83 FR 17205 - Joint Industry Plan; Order Approving the Seventeenth Amendment to the National Market System Plan To Address Extraordinary Market Volatility by Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc., Chicago Stock Exchange, Inc., Financial Industry Regulatory Authority, Inc., Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The Nasdaq Stock Market LLC, NYSE National, Inc., New York Stock Exchange LLC, NYSE American LLC, and NYSE Arca, Inc.
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 75 (April 18, 2018)
Federal Register Volume 83, Issue 75 (April 18, 2018)
| Page Range | 17205-17206 | |
| FR Document | 2018-08080 |
[Federal Register Volume 83, Number 75 (Wednesday, April 18, 2018)] [Notices] [Pages 17205-17206] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-08080] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83044; File No. 4-631] Joint Industry Plan; Order Approving the Seventeenth Amendment to the National Market System Plan To Address Extraordinary Market Volatility by Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc., Chicago Stock Exchange, Inc., Financial Industry Regulatory Authority, Inc., Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The Nasdaq Stock Market LLC, NYSE National, Inc., New York Stock Exchange LLC, NYSE American LLC, and NYSE Arca, Inc. April 12, 2018. I. Introduction On February 26, 2018, NYSE Group, Inc., on behalf of the other parties \1\ to the National Market System Plan to Address Extraordinary Market Volatility (the ``Plan''), filed with the Securities and Exchange Commission (``Commission'') pursuant to Section 11A of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 608 thereunder,\3\ a proposal to amend the Plan.\4\ The proposal represents the seventeenth amendment to the Plan, and reflects proposed changes unanimously approved by the Participants (``Seventeenth Amendment''). The proposed Seventeenth Amendment was published for comment in the Federal Register on March 21, 2018.\5\ The Commission received no comment letters regarding the amendment. This order approves the Seventeenth Amendment to the Plan as proposed. --------------------------------------------------------------------------- \1\ Cboe BZX Exchange, Inc., Cboe BYX Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc., Chicago Stock Exchange, Inc., the Financial Industry Regulatory Authority, Inc. (``FINRA''), Investors Exchange LLC, NASDAQ BX, Inc., NASDAQ PHLX LLC, The NASDAQ Stock Market LLC (``Nasdaq''), New York Stock Exchange LLC (``NYSE''), NYSE Arca, Inc., NYSE National Inc., and NYSE American LLC (collectively, the ``Participants''). \2\ 15 U.S.C. 78k-1. \3\ 17 CFR 242.608. \4\ See Letter from Elizabeth King, General Counsel and Corporate Secretary, NYSE, to Brent Fields, Secretary, Commission, dated February 23, 2018. (``Transmittal Letter''). \5\ See Securities Exchange Act Release No. 82888 (March 15, 2018), 83 FR 12432. --------------------------------------------------------------------------- II. Description of the Proposal In the Seventeenth Amendment, the Participants propose to extend the pilot period of the Plan from April 16, 2018 to April 15, 2019. III. Discussion and Commission Findings The Commission finds that the Seventeenth Amendment is consistent with the requirements of the Act and the rules and regulations thereunder. Specifically, the Commission finds that the Seventeenth Amendment is consistent with Section 11A of the Act \6\ and Rule 608 thereunder \7\ in that it is appropriate in the public interest, for the protection of investors and the maintenance of fair and orderly markets, and that it removes impediments to, and perfects the mechanism of, a national market system. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78k-1. \7\ 17 CFR 242.608. --------------------------------------------------------------------------- The Participants propose to extend the pilot period for an additional year to April 15, 2019. As the Participants note, the twelfth and thirteenth amendments to the Plan \8\ as well as the associated amendments to the Primary Listing Exchanges' \9\ reopening procedures were implemented on November 20, 2017. The Participants state that an extension of the pilot period would provide additional time for the public, the Participants, and the Commission to assess the impact of modifications from the twelfth and thirteenth amendments [[Page 17206]] to the Plan on market operations as well as to consider other potential modifications to the Plan including how NMS Stocks are tiered under the Plan and the applicable percentage parameters associated with such tiers, the elimination of double-wide Price Bands at the open and close of trading, and recommendations made by the Equity Market Structure Advisory Committee with respect to Plan operations.\10\ --------------------------------------------------------------------------- \8\ See Securities Exchange Act Release Nos. 79845 (January 19, 2017), 82 FR 8551 (January 26, 2017) (approving the twelfth amendment to the Plan), 80455 (April 13, 2017), 82 FR 18519 (April 19, 2017) (approving the thirteenth amendment to the Plan). \9\ Unless otherwise specified, the terms used herein have the same meaning as set forth in the Plan. \10\ See U.S. Securities and Exchange Commission Equity Market Structure Advisory Committee, Recommendations for Rulemaking on Issues of Market Quality, dated November 29, 2016, available here: https://www.sec.gov/spotlight/emsac/emsac-recommendations-rulemaking-market-quality.pdf. --------------------------------------------------------------------------- The Commission believes that a one-year extension of the Plan will allow the Participants to continue their examination and analysis of the Plan's operation. Accordingly, the Commission believes that it is appropriate in the public interest, for the protection of investors and the maintenance of a fair and orderly market to approve the amendment to extend the pilot period until April 15, 2019. For the reasons noted above, the Commission finds that the Seventeenth Amendment to the Plan is consistent with Section 11A of the Act \11\ and Rule 608 thereunder.\12\ The Commission reiterates its expectation that the Participants will continue to monitor the scope and operation of the Plan and study the data produced, and will propose any modifications to the Plan that may be necessary or appropriate.\13\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78k-1. \12\ 17 CFR 242.608. \13\ See Securities Exchange Act Release No. 67091 (May 31, 2012), 77 FR 33498 (June 6, 2012). --------------------------------------------------------------------------- IV. Conclusion It is therefore ordered, pursuant to Section 11A of the Act \14\ and Rule 608 thereunder,\15\ that the Seventeenth Amendment to the Plan (File No. 4-631) be, and it hereby is, approved. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78k-1. \15\ 17 CFR 242.608. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(29). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2018-08080 Filed 4-17-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices 17205
III. Date of Effectiveness of the Reference Room, 100 F Street NE, 1934 (‘‘Act’’) 2 and Rule 608
Proposed Rule Change and Timing for Washington, DC 20549 on official thereunder,3 a proposal to amend the
Commission Action business days between the hours of Plan.4 The proposal represents the
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the seventeenth amendment to the Plan,
effective pursuant to Section 19(b)(3)(A) filing also will be available for and reflects proposed changes
of the Act 9 and paragraph (f) of Rule inspection and copying at the principal unanimously approved by the
19b–4 10 thereunder. At any time within office of the Exchange. All comments Participants (‘‘Seventeenth
60 days of the filing of the proposed rule received will be posted without change. Amendment’’). The proposed
change, the Commission summarily may Persons submitting comments are Seventeenth Amendment was published
temporarily suspend such rule change if cautioned that we do not redact or edit for comment in the Federal Register on
it appears to the Commission that such personal identifying information from March 21, 2018.5 The Commission
action is necessary or appropriate in the comment submissions. You should received no comment letters regarding
public interest, for the protection of submit only information that you wish the amendment. This order approves the
investors, or otherwise in furtherance of to make available publicly. All Seventeenth Amendment to the Plan as
the purposes of the Act. If the submissions should refer to File proposed.
Commission takes such action, the Number SR–CBOE–2018–027 and II. Description of the Proposal
Commission will institute proceedings should be submitted on or before May
9, 2018. In the Seventeenth Amendment, the
to determine whether the proposed rule
Participants propose to extend the pilot
change should be approved or For the Commission, by the Division of period of the Plan from April 16, 2018
disapproved. Trading and Markets, pursuant to delegated
to April 15, 2019.
authority.11
IV. Solicitation of Comments
Eduardo A. Aleman, III. Discussion and Commission
Interested persons are invited to Assistant Secretary. Findings
submit written data, views, and
[FR Doc. 2018–08055 Filed 4–17–18; 8:45 am] The Commission finds that the
arguments concerning the foregoing,
BILLING CODE 8011–01–P Seventeenth Amendment is consistent
including whether the proposed rule
with the requirements of the Act and the
change is consistent with the Act.
rules and regulations thereunder.
Comments may be submitted by any of SECURITIES AND EXCHANGE Specifically, the Commission finds that
the following methods: COMMISSION the Seventeenth Amendment is
Electronic Comments consistent with Section 11A of the Act 6
[Release No. 34–83044; File No. 4–631]
• Use the Commission’s internet and Rule 608 thereunder 7 in that it is
comment form (http://www.sec.gov/ Joint Industry Plan; Order Approving appropriate in the public interest, for
rules/sro.shtml); or the Seventeenth Amendment to the the protection of investors and the
• Send an email to rule-comments@ National Market System Plan To maintenance of fair and orderly markets,
sec.gov. Please include File Number SR– Address Extraordinary Market and that it removes impediments to, and
CBOE–2018–027 on the subject line. Volatility by Cboe BZX Exchange, Inc., perfects the mechanism of, a national
Cboe BYX Exchange, Inc., Cboe EDGA market system.
Paper Comments The Participants propose to extend
Exchange, Inc., Cboe EDGX Exchange,
• Send paper comments in triplicate Inc., Chicago Stock Exchange, Inc., the pilot period for an additional year to
to Secretary, Securities and Exchange April 15, 2019. As the Participants note,
Financial Industry Regulatory
Commission, 100 F Street NE, the twelfth and thirteenth amendments
Authority, Inc., Investors Exchange
Washington, DC 20549–1090. to the Plan 8 as well as the associated
LLC, NASDAQ BX, Inc., NASDAQ PHLX
All submissions should refer to File amendments to the Primary Listing
LLC, The Nasdaq Stock Market LLC,
Number SR–CBOE–2018–027. This file Exchanges’ 9 reopening procedures were
NYSE National, Inc., New York Stock
number should be included on the implemented on November 20, 2017.
Exchange LLC, NYSE American LLC,
subject line if email is used. To help the The Participants state that an extension
and NYSE Arca, Inc.
Commission process and review your of the pilot period would provide
comments more efficiently, please use April 12, 2018. additional time for the public, the
only one method. The Commission will Participants, and the Commission to
I. Introduction assess the impact of modifications from
post all comments on the Commission’s
internet website (http://www.sec.gov/ On February 26, 2018, NYSE Group, the twelfth and thirteenth amendments
rules/sro.shtml). Copies of the Inc., on behalf of the other parties 1 to
submission, all subsequent the National Market System Plan to 2 15 U.S.C. 78k–1.
3 17 CFR 242.608.
amendments, all written statements Address Extraordinary Market Volatility
4 See Letter from Elizabeth King, General Counsel
with respect to the proposed rule (the ‘‘Plan’’), filed with the Securities
and Corporate Secretary, NYSE, to Brent Fields,
change that are filed with the and Exchange Commission Secretary, Commission, dated February 23, 2018.
Commission, and all written (‘‘Commission’’) pursuant to Section (‘‘Transmittal Letter’’).
communications relating to the 11A of the Securities Exchange Act of 5 See Securities Exchange Act Release No. 82888
(March 15, 2018), 83 FR 12432.
proposed rule change between the 6 15 U.S.C. 78k–1.
11 17 CFR 200.30–3(a)(12).
Commission and any person, other than 7 17 CFR 242.608.
1 Cboe BZX Exchange, Inc., Cboe BYX Exchange,
those that may be withheld from the Inc., Cboe EDGA Exchange, Inc., Cboe EDGX 8 See Securities Exchange Act Release Nos. 79845
amozie on DSK30RV082PROD with NOTICES
public in accordance with the Exchange, Inc., Chicago Stock Exchange, Inc., the (January 19, 2017), 82 FR 8551 (January 26, 2017)
provisions of 5 U.S.C. 552, will be Financial Industry Regulatory Authority, Inc. (approving the twelfth amendment to the Plan),
available for website viewing and (‘‘FINRA’’), Investors Exchange LLC, NASDAQ BX, 80455 (April 13, 2017), 82 FR 18519 (April 19,
Inc., NASDAQ PHLX LLC, The NASDAQ Stock 2017) (approving the thirteenth amendment to the
printing in the Commission’s Public Market LLC (‘‘Nasdaq’’), New York Stock Exchange Plan).
LLC (‘‘NYSE’’), NYSE Arca, Inc., NYSE National 9 Unless otherwise specified, the terms used
9 15 U.S.C. 78s(b)(3)(A). Inc., and NYSE American LLC (collectively, the herein have the same meaning as set forth in the
10 17 CFR 240.19b–4(f). ‘‘Participants’’). Plan.
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![17206 Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices
to the Plan on market operations as well SECURITIES AND EXCHANGE generic listing and maintenance
as to consider other potential COMMISSION standards for broad-based indices listed
modifications to the Plan including how and traded on the Exchange require,
[Release No. 34–83039; File No. SR–
NMS Stocks are tiered under the Plan PEARL–2018–02]
among other things, that options on the
and the applicable percentage index be a.m.-settled; that the index be
parameters associated with such tiers, Self-Regulatory Organizations; MIAX capitalization-weighted, modified
the elimination of double-wide Price PEARL, LLC; Order Granting Approval capitalization-weighted, price-weighted,
Bands at the open and close of trading, of a Proposed Rule Change To Adopt or equal dollar-weighted; and that the
and recommendations made by the Rules Relating to Index Options index be comprised of at least fifty
securities, all of which must be ‘‘NMS
Equity Market Structure Advisory April 12, 2018. stocks,’’ as defined in Rule 600 of
Committee with respect to Plan
I. Introduction Regulation NMS.6 The proposed generic
operations.10 listing and maintenance standards for
The Commission believes that a one- On February 8, 2018, MIAX PEARL, narrow-based indices require, among
year extension of the Plan will allow the LLC (‘‘MIAX PEARL’’ or ‘‘Exchange’’) other characteristics, that the proposed
Participants to continue their filed with the Securities and Exchange indices must consist of ten or more
examination and analysis of the Plan’s Commission (‘‘Commission’’), pursuant component securities.7
operation. Accordingly, the Commission to the provisions of Section 19(b)(1) of Because the rules related to options in
the Securities Exchange Act of 1934 indices are product specific in many
believes that it is appropriate in the
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a areas,8 certain rules will indicate that
public interest, for the protection of
proposed rule change to adopt rules they apply to ‘‘Specified’’ indices.
investors and the maintenance of a fair relating to index options. The proposed
and orderly market to approve the Proposed Rules 1800, 1801(n), 1804(a),
rule change was published for comment 1807(a), 1809, and 1811 all contain
amendment to extend the pilot period in the Federal Register on February 27,
until April 15, 2019. provisions that are dependent upon the
2018.3 The Commission received no Exchange identifying specific index
For the reasons noted above, the comments regarding the proposal. This products in the rule. Accordingly,
Commission finds that the Seventeenth order approves the proposed rule Proposed Rule 1800 states that where
Amendment to the Plan is consistent change. the rules in Chapter XVIII indicate that
with Section 11A of the Act 11 and Rule II. Description of the Proposal particular indices or requirements with
608 thereunder.12 The Commission respect to particular indices will be
reiterates its expectation that the A. Overview ‘‘Specified,’’ the Exchange will file a
Participants will continue to monitor The Exchange proposes to amend proposed rule change with the
the scope and operation of the Plan and MIAX PEARL Rule 504 and adopt new Commission pursuant to Section 19 of
study the data produced, and will Chapter XVIII to accommodate the the Act 9 and Rule 19b–4 10 thereunder
propose any modifications to the Plan trading of index options on the to specify such indices or requirements.
that may be necessary or appropriate.13 Exchange by MIAX PEARL Members; Because MIAX PEARL has incorporated
and establish generic listing standards the rules in MIAX Options Chapter
IV. Conclusion and maintenance standards to permit XVIII by reference, MIAX PEARL’s rules
the Exchange to list ‘‘broad-based’’ and will be amended when MIAX Options
It is therefore ordered, pursuant to
‘‘narrow-based’’ index options on the files a proposed rule change with the
Section 11A of the Act 14 and Rule 608
Exchange pursuant to Rule 19b–4(e) Commission pursuant to Section 19 of
thereunder,15 that the Seventeenth under the Act.4 Proposed MIAX PEARL the Act 11 and Rule 19b–4 12 thereunder
Amendment to the Plan (File No. 4–631) Chapter XVIII would incorporate by to specify such indices or
be, and it hereby is, approved. reference Chapter XVIII of the rules of requirements.13 As more fully set forth
For the Commission, by the Division of the Exchange’s affiliate, Miami in the Notice and further described
Trading and Markets, pursuant to delegated International Securities Exchange, LLC below, the proposed new Exchange
authority.16 (‘‘MIAX Options’’).5 The proposed Rules are based on the existing rules of
Brent J. Fields, other options exchanges.14
1 15 U.S.C. 78s(b)(1).
Secretary. 2 17 CFR 240.19b–4. Commission notes that the MIAX Options Order
[FR Doc. 2018–08080 Filed 4–17–18; 8:45 am] 3 See Securities Exchange Act Release No. 82756
also approved changes to MIAX Options Rules 308,
BILLING CODE 8011–01–P (February 21, 2018), 83 FR 8538 (‘‘Notice’’). 313, and 700, which rules are already incorporated
4 17 CFR 240.19b–4(e). The term ‘‘broad-based by reference in MIAX PEARL’s rules. See id. at
index’’ is defined as an index designed to be 46112 & nn. 13 & 15. See also Notice, supra note
representative of a stock market as a whole or of a 3, at 8539. In the description of the proposed rule
range of companies in unrelated industries. See change below, the term ‘‘Proposed Rule’’ shall refer
Proposed Rule 1801(k). The term ‘‘narrow-based to the rules in MIAX Options Chapter XVIII, which
index’’ is defined as an index designed to be the Exchange has proposed to be incorporated by
10 See U.S. Securities and Exchange Commission representative of a particular industry or a group of reference into the MIAX PEARL Rules and thereby
Equity Market Structure Advisory Committee, related industries or an index whose constituents become applicable to MIAX PEARL Members.
Recommendations for Rulemaking on Issues of are all headquartered within a single country. See 6 See Proposed Rule 1802(d)(4).
Proposed Rule 1801(j). 7 See Proposed Rule 1802(b)(2).
Market Quality, dated November 29, 2016, available 5 The Commission has separately issued an order 8 See Notice, supra note 3, at 8539.
here: https://www.sec.gov/spotlight/emsac/emsac-
granting the Exchange an exemption pursuant to 9 15 U.S.C. 78s.
recommendations-rulemaking-market-quality.pdf.
Section 36(a) of the Act from the rule filing
amozie on DSK30RV082PROD with NOTICES
11 15 U.S.C. 78k–1. 10 17 CFR 240.19b–4.
requirements of Section 19(b) of the Act with 11 15 U.S.C. 78s.
12 17 CFR 242.608. respect to the rules in MIAX Options Chapter XVIII
12 17 CFR 240.19b–4.
13 See Securities Exchange Act Release No. 67091 that the Exchange seeks to incorporate by reference.
13 See Notice, supra note 3, at 8539. See also
(May 31, 2012), 77 FR 33498 (June 6, 2012). See Securities Exchange Act Release No. 83040
(April 12, 2018). See also Securities Exchange Act supra note 5.
14 15 U.S.C. 78k–1.
Release No. 81739 (September 27, 2017), 82 FR 14 See, e.g., MIAX Options Rules Chapter XVIII;
15 17 CFR 242.608.
46111 (October 3, 2017) (order approving SR– Nasdaq ISE, LLC (‘‘ISE’’) Rules, Chapter 20, Index
16 17 CFR 200.30–3(a)(29). MIAX–2017–39) (‘‘MIAX Options Order’’). The Rules; Nasdaq GEMX, LLC Rules, Chapter 20, Index
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Document Created: 2018-04-18 03:00:48
Document Modified: 2018-04-18 03:00:48
| 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 17205 |
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