83 FR 14703 - Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify the Requirements for Delivery of a Contrary Exercise Advice
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 66 (April 5, 2018)
Federal Register Volume 83, Issue 66 (April 5, 2018)
| Page Range | 14703-14705 | |
| FR Document | 2018-06912 |
[Federal Register Volume 83, Number 66 (Thursday, April 5, 2018)] [Notices] [Pages 14703-14705] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-06912] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82969; File No. SR-NASDAQ-2018-024] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Clarify the Requirements for Delivery of a Contrary Exercise Advice March 30, 2018. 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 March 20, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III 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 the rules of the Nasdaq Options Market LLC (``NOM''), at Chapter VIII, Exercises and Deliveries. The text of the proposed rule change is available on the Exchange's website at http://nasdaq.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 The Exchange proposes to correct Chapter VIII, Exercises and Deliveries, Section 1, Exercise of Options Contracts, to clarify the requirements for delivery of a Contrary Exercise Advice. Section 1(b) currently provides that option holders desiring to exercise or not exercise expiring options must either (i) take no action and allow exercise determinations to be made in accordance with the Options Clearing Corporation's Ex-by-Ex procedure where applicable, or (ii) submit a ``Contrary Exercise Advice'' to the Options Clearing Corporation through the participant's clearing firm. In actual practice, however, an option holder delivers a Contrary Exchange Advice to the Exchange, not to the Options Clearing Corporation. The Exchange therefore proposes to replace the words ``Options Clearing Corporation through the participants clearing firm'' in Section 1(b)(ii) with a reference to the Exchange and make similar, conforming changes to Section 1(e)(i). As amended, Section 1(b) would be consistent with Nasdaq ISE Rule 1100(b) which directs option holders to submit Contrary Exercise Advices to the Exchange (not to the Options Clearing Corporation). The Exchange proposes to further replace the words ``by the deadline specified in paragraph (d) below'' with the words ``as specified in paragraph (d) below'' given that paragraph (d) contains a number of requirements associated with submission of Contrary Exercise Advices in addition to the deadline. As revised, Section (b)(ii) tracks the language of ISE Rule 1100(b)(ii) which permits an options holder desiring to exercise or not [[Page 14704]] exercise expiring options to ``submit a ``Contrary Exercise Advice'' to the Exchange as specified in paragraph (d) . . . .'' (which, like the counterpart NOM paragraph (d) rule, specifies various requirements associated with submitting Contrary Exercise Advices). Finally, the Exchange proposes to make a number of nonsubstantive revisions to Chapter VIII which are designed simply to facilitate administration of the rules. References to ``NOM'' and to ``Nasdaq Regulation'' are proposed to be replaced with references to ``the Exchange.'' \3\ Substituting the word ``Exchange'' for NOM in various places will provide the Exchange flexibility to determine the most appropriate department or individual within the Exchange to oversee the particular rule, and will also facilitate the incorporation by reference of the amended rule into the rules of NOM's affiliated exchanges in the future.\4\ --------------------------------------------------------------------------- \3\ The changes are proposed to be made in Section 1(b), (d), (e), (f), (g), (h), (i) (k) and (l), as well as in Section 2(a) and (b), of Chapter VIII. The Exchange notes that Chapter 11, Exercises and Deliveries, of the ISE Rulebook likewise uses the generic term ``the Exchange'' throughout that chapter. \4\ Recently, the Exchange added a shell structure to its Rulebook with the purpose of improving efficiency and readability and to align its rules closer to those of its five sister exchanges, Nasdaq BX, Inc.; Nasdaq PHLX LLC; Nasdaq ISE, LLC; Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges''). See Securities Exchange Act Release No. 82175 (November 29, 2017), 82 FR 57494 (December 5, 2017) (SR-NASDAQ-2017-125). The changes proposed herein are being made in connection with that effort, to align the NOM rules with those of the Affiliated Exchanges more closely. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it is designed to promote just and equitable principles of trade, 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, by identifying the correct entity to which option holders must deliver Contrary Exercise Advices and by substituting the word ``Exchange'' for NOM in various places which will enable the amended rule to be incorporated by reference into rules of affiliated exchanges in the future, which should enhance the ability of members of NOM and affiliated exchanges to understand and comply with a uniform set of rules across the exchanges. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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. The proposed rule changes will apply equally to all option holders desiring to exercise options under the NOM rules. Further, the proposed changes merely correct an incorrect reference to OCC and conform the wording of the rule more closely to that of a NOM rule for the sake of administrative convenience. The Exchange does not intend for or expect that such changes will have any impact on competition. 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 Because the foregoing 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 for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\8\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 requirement. --------------------------------------------------------------------------- At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. 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-NASDAQ-2018-024 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-2018-024. 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-2018-024, and should be submitted on or before April 26, 2018. [[Page 14705]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\9\ --------------------------------------------------------------------------- \9\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo Aleman, Assistant Secretary. [FR Doc. 2018-06912 Filed 4-4-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 66 / Thursday, April 5, 2018 / Notices 14703
• Send an email to rule-comments@ finding that the proposal is consistent the Commission’s Public Reference
sec.gov. Please include File Number SR– with the Act. Accordingly, the Room.
NYSEArca–2017–99 on the subject line. Commission finds good cause, pursuant
II. Self-Regulatory Organization’s
to Section 19(b)(2) of the Act,34 to
Paper Comments Statement of the Purpose of, and
approve the proposed rule change, as
• Send paper comments in triplicate Statutory Basis for, the Proposed Rule
modified by Amendment No. 3, on an
to Secretary, Securities and Exchange Change
accelerated basis.
Commission, 100 F Street NE, In its filing with the Commission, the
Washington, DC 20549–1090. VI. Conclusion Exchange included statements
All submissions should refer to File It is therefore ordered, pursuant to concerning the purpose of and basis for
Number SR–NYSEArca–2017–99. This Section 19(b)(2) of the Act,35 that the the proposed rule change and discussed
file number should be included on the proposed rule change (SR–NYSEArca– any comments it received on the
subject line if email is used. To help the 2017–99), as modified by Amendment proposed rule change. The text of these
Commission process and review your No. 3 be, and hereby is, approved on an statements may be examined at the
comments more efficiently, please use accelerated basis. places specified in Item IV below. The
only one method. The Commission will For the Commission, by the Division of Exchange has prepared summaries, set
post all comments on the Commission’s Trading and Markets, pursuant to delegated forth in sections A, B, and C below, of
internet website (http://www.sec.gov/ authority.36 the most significant aspects of such
rules/sro.shtml). Copies of the Eduardo Aleman, statements.
submission, all subsequent Assistant Secretary.
amendments, all written statements A. Self-Regulatory Organization’s
with respect to the proposed rule
[FR Doc. 2018–06914 Filed 4–4–18; 8:45 am] Statement of the Purpose of, and
change that are filed with the BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
Commission, and all written Change
communications relating to the SECURITIES AND EXCHANGE 1. Purpose
proposed rule change between the COMMISSION The Exchange proposes to correct
Commission and any person, other than
[Release No. 34–82969; File No. SR– Chapter VIII, Exercises and Deliveries,
those that may be withheld from the
NASDAQ–2018–024] Section 1, Exercise of Options Contracts,
public in accordance with the
provisions of 5 U.S.C. 552, will be to clarify the requirements for delivery
available for website viewing and Self-Regulatory Organizations; The of a Contrary Exercise Advice. Section
printing in the Commission’s Public Nasdaq Stock Market LLC; Notice of 1(b) currently provides that option
Reference Room, 100 F Street NE, Filing and Immediate Effectiveness of holders desiring to exercise or not
Washington, DC 20549, on official Proposed Rule Change To Clarify the exercise expiring options must either (i)
business days between the hours of Requirements for Delivery of a take no action and allow exercise
10:00 a.m. and 3:00 p.m. Copies of the Contrary Exercise Advice determinations to be made in
filing also will be available for accordance with the Options Clearing
March 30, 2018. Corporation’s Ex-by-Ex procedure where
inspection and copying at the principal Pursuant to Section 19(b)(1) of the
office of the Exchange. All comments applicable, or (ii) submit a ‘‘Contrary
Securities Exchange Act of 1934 Exercise Advice’’ to the Options
received will be posted without change. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Persons submitting comments are Clearing Corporation through the
notice is hereby given that on March 20, participant’s clearing firm. In actual
cautioned that we do not redact or edit 2018, The Nasdaq Stock Market LLC
personal identifying information from practice, however, an option holder
(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the delivers a Contrary Exchange Advice to
comment submissions. You should Securities and Exchange Commission
submit only information that you wish the Exchange, not to the Options
(‘‘Commission’’) the proposed rule Clearing Corporation. The Exchange
to make available publicly. All change as described in Items I, II, and
submissions should refer to File therefore proposes to replace the words
III below, which Items have been ‘‘Options Clearing Corporation through
Number SR–NYSEArca–2017–99, and prepared by the Exchange. The
should be submitted on or before April the participants clearing firm’’ in
Commission is publishing this notice to Section 1(b)(ii) with a reference to the
26, 2018. solicit comments on the proposed rule Exchange and make similar, conforming
V. Accelerated Approval of Proposed change from interested persons. changes to Section 1(e)(i). As amended,
Rule Change, as Modified by Section 1(b) would be consistent with
I. Self-Regulatory Organization’s
Amendment No. 3 Nasdaq ISE Rule 1100(b) which directs
Statement of the Terms of Substance of
The Commission finds good cause to the Proposed Rule Change option holders to submit Contrary
approve the proposed rule change, as Exercise Advices to the Exchange (not to
The Exchange proposes to amend the
modified by Amendment No. 3, prior to the Options Clearing Corporation).
rules of the Nasdaq Options Market LLC
the thirtieth day after the date of The Exchange proposes to further
(‘‘NOM’’), at Chapter VIII, Exercises and
publication of notice of the filing of replace the words ‘‘by the deadline
Deliveries.
Amendment No. 3 in the Federal specified in paragraph (d) below’’ with
The text of the proposed rule change
Register. The Commission notes that the words ‘‘as specified in paragraph (d)
is available on the Exchange’s website at
Amendment No. 3 clarified the below’’ given that paragraph (d)
http://nasdaq.cchwallstreet.com, at the
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application of NYSE Arca Rule 8.600–E contains a number of requirements
principal office of the Exchange, and at
to the Fund’s investments. Amendment associated with submission of Contrary
No. 3 also provided other clarifications 34 15 U.S.C. 78s(b)(2).
Exercise Advices in addition to the
and additional information to the 35 Id. deadline. As revised, Section (b)(ii)
proposed rule change. The changes and 36 17 CFR 200.30–3(a)(12). tracks the language of ISE Rule
additional information in Amendment 1 15 U.S.C. 78s(b)(1). 1100(b)(ii) which permits an options
No. 3 assisted the Commission in 2 17 CFR 240.19b–4. holder desiring to exercise or not
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![Federal Register / Vol. 83, No. 66 / Thursday, April 5, 2018 / Notices 14705
For the Commission, by the Division of unclassified, contains business information Sincerely,
Trading and Markets, pursuant to delegated submitted to the Department of State by the
authority.9 Charles S. Faulkner,
applicant, publication of which could cause
Eduardo Aleman, competitive harm to the United States firm Bureau of Legislative Affairs.
Assistant Secretary. concerned. Enclosure: Transmittal No. DDTC 16–123.
[FR Doc. 2018–06912 Filed 4–4–18; 8:45 am] Sincerely,
Sep 07, 2017
BILLING CODE 8011–01–P Charles S. Faulkner,
Honorable Paul D. Ryan, Speaker of the
Bureau of Legislative Affairs. House of Representatives.
DEPARTMENT OF STATE Enclosure: Transmittal No. DDTC 16–091. Dear Mr. Speaker:
[Public Notice 10377] Sep 12 2017 Pursuant to Section 36(d) of the Arms
Export Control Act, I am transmitting
Honorable Paul D. Ryan, Speaker of the
Notifications of Proposed Export certification of a proposed license for the
House of Representatives.
Licenses to the Congress export of defense articles, including technical
Dear Mr. Speaker: data, and defense services for the
AGENCY: Department of State. Pursuant to Section 36(c) of the Arms manufacture of significant military
ACTION: Notice. Export Control Act, I am transmitting equipment abroad.
certification of a proposed license for the The transaction contained in the attached
SUMMARY: Notice is hereby given that export of firearms, parts, and components certification involves the export of technical
the Department of State has forwarded abroad controlled under Category I of the data, defense services, and manufacturing
the attached Notifications of Proposed United States Munitions List in the amount know-how to the Republic of Korea to
Export Licenses to the Congress on the of $1,000,000 or more. support the design and manufacture of
dates indicated on the attachments. The transaction contained in the attached Controllable Pitch Propellers and Shafting
Applicable Date: As shown on each of certification involves the export of various Systems for the Korean KDX–III Batch II
the 39 letters. machine guns and spare barrels to the United Destroyer program.
Arab Emirates. The United States government is prepared
FOR FURTHER INFORMATION CONTACT: Mr.
The United States government is prepared to license the export of these items having
Anthony M. Dearth Directorate of taken into account political, military,
to license the export of these items having
Defense Trade Controls, Department of taken into account political, military, economic, human rights, and arms control
State, telephone (202) 663–2836; e-mail economic, human rights, and arms control considerations.
DDTCResponseTeam@state.gov. ATTN: considerations. More detailed information is contained in
Congressional Notification of Licenses. More detailed information is contained in the formal certification which, though
SUPPLEMENTARY INFORMATION: Pursuant the formal certification which, though unclassified, contains business information
to sections 36(c) and 36(d), and in unclassified, contains business information submitted to the Department of State by the
compliance with section 36(f), of the submitted to the Department of State by the applicant, publication of which could cause
Arms Export Control Act. Section 36(f) applicant, publication of which could cause competitive harm to the United States firm
of the Arms Export Control Act (22 competitive harm to the United States firm concerned.
U.S.C. 2776) mandates that notifications concerned. Sincerely,
to the Congress pursuant to sections Sincerely,
Charles S. Faulkner,
36(c) and 36(d) must be published in a Charles S. Faulkner,
timely manner in the Federal Register, Bureau of Legislative Affairs.
upon transmittal to Congress. Bureau of Legislative Affairs. Enclosure: Transmittal No. DDTC 16–124.
Following are such notifications to the Enclosure: Transmittal No. DDTC 16–117.
Congress: Jul 10, 2017
July 03, 2017 Jul 10, 2017 Honorable Paul D. Ryan, Speaker of the
Honorable Paul D. Ryan, Speaker of the Honorable Paul D. Ryan, Speaker of the House of Representatives.
House of Representatives. House of Representatives. Dear Mr. Speaker:
Dear Mr. Speaker: Dear Mr. Speaker: Pursuant to Section 36(c) of the Arms
Pursuant to Section 36(c) of the Arms Pursuant to Section 36(c) of the Arms Export Control Act, I am transmitting
Export Control Act, I am transmitting Export Control Act, I am transmitting certification of a proposed license for the
certification of a proposed license for the certification of a proposed license for the export of firearms, parts, and components
export of defense articles, including technical export of firearms, parts, and accessories abroad controlled under Category I of the
data, and defense services in the amount of abroad controlled under Category I of the United States Munitions List in the amount
$50,000,000 or more. United States Munitions List in the amount of $1,000,000 or more.
The transaction contained in the attached of $1,000,000 or more. The transaction contained in the attached
certification involves the continued export of The transaction contained in the attached certification involves the export of M4A1
defense articles, including technical data, certification involves the export of M16A4 carbines with flash and sound suppressors,
and defense services for the operational rifles, spare parts, accessories, and training to associated components and equipment to the
support, maintenance, and overhaul of F110– the United Arab Emirates. Republic of Tunisia.
GE–100/100B/129/129B/129C/129D/129E/ The United States government is prepared The United States government is prepared
132/132A aircraft engines, used in F–15 and to license the export of these items having to license the export of these items having
F–16 aircraft to the Republic of Turkey. taken into account political, military, taken into account political, military,
The United States government is prepared economic, human rights, and arms control economic, human rights, and arms control
to license the export of these items having considerations. considerations.
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taken into account political, military, More detailed information is contained in More detailed information is contained in
economic, human rights, and arms control the formal certification which, though the formal certification which, though
considerations. unclassified, contains business information unclassified, contains business information
More detailed information is contained in submitted to the Department of State by the submitted to the Department of State by the
the formal certification which, though applicant, publication of which could cause applicant, publication of which could cause
competitive harm to the United States firm competitive harm to the United States firm
9 17 CFR 200.30–3(a)(12). concerned. concerned.
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Document Created: 2018-11-01 09:13:21
Document Modified: 2018-11-01 09:13:21
| 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 | 83 FR 14703 |
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