82 FR 61070 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 246 (December 26, 2017)

Page Range		61070-61072
FR Document		2017-27702
Federal Register, Volume 82 Issue 246 (Tuesday, December 26, 2017)
[Federal Register Volume 82, Number 246 (Tuesday, December 26, 2017)]
[Notices]
[Pages 61070-61072]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27702]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82365; File No. SR-NASDAQ-2017-130]


Self-Regulatory Organizations; The Nasdaq Stock Market LLC; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Extend the Penny Pilot Program

December 19, 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 December 12, 2017, The Nasdaq Stock Market LLC (``Nasdaq'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``SEC'' or ``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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Chapter VI, Section 5 (Minimum 
Increments) \3\ of the rules of the NASDAQ Options Market (``NOM'') to 
extend through June 30, 2018 or the date of permanent approval, if 
earlier, the Penny Pilot Program in options classes in certain issues 
(``Penny Pilot'' or ``Pilot''), and to change the date when delisted 
classes may be replaced in the Penny Pilot.
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    \3\ References herein to Chapter and Series refer to rules of 
the NASDAQ Options Market (``NOM''), unless otherwise noted.
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    The text of the proposed rule change is set forth below. Proposed 
new language is underlined; deleted text is in brackets.
* * * * *

[[Page 61071]]

The Nasdaq Stock Market Rules

Options Rules

* * * * *

Chapter VI Trading Systems

* * * * *

Sec. 5 Minimum Increments

    (a) The Board may establish minimum quoting increments for options 
contracts traded on NOM. Such minimum increments established by the 
Board will be designated as a stated policy, practice, or 
interpretation with respect to the administration of this Section 
within the meaning of Section 19 of the Exchange Act and will be filed 
with the SEC as a rule change for effectiveness upon filing. Until such 
time as the Board makes a change in the increments, the following 
principles shall apply:
    (1)-(2) No Change.
    (3) For a pilot period scheduled to expire on June 30, 2018 
[December 31, 2017] or the date of permanent approval, if earlier, if 
the options series is trading pursuant to the Penny Pilot program one 
(1) cent if the options series is trading at less than $3.00, five (5) 
cents if the options series is trading at $3.00 or higher, unless for 
QQQQs, SPY and IWM where the minimum quoting increment will be one cent 
for all series regardless of price. A list of such options shall be 
communicated to membership via an Options Trader Alert (``OTA'') posted 
on the Exchange's website.
    The Exchange may replace any pilot issues that have been delisted 
with the next most actively traded multiply listed options classes that 
are not yet included in the pilot, based on trading activity in the 
previous six months. The replacement issues may be added to the pilot 
on the second trading day following January 1, 2018 [July 1, 2017].
    (4) No Change.
    (b) No Change.
* * * * *

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 purpose of this filing is to amend Chapter VI, Section 5, to 
extend the Penny Pilot through June 30, 2018 or the date of permanent 
approval, if earlier,\4\ and to change the date when delisted classes 
may be replaced in the Penny Pilot. The Exchange believes that 
extending the Penny Pilot will allow for further analysis of the Penny 
Pilot and a determination of how the program should be structured in 
the future.
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    \4\ The options exchanges in the U.S. that have pilot programs 
similar to the Penny Pilot (together ``pilot programs'') are 
currently working on a proposal for permanent approval of the 
respective pilot programs.
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    Under the Penny Pilot, the minimum price variation for all 
participating options classes, except for the Nasdaq-100 Index Tracking 
Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and 
the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all 
quotations in options series that are quoted at less than $3 per 
contract and $0.05 for all quotations in options series that are quoted 
at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 
increments for all options series. The Penny Pilot is currently 
scheduled to expire on December 31, 2017.\5\
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    \5\ See Securities Exchange Act Release No. 80756 (May 24, 
2017), 82 FR 25023 (May 31, 2017) (SR-NASDAQ-2017-049).
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    The Exchange proposes to extend the time period of the Penny Pilot 
through June 30, 2018 or the date of permanent approval, if earlier, 
and to provide a revised date for adding replacement issues to the 
Penny Pilot. The Exchange proposes that any Penny Pilot Program issues 
that have been delisted may be replaced on the second trading day 
following January 1, 2018. The replacement issues will be selected 
based on trading activity in the previous six months.\6\
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    \6\ The replacement issues will be announced to the Exchange's 
membership via an Options Trader Alert (OTA) posted on the 
Exchange's website. Penny Pilot replacement issues will be selected 
based on trading activity in the previous six months, as is the case 
today. The replacement issues would be identified based on The 
Options Clearing Corporation's trading volume data. For example, for 
the January replacement, trading volume from May 30, 2017 through 
November 30, 2017 would be analyzed. The month immediately preceding 
the replacement issues' addition to the Pilot Program (i.e., 
December) would not be used for purposes of the six-month analysis.
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    This filing does not propose any substantive changes to the Penny 
Pilot Program; all classes currently participating in the Penny Pilot 
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 potential increase 
in quote traffic.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\7\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\8\ 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 mechanism of a free and open 
market and a national market system and, in general, to protect 
investors and the public interest.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    In particular, the proposed rule change, which extends the Penny 
Pilot for an additional six months through June 30, 2018 or the date of 
permanent approval, if earlier, and changes the date for replacing 
Penny Pilot issues that were delisted to the second trading day 
following January 1, 2018, will enable public customers and other 
market participants to express their true prices to buy and sell 
options for the benefit of all market participants. This is consistent 
with the Act.

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. To the contrary, this proposal 
is pro-competitive because it allows Penny Pilot issues to continue 
trading on the Exchange.
    Moreover, the Exchange believes that the proposed rule change will 
allow for further analysis of the Pilot and a determination of how the 
Pilot should be structured in the future; and will serve to promote 
regulatory clarity and consistency, thereby reducing burdens on the 
marketplace and facilitating investor protection.
    The Pilot is an industry-wide initiative supported by all other 
option exchanges. The Exchange believes that extending the Pilot will 
allow for continued competition between market participants on the 
Exchange trading

[[Page 61072]]

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.

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \9\ and Rule 19b-4(f)(6) thereunder.\10\ 
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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing.\12\ However, pursuant to Rule 19b-4(f)(6)(iii),\13\ 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.\14\
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    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 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.
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ 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).
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    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) \15\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \15\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NASDAQ-2017-130 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-NASDAQ-2017-130. 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-NASDAQ-2017-130 and 
should be submitted on or before January 16, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-27702 Filed 12-22-17; 8:45 am]
 BILLING CODE 8011-01-P
61070 Federal Register / Vol. 82, No. 246 / Tuesday, December 26, 2017 / Notices

of the purposes of the Act. The Commission summarily may submit only information that you wish
Exchange believes the proposed rule temporarily suspend such rule change if to make available publicly. All
change will enhance competition it appears to the Commission that such submissions should refer to File
because it will enable it to offer similar action is necessary or appropriate in the Number SR–PEARL–2017–38 and
connectivity and functionality as its public interest, for the protection of should be submitted on or before
competitor exchanges.30 In addition, the investors, or otherwise in furtherance of January 16, 2018.
proposed MEO Purge Ports are the purposes of the Act. If the For the Commission, by the Division of
completely voluntary and no Member is Commission takes such action, the Trading and Markets, pursuant to delegated
required or under any regulatory Commission shall institute proceedings authority.34
obligation to utilize them. to determine whether the proposed rule Eduardo A. Aleman,
The Exchange believes its proposed should be approved or disapproved. Assistant Secretary.
amendments to its Fee Schedule would
not impose any burden on competition IV. Solicitation of Comments [FR Doc. 2017–27689 Filed 12–22–17; 8:45 am]
that is not necessary or appropriate in Interested persons are invited to BILLING CODE 8011–01–P

furtherance of the purposes of the Act. submit written data, views, and
On the contrary, the Exchange believes arguments concerning the foregoing,
the proposed rule change will enhance including whether the proposed rule SECURITIES AND EXCHANGE
competition because it will enable it to change is consistent with the Act. COMMISSION
offer similar connectivity and Comments may be submitted by any of
the following methods: [Release No. 34–82365; File No. SR–
functionality as its competitor
NASDAQ–2017–130]
exchanges.31 In addition, the proposed Electronic Comments
MEO Purge Ports are completely Self-Regulatory Organizations; The
voluntary and no Member is required or • Use the Commission’s internet
comment form (http://www.sec.gov/ Nasdaq Stock Market LLC; Notice of
under any regulatory obligation to Filing and Immediate Effectiveness of
utilize them. Accordingly, the Exchange rules/sro.shtml); or
• Send an email to rule-comments@ Proposed Rule Change To Extend the
does not believe that the proposed Penny Pilot Program
change will impair the ability of sec.gov. Please include File Number SR–
Members or competing venues to PEARL–2017–38 on the subject line. December 19, 2017.
maintain their competitive standing in Paper Comments Pursuant to Section 19(b)(1) of the
the financial markets. Securities Exchange Act of 1934
The Exchange also does not believe • Send paper comments in triplicate
to Secretary, Securities and Exchange (‘‘Act’’),1 and Rule 19b–4 thereunder,2
the proposed rule change would impact notice is hereby given that on December
intramarket competition as it would Commission, 100 F Street NE,
Washington, DC 20549–1090. 12, 2017, The Nasdaq Stock Market LLC
apply to all Members and non-Members (‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the
equally. All submissions should refer to File
Securities and Exchange Commission
Number SR–PEARL–2017–38. This file
C. Self-Regulatory Organization’s (‘‘SEC’’ or ‘‘Commission’’) the proposed
number should be included on the
Statement on Comments on the rule change as described in Items I and
subject line if email is used. To help the
Proposed Rule Change Received From II, below, which Items have been
Commission process and review your
Members, Participants, or Others prepared by the Exchange. The
comments more efficiently, please use
Commission is publishing this notice to
Written comments were neither only one method. The Commission will
solicit comments on the proposed rule
solicited nor received. post all comments on the Commission’s
change from interested persons.
internet website (http://www.sec.gov/
III. Date of Effectiveness of the rules/sro.shtml). Copies of the I. Self-Regulatory Organization’s
Proposed Rule Change and Timing for submission, all subsequent Statement of the Terms of Substance of
Commission Action
amendments, all written statements the Proposed Rule Change
Because the foregoing proposed rule with respect to the proposed rule The Exchange proposes to amend
change does not: (i) Significantly affect change that are filed with the
the protection of investors or the public Chapter VI, Section 5 (Minimum
Commission, and all written Increments) 3 of the rules of the
interest; (ii) impose any significant communications relating to the
burden on competition; and (iii) become NASDAQ Options Market (‘‘NOM’’) to
proposed rule change between the extend through June 30, 2018 or the date
operative for 30 days after the date of Commission and any person, other than
the filing, or such shorter time as the of permanent approval, if earlier, the
those that may be withheld from the Penny Pilot Program in options classes
Commission may designate, it has public in accordance with the
become effective pursuant to 19(b)(3)(A) in certain issues (‘‘Penny Pilot’’ or
provisions of 5 U.S.C. 552, will be ‘‘Pilot’’), and to change the date when
of the Act 32 and Rule 19b–4(f)(6) 33 available for website viewing and
thereunder. delisted classes may be replaced in the
printing in the Commission’s Public Penny Pilot.
At any time within 60 days of the Reference Room, 100 F Street NE,
filing of the proposed rule change, the The text of the proposed rule change
Washington, DC 20549 on official is set forth below. Proposed new
business days between the hours of language is underlined; deleted text is
30 See supra note 26.
31 Id.
10:00 a.m. and 3:00 p.m. Copies of the in brackets.
filing also will be available for
ethrower on DSK3G9T082PROD with NOTICES

32 15 U.S.C. 78s(b)(3)(A).
inspection and copying at the principal * * * * *
33 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give office of the Exchange. All comments
34 17 CFR 200.30–3(a)(12).
the Commission written notice of its intent to file received will be posted without change. 1 15
the proposed rule change at least five business days U.S.C. 78s(b)(1).
Persons submitting comments are 2 17 CFR 240.19b–4.
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
cautioned that we do not redact or edit 3 References herein to Chapter and Series refer to

Commission. The Exchange has satisfied this personal identifying information from rules of the NASDAQ Options Market (‘‘NOM’’),
requirement. comment submissions. You should unless otherwise noted.

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The Nasdaq Stock Market Rules A. Self-Regulatory Organization’s remain the same and all minimum
Options Rules Statement of the Purpose of, and increments will remain unchanged. The
Statutory Basis for, the Proposed Rule Exchange believes the benefits to public
* * * * * Change customers and other market participants
Chapter VI Trading Systems who will be able to express their true
1. Purpose
prices to buy and sell options have been
* * * * * The purpose of this filing is to amend demonstrated to outweigh the potential
Sec. 5 Minimum Increments Chapter VI, Section 5, to extend the increase in quote traffic.
Penny Pilot through June 30, 2018 or the
(a) The Board may establish minimum date of permanent approval, if earlier,4 2. Statutory Basis
quoting increments for options contracts and to change the date when delisted The Exchange believes that its
traded on NOM. Such minimum classes may be replaced in the Penny proposal is consistent with Section 6(b)
increments established by the Board Pilot. The Exchange believes that of the Act,7 in general, and furthers the
will be designated as a stated policy, extending the Penny Pilot will allow for objectives of Section 6(b)(5) of the Act,8
practice, or interpretation with respect further analysis of the Penny Pilot and in particular, in that it is designed to
to the administration of this Section a determination of how the program prevent fraudulent and manipulative
within the meaning of Section 19 of the should be structured in the future. acts and practices, to promote just and
Exchange Act and will be filed with the Under the Penny Pilot, the minimum equitable principles of trade, to foster
SEC as a rule change for effectiveness price variation for all participating cooperation and coordination with
upon filing. Until such time as the options classes, except for the Nasdaq- persons engaged in facilitating
Board makes a change in the 100 Index Tracking Stock (‘‘QQQQ’’), transactions in securities, and to remove
increments, the following principles the SPDR S&P 500 Exchange Traded impediments to and perfect the
shall apply: Fund (‘‘SPY’’) and the iShares Russell mechanism of a free and open market
(1)–(2) No Change. 2000 Index Fund (‘‘IWM’’), is $0.01 for and a national market system and, in
(3) For a pilot period scheduled to all quotations in options series that are general, to protect investors and the
expire on June 30, 2018 [December 31, quoted at less than $3 per contract and public interest.
2017] or the date of permanent $0.05 for all quotations in options series In particular, the proposed rule
approval, if earlier, if the options series that are quoted at $3 per contract or change, which extends the Penny Pilot
is trading pursuant to the Penny Pilot greater. QQQQ, SPY and IWM are for an additional six months through
program one (1) cent if the options quoted in $0.01 increments for all June 30, 2018 or the date of permanent
series is trading at less than $3.00, five options series. The Penny Pilot is approval, if earlier, and changes the date
(5) cents if the options series is trading currently scheduled to expire on for replacing Penny Pilot issues that
at $3.00 or higher, unless for QQQQs, December 31, 2017.5 were delisted to the second trading day
SPY and IWM where the minimum The Exchange proposes to extend the following January 1, 2018, will enable
quoting increment will be one cent for time period of the Penny Pilot through public customers and other market
all series regardless of price. A list of June 30, 2018 or the date of permanent participants to express their true prices
such options shall be communicated to approval, if earlier, and to provide a to buy and sell options for the benefit
membership via an Options Trader Alert revised date for adding replacement of all market participants. This is
(‘‘OTA’’) posted on the Exchange’s issues to the Penny Pilot. The Exchange consistent with the Act.
website. proposes that any Penny Pilot Program
The Exchange may replace any pilot issues that have been delisted may be B. Self-Regulatory Organization’s
issues that have been delisted with the replaced on the second trading day Statement on Burden on Competition
next most actively traded multiply following January 1, 2018. The The Exchange does not believe that
listed options classes that are not yet replacement issues will be selected the proposed rule change will impose
included in the pilot, based on trading based on trading activity in the previous any burden on competition not
activity in the previous six months. The six months.6 necessary or appropriate in furtherance
replacement issues may be added to the This filing does not propose any of the purposes of the Act. To the
pilot on the second trading day substantive changes to the Penny Pilot contrary, this proposal is pro-
following January 1, 2018 [July 1, 2017]. Program; all classes currently competitive because it allows Penny
(4) No Change. participating in the Penny Pilot will Pilot issues to continue trading on the
(b) No Change. Exchange.
4 The options exchanges in the U.S. that have
* * * * * Moreover, the Exchange believes that
pilot programs similar to the Penny Pilot (together
II. Self-Regulatory Organization’s ‘‘pilot programs’’) are currently working on a
the proposed rule change will allow for
Statement of the Purpose of, and proposal for permanent approval of the respective further analysis of the Pilot and a
Statutory Basis for, the Proposed Rule
pilot programs. determination of how the Pilot should
Change
5 See Securities Exchange Act Release No. 80756
be structured in the future; and will
(May 24, 2017), 82 FR 25023 (May 31, 2017) (SR– serve to promote regulatory clarity and
In its filing with the Commission, the NASDAQ–2017–049).
6 The replacement issues will be announced to consistency, thereby reducing burdens
Exchange included statements the Exchange’s membership via an Options Trader on the marketplace and facilitating
concerning the purpose of and basis for Alert (OTA) posted on the Exchange’s website. investor protection.
the proposed rule change and discussed Penny Pilot replacement issues will be selected The Pilot is an industry-wide
any comments it received on the based on trading activity in the previous six
initiative supported by all other option
ethrower on DSK3G9T082PROD with NOTICES

months, as is the case today. The replacement
proposed rule change. The text of these issues would be identified based on The Options exchanges. The Exchange believes that
statements may be examined at the Clearing Corporation’s trading volume data. For extending the Pilot will allow for
places specified in Item IV below. The example, for the January replacement, trading continued competition between market
Exchange has prepared summaries, set volume from May 30, 2017 through November 30,
2017 would be analyzed. The month immediately
participants on the Exchange trading
forth in sections A, B, and C below, of preceding the replacement issues’ addition to the
the most significant aspects of such Pilot Program (i.e., December) would not be used for 7 15 U.S.C. 78f(b).
statements. purposes of the six-month analysis. 8 15 U.S.C. 78f(b)(5).

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61072 Federal Register / Vol. 82, No. 246 / Tuesday, December 26, 2017 / Notices

similar products as their counterparts Exchange and the Commission public in accordance with the
on other exchanges, while at the same additional time to analyze the impact of provisions of 5 U.S.C. 552, will be
time allowing the Exchange to continue the Pilot Program. Accordingly, the available for website viewing and
to compete for order flow with other Commission designates the proposed printing in the Commission’s Public
exchanges in option issues trading as rule change as operative upon filing Reference Room, 100 F Street NE,
part of the Pilot. with the Commission.14 Washington, DC 20549, on official
At any time within 60 days of the business days between the hours of
C. Self-Regulatory Organization’s filing of such proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the
Statement on Comments on the Commission summarily may filing also will be available for
Proposed Rule Change Received From temporarily suspend such rule change if inspection and copying at the principal
Members, Participants, or Others it appears to the Commission that such office of the Exchange. All comments
No written comments were either action is necessary or appropriate in the received will be posted without change.
solicited or received. public interest, for the protection of Persons submitting comments are
III. Date of Effectiveness of the investors, or otherwise in furtherance of cautioned that we do not redact or edit
Proposed Rule Change and Timing for the purposes of the Act. If the personal identifying information from
Commission Action Commission takes such action, the comment submissions. You should
Commission shall institute proceedings submit only information that you wish
The Exchange has filed the proposed under Section 19(b)(2)(B) 15 of the Act to to make available publicly.
rule change pursuant to Section determine whether the proposed rule All submissions should refer to File
19(b)(3)(A)(iii) of the Act 9 and Rule change should be approved or Number SR–NASDAQ–2017–130 and
19b–4(f)(6) thereunder.10 Because the disapproved. should be submitted on or before
proposed rule change does not: (i) January 16, 2018.
Significantly affect the protection of IV. Solicitation of Comments
investors or the public interest; (ii) For the Commission, by the Division of
Interested persons are invited to Trading and Markets, pursuant to delegated
impose any significant burden on submit written data, views, and authority.16
competition; and (iii) become operative arguments concerning the foregoing, Eduardo A. Aleman,
prior to 30 days from the date on which including whether the proposed rule Assistant Secretary.
it was filed, or such shorter time as the change is consistent with the Act.
Commission may designate, if [FR Doc. 2017–27702 Filed 12–22–17; 8:45 am]
Comments may be submitted by any of
consistent with the protection of the following methods: BILLING CODE 8011–01–P

investors and the public interest, the
proposed rule change has become Electronic Comments
effective pursuant to Section 19(b)(3)(A) • Use the Commission’s internet SECURITIES AND EXCHANGE
of the Act and Rule 19b–4(f)(6)(iii) comment form (http://www.sec.gov/ COMMISSION
thereunder. rules/sro.shtml); or [Release No. 34–82352; File No. SR–OCC–
A proposed rule change filed under • Send an email to rule-comments@ 2017–021]
Rule 19b–4(f)(6) 11 normally does not sec.gov. Please include File Number SR–
become operative prior to 30 days after NASDAQ–2017–130 on the subject line. Self-Regulatory Organizations; The
the date of the filing.12 However, Options Clearing Corporation; Notice
Paper Comments of Filing of a Proposed Rule Change
pursuant to Rule 19b–4(f)(6)(iii),13 the
Commission may designate a shorter • Send paper comments in triplicate Concerning Updates to and
time if such action is consistent with the to Secretary, Securities and Exchange Formalization of OCC’s Recovery and
protection of investors and the public Commission, 100 F Street NE, Orderly Wind-Down Plan
interest. The Exchange has asked the Washington, DC 20549–1090.
December 19, 2017
Commission to waive the 30-day All submissions should refer to File Pursuant to Section 19(b)(1) of the
operative delay so that the proposal may Number SR–NASDAQ–2017–130. This Securities Exchange Act of 1934
become operative immediately upon file number should be included on the (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
filing. The Commission believes that subject line if email is used. To help the notice is hereby given that on December
waiving the 30-day operative delay is Commission process and review your 8, 2017, The Options Clearing
consistent with the protection of comments more efficiently, please use Corporation (‘‘OCC’’) filed with the
investors and the public interest only one method. The Commission will Securities and Exchange Commission
because doing so will allow the Pilot post all comments on the Commission’s (‘‘Commission’’) the proposed rule
Program to continue without internet website (http://www.sec.gov/ change as described in Items I, II and III
interruption in a manner that is rules/sro.shtml). below, which Items have been prepared
consistent with the Commission’s prior Copies of the submission, all
by OCC. The Commission is publishing
approval of the extension and expansion subsequent amendments, all written
this notice to solicit comments on the
of the Pilot Program and will allow the statements with respect to the proposed
proposed rule change from interested
rule change that are filed with the
persons.
9 15 U.S.C. 78s(b)(3)(A)(iii). Commission, and all written
10 17 CFR 240.19b–4(f)(6). communications relating to the I. Clearing Agency’s Statement of the
11 17 CFR 240.19b–4(f)(6).
proposed rule change between the Terms of Substance of the Proposed
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Commission and any person, other than Rule Change
ethrower on DSK3G9T082PROD with NOTICES

4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent those that may be withheld from the This proposed rule change by the
to file the proposed rule change along with a brief OCC would formalize and update OCC’s
description and the text of the proposed rule 14 For purposes only of waiving the operative

change, at least five business days prior to the date delay for this proposal, the Commission has
Recovery and Orderly Wind-Down Plan
of filing of the proposed rule change, or such considered the proposed rule’s impact on
16 17 CFR 200.30–3(a)(12).
shorter time as designated by the Commission. The efficiency, competition, and capital formation. See
Exchange has satisfied this pre-filing requirement. 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1).
13 17 CFR 240.19b–4(f)(6)(iii). 15 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 20:21 Dec 22, 2017 Jkt 244001 PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 E:\FR\FM\26DEN1.SGM 26DEN1
Document Created: 2017-12-23 03:08:53
Document Modified: 2017-12-23 03:08:53
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 61070