82 FR 61052 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 6.72-O in Order To Extend the Penny Pilot in Options Classes
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 246 (December 26, 2017)
Federal Register Volume 82, Issue 246 (December 26, 2017)
| Page Range | 61052-61054 | |
| FR Document | 2017-27703 |
[Federal Register Volume 82, Number 246 (Tuesday, December 26, 2017)] [Notices] [Pages 61052-61054] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-27703] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82366; File No. SR-NYSEARCA-2017-141] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 6.72-O in Order To Extend the Penny Pilot in Options Classes December 19, 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 December 11, 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Commentary .02 to Rule 6.72-O in order to extend the Penny Pilot in options classes in certain issues (``Pilot Program'') previously approved by the Securities and Exchange Commission (``Commission'') through June 30, 2018. The Pilot Program is currently scheduled to expire on December 31, 2017. The proposed rule change is available on the Exchange's website 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 the Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange hereby proposes to amend Commentary .02 to Rule 6.72-O to extend the time period of the Pilot Program,\4\ which is currently scheduled to expire on December 31, 2017, through June 30, 2018. The Exchange also proposes that the dates to replace issues in the Pilot Program that have been delisted be revised to the second trading day following January 1, 2018.\5\ The Exchange believes that extending the Pilot would allow for further analysis of the Pilot Program and a determination of how the Pilot Program should be structured in the future. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 80988 (June 21, 2017), 82 FR 29128 (June 27, 2017) (SR-NYSEArca-2017-68). \5\ The month immediately preceding a replacement class's addition to the Pilot Program (i.e., December) would not be used for purposes of the analysis for determining the replacement class. Thus, a replacement class to be added on the second trading day following January 1, 2018 would be identified based on The Option Clearing Corporation's trading volume data from June 1, 2017 through November 30, 2017. The Exchange will announce the replacement issues to the Exchange's membership through a Trader Update. --------------------------------------------------------------------------- [[Page 61053]] This filing does not propose any substantive changes to the Pilot Program: All classes currently participating will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh the increase in quote traffic. 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \6\ of the Securities Exchange Act of 1934 (the ``Act''), in general, and furthers the objectives of Section 6(b)(5),\7\ in particular, in that it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which extends the Penny Pilot Program for six months, allows the Exchange to continue to participate in a program that has been viewed as beneficial to traders, investors and public customers and viewed as successful by the other options exchanges participating in it. Accordingly, the Exchange believes that the proposal is consistent with the Act because it will allow the Exchange to extend the Pilot Program prior to its expiration on December 31, 2017. The Exchange notes that this proposal does not propose any new policies or provisions that are unique or unproven, but instead relates to the continuation of an existing program that operates on a pilot basis. The Exchange believes that the Pilot Program promotes just and equitable principles of trade by enabling public customers and other market participants to express their true prices to buy and sell options to the benefit of all market participants. The proposal to extend the Pilot Program is designed to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, and to remove impediments to and perfect the mechanisms of a free and open market and a national market system, by allowing the Exchange and the Commission additional time to analyze the impact of the Pilot Program while also allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot Program. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. Specifically, the Exchange believes that, by extending the expiration of the Pilot Program, the proposed rule change will allow for further analysis of the Pilot Program and a determination of how the Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Pilot Program is an industry-wide initiative supported by all other option exchanges. The Exchange believes that extending the Pilot Program will allow for continued competition between Exchange market participants trading similar products as their counterparts on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues trading as part of the Pilot Program. 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 The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \9\ 17 CFR 240.19b-(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \10\ normally does not become operative prior to 30 days after the date of the filing.\11\ However, pursuant to Rule 19b-4(f)(6)(iii),\12\ the Commission may 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 Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program. Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\13\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's 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. The Exchange has satisfied this pre-filing requirement. \12\ 17 CFR 240.19b-4(f)(6)(iii). \13\ For purposes only of waiving the operative delay for this proposal, the Commission has 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 such 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 under Section 19(b)(2)(B) \14\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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: [[Page 61054]] Electronic CommentsUse 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-2017-141 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-2017-141. 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 website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEARCA-2017-141 and should be submitted on or before January 16, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\15\ --------------------------------------------------------------------------- \15\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-27703 Filed 12-22-17; 8:45 am] BILLING CODE 8011-01-P
![61052 Federal Register / Vol. 82, No. 246 / Tuesday, December 26, 2017 / Notices
Exchange and the Commission public in accordance with the I. Self-Regulatory Organization’s
additional time to analyze the impact of provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of
the Pilot Program. Accordingly, the available for website viewing and the Proposed Rule Change
Commission designates the proposed printing in the Commission’s Public The Exchange proposes to amend
rule change as operative upon filing Reference Room, 100 F Street NE., Commentary .02 to Rule 6.72–O in order
with the Commission.14 Washington, DC 20549, on official to extend the Penny Pilot in options
At any time within 60 days of the business days between the hours of classes in certain issues (‘‘Pilot
filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the
Commission summarily may Program’’) previously approved by the
filing also will be available for Securities and Exchange Commission
temporarily suspend such rule change if
inspection and copying at the principal (‘‘Commission’’) through June 30, 2018.
it appears to the Commission that such
action is necessary or appropriate in the office of the Exchange. All comments The Pilot Program is currently
public interest, for the protection of received will be posted without change. scheduled to expire on December 31,
investors, or otherwise in furtherance of Persons submitting comments are 2017. The proposed rule change is
the purposes of the Act. If the cautioned that we do not redact or edit available on the Exchange’s website at
Commission takes such action, the personal identifying information from www.nyse.com, at the principal office of
Commission shall institute proceedings comment submissions. You should the Exchange, and at the Commission’s
under Section 19(b)(2)(B) 15 of the Act to submit only information that you wish Public Reference Room.
determine whether the proposed rule to make available publicly. II. Self-Regulatory Organization’s
change should be approved or All submissions should refer to File Statement of the Purpose of, and
disapproved. Number SR–BX–2017–056 and should Statutory Basis for, the Proposed Rule
IV. Solicitation of Comments be submitted on or before January 16, Change
2018. In its filing with the Commission, the
Interested persons are invited to
submit written data, views, and For the Commission, by the Division of self-regulatory organization included
arguments concerning the foregoing, Trading and Markets, pursuant to delegated statements concerning the purpose of,
including whether the proposed rule authority.16 and basis for, the proposed rule change
change is consistent with the Act. Eduardo A. Aleman, and discussed any comments it received
Comments may be submitted by any of on the proposed rule change. The text
Assistant Secretary.
the following methods: of those statements may be examined at
[FR Doc. 2017–27704 Filed 12–22–17; 8:45 am]
the places specified in Item IV below.
Electronic Comments BILLING CODE 8011–01–P The Exchange has prepared summaries,
• Use the Commission’s internet set forth in sections A, B, and C below,
comment form (http://www.sec.gov/ of the most significant parts of such
rules/sro.shtml); or SECURITIES AND EXCHANGE statements.
• Send an email to rule-comments@ COMMISSION
A. Self-Regulatory Organization’s
sec.gov. Please include File Number SR–
Statement of the Purpose of, and the
BX–2017–056 on the subject line. [Release No. 34–82366; File No. SR–
Statutory Basis for, the Proposed Rule
NYSEARCA–2017–141]
Paper Comments Change
• Send paper comments in triplicate Self-Regulatory Organizations; NYSE 1. Purpose
to Secretary, Securities and Exchange Arca, Inc.; Notice of Filing and
Commission, 100 F Street NE, The Exchange hereby proposes to
Immediate Effectiveness of Proposed
Washington, DC 20549–1090. amend Commentary .02 to Rule 6.72–O
Rule Change To Amend Commentary to extend the time period of the Pilot
All submissions should refer to File .02 to Rule 6.72–O in Order To Extend Program,4 which is currently scheduled
Number SR–BX–2017–056. This file the Penny Pilot in Options Classes to expire on December 31, 2017, through
number should be included on the
December 19, 2017. June 30, 2018. The Exchange also
subject line if email is used. To help the
proposes that the dates to replace issues
Commission process and review your Pursuant to Section 19(b)(1) 1 of the in the Pilot Program that have been
comments more efficiently, please use Securities Exchange Act of 1934 (the delisted be revised to the second trading
only one method. The Commission will ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 day following January 1, 2018.5 The
post all comments on the Commission’s notice is hereby given that, on December Exchange believes that extending the
internet website (http://www.sec.gov/ 11, 2017, NYSE Arca, Inc. (the Pilot would allow for further analysis of
rules/sro.shtml). ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
Copies of the submission, all the Pilot Program and a determination
the Securities and Exchange of how the Pilot Program should be
subsequent amendments, all written
statements with respect to the proposed Commission (the ‘‘Commission’’) the structured in the future.
rule change that are filed with the proposed rule change as described in
Commission, and all written Items I and II below, which Items have 4 See Securities Exchange Act Release No. 80988
(June 21, 2017), 82 FR 29128 (June 27, 2017) (SR–
communications relating to the been prepared by the self-regulatory NYSEArca–2017–68).
proposed rule change between the organization. The Commission is 5 The month immediately preceding a
Commission and any person, other than publishing this notice to solicit replacement class’s addition to the Pilot Program
ethrower on DSK3G9T082PROD with NOTICES
comments on the proposed rule change (i.e., December) would not be used for purposes of
those that may be withheld from the the analysis for determining the replacement class.
from interested persons. Thus, a replacement class to be added on the
14 For purposes only of waiving the operative
second trading day following January 1, 2018 would
delay for this proposal, the Commission has 16 17 be identified based on The Option Clearing
CFR 200.30–3(a)(12).
considered the proposed rule’s impact on Corporation’s trading volume data from June 1,
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See 2017 through November 30, 2017. The Exchange
2 15 U.S.C. 78a.
15 U.S.C. 78c(f). will announce the replacement issues to the
15 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4. Exchange’s membership through a Trader Update.
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![61054 Federal Register / Vol. 82, No. 246 / Tuesday, December 26, 2017 / Notices
Electronic Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and the
• Use the Commission’s internet Statutory Basis for, the Proposed Rule
comment form (http://www.sec.gov/ Change
[Release No. 34–82358; File No. SR–
rules/sro.shtml); or
NYSEAMER–2017–38] 1. Purpose
• Send an email to rule-comments@
sec.gov. Please include File Number SR– Self-Regulatory Organizations; NYSE The Exchange hereby proposes to
NYSEARCA–2017–141 on the subject American LLC; Notice of Filing and amend Commentary .02 to Rule 960NY
line. Immediate Effectiveness of Proposed to extend the time period of the Pilot
Rule Change To Amend Commentary Program,4 which is currently scheduled
Paper Comments .02 to Rule 960NY in Order To Extend to expire on December 31, 2017, through
the Penny Pilot in Options Classes June 30, 2018. The Exchange also
• Send paper comments in triplicate proposes that the dates to replace issues
to Brent J. Fields, Secretary, Securities December 19, 2017. in the Pilot Program that have been
and Exchange Commission, 100 F Street delisted be revised to the second trading
Pursuant to Section 19(b)(1) 1 of the
NE, Washington, DC 20549–1090. Securities Exchange Act of 1934 (the day following January 1, 2018.5 The
All submissions should refer to File ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Exchange believes that extending the
notice is hereby given that on December Pilot would allow for further analysis of
Number SR–NYSEARCA–2017–141.
11, 2017, NYSE American LLC (the the Pilot Program and a determination
This file number should be included on
‘‘Exchange’’ or ‘‘NYSE American’’) filed of how the Pilot Program should be
the subject line if email is used. To help structured in the future.
the Commission process and review with the Securities and Exchange
Commission (the ‘‘Commission’’) the This filing does not propose any
your comments more efficiently, please substantive changes to the Pilot
use only one method. The Commission proposed rule change as described in
Program: All classes currently
will post all comments on the Items I and II below, which Items have
participating will remain the same and
Commission’s internet website (http:// been prepared by the self-regulatory
all minimum increments will remain
www.sec.gov/rules/sro.shtml). Copies of organization. The Commission is
unchanged. The Exchange believes the
the submission, all subsequent publishing this notice to solicit
benefits to public customers and other
amendments, all written statements comments on the proposed rule change
market participants who will be able to
from interested persons.
with respect to the proposed rule express their true prices to buy and sell
change that are filed with the I. Self-Regulatory Organization’s options have been demonstrated to
Commission, and all written Statement of the Terms of Substance of outweigh the increase in quote traffic.
communications relating to the the Proposed Rule Change 2. Statutory Basis
proposed rule change between the
The Exchange proposes to amend The proposed rule change is
Commission and any person, other than
Commentary .02 to Rule 960NY in order consistent with Section 6(b) 6 of the
those that may be withheld from the
to extend the Penny Pilot in options Securities Exchange Act of 1934 (the
public in accordance with the
classes in certain issues (‘‘Pilot ‘‘Act’’), in general, and furthers the
provisions of 5 U.S.C. 552, will be
Program’’) previously approved by the objectives of Section 6(b)(5),7 in
available for website viewing and Securities and Exchange Commission particular, in that it is designed to
printing in the Commission’s Public (‘‘Commission’’) through June 30, 2018. prevent fraudulent and manipulative
Reference Room, 100 F Street NE, The Pilot Program is currently acts and practices, to promote just and
Washington, DC 20549 on official scheduled to expire on December 31, equitable principles of trade, to foster
business days between the hours of 2017. The proposed rule change is cooperation and coordination with
10:00 a.m. and 3:00 p.m. Copies of the available on the Exchange’s website at persons engaged in facilitating
filing also will be available for www.nyse.com, at the principal office of transactions in securities, and to remove
inspection and copying at the principal the Exchange, and at the Commission’s impediments to and perfect the
office of the Exchange. All comments Public Reference Room. mechanisms of a free and open market
received will be posted without change. and a national market system.
Persons submitting comments are II. Self-Regulatory Organization’s In particular, the proposed rule
cautioned that we do not redact or edit Statement of the Purpose of, and change, which extends the Penny Pilot
personal identifying information from Statutory Basis for, the Proposed Rule Program for six months, allows the
comment submissions. You should Change Exchange to continue to participate in a
submit only information that you wish In its filing with the Commission, the program that has been viewed as
to make available publicly. All self-regulatory organization included beneficial to traders, investors and
submissions should refer to File statements concerning the purpose of,
Number SR–NYSEARCA–2017–141 and and basis for, the proposed rule change
4 See Securities Exchange Act Release No. 80989
(June 21, 2017), 82 FR 29130 (June 27, 2017) (SR–
should be submitted on or before and discussed any comments it received NYSEMKT–2017–36).
January 16, 2018. on the proposed rule change. The text 5 The month immediately preceding a
For the Commission, by the Division of of those statements may be examined at replacement class’s addition to the Pilot Program
the places specified in Item IV below. (i.e., December) would not be used for purposes of
Trading and Markets, pursuant to delegated the analysis for determining the replacement class.
authority.15 The Exchange has prepared summaries,
ethrower on DSK3G9T082PROD with NOTICES
Thus, a replacement class to be added on the
Eduardo A. Aleman, set forth in sections A, B, and C below, second trading day following January 1, 2018 would
of the most significant parts of such be identified based on The Option Clearing
Assistant Secretary. Corporation’s trading volume data from June 1,
statements.
[FR Doc. 2017–27703 Filed 12–22–17; 8:45 am] 2017 through November 30, 2017. The Exchange
will announce the replacement issues to the
BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). Exchange’s membership through a Trader Update.
2 15 U.S.C. 78a. 6 15 U.S.C. 78f(b).
15 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. 7 15 U.S.C. 78f(b)(5).
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Document Created: 2017-12-23 03:07:58
Document Modified: 2017-12-23 03:07:58
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 61052 |
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