82 FR 61054 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 960NY 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 | 61054-61056 | |
| FR Document | 2017-27698 |
[Federal Register Volume 82, Number 246 (Tuesday, December 26, 2017)] [Notices] [Pages 61054-61056] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-27698] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82358; File No. SR-NYSEAMER-2017-38] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 960NY 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 American LLC (the ``Exchange'' or ``NYSE American'') 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 960NY 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 960NY 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. 80989 (June 21, 2017), 82 FR 29130 (June 27, 2017) (SR-NYSEMKT-2017-36). \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. --------------------------------------------------------------------------- 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 [[Page 61055]] 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-4(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: 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-NYSEAMER-2017-38 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-NYSEAMER-2017-38. 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 [[Page 61056]] 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-NYSEAMER-2017-38 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. 2017-27698 Filed 12-22-17; 8:45 am] BILLING CODE 8011-01-P
![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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![61056 Federal Register / Vol. 82, No. 246 / Tuesday, December 26, 2017 / Notices
printing in the Commission’s Public Frank Wall Street Reform and Consumer is necessary for the proper performance
Reference Room, 100 F Street NE, Protection Act (‘‘Dodd-Frank Act’’).2 of the functions of the agency, including
Washington, DC 20549 on official The Rules describe the whistleblower whether the information will have
business days between the hours of program that the Commission has practical utility; (b) the accuracy of the
10:00 a.m. and 3:00 p.m. Copies of the established pursuant to the Dodd-Frank agency’s estimate of the burden imposed
filing also will be available for Act which requires the Commission to by the collection of information; (c)
inspection and copying at the principal pay an award, subject to certain ways to enhance the quality, utility, and
office of the Exchange. All comments limitations and conditions, to clarity of the information collected; and
received will be posted without change. whistleblowers who voluntarily provide (d) ways to minimize the burden of the
Persons submitting comments are the Commission with original collection of information on
cautioned that we do not redact or edit information about a violation of the respondents, including through the use
personal identifying information from federal securities laws that leads to the of automated collection techniques or
comment submissions. You should successful enforcement of a covered other forms of information technology.
submit only information that you wish judicial or administrative action, or of a Consideration will be given to
to make available publicly. All related action. The Rules define certain comments and suggestions submitted in
submissions should refer to File terms critical to the operation of the writing within 30 days of this
Number SR–NYSEAMER–2017–38 and whistleblower program, outline the publication. Please direct your written
should be submitted on or before procedures for applying for awards and comments to Pamela Dyson, Director/
January 16, 2018. the Commission’s procedures for Chief Information Officer, Securities
For the Commission, by the Division of making decisions on claims, and and Exchange Commission, c/o Remi
Trading and Markets, pursuant to delegated generally explain the scope of the Pavlik-Simon, 100 F St. NE,
authority.15 whistleblower program to the public Washington, DC 20549; or send an email
Eduardo A. Aleman, and to potential whistleblowers. to: PRA_Mailbox@sec.gov.
Assistant Secretary. Form TCR is a form submitted by
Dated: December 20, 2017.
[FR Doc. 2017–27698 Filed 12–22–17; 8:45 am] whistleblowers who wish to provide
information to the Commission and its Eduardo A. Aleman,
BILLING CODE 8011–01–P Assistant Secretary.
staff regarding potential violations of the
securities laws. Form TCR is required [FR Doc. 2017–27740 Filed 12–22–17; 8:45 am]
SECURITIES AND EXCHANGE for submission of information under the BILLING CODE 8011–01–P
COMMISSION Rules. The Commission estimates that it
takes a whistleblower, on average, one
Submission for OMB Review; and one-half hours to complete Form SECURITIES AND EXCHANGE
Comment Request TCR. Based on the receipt of an average COMMISSION
of approximately 700 annual Form TCR [Release No. 34–82364; File No. SR–MRX–
Upon Written Request Copies Available
submissions for the past three fiscal 2017–28]
From: Securities and Exchange
years, the Commission estimates that
Commission, Office of FOIA Services,
the annual reporting burden of Form Self-Regulatory Organizations; Nasdaq
100 F Street NE, Washington, DC
TCR is 1,050 hours. MRX, LLC; Notice of Filing and
20549–2736
Form WB–APP is a form that is Immediate Effectiveness of Proposed
Extension: submitted by whistleblowers filing a Rule Change To Extend the Penny
Form TCR and Form WB–APP- claim for a whistleblower award. Form Pilot Program
Implementing the Whistleblower
WB–APP is required for application for
Provisions of Section 21 F of the December 19, 2017.
Securities Exchange Act of 1934; SEC an award under the Rules. The
Commission estimates that it takes a Pursuant to Section 19(b)(1) of the
File No. 270–625, OMB Control No.
3235–0686 whistleblower, on average, one hour to Securities Exchange Act of 1934
complete Form WB–APP. The (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Notice is hereby given that, pursuant notice is hereby given that on December
to the Paperwork Reduction Act of 1995 completion time depends largely on the
complexity of the alleged violation and 11, 2017, Nasdaq MRX, LLC (‘‘MRX’’ or
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the ‘‘Exchange’’) filed with the Securities
Securities and Exchange Commission the amount of information the
whistleblower possesses in support of and Exchange Commission (‘‘SEC’’ or
(‘‘Commission’’) is soliciting comments ‘‘Commission’’) the proposed rule
on the collection of information his or her application for an award.
Based on the receipt of an average of change as described in Items I and II,
summarized below. The Commission below, which Items have been prepared
plans to submit an extension for this approximately 110 3 annual Form WB–
APP submissions for the past six fiscal by the Exchange. The Commission is
current collection of information to the publishing this notice to solicit
Office of Management and Budget for years, the Commission estimates that
the annual reporting burden of Form comments on the proposed rule change
approval. from interested persons.
In Release No. 34–64545,1 the WB–APP is 110 hours.
Commission adopted rules (‘‘Rules’’) Estimated annual reporting burden = I. Self-Regulatory Organization’s
and forms to implement Section 21F of 1,160 hours. Statement of the Terms of Substance of
the Securities Exchange Act of 1934 Written comments are invited on: (a) the Proposed Rule Change
entitled ‘‘Securities Whistleblower Whether this collection of information
The Exchange proposes to amend its
ethrower on DSK3G9T082PROD with NOTICES
Incentives and Protection,’’ which was 2 Public rules to extend a pilot program to quote
Law 111–203, § 922(a), 124 Stat 1841
created by Section 922 of the Dodd- (2010). and to trade certain options classes in
3 This figure does not include Form WB–APP
15 17
penny increments (‘‘Penny Pilot
CFR 200.30–3(a)(12). submissions which were facially deficient,
1 Implementation of the Whistleblower Provisions subsequently withdrawn, or submitted by
Program’’).
of Section 21F of the Securities Exchange Act of individuals who have been barred by the
1 15 U.S.C. 78s(b)(1).
1934, Release No. 34–64545; File No. S7–33–10 Commission from participation in the
(adopted May 25, 2011). whistleblower program. 2 17 CFR 240.19b–4.
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Document Created: 2017-12-23 03:07:50
Document Modified: 2017-12-23 03:07:50
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 82 FR 61054 |
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