82 FR 9264 - Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Options Order Protection and Locked/Crossed Market Plan To Add MIAX PEARL, LLC as a Participant

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 22 (February 3, 2017)

Page Range		9264-9265
FR Document		2017-02265
Federal Register, Volume 82 Issue 22 (Friday, February 3, 2017)
[Federal Register Volume 82, Number 22 (Friday, February 3, 2017)]
[Notices]
[Pages 9264-9265]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02265]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79896; File No. 4-546]


Joint Industry Plan; Notice of Filing and Immediate Effectiveness 
of Amendment to the Options Order Protection and Locked/Crossed Market 
Plan To Add MIAX PEARL, LLC as a Participant

January 30, 2017.
    Pursuant to Section 11A(a)(3) of the Securities Exchange Act of 
1934 (``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given 
that on January 17, 2017, MIAX PEARL, LLC (``MIAX PEARL'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') an amendment to the Options Order Protection and 
Locked/Crossed Market Plan (``Plan'').\3\ The Commission approved the 
application of MIAX PEARL to register as a national securities exchange 
on December 13, 2016.\4\ One of the conditions of the Commission's 
approval was the requirement for MIAX PEARL to join the Plan. The 
amendment adds MIAX PEARL as a Participant \5\ to the Plan.\6\ The 
Commission is publishing this notice to solicit comments on the 
amendment from interested persons.
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    \1\ 15 U.S.C. 78k-1(a)(3).
    \2\ 17 CFR 242.608.
    \3\ On July 30, 2009, the Commission approved the Plan, which 
was proposed by Chicago Board Options Exchange, Incorporated 
(``CBOE''), International Securities Exchange, LLC (``ISE''), The 
NASDAQ Stock Market LLC (``Nasdaq''), NASDAQ OMX BX, Inc. (``BX''), 
NASDAQ OMX PHLX, Inc. (``Phlx''), NYSE Amex, LLC (``NYSE Amex''), 
and NYSE Arca, Inc. (``NYSE Arca''). See Securities Exchange Act 
Release No. 60405 (July 30, 2009), 74 FR 39362 (August 6, 2009). See 
also Securities Exchange Act Release No. 61546 (February 19, 2010), 
75 FR 8762 (February 25, 2010) (adding BATS Exchange, Inc. 
(``BATS'') as a Participant); 63119 (October 15, 2010), 75 FR 65536 
(October 25, 2010) (adding C2 Options Exchange, Incorporated 
(``C2'') as a Participant); 66969 (May 11, 2015), 77 FR 29396 (May 
17, 2012) (adding BOX Options Exchange LLC (``BOX Options'' as a 
Participant); 70763 (October 28, 2013), 78 FR 65734 (November 1, 
2013) (adding Topaz Exchange, LLC (``Topaz'') as a Participant); 
70762 (October 28, 2013), 78 FR 65740 (November 1, 2013) (adding 
MIAX International Securities Exchange, LLC (``MIAX'') as a 
Participant); 76823 (January 5, 2016), 81 FR 1260 (January 11, 2016) 
(adding EDGX Exchange, Inc. (``EDGX'') as a Participant); 77324 
(March 8, 2016), 81 FR 13425 (March 14, 2016) (adding ISE MERCURY, 
LLC (``ISE Mercury'') as a Participant).
    \4\ See Securities and Exchange Act Release No. 79543 (Dec. 13, 
2016), 81 FR 92901 (Dec. 20, 2016) (File No. 10-227).
    \5\ The term ``Participant'' is defined as an Eligible Exchange 
whose participation in the Plan has become effective pursuant to 
Section 3(c) of the Plan.
    \6\ See Letter from Barbara J. Comly, Executive Vice President, 
General Counsel, and Corporate Secretary, MIAX PEARL, to Brent J. 
Fields, Secretary, Commission, dated January 13, 2017.
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I. Description and Purpose of the Amendment

    The Plan requires the options exchanges to establish a framework 
for providing order protection and addressing locked and crossed 
markets in eligible options classes. The amendment to the Plan adds 
MIAX PEARL as a Participant. The other Plan Participants are BATS, BOX, 
BX, C2, CBOE, EDGX, ISE, ISE Gemini, ISE Mercury, MIAX, Nasdaq, Phlx, 
NYSE MKT, and NYSE Arca. MIAX PEARL has submitted an executed copy of 
the Plan to the Commission in accordance with the procedures set forth 
in the Plan regarding new Participants. Section 3(c) of the Plan 
provides for the entry of new Participants to the Plan. Specifically, 
Section 3(c) of the Plan provides that an Eligible Exchange \7\ may 
become a Participant in the Plan by: (i) Executing a copy of the Plan, 
as then in effect; (ii) providing each current Participant with a copy 
of such executed Plan; and (iii) effecting an amendment to the Plan, as 
specified in Section 4(b) of the Plan.
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    \7\ Section 2(6) of the Plan defines an ``Eligible Exchange'' as 
a national securities exchange registered with the Commission 
pursuant to Section 6(a) of the Act, 15 U.S.C. 78f(a), that: (a) Is 
a ``Participant Exchange'' in the Options Clearing Corporation 
(``OCC'') (as defined in OCC By-laws, Section VII); (b) is a party 
to the Options Price Reporting Authority (``OPRA'') Plan (as defined 
in the OPRA Plan, Section 1); and (c) if the national securities 
exchange chooses not to become part to this Plan, is a participant 
in another plan approved by the Commission providing for comparable 
Trade-Through and Locked and Crossed Market protection. MIAX PEARL 
has represented that it has met the requirements for being 
considered an Eligible Exchange. See supra note 6.
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    Section 4(b) of the Plan sets forth the process by which an 
Eligible Exchange may effect an amendment to the Plan. Specifically, an 
Eligible Exchange must: (a) Execute a copy of the Plan with the only 
change being the addition of the new Participant's name in Section 3(a) 
of the Plan; and (b) submit the executed Plan to the Commission. The 
Plan then

[[Page 9265]]

provides that such an amendment will be effective when the amendment is 
approved by the Commission or otherwise becomes effective pursuant to 
Section 11A of the Act and Rule 608 thereunder.

II. Effectiveness of the Linkage Plan Amendment

    The foregoing Plan amendment has become effective pursuant to Rule 
608(b)(3)(iii) \8\ because it involves solely technical or ministerial 
matters. At any time within sixty days of the filing of this amendment, 
the Commission may summarily abrogate the amendment and require that it 
be refiled pursuant to paragraph (a)(1) of Rule 608,\9\ if it appears 
to the Commission that such action is necessary or appropriate in the 
public interest, for the protection of investors or the maintenance of 
fair and orderly markets, to remove impediments to, and perfect the 
mechanisms of, a national market system or otherwise in furtherance of 
the purposes of the Act.
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    \8\ 17 CFR 242.608(b)(3)(iii).
    \9\ 17 CFR 242.608(a)(1).
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III. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the amendment 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 4-546 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 4-546. This file number 
should be included on the subject line if email is used. To help the 
Commission process and review your comments more efficiently, please 
use only one method. The Commission will post all comments on the 
Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements with respect to the proposed rule change that are filed with 
the Commission, and all written communications relating to the 
amendment between the Commission and any person, other than those that 
may be withheld from the public in accordance with the provisions of 5 
U.S.C. 552, will be available for Web site viewing and printing in the 
Commission's Public Reference Room, 100 F Street NE., Washington, DC 
20549, on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of such filing also will be available for inspection 
and copying at the principal office of MIAX PEARL. All comments 
received will be posted without change; the Commission does not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number 4-546 and should be submitted 
on or before February 24, 2017.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02265 Filed 2-2-17; 8:45 am]
BILLING CODE 8011-01-P
9264 Federal Register / Vol. 82, No. 22 / Friday, February 3, 2017 / Notices

II. Effectiveness of the OLPP filing also will be available for securities exchange on December 13,
Amendment inspection and copying at MIAX 2016.4 One of the conditions of the
The foregoing OLPP amendment has PEARL’s principal office. All comments Commission’s approval was the
become effective pursuant to Rule received will be posted without change; requirement for MIAX PEARL to join
608(b)(3)(iii) 9 because it involves solely the Commission does not edit personal the Plan. The amendment adds MIAX
technical or ministerial matters. At any identifying information from PEARL as a Participant 5 to the Plan.6
time within sixty days of the filing of submissions. You should submit only The Commission is publishing this
the amendment, the Commission may information that you wish to make notice to solicit comments on the
summarily abrogate the amendment and available publicly. All submissions amendment from interested persons.
require that it be refiled pursuant to should refer to File Number 4–443, and
I. Description and Purpose of the
paragraph (a)(1) of Rule 608,10 if it should be submitted on or before
Amendment
appears to the Commission that such February 24, 2017.
The Plan requires the options
action is necessary or appropriate in the By the Commission.
exchanges to establish a framework for
public interest, for the protection of Eduardo A. Aleman,
providing order protection and
investors or the maintenance of fair and Assistant Secretary. addressing locked and crossed markets
orderly markets, to remove impediments [FR Doc. 2017–02266 Filed 2–2–17; 8:45 am] in eligible options classes. The
to, and perfect the mechanisms of, a BILLING CODE 8011–01–P amendment to the Plan adds MIAX
national market system or otherwise in
PEARL as a Participant. The other Plan
furtherance of the purposes of the Act.
Participants are BATS, BOX, BX, C2,
III. Solicitation of Comments SECURITIES AND EXCHANGE CBOE, EDGX, ISE, ISE Gemini, ISE
COMMISSION Mercury, MIAX, Nasdaq, Phlx, NYSE
Interested persons are invited to
submit written data, views, and [Release No. 34–79896; File No. 4–546] MKT, and NYSE Arca. MIAX PEARL
arguments concerning the foregoing, has submitted an executed copy of the
including whether the amendment is Joint Industry Plan; Notice of Filing Plan to the Commission in accordance
consistent with the Act. Comments may and Immediate Effectiveness of with the procedures set forth in the Plan
be submitted by any of the following Amendment to the Options Order regarding new Participants. Section 3(c)
methods: Protection and Locked/Crossed Market of the Plan provides for the entry of new
Plan To Add MIAX PEARL, LLC as a Participants to the Plan. Specifically,
Electronic Comments Participant Section 3(c) of the Plan provides that an
• Use the Commission’s Internet January 30, 2017.
Eligible Exchange 7 may become a
comment form (http://www.sec.gov/ Participant in the Plan by: (i) Executing
Pursuant to Section 11A(a)(3) of the a copy of the Plan, as then in effect; (ii)
rules/sro.shtml); or Securities Exchange Act of 1934
• Send an email to rule-comments@ providing each current Participant with
(‘‘Act’’) 1 and Rule 608 thereunder,2 a copy of such executed Plan; and (iii)
sec.gov. Please include File Number 4–
notice is hereby given that on January effecting an amendment to the Plan, as
443 on the subject line.
17, 2017, MIAX PEARL, LLC (‘‘MIAX specified in Section 4(b) of the Plan.
Paper Comments PEARL’’ or ‘‘Exchange’’) filed with the Section 4(b) of the Plan sets forth the
• Send paper comments in triplicate Securities and Exchange Commission process by which an Eligible Exchange
to Secretary, Securities and Exchange (‘‘Commission’’) an amendment to the may effect an amendment to the Plan.
Commission, 100 F Street NE., Options Order Protection and Locked/ Specifically, an Eligible Exchange must:
Washington, DC 20549–1090. Crossed Market Plan (‘‘Plan’’).3 The (a) Execute a copy of the Plan with the
Commission approved the application only change being the addition of the
All submissions should refer to File
of MIAX PEARL to register as a national new Participant’s name in Section 3(a)
Number 4–443. This file number should
be included on the subject line if email 1 15
of the Plan; and (b) submit the executed
U.S.C. 78k–1(a)(3).
is used. To help the Commission 2 17
Plan to the Commission. The Plan then
CFR 242.608.
process and review your comments 3 On July 30, 2009, the Commission approved the
4 See Securities and Exchange Act Release No.
more efficiently, please use only one Plan, which was proposed by Chicago Board
79543 (Dec. 13, 2016), 81 FR 92901 (Dec. 20, 2016)
method. The Commission will post all Options Exchange, Incorporated (‘‘CBOE’’),
(File No. 10–227).
comments on the Commission’s Internet International Securities Exchange, LLC (‘‘ISE’’), The
5 The term ‘‘Participant’’ is defined as an Eligible
NASDAQ Stock Market LLC (‘‘Nasdaq’’), NASDAQ
Web site (http://www.sec.gov/rules/ OMX BX, Inc. (‘‘BX’’), NASDAQ OMX PHLX, Inc. Exchange whose participation in the Plan has
sro.shtml). Copies of the submission, all (‘‘Phlx’’), NYSE Amex, LLC (‘‘NYSE Amex’’), and become effective pursuant to Section 3(c) of the
subsequent amendments, all written NYSE Arca, Inc. (‘‘NYSE Arca’’). See Securities Plan.
Exchange Act Release No. 60405 (July 30, 2009), 74 6 See Letter from Barbara J. Comly, Executive Vice
statements with respect to the plan that President, General Counsel, and Corporate
FR 39362 (August 6, 2009). See also Securities
are filed with the Commission, and all Exchange Act Release No. 61546 (February 19, Secretary, MIAX PEARL, to Brent J. Fields,
written communications relating to the 2010), 75 FR 8762 (February 25, 2010) (adding Secretary, Commission, dated January 13, 2017.
plan between the Commission and any BATS Exchange, Inc. (‘‘BATS’’) as a Participant); 7 Section 2(6) of the Plan defines an ‘‘Eligible

63119 (October 15, 2010), 75 FR 65536 (October 25, Exchange’’ as a national securities exchange
person, other than those that may be 2010) (adding C2 Options Exchange, Incorporated registered with the Commission pursuant to Section
withheld from the public in accordance (‘‘C2’’) as a Participant); 66969 (May 11, 2015), 77 6(a) of the Act, 15 U.S.C. 78f(a), that: (a) Is a
with the provisions of 5 U.S.C. 552, will FR 29396 (May 17, 2012) (adding BOX Options ‘‘Participant Exchange’’ in the Options Clearing
asabaliauskas on DSK3SPTVN1PROD with NOTICES

be available for Web site viewing and Exchange LLC (‘‘BOX Options’’ as a Participant); Corporation (‘‘OCC’’) (as defined in OCC By-laws,
70763 (October 28, 2013), 78 FR 65734 (November Section VII); (b) is a party to the Options Price
printing in the Commission’s Public 1, 2013) (adding Topaz Exchange, LLC (‘‘Topaz’’) as Reporting Authority (‘‘OPRA’’) Plan (as defined in
Reference Room, 100 F Street NE., a Participant); 70762 (October 28, 2013), 78 FR the OPRA Plan, Section 1); and (c) if the national
Washington, DC 20549 on official 65740 (November 1, 2013) (adding MIAX securities exchange chooses not to become part to
business days between the hours of International Securities Exchange, LLC (‘‘MIAX’’) as this Plan, is a participant in another plan approved
a Participant); 76823 (January 5, 2016), 81 FR 1260 by the Commission providing for comparable
10:00 a.m. and 3:00 p.m. Copies of such (January 11, 2016) (adding EDGX Exchange, Inc. Trade-Through and Locked and Crossed Market
(‘‘EDGX’’) as a Participant); 77324 (March 8, 2016), protection. MIAX PEARL has represented that it has
9 17 CFR 242.608(b)(3)(iii). 81 FR 13425 (March 14, 2016) (adding ISE met the requirements for being considered an
10 17 CFR 242.608(b)(1). MERCURY, LLC (‘‘ISE Mercury’’) as a Participant). Eligible Exchange. See supra note 6.

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Federal Register / Vol. 82, No. 22 / Friday, February 3, 2017 / Notices 9265

provides that such an amendment will may be withheld from the public in Internet Web site at http://
be effective when the amendment is accordance with the provisions of 5 boxexchange.com.
approved by the Commission or U.S.C. 552, will be available for Web
II. Self-Regulatory Organization’s
otherwise becomes effective pursuant to site viewing and printing in the
Statement of the Purpose of, and
Section 11A of the Act and Rule 608 Commission’s Public Reference Room,
Statutory Basis for, the Proposed Rule
thereunder. 100 F Street NE., Washington, DC
Change
20549, on official business days
II. Effectiveness of the Linkage Plan In its filing with the Commission, the
between the hours of 10:00 a.m. and
Amendment self-regulatory organization included
3:00 p.m. Copies of such filing also will
The foregoing Plan amendment has be available for inspection and copying statements concerning the purpose of,
become effective pursuant to Rule at the principal office of MIAX PEARL. and basis for, the proposed rule change
608(b)(3)(iii) 8 because it involves solely All comments received will be posted and discussed any comments it received
technical or ministerial matters. At any without change; the Commission does on the proposed rule change. The text
time within sixty days of the filing of not edit personal identifying of these statements may be examined at
this amendment, the Commission may information from submissions. You the places specified in Item IV below.
summarily abrogate the amendment and should submit only information that The self-regulatory organization has
require that it be refiled pursuant to you wish to make available publicly. All prepared summaries, set forth in
paragraph (a)(1) of Rule 608,9 if it submissions should refer to File Sections A, B, and C below, of the most
appears to the Commission that such Number 4–546 and should be submitted significant aspects of such statements.
action is necessary or appropriate in the on or before February 24, 2017. A. Self-Regulatory Organization’s
public interest, for the protection of
By the Commission. Statement of the Purpose of, and
investors or the maintenance of fair and
Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
orderly markets, to remove impediments
Assistant Secretary. Change
to, and perfect the mechanisms of, a
national market system or otherwise in [FR Doc. 2017–02265 Filed 2–2–17; 8:45 am] 1. Purpose
furtherance of the purposes of the Act. BILLING CODE 8011–01–P
The purpose of the proposed rule
III. Solicitation of Comments change is to amend Rule 7150 (The
Interested persons are invited to SECURITIES AND EXCHANGE Price Improvement Period (‘‘PIP’’)) to
submit written data, views and COMMISSION provide that if at the start of the auction
arguments concerning the foregoing, the quoted NBBO spread is less than or
[Release No. 34–79900; File No. SR–BOX– equal to a $0.01, only PIP Orders for less
including whether the amendment is 2017–06]
consistent with the Act. Comments may than 50 contracts will be rejected.
The Exchange recently filed to amend
be submitted by any of the following Self-Regulatory Organizations; BOX the BOX Rules to make permanent the
methods: Options Exchange LLC; Notice of pilot programs that permit the Exchange
Electronic Comments Filing and Immediate Effectiveness of to have no minimum size requirement
a Proposed Rule Change To Amend for orders entered into the PIP (‘‘PIP
• Use the Commission’s Internet Rule 7150 (The Price Improvement
comment form (http://www.sec.gov/ Pilot Program’’) and COPIP (‘‘COPIP
Period (‘‘PIP’’)) Pilot Program’’), collectively known as
rules/sro.shtml); or
• Send an email to rule-comments@ January 30, 2017. the (‘‘Programs’’).3 As part of this filing,
sec.gov. Please include File Number 4– Pursuant to Section 19(b)(1) of the BOX also modified the requirements for
546 on the subject line. Securities Exchange Act of 1934 the PIP to specify where the National
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Best Bid and Offer (‘‘NBBO’’) spread is
Paper Comments less than equal to $0.01, the PIP Order
notice is hereby given that on January
• Send paper comments in triplicate 18, 2017, BOX Options Exchange LLC and corresponding Primary
to Brent J. Fields, Secretary, Securities (the ‘‘Exchange’’) filed with the Improvement Order will be rejected.
and Exchange Commission, 100 F Street Securities and Exchange Commission The Exchange now proposes to
NE., Washington, DC 20549–1090. (‘‘Commission’’) the proposed rule modify the requirements of the PIP to
All submissions should refer to File change as described in Items I and II specify where the NBBO spread is less
Number 4–546. This file number should below, which Items have been prepared than or equal to $0.01; only PIP Orders
be included on the subject line if email by the self-regulatory organization. The for less than 50 contracts will be
is used. To help the Commission Commission is publishing this notice to rejected. This is a competitive filing
process and review your comments solicit comments on the proposed rule based on the price improvement auction
more efficiently, please use only one from interested persons. proposed rules of the Miami
method. The Commission will post all International Securities Exchange, LLC
comments on the Commission’s Internet I. Self-Regulatory Organization’s (‘‘MIAX’’).4 Specifically, under MIAX
Web site (http://www.sec.gov/rules/ Statement of the Terms of Substance of Rule 515A(a)(1)(iii), with respect to
sro.shtml). Copies of the submission, all the Proposed Rule Change Agency Orders that have a size of less
subsequent amendments, all written The Exchange proposes to amend than 50 contracts, if at the receipt of the
Agency Order, the NBBO has a bid/ask
asabaliauskas on DSK3SPTVN1PROD with NOTICES

statements with respect to the proposed Rule 7150 (The Price Improvement
rule change that are filed with the Period (‘‘PIP’’)). The text of the differential of $0.01, the System will
Commission, and all written proposed rule change is available from reject the Agency Order. Further,
communications relating to the the principal office of the Exchange, at
3 See Securities Exchange Act Release No. 79531
amendment between the Commission the Commission’s Public Reference
(December 12, 2016), 81 FR 91227 (December 16,
and any person, other than those that Room and also on the Exchange’s 2016) (SR–BOX–2016–58).
4 See Securities Exchange Act Release No. 79500
8 17 CFR 242.608(b)(3)(iii). 1 15 U.S.C. 78s(b)(1). (December 7, 2016), 81 FR 90030 (December 13,
9 17 CFR 242.608(a)(1). 2 17 CFR 240.19b–4. 2016). See also MIAX Rule 515A.(a)(1)(iii).

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Document Created: 2018-02-01 14:34:54
Document Modified: 2018-02-01 14:34:54
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 9264