82 FR 61089 - Self-Regulatory Organizations; Nasdaq GEMX, 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)
Federal Register Volume 82, Issue 246 (December 26, 2017)
| Page Range | 61089-61090 | |
| FR Document | 2017-27696 |
[Federal Register Volume 82, Number 246 (Tuesday, December 26, 2017)] [Notices] [Pages 61089-61090] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-27696] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82356; File No. SR-GEMX-2017-57] Self-Regulatory Organizations; Nasdaq GEMX, 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 11, 2017, Nasdaq GEMX, LLC (``GEMX'' 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b 4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its rules to extend a pilot program to quote and to trade certain options classes in penny increments (``Penny Pilot Program''). The text of the proposed rule change is available on the Exchange's website at http://nasdaqgemx.cchwallstreet.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 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 Under the Penny Pilot Program, 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 Program is currently scheduled to expire on December 31, 2017.\3\ The Exchange proposes to extend the Penny Pilot Program through June 30, 2018, and to provide a revised date for adding replacement issues to the Penny Pilot Program. 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 for the most recent six month period excluding the month immediately preceding the replacement (i.e., beginning June 1, 2017, and ending November 30, 2017). This filing does not propose any substantive changes to the Penny 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 any increase in quote traffic. --------------------------------------------------------------------------- \3\ See Exchange Act Release No. 80826 (May 31, 2017), 82 FR 26203 (June 6, 2017) (SR-GEMX-2017-21). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\4\ Specifically, the proposed rule change is consistent with Section 6(b)(5) of the Act,\5\ because it is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. In particular, the proposed rule change, which extends the Penny Pilot Program for an additional six months, will enable public customers and other market participants to express their true prices to buy and sell options to the benefit of all market participants. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\6\ the Exchange does not believe that the proposed rule change will impose any burden on intermarket or intramarket 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 Penny Pilot Program, the proposed rule change will allow for further analysis of the Penny Pilot Program and a determination of how the Penny Pilot 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. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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 \7\ and Rule [[Page 61090]] 19b 4(f)(6) thereunder.\8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \8\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally does not become operative prior to 30 days after the date of the filing.\10\ However, pursuant to Rule 19b-4(f)(6)(iii),\11\ 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.\12\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). \10\ 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. \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ 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) \13\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \13\ 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-GEMX-2017-57 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-GEMX-2017-57. 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-GEMX-2017-57 and should be submitted on or before January 16, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-27696 Filed 12-22-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 246 / Tuesday, December 26, 2017 / Notices 61089
office of the Exchange. All comments II. Self-Regulatory Organization’s demonstrated to outweigh any increase
received will be posted without change. Statement of the Purpose of, and in quote traffic.
Persons submitting comments are Statutory Basis for, the Proposed Rule
2. Statutory Basis
cautioned that we do not redact or edit Change
personal identifying information from The Exchange believes that the
comment submissions. You should In its filing with the Commission, the proposed rule change is consistent with
submit only information that you wish Exchange included statements the requirements of the Act and the
to make available publicly. All concerning the purpose of and basis for rules and regulations thereunder that
submissions should refer to File the proposed rule change and discussed are applicable to a national securities
Number SR–BOX–2017–37 and should any comments it received on the exchange, and, in particular, with the
be submitted on or before January 16, proposed rule change. The text of these requirements of Section 6(b) of the Act.4
2018. statements may be examined at the Specifically, the proposed rule change is
For the Commission, by the Division of
places specified in Item IV below. The consistent with Section 6(b)(5) of the
Trading and Markets, pursuant to delegated Exchange has prepared summaries, set Act,5 because it is designed to promote
authority.14 forth in sections A, B, and C below, of just and equitable principles of trade,
Eduardo A. Aleman,
the most significant aspects of such remove impediments to and perfect the
statements. mechanisms of a free and open market
Assistant Secretary.
and a national market system and, in
[FR Doc. 2017–27693 Filed 12–22–17; 8:45 am] A. Self-Regulatory Organization’s
general, to protect investors and the
BILLING CODE 8011–01–P Statement of the Purpose of, and
public interest. In particular, the
Statutory Basis for, the Proposed Rule
proposed rule change, which extends
Change
the Penny Pilot Program for an
SECURITIES AND EXCHANGE
1. Purpose additional six months, will enable
COMMISSION
public customers and other market
Under the Penny Pilot Program, the participants to express their true prices
[Release No. 34–82356; File No. SR–GEMX– minimum price variation for all to buy and sell options to the benefit of
2017–57] participating options classes, except for all market participants.
the Nasdaq-100 Index Tracking Stock
Self-Regulatory Organizations; Nasdaq (‘‘QQQQ’’), the SPDR S&P 500 Exchange B. Self-Regulatory Organization’s
GEMX, LLC; Notice of Filing and Traded Fund (‘‘SPY’’) and the iShares Statement on Burden on Competition
Immediate Effectiveness of Proposed Russell 2000 Index Fund (‘‘IWM’’), is In accordance with Section 6(b)(8) of
Rule Change To Extend the Penny $0.01 for all quotations in options series the Act,6 the Exchange does not believe
Pilot Program that are quoted at less than $3 per that the proposed rule change will
December 19, 2017. contract and $0.05 for all quotations in impose any burden on intermarket or
options series that are quoted at $3 per intramarket competition that is not
Pursuant to Section 19(b)(1) of the contract or greater. QQQQ, SPY and necessary or appropriate in furtherance
Securities Exchange Act of 1934
IWM are quoted in $0.01 increments for of the purposes of the Act. Specifically,
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
all options series. The Penny Pilot the Exchange believes that, by extending
notice is hereby given that on December
Program is currently scheduled to the expiration of the Penny Pilot
11, 2017, Nasdaq GEMX, LLC (‘‘GEMX’’
expire on December 31, 2017.3 The Program, the proposed rule change will
or ‘‘Exchange’’) filed with the Securities
Exchange proposes to extend the Penny allow for further analysis of the Penny
and Exchange Commission (‘‘SEC’’ or
Pilot Program through June 30, 2018, Pilot Program and a determination of
‘‘Commission’’) the proposed rule
and to provide a revised date for adding how the Penny Pilot Program should be
change as described in Items I and II,
replacement issues to the Penny Pilot structured in the future. In doing so, the
below, which Items have been prepared
Program. The Exchange proposes that proposed rule change will also serve to
by the Exchange. The Commission is
any Penny Pilot Program issues that promote regulatory clarity and
publishing this notice to solicit
have been delisted may be replaced on consistency, thereby reducing burdens
comments on the proposed rule change
the second trading day following on the marketplace and facilitating
from interested persons.
January 1, 2018. The replacement issues investor protection.
I. Self-Regulatory Organization’s will be selected based on trading C. Self-Regulatory Organization’s
Statement of the Terms of Substance of activity for the most recent six month Statement on Comments on the
the Proposed Rule Change period excluding the month Proposed Rule Change Received From
immediately preceding the replacement Members, Participants, or Others
The Exchange proposes to amend its (i.e., beginning June 1, 2017, and ending
rules to extend a pilot program to quote November 30, 2017). This filing does No written comments were either
and to trade certain options classes in not propose any substantive changes to solicited or received.
penny increments (‘‘Penny Pilot the Penny Pilot Program: all classes
Program’’). III. Date of Effectiveness of the
currently participating will remain the Proposed Rule Change and Timing for
The text of the proposed rule change same and all minimum increments will Commission Action
is available on the Exchange’s website at remain unchanged. The Exchange
http://nasdaqgemx.cchwallstreet.com/, believes the benefits to public customers The Exchange has filed the proposed
ethrower on DSK3G9T082PROD with NOTICES
at the principal office of the Exchange, and other market participants who will rule change pursuant to Section
and at the Commission’s Public be able to express their true prices to 19(b)(3)(A)(iii) of the Act 7 and Rule
Reference Room. buy and sell options have been
4 15 U.S.C. 78f(b).
14 17 CFR 200.30–3(a)(12). 3 See 5 15 U.S.C. 78f(b)(5).
Exchange Act Release No. 80826 (May 31,
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f(b)(8).
2017), 82 FR 26203 (June 6, 2017) (SR–GEMX–
2 17 CFR 240.19b 4. 2017–21). 7 15 U.S.C. 78s(b)(3)(A)(iii).
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![61090 Federal Register / Vol. 82, No. 246 / Tuesday, December 26, 2017 / Notices
19b 4(f)(6) thereunder.8 Because the under Section 19(b)(2)(B) 13 of the Act to should be submitted on or before
proposed rule change does not: (i) determine whether the proposed rule January 16, 2018.
Significantly affect the protection of change should be approved or For the Commission, by the Division of
investors or the public interest; (ii) disapproved. Trading and Markets, pursuant to delegated
impose any significant burden on authority.14
IV. Solicitation of Comments
competition; and (iii) become operative Eduardo A. Aleman,
prior to 30 days from the date on which Interested persons are invited to Assistant Secretary.
it was filed, or such shorter time as the submit written data, views, and [FR Doc. 2017–27696 Filed 12–22–17; 8:45 am]
Commission may designate, if arguments concerning the foregoing, BILLING CODE 8011–01–P
consistent with the protection of including whether the proposed rule
investors and the public interest, the change is consistent with the Act.
proposed rule change has become Comments may be submitted by any of SECURITIES AND EXCHANGE
effective pursuant to Section 19(b)(3)(A) the following methods: COMMISSION
of the Act and Rule 19b–4(f)(6)(iii)
thereunder. Electronic Comments [Release No. 34–82362; File No. SR–ISE–
A proposed rule change filed under • Use the Commission’s internet 2017–106]
Rule 19b–4(f)(6) 9 normally does not comment form (http://www.sec.gov/ Self-Regulatory Organizations; Nasdaq
become operative prior to 30 days after rules/sro.shtml); or ISE, LLC; Notice of Filing of Proposed
the date of the filing.10 However, • Send an email to rule-comments@ Rule Change To Permit the Listing and
pursuant to Rule 19b–4(f)(6)(iii),11 the sec.gov. Please include File Number SR–
Commission may designate a shorter Trading of NQX Index Options
GEMX–2017–57 on the subject line.
time if such action is consistent with the December 19, 2017.
protection of investors and the public Paper Comments
Pursuant to Section 19(b)(1) of the
interest. The Exchange has asked the • Send paper comments in triplicate Securities Exchange Act of 1934 (the
Commission to waive the 30-day to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2
operative delay so that the proposal may Commission, 100 F Street NE, notice is hereby given that on December
become operative immediately upon Washington, DC 20549–1090. 6, 2017, Nasdaq ISE, LLC (‘‘ISE’’ or
filing. The Commission believes that All submissions should refer to File ‘‘Exchange’’) filed with the Securities
waiving the 30-day operative delay is Number SR–GEMX–2017–57. This file and Exchange Commission (‘‘SEC’’ or
consistent with the protection of number should be included on the ‘‘Commission’’) the proposed rule
investors and the public interest subject line if email is used. To help the change as described in Items I, II, and
because doing so will allow the Pilot Commission process and review your III below, which Items have been
Program to continue without prepared by the Exchange. The
comments more efficiently, please use
interruption in a manner that is Commission is publishing this notice to
only one method. The Commission will
consistent with the Commission’s prior solicit comments on the proposed rule
post all comments on the Commission’s
approval of the extension and expansion change from interested persons.
internet website (http://www.sec.gov/
of the Pilot Program and will allow the
rules/sro.shtml). I. Self-Regulatory Organization’s
Exchange and the Commission
Copies of the submission, all Statement of the Terms of Substance of
additional time to analyze the impact of
the Pilot Program. Accordingly, the subsequent amendments, all written the Proposed Rule Change
Commission designates the proposed statements with respect to the proposed
rule change that are filed with the The Exchange proposes to permit the
rule change as operative upon filing listing and trading of options based on
with the Commission.12 Commission, and all written 1⁄5 the value of the Nasdaq-100 Index
At any time within 60 days of the communications relating to the
proposed rule change between the (‘‘Nasdaq-100’’) on a twelve month pilot
filing of such proposed rule change, the basis.
Commission summarily may Commission and any person, other than
The text of the proposed rule change
temporarily suspend such rule change if those that may be withheld from the
is available on the Exchange’s website at
it appears to the Commission that such public in accordance with the
http://ise.cchwallstreet.com/, at the
action is necessary or appropriate in the provisions of 5 U.S.C. 552, will be
principal office of the Exchange, and at
public interest, for the protection of available for website viewing and
the Commission’s Public Reference
investors, or otherwise in furtherance of printing in the Commission’s Public
Room.
the purposes of the Act. If the Reference Room, 100 F Street NE,
Commission takes such action, the Washington, DC 20549, on official II. Self-Regulatory Organization’s
Commission shall institute proceedings business days between the hours of Statement of the Purpose of, and
10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule
8 17 CFR 240.19b–4(f)(6). filing also will be available for Change
9 17 CFR 240.19b–4(f)(6). inspection and copying at the principal In its filing with the Commission, the
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
office of the Exchange. All comments Exchange included statements
4(f)(6)(iii) requires the Exchange to give the received will be posted without change.
Commission written notice of the Exchange’s intent concerning the purpose of and basis for
to file the proposed rule change along with a brief Persons submitting comments are the proposed rule change and discussed
description and the text of the proposed rule cautioned that we do not redact or edit any comments it received on the
change, at least five business days prior to the date personal identifying information from proposed rule change. The text of these
ethrower on DSK3G9T082PROD with NOTICES
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
comment submissions. You should statements may be examined at the
Exchange has satisfied this pre-filing requirement. submit only information that you wish places specified in Item IV below. The
11 17 CFR 240.19b–4(f)(6)(iii). to make available publicly. All Exchange has prepared summaries, set
12 For purposes only of waiving the operative
submissions should refer to File
delay for this proposal, the Commission has Number SR–GEMX–2017–57 and 14 17 CFR 200.30–3(a)(12).
considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 13 15 U.S.C. 78s(b)(2)(B). 2 17 CFR 240.19b–4.
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Document Created: 2017-12-23 03:09:06
Document Modified: 2017-12-23 03:09:06
| 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 61089 |
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