * II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 504 by modifying the strike setting regime for the iShares Core S&P 500 ETF (``IVV'') options. Specifically, the Exchange proposes to modify the interval setting regime for IVV options to allow $1 strike price intervals above $200. The Exchange believes that the proposed rule change would make IVV options easier for investors and traders to use and more tailored to their investment needs. Additionally, the interval setting regime the Exchange proposes to apply to IVV options is currently applied to options on units of [[Page 39637]] the Standard & Poor's Depository Receipts Trust (``SPY''), which is an exchange-traded fund (``ETF'') that is identical in all material respects to the IVV ETF. The SPY and IVV ETFs are identical in all material respects. The SPY and IVV ETFs are designed to roughly track the performance of the S&P 500 Index with the price of SPY and IVV designed to roughly approximate 1/10th of the price of the S&P 500 Index. Accordingly, SPY and IVV strike prices--having a multiplier of $100--reflect a value roughly equal to 1/10th of the value of the S&P 500 Index. For example, if the S&P 500 Index is at 1972.56, SPY and IVV options might have a value of approximately 197.26 with a notional value of $19,726. In general, SPY and IVV options provide retail investors and traders with the benefit of trading the broad market in a manageably sized contract. As options with an ETP underlying, SPY and IVV options are listed in the same manner as equity options under the Rules. IVV options currently trade at $5 intervals above a $200 strike price, whereas IVV options at or below a $200 strike price trade in $1 intervals. Further, pursuant to Supplementary Material .12 of Rule 504, the Exchange may open for trading Short Term Option Series on the Short Term Option Opening Date that expire on the Short Term Option Expiration Date at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150. The Exchange's proposal seeks to narrow the strike price intervals to $1 for IVV options above $200, in effect matching the strike setting regime for strike intervals in IVV options below $200 and matching the strike setting regime applied to SPY options. Currently, the S&P 500 Index is above 2000. The S&P 500 Index is widely regarded as the best single gauge of large cap U.S. equities and is widely quoted as an indicator of stock prices and investor confidence in the securities market. As a result, individual investors often use S&P 500 Index- related products to diversify their portfolios and benefit from market trends. Accordingly, the Exchange believes that offering a wide range of S&P 500 Index-based options affords traders and investors important hedging and trading opportunities. The Exchange believes that not having the proposed $1 strike price intervals above $200 in IVV significantly constricts investors' hedging and trading possibilities. The Exchange proposes to amend Supplementary Material .14 of Rule 504 to allow IVV options to trade in $1 increments above a strike price of $200. Specifically, the Exchange proposes to amend Supplementary Material .14 of Rule 504 to state that the interval between strike prices of series of options on Units of IVV will be $1 or greater. The Exchange believes that by having smaller strike intervals in IVV, investors would have more efficient hedging and trading opportunities due to the lower $1 interval ascension. The proposed $1 intervals, particularly above the $200 strike price, will result in having at-the- money series based upon the underlying IVV moving less than 1%. The Exchange believes that the proposed strike setting regime is in line with the slower movements of broad-based indices. Furthermore, the proposed $1 intervals would allow option trading strategies (such as, for example, risk reduction/hedging strategies using IVV weekly options), to remain viable. Considering the fact that $1 intervals already exist below the $200 price point and that IVV is above the $200 level, the Exchange believes that continuing to maintain the artificial $200 level (above which intervals increase 500% to $5), would have a negative effect on investing, trading and hedging opportunities, and volume. The Exchange believes that the investing, trading, and hedging opportunities available with IVV options far outweighs any potential negative impact of allowing IVV options to trade in more finely tailored intervals above the $200 price point. The proposed strike setting regime would permit strikes to be set to more closely reflect values in the underlying S&P 500 Index and allow investors and traders to roll open positions from a lower strike to a higher strike in conjunction with the price movement of the underlying. Pursuant to the strike price intervals established pursuant to Rule 504(h), where the next higher available series would be $5 away above a $200 strike price, the ability to roll such positions is effectively negated. Accordingly, to move a position from a $200 strike to a $205 strike pursuant to the current rule, an investor would need for the underlying product to move 2.5%, and would not be able to execute a roll up until such a large movement occurred. With the proposed rule change, however, the investor would be in a significantly safer position of being able to roll his open options position from a $200 to a $201 strike price, which is only a 0.5% move for the underlying. The proposed rule change will allow the Exchange to better respond to customer demand for IVV strike prices more precisely aligned with current S&P 500 Index values. The Exchange believes that the proposed rule change, like the other strike price programs currently offered by the Exchange, will benefit investors by providing investors the flexibility to more closely tailor their investment and hedging decisions using IVV options. By allowing series of IVV options to be listed in $1 intervals between strike prices over $200, the proposal will moderately augment the potential total number of options series available on the Exchange. However, the Exchange believes it and the Options Price Reporting Authority (``OPRA'') have the necessary systems capacity to handle any potential additional traffic associated with this proposed rule change. The Exchange also believes that members will not have a capacity issue due to the proposed rule change. In addition, the Exchange represents that it does not believe that this expansion will cause fragmentation of liquidity. In addition, the interval setting regime the Exchange proposes to apply to IVV options is currently applied to options on SPY, which is an ETF that is identical in all material respects to the IVV ETF. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\3\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\4\ in particular, the requirements of Section 6(b) of the Act.\5\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \6\ requirements that the rules of an exchange be 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 regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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. Additionally, the Exchange believes the proposed rule change is consistent with [[Page 39638]] the Section 6(b)(5) \7\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \3\ 15 U.S.C. 78f(b). \4\ 15 U.S.C. 78f(b)(5). \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). \7\ Id. --------------------------------------------------------------------------- In particular, the proposed rule change will allow investors to more easily use IVV options. Moreover, the proposed rule change would allow investors to better trade and hedge positions in IVV options where the strike price is greater than $200, and ensure that IVV options investors are not at a disadvantage simply because of the strike price. The Exchange also believes the proposed rule change is consistent with Section 6(b)(1) of the Act, which provides that the Exchange be organized and have the capacity to be able to carry out the purposes of the Act and the rules and regulations thereunder, and the rules of the Exchange. The rule change proposal allows the Exchange to respond to customer demand to allow IVV options to trade in $1 intervals above a $200 strike price. The Exchange does not believe that the proposed rule would create additional capacity issues or affect market functionality. As noted above, IVV options currently trade in wider $5 intervals above a $200 strike price, whereas these options at or below a $200 strike price trade in $1 intervals. This creates a situation where contracts on IVV options effectively may not be able to execute certain strategies such as, for example, rolling to a higher strike price, simply because of the arbitrary $200 strike price above which IVV options intervals increase by 500%. This proposal remedies the situation by establishing an exception to the current interval regime for IVV options to allow such options to trade in $1 or greater intervals at all strike prices. The Exchange believes that the proposed rule change, like other strike price programs currently offered by the Exchange, will benefit investors by giving them increased flexibility to more closely tailor their investment and hedging decisions. Moreover, the proposed rule change is consistent with a prior rule change.\8\ --------------------------------------------------------------------------- \8\ See Securities Exchange Act Release No. 72998 (September 4, 2014), 79 FR 53813 (September 10, 2014) (Notice of Filing of Proposed Rule Change, Regarding Strike Price Intervals for SPY and DIA Options) (SR-ISE-2014-42). --------------------------------------------------------------------------- With regard to the impact of this proposal on system capacity, the Exchange believes it and OPRA have the necessary systems capacity to handle any potential additional traffic associated with this proposed rule change. The Exchange believes that its members will not have a capacity issue as a result of this proposal. In addition, the interval setting regime the Exchange proposes to apply to IVV options is currently applied to options on SPY,\9\ which is an ETF that is identical in all material respects to the IVV ETF. --------------------------------------------------------------------------- \9\ See Supplementary Material .14 to Rule 504. --------------------------------------------------------------------------- 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. Rather, the Exchange believes that the proposed rule change will result in additional investment options and opportunities to achieve the investment and trading objectives of market participants seeking efficient trading and hedging vehicles, to the benefit of investors, market participants, and the marketplace in general. Specifically, the Exchange believes that IVV options investors and traders will significantly benefit from the availability of finer strike price intervals above a $200 price point. In addition, the interval setting regime the Exchange proposes to apply to IVV options is currently applied to options on SPY,\10\ which is an ETF that is identical in all material respects to the IVV ETF. Thus, applying the same strike setting regime to SPY and IVV options will help level the playing field for options on similar, competing ETFs. --------------------------------------------------------------------------- \10\ Id. --------------------------------------------------------------------------- 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 \11\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A)(iii). \12\ 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, along with a brief description and 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. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \13\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \14\ 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 because this proposal permits listing IVV options in a manner permitted by the Chicago Board Options Exchange, Incorporated,\15\ and will provide investors with an alternative venue for trading IVV options. The Commission also notes that the proposed rule change is consistent with the strike price intervals in IVV options that is permitted on other exchanges and thus raises no new novel or substantive issues.\16\ Accordingly, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\17\ --------------------------------------------------------------------------- \13\ 17 CFR 240.19b-4(f)(6). \14\ 17 CFR 240.19b-4(f)(6)(iii). \15\ See Securities Exchange Act Release No. 80913 (June 13, 2017), 82 FR 27907 (June 19, 2017) (SR-CBOE-2017-048). \16\ See NASDAQ PHLX LLC Rule 1012.05(a)(iv)(C); The Nasdaq Options Market LLC Rules, Chapter IV, Section 6, Supplementary Material .01(c); Miami International Securities Exchange, LLC Rule 404, Interpretations and Policies .10. \17\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or [[Page 39639]] Send an email to [email protected]. Please include File Number SR-ISE-2017-79 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-ISE-2017-79. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-ISE-2017-79 and should be submitted on or before September 11, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-17550 Filed 8-18-17; 8:45 am] BILLING CODE 8011-01-P
![39636 Federal Register / Vol. 82, No. 160 / Monday, August 21, 2017 / Notices
4. Applicants assert that the facility Commission to grant an order I. Self-Regulatory Organization’s
does not raise the concerns underlying permitting a transaction otherwise Statement of the Terms of Substance of
section 12(d)(1) of the Act given that the prohibited by section 17(a) if it finds the Proposed Rule Change
Funds are part of the same group of that (a) the terms of the proposed The Exchange proposes a proposal to
investment companies and there will be transaction are fair and reasonable and amend Supplementary Material .14 of
no duplicative costs or fees to the do not involve overreaching on the part Rule 504, entitled ‘‘Series of Options
Funds.4 Applicants also assert that the of any person concerned; (b) the Contracts Open for Trading.’’
proposed transactions do not raise the proposed transaction is consistent with The text of the proposed rule change
concerns underlying sections 17(a)(1), the policies of each registered is set forth below. Proposed new
17(a)(3), 17(d) and 21(b) of the Act as investment company involved; and (c) language is italicized; deleted text is in
the Funds would not engage in lending the proposed transaction is consistent brackets.
transactions that unfairly benefit with the general purposes of the Act. * * * * *
insiders or are detrimental to the Funds.
Rule 17d–1(b) under the Act provides
Applicants state that the facility will Rule 504. Series of Options Contracts
that in passing upon an application filed
offer both reduced borrowing costs and Open for Trading
enhanced returns on loaned funds to all under the rule, the Commission will
consider whether the participation of (a)–(h) No change.
participating Funds and each Fund
would have an equal opportunity to the registered investment company in a Supplementary Material to Rule 504
borrow and lend on equal terms based joint enterprise, joint arrangement or
.01–.13 No change.
on an interest rate formula that is profit sharing plan on the basis .14 Notwithstanding any other
objective and verifiable. With respect to proposed is consistent with the provision regarding the interval of strike
the relief from section 17(a)(2) of the provisions, policies and purposes of the prices of series of options on Exchange-
Act, applicants note that any collateral Act and the extent to which such Traded Fund Shares in this rule, the
pledged to secure an interfund loan participation is on a basis different from interval of strike prices on SPDR S&P
would be subject to the same conditions or less advantageous than that of the 500 ETF (‘‘SPY’’), iShares Core S&P 500
imposed by any other lender to a Fund other participants. ETF (‘‘IVV’’), and the SPDR Dow Jones
that imposes conditions on the quality For the Commission, by the Division of Industrial Average ETF (‘‘DIA’’) options
of or access to collateral for a borrowing Investment Management, under delegated will be $1 or greater.
(if the lender is another Fund) or the authority. * * * * *
same or better conditions (in any other
Eduardo A. Aleman,
circumstance).5 II. Self-Regulatory Organization’s
5. Applicants also believe that the Assistant Secretary. Statement of the Purpose of, and
limited relief from section 18(f)(1) of the [FR Doc. 2017–17540 Filed 8–18–17; 8:45 am] Statutory Basis for, the Proposed Rule
Act that is necessary to implement the BILLING CODE 8011–01–P Change
facility (because the lending Funds are In its filing with the Commission, the
not banks) is appropriate in light of the Exchange included statements
conditions and safeguards described in SECURITIES AND EXCHANGE concerning the purpose of and basis for
the application and because the open- COMMISSION the proposed rule change and discussed
end Funds would remain subject to the any comments it received on the
requirement of section 18(f)(1) that all [Release No. 34–81403; File No. SR–ISE– proposed rule change. The text of these
borrowings of the open-end Fund, 2017–79] statements may be examined at the
including combined interfund loans and places specified in Item IV below. The
bank borrowings, have at least 300% Self-Regulatory Organizations; Nasdaq Exchange has prepared summaries, set
asset coverage. ISE, LLC; Notice of Filing and forth in sections A, B, and C below, of
6. Section 6(c) of the Act permits the Immediate Effectiveness of Proposed the most significant aspects of such
Commission to exempt any persons or Rule Change To Amend statements.
transactions from any provision of the Supplementary Material .14 of Rule
Act if such exemption is necessary or 504, Entitled ‘‘Series of Options A. Self-Regulatory Organization’s
appropriate in the public interest and Contracts Open for Trading’’ Statement of the Purpose of, and
consistent with the protection of Statutory Basis for, the Proposed Rule
investors and the purposes fairly August 15, 2017. Change
intended by the policy and provisions of Pursuant to Section 19(b)(1) of the 1. Purpose
the Act. Section 12(d)(1)(J) of the Act Securities Exchange Act of 1934
provides that the Commission may The Exchange proposes to amend
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Rule 504 by modifying the strike setting
exempt any person, security, or
notice is hereby given that on August regime for the iShares Core S&P 500
transaction, or any class or classes of
10, 2017, Nasdaq ISE, LLC (‘‘ISE’’ or ETF (‘‘IVV’’) options. Specifically, the
persons, securities, or transactions, from
‘‘Exchange’’) filed with the Securities Exchange proposes to modify the
any provision of section 12(d)(1) if the
and Exchange Commission interval setting regime for IVV options
exemption is consistent with the public
(‘‘Commission’’) the proposed rule to allow $1 strike price intervals above
interest and the protection of investors.
change as described in Items I and II
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Section 17(b) of the Act authorizes the $200.
below, which Items have been prepared The Exchange believes that the
4 Applicants state that the obligation to repay an by the Exchange. The Commission is proposed rule change would make IVV
interfund loan could be deemed to constitute a publishing this notice to solicit options easier for investors and traders
security for the purposes of sections 17(a)(1) and comments on the proposed rule change to use and more tailored to their
12(d)(1) of the Act. from interested persons. investment needs. Additionally, the
5 Applicants state that any pledge of securities to
secure an interfund loan could constitute a
interval setting regime the Exchange
purchase of securities for purposes of section 1 15 U.S.C. 78s(b)(1). proposes to apply to IVV options is
17(a)(2) of the Act. 2 17 CFR 240.19b–4. currently applied to options on units of
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![Federal Register / Vol. 82, No. 160 / Monday, August 21, 2017 / Notices 39639
• Send an email to rule-comments@ SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
sec.gov. Please include File Number SR– COMMISSION Statement of the Purpose of, and
ISE–2017–79 on the subject line. Statutory Basis for, the Proposed Rule
[Release No. 34–81401; File No. SR–Phlx–
Change
Paper Comments 2017–68]
1. Purpose
• Send paper comments in triplicate Self-Regulatory Organizations;
The purpose of the proposed rule
to Secretary, Securities and Exchange NASDAQ PHLX LLC; Notice of Filing
and Immediate Effectiveness of change is to (i) amend Rule 925 to create
Commission, 100 F Street NE., a limited exception to the Exchange’s
Washington, DC 20549–1090. Proposed Rule Change To Amend Rule
existing procedures to designate an
925 To Create a Limited Exception to
All submissions should refer to File Inactive Nominee 3 as an effective
the Exchange’s Procedures To
Number SR–ISE–2017–79. This file permit holder and (ii) make a non-
Designate an Inactive Nominee as an
number should be included on the substantive change to its Pricing
Effective Permit Holder Intra-Day and
subject line if email is used. To help the Schedule related to the fees assessed to
Make a Non-Substantive Change to the
Inactive Nominees.
Commission process and review your Pricing Schedule
comments more efficiently, please use Rule 925
August 15, 2017.
only one method. The Commission will Today, the Exchange allows members
Pursuant to Section 19(b)(1) of the
post all comments on the Commission’s on the Exchange’s trading floor to
Securities Exchange Act of 1934
Internet Web site (http://www.sec.gov/ designate an ‘‘Inactive Nominee’’
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
rules/sro.shtml). Copies of the notice is hereby given that on August 7, pursuant to Rule 925. Rule 925(i)
submission, all subsequent 2017 NASDAQ PHLX LLC (‘‘Phlx’’ or requires, among other criteria, that an
amendments, all written statements ‘‘Exchange’’) filed with the Securities individual must be approved as eligible
with respect to the proposed rule and Exchange Commission (‘‘SEC’’ or to hold a permit in accordance with the
change that are filed with the ‘‘Commission’’) the proposed rule Exchange’s By-Laws and Rules in order
Commission, and all written change as described in Items I, II, and to be eligible for Inactive Nominee
communications relating to the III, below, which Items have been status. Additionally, the member
proposed rule change between the prepared by the Exchange. The organization with whom an Inactive
Commission and any person, other than Commission is publishing this notice to Nominee is affiliated must pay an
those that may be withheld from the solicit comments on the proposed rule Inactive Nominee Fee for the privilege
public in accordance with the change from interested persons. of maintaining the Inactive Nominee
status.4 Furthermore, the Rule stipulates
provisions of 5 U.S.C. 552, will be
I. Self-Regulatory Organization’s that an Inactive Nominee does not have
available for Web site viewing and Statement of the Terms of Substance of any rights or privileges of a permit
printing in the Commission’s Public the Proposed Rule Change holder unless and until the Inactive
Reference Room, 100 F Street NE., Nominee becomes an effective permit
Washington, DC 20549, on official The Exchange proposes to (i) amend
Rule 925 to create a limited exception holder and all applicable Exchange fees
business days between the hours of are paid.
to the Exchange’s existing procedures to
10:00 a.m. and 3:00 p.m. Copies of the When a member organization desires
designate an Inactive Nominee as an
filing also will be available for to designate an Inactive Nominee as an
effective permit holder and (ii) make a
inspection and copying at the principal effective permit holder, Rule 925(ii)(a)
non-substantive change to its Pricing
office of the Exchange. All comments Schedule related to the fees assessed to states that the member organization is
received will be posted without change; Inactive Nominees. required to notify the Exchange’s
the Commission does not edit personal The text of the proposed rule change 3 The term ‘‘inactive nominee’’ shall mean a
identifying information from is available on the Exchange’s Web site natural person associated with and designated as
submissions. You should submit only at http://nasdaqphlx.cchwallstreet. such by a member organization and who has been
information that you wish to make com/, at the principal office of the approved for such status and is registered as such
available publicly. All submissions Exchange, and at the Commission’s with the Membership Department. An inactive
nominee shall have no rights or privileges under a
should refer to File Number SR–ISE– Public Reference Room. permit unless and until said inactive nominee
2017–79 and should be submitted on or becomes admitted as a member of the Exchange
II. Self-Regulatory Organization’s
before September 11, 2017. pursuant to the By-Laws and Rules of the Exchange.
Statement of the Purpose of, and An inactive nominee merely stands ready to
For the Commission, by the Division of Statutory Basis for, the Proposed Rule exercise rights under a permit upon notice by the
Trading and Markets, pursuant to delegated Change member organization to the Membership
authority.18 Department on an expedited basis. See Rule 1(l).
In its filing with the Commission, the 4 The Exchange currently charges an Inactive
Eduardo A. Aleman, Exchange included statements Nominee Fee of $600 for a six month period, which
Assistant Secretary. concerning the purpose of and basis for will be assessed to the member organization at a
rate of $100 per month for the applicable six month
[FR Doc. 2017–17550 Filed 8–18–17; 8:45 am] the proposed rule change and discussed period unless the member organization provides
BILLING CODE 8011–01–P any comments it received on the proper notice of its intent to terminate an inactive
proposed rule change. The text of these nominee prior to the first day of the next billing
asabaliauskas on DSKBBXCHB2PROD with NOTICES
statements may be examined at the month. An inactive nominee’s status expires after
six months unless it has been reaffirmed in writing
places specified in Item IV below. The by the member organization or is sooner terminated.
Exchange has prepared summaries, set A member organization will be assessed the
forth in sections A, B, and C below, of Inactive Nominee Fee every time the status is
the most significant aspects of such reaffirmed. See the Exchange’s Pricing Schedule at:
http://nasdaqphlx.cchwallstreet.com/
statements. NASDAQPHLXTools/
PlatformViewer.asp?selectednode=chp_1_4_
1 15 U.S.C. 78s(b)(1). 10&manual=%2Fnasda
18 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. qomxphlx%2Fphlx%2Fphlx-rulesbrd%2F.
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Document Created: 2017-08-19 00:44:35
Document Modified: 2017-08-19 00:44:35
| 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 39636 |
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