83 FR 17206 - Self-Regulatory Organizations; MIAX PEARL, LLC; Order Granting Approval of a Proposed Rule Change To Adopt Rules Relating to Index Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 75 (April 18, 2018)
Federal Register Volume 83, Issue 75 (April 18, 2018)
| Page Range | 17206-17209 | |
| FR Document | 2018-08053 |
[Federal Register Volume 83, Number 75 (Wednesday, April 18, 2018)] [Notices] [Pages 17206-17209] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-08053] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83039; File No. SR-PEARL-2018-02] Self-Regulatory Organizations; MIAX PEARL, LLC; Order Granting Approval of a Proposed Rule Change To Adopt Rules Relating to Index Options April 12, 2018. I. Introduction On February 8, 2018, MIAX PEARL, LLC (``MIAX PEARL'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission''), pursuant to the provisions of Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to adopt rules relating to index options. The proposed rule change was published for comment in the Federal Register on February 27, 2018.\3\ The Commission received no comments regarding the proposal. This order approves the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ See Securities Exchange Act Release No. 82756 (February 21, 2018), 83 FR 8538 (``Notice''). --------------------------------------------------------------------------- II. Description of the Proposal A. Overview The Exchange proposes to amend MIAX PEARL Rule 504 and adopt new Chapter XVIII to accommodate the trading of index options on the Exchange by MIAX PEARL Members; and establish generic listing standards and maintenance standards to permit the Exchange to list ``broad- based'' and ``narrow-based'' index options on the Exchange pursuant to Rule 19b-4(e) under the Act.\4\ Proposed MIAX PEARL Chapter XVIII would incorporate by reference Chapter XVIII of the rules of the Exchange's affiliate, Miami International Securities Exchange, LLC (``MIAX Options'').\5\ The proposed generic listing and maintenance standards for broad-based indices listed and traded on the Exchange require, among other things, that options on the index be a.m.-settled; that the index be capitalization-weighted, modified capitalization-weighted, price-weighted, or equal dollar-weighted; and that the index be comprised of at least fifty securities, all of which must be ``NMS stocks,'' as defined in Rule 600 of Regulation NMS.\6\ The proposed generic listing and maintenance standards for narrow-based indices require, among other characteristics, that the proposed indices must consist of ten or more component securities.\7\ --------------------------------------------------------------------------- \4\ 17 CFR 240.19b-4(e). The term ``broad-based index'' is defined as an index designed to be representative of a stock market as a whole or of a range of companies in unrelated industries. See Proposed Rule 1801(k). The term ``narrow-based index'' is defined as an index designed to be representative of a particular industry or a group of related industries or an index whose constituents are all headquartered within a single country. See Proposed Rule 1801(j). \5\ The Commission has separately issued an order granting the Exchange an exemption pursuant to Section 36(a) of the Act from the rule filing requirements of Section 19(b) of the Act with respect to the rules in MIAX Options Chapter XVIII that the Exchange seeks to incorporate by reference. See Securities Exchange Act Release No. 83040 (April 12, 2018). See also Securities Exchange Act Release No. 81739 (September 27, 2017), 82 FR 46111 (October 3, 2017) (order approving SR-MIAX-2017-39) (``MIAX Options Order''). The Commission notes that the MIAX Options Order also approved changes to MIAX Options Rules 308, 313, and 700, which rules are already incorporated by reference in MIAX PEARL's rules. See id. at 46112 & nn. 13 & 15. See also Notice, supra note 3, at 8539. In the description of the proposed rule change below, the term ``Proposed Rule'' shall refer to the rules in MIAX Options Chapter XVIII, which the Exchange has proposed to be incorporated by reference into the MIAX PEARL Rules and thereby become applicable to MIAX PEARL Members. \6\ See Proposed Rule 1802(d)(4). \7\ See Proposed Rule 1802(b)(2). --------------------------------------------------------------------------- Because the rules related to options in indices are product specific in many areas,\8\ certain rules will indicate that they apply to ``Specified'' indices. Proposed Rules 1800, 1801(n), 1804(a), 1807(a), 1809, and 1811 all contain provisions that are dependent upon the Exchange identifying specific index products in the rule. Accordingly, Proposed Rule 1800 states that where the rules in Chapter XVIII indicate that particular indices or requirements with respect to particular indices will be ``Specified,'' the Exchange will file a proposed rule change with the Commission pursuant to Section 19 of the Act \9\ and Rule 19b-4 \10\ thereunder to specify such indices or requirements. Because MIAX PEARL has incorporated the rules in MIAX Options Chapter XVIII by reference, MIAX PEARL's rules will be amended when MIAX Options files a proposed rule change with the Commission pursuant to Section 19 of the Act \11\ and Rule 19b-4 \12\ thereunder to specify such indices or requirements.\13\ As more fully set forth in the Notice and further described below, the proposed new Exchange Rules are based on the existing rules of other options exchanges.\14\ --------------------------------------------------------------------------- \8\ See Notice, supra note 3, at 8539. \9\ 15 U.S.C. 78s. \10\ 17 CFR 240.19b-4. \11\ 15 U.S.C. 78s. \12\ 17 CFR 240.19b-4. \13\ See Notice, supra note 3, at 8539. See also supra note 5. \14\ See, e.g., MIAX Options Rules Chapter XVIII; Nasdaq ISE, LLC (``ISE'') Rules, Chapter 20, Index Rules; Nasdaq GEMX, LLC Rules, Chapter 20, Index Rules; Nasdaq MRX, LLC Rules, Chapter 20, Index Rules; NASDAQ PHLX LLC (``Phlx'') Rules 1000A-1108A; and Chicago Board Options Exchange, Inc. (``CBOE'') Rules, Chapter XXIV, Index Options; Cboe C2 Exchange, Inc. Rules, Chapter 24, Index Options. See also Notice, supra note 3, at 8539. --------------------------------------------------------------------------- [[Page 17207]] B. Index Options Procedural Rules MIAX PEARL proposes to add new Chapter XVIII to the Exchange rules (``Proposed Rules''), which would incorporate by reference the rules in Chapter XVIII of MIAX Options.\15\ The proposal would, among other things, set forth general procedural rules that address the trading sessions for index options, including the days and hours of business, opening rotation, and halts and suspensions.\16\ Existing MIAX PEARL Rules further provide for the procedures Members must follow with respect to the exercise of American-style, cash settled index options.\17\ --------------------------------------------------------------------------- \15\ The Exchange also proposes to amend MIAX PEARL Rule 504 (Trading Halts) to address index options. \16\ See Proposed Rule 1808. \17\ See MIAX PEARL Rules 313(a)(3) and 700(h). See also supra note 5. --------------------------------------------------------------------------- The Proposed Rules also establish position limit and exercise limits for index options.\18\ In addition, existing MIAX PEARL Rules and the Proposed Rules provide for exemption standards from position limits and procedures for requesting exemptions from those rules.\19\ The proposed position limits and exercise limits, as well as the proposed exemptions, are different for broad-based index options and narrow-based index options.\20\ --------------------------------------------------------------------------- \18\ See Proposed Rules 1804, 1805, and 1807. \19\ See MIAX PEARL Rule 308(b) and Proposed Rule 1806. See also supra note 5. \20\ See Proposed Rules 1804 to 1807. --------------------------------------------------------------------------- C. Generic Listing Standards and Maintenance Standards for Broad-Based Index Options The Exchange also proposes to establish generic listing and maintenance standards in Proposed Rule 1802 to enable the Exchange to list and trade new broad-based index options pursuant to Rule 19b-4(e) under the Act.\21\ Proposed Rule 1802(d) sets forth the initial listing standards for broad-based index options. The listing standards require, among other things, that the underlying index be broad-based, as defined in Rule 1801(k); that options on the index be a.m. settled; that the index be capitalization-weighted, modified capitalization- weighted, price-weighted, or equal dollar-weighted; and that the index consist of 50 or more component securities, each of which must be an ``NMS stock'' as defined in Rule 600 of Regulation NMS under the Act.\22\ In addition, Proposed Rule 1802(d) requires that the index's component securities meet certain minimum market capitalization and average daily trading volume requirements; that no single component account for more than10% of the weight of the index and that the five highest weighted component securities represent no more than 33% of the weight of the index; that the index value be widely disseminated at least once every 15 seconds; and that the Exchange have written surveillance procedures in place with respect to the index options. Proposed Rule 1802(e) establishes maintenance standards for broad-based index options listed pursuant to Proposed Rule 1802(d). The Exchange states that the proposed listing and maintenance standards are modeled after standards approved by the Commission for other options exchanges.\23\ --------------------------------------------------------------------------- \21\ 17 CFR 240.19b-4(e). Rule 19b-4(e) provides that the listing and trading of a new derivative securities product by a self-regulatory organization (``SRO'') shall not be deemed a proposed rule change, pursuant to paragraph (c)(1) of Rule 19b-4, if the Commission has approved, pursuant to Section 19(b) of the Act, the SRO's trading rules, procedures, and listing standards for the product class that includes the new derivative securities product and the SRO has a surveillance program for the product class. When relying on Rule 19b-4(e), the SRO must submit Form 19b-4(e) to the Commission within five business days after the exchange begins trading the new derivative securities products. See Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR 70952 (December 22, 1998) (File No. S7-13-98). \22\ See 17 CFR 242.600. \23\ See, e.g., MIAX Options Rule 1802(d); NYSE American LLC (``NYSE American'') Rule 901C.02(a) and (b); CBOE Rule 24.2(f) and (g); NYSE Arca, Inc. (``NYSE Arca'') Rule 5.12-O; Phlx Rule 1009A(d) and (e); and ISE Rule 2002(d) and (e). --------------------------------------------------------------------------- D. Generic Listing Standards and Maintenance Standards for Narrow-Based Index Options The Exchange further proposes to establish generic listing and maintenance standards in Proposed Rule 1802 to enable the Exchange to list and trade new narrow-based index options pursuant to Rule 19b-4(e) under the Act.\24\ Proposed Rule 1802(b) sets forth the initial listing standards for narrow-based index options. The listing standards require, among other things, that options on the index be a.m. settled; that the index be capitalization-weighted, price-weighted, equal dollar-weighted, or modified capitalization-weighted; and that the index consist of 10 or more component securities, each of which must be an ``NMS stock'' as defined in Rule 600 of Regulation NMS under the Act.\25\ In addition, Proposed Rule 1802(b) requires that the index's component securities meet certain minimum market capitalization and average daily trading volume requirements; that no single component account for more than 30% of the weight of the index and that the five highest weighted component securities represent no more than 50% (65% for an index consisting of fewer than 25 component securities) of the weight of the index; that the index value be widely disseminated at least once every 15 seconds; and that non-U.S. component securities (stocks or ADRs) that are not subject to comprehensive surveillance agreements do not in the aggregate represent more than 20% of the weight of the index. Proposed Rule 1802(c) establishes maintenance standards for narrow-based index options listed pursuant to Proposed Rule 1802(b). The Exchange states that the proposed listing and maintenance standards are modeled after standards approved by the Commission for other options exchanges.\26\ --------------------------------------------------------------------------- \24\ 17 CFR 240.19b 09 094(e). See also supra note 21. \25\ See 17 CFR 242.600. \26\ See, e.g., MIAX Options Rule 1802(b) and (c); NYSE American Rule 901C.03; CBOE Rule 24.2(b) and (c); NYSE Arca Rule 5.13-O; Phlx Rule 1009A(b) and (c); and ISE Rule 2002(b) and (c). --------------------------------------------------------------------------- E. Surveillance and Capacity The Exchange represents that it has an adequate surveillance program in place for index options. The Exchange is a member of the Intermarket Surveillance Group (``ISG''), which is comprised of an international group of exchanges, market centers, and market regulators.\27\ The Exchange further represents that it has analyzed its capacity and believes the Exchange and the Options Price Reporting Authority (``OPRA'') have the necessary systems capacity to handle the additional traffic associated with the listing and trading of index options.\28\ --------------------------------------------------------------------------- \27\ See Notice, supra note 3, at 8552. The ISG was formed on July 14, 1983, to, among other things, coordinate more effectively surveillance and investigative information sharing arrangements in the stock and options markets. The purpose of the ISG is to provide a framework for the sharing of information and the coordination of regulatory efforts among exchanges trading securities and related products to address potential intermarket manipulations and trading abuses. Id. The ISG plays a crucial role in information sharing among markets that trade securities, options on securities, security futures products, and futures and options on broad-based security indexes. Id. \28\ See id. --------------------------------------------------------------------------- F. Implementation The Exchange will announce the implementation date of the proposed rule change by Regulatory Circular to be published no later than 90 days following the approval of the proposed rule change. The implementation date will be no later than 90 days following the issuance of the Regulatory Circular. [[Page 17208]] III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange and, in particular, with Section 6(b) of the Act.\29\ In particular, the Commission believes that the Exchange's proposal to establish rules and procedures applicable to index options and establish generic listing and maintenance standards for broad-based and narrow-based index options is consistent with Section 6(b)(5) of the Act,\30\ which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to 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. --------------------------------------------------------------------------- \29\ 15 U.S.C. 78f(b). In approving this proposed rule change, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). \30\ 15 U.S.C. 78f(b)(5). See also supra note 5. --------------------------------------------------------------------------- The Commission believes that permitting the trading of options on an index of securities (including a narrow-based index) enables investors to participate in the price movements of the index's underlying securities and allows investors holding positions in some or all of such securities to hedge the risks associated with their portfolios. The Commission further believes that options on an index provide investors with an important trading and hedging mechanism that is designed to reflect accurately the overall movement of the component stocks. In particular, the Commission believes that the proposed position and exercise limits should serve to minimize potential manipulation concerns. A. Generic Listing and Maintenance Standards for Broad-Based and Narrow-Based Index Options In considering the proposed generic listing and maintenance standards for broad-based and narrow-based index options, the Commission notes that they are consistent with the listing and maintenance standards for broad-based and narrow-based index options that other exchanges \31\ have developed and that the Commission has previously approved.\32\ The Commission finds that the generic standards covering minimum capitalization, monthly trading volume, and relative weightings of component stocks are designed to ensure that the trading markets for component stocks are adequately capitalized and sufficiently liquid, and that no one stock or stock group dominates the index. Thus, the Commission believes that the satisfaction of these requirements significantly minimizes the potential for manipulation of the index. --------------------------------------------------------------------------- \31\ See, e.g., MIAX Options Rules Chapter XVIII; NYSE American Rules 901C.02 and 901C.03; CBOE Rule 24.2; NYSE Arca Rules 5.12-O and 5.13-O; Phlx Rule 1009A; and ISE Rule 2002. \32\ See, e.g., MIAX Options Order, supra note 5 (order approving rules for index options, including generic listing and maintenance standards for broad-based and narrow-based index options); Securities Exchange Act Release Nos. 48405 (August 25, 2003), 68 FR 52257 (September 2, 2003) (SR-ISE-2003-05) (order approving rules for index options and generic listing and maintenance standards for narrow-based index options); 52578 (October 7, 2005), 70 FR 60590 (October 18, 2005) (SR-ISE-2005-27) (order approving generic listing and maintenance standards for broad-based index options); and 75650 (August 7, 2015), 80 FR 48600 (August 13, 2015) (SR-EDGX-2015-18) (order approving options trading rules, including generic listing and maintenance standards for broad-based and narrow-based index options). --------------------------------------------------------------------------- The Commission also finds the requirements that all securities comprising the index be an ``NMS stock'' as defined in Rule 600 of Regulation NMS under the Act,\33\ and that the index value be disseminated at least once every 15 seconds during trading hours of the index, will contribute significantly to the transparency of the market for such index options. --------------------------------------------------------------------------- \33\ See 17 CFR 242.600. --------------------------------------------------------------------------- The Commission further notes that the Exchange's rules that are applicable to broad-based and narrow-based index options, including provisions addressing sales practices, floor trading procedures, position and exercise limits, margin requirements, and trading halts and suspensions, will continue to apply to any broad-based or narrow- based index options listed pursuant to Rule 19b-4(e) under the Act. The Commission's approval of the Exchange's proposed listing standards for broad-based and narrow-based index options will allow those index option products that satisfy the generic listing standards to begin trading pursuant to Rule 19b-4(e) under the Act, without the need for notice and comment and Commission approval. The Exchange's ability to rely on Rule 19b-4(e) under the Act for these products potentially reduces the time frame for listing and trading these securities, and thus enhances investors' opportunities.\34\ --------------------------------------------------------------------------- \34\ The Exchange, however, must maintain regulatory oversight over any products listed under the generic listing standards through adequate surveillance. The Exchange represents that it has an adequate surveillance program in place for index options. See Notice, supra note 3, at 8552. --------------------------------------------------------------------------- B. Surveillance As noted above,\35\ the Commission believes that the Exchange must maintain regulatory oversight over any products listed under the generic listing standards through adequate surveillance, and the Exchange represents that it has an adequate surveillance program in place for index options. The Commission also believes that a surveillance sharing agreement between an Exchange proposing to list a stock index derivative product and the exchange(s) trading the stocks underlying the derivative product is an important measure for surveillance of the derivative and underlying securities markets. The Commission notes that such agreements ensure the availability of information necessary to detect and deter potential manipulations and other trading abuses, thereby making the stock index product less readily susceptible to manipulation. When a new derivative securities product based upon domestic securities is listed and traded on an exchange pursuant to Rule 19b-4(e) under the Act, the exchange should determine that the markets upon which all of the U.S. component securities trade are members of the ISG, which provides information relevant to the surveillance of the trading of securities on other market centers.\36\ In this regard, all of the registered national securities exchanges, including the Exchange, as well as the Financial Industry Regulatory Authority (FINRA), are members of the ISG. --------------------------------------------------------------------------- \35\ See supra note 34. \36\ See Securities Exchange Act Release No. 40761 (December 8, 1998), 63 FR 70952 (December 22, 1998) (File No. S7-13-98). --------------------------------------------------------------------------- For new derivative securities products based on securities from a foreign market, the SRO should have a comprehensive Intermarket Surveillance Agreement with the market for the securities underlying the new securities product.\37\ Accordingly, the Commission finds that the requirement that no more than 20% of the weight of the index may be comprised of non-U.S. component securities (stocks or ADRs) that are not subject to a comprehensive surveillance sharing agreement between the particular U.S. exchange and the primary market of the underlying security will continue to ensure that the Exchange has the ability to adequately surveil trading in the broad-based and narrow-based index options and the ADR components of the index.\38\ --------------------------------------------------------------------------- \37\ Id. \38\ See Proposed Rule 1802(b)(9) and (d)(10). --------------------------------------------------------------------------- [[Page 17209]] IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\39\ that the proposed rule change (SR-PEARL-2018-02), be and hereby is approved. --------------------------------------------------------------------------- \39\ 15 U.S.C. 78s(b)(2). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\40\ --------------------------------------------------------------------------- \40\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-08053 Filed 4-17-18; 8:45 am] BILLING CODE 8011-01-P
![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
VerDate Sep<11>2014 17:31 Apr 17, 2018 Jkt 244001 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 E:\FR\FM\18APN1.SGM 18APN1](https://thefederalregister.org/doc/83_FR_17281/page/1.svg)
![Federal Register / Vol. 83, No. 75 / Wednesday, April 18, 2018 / Notices 17209
IV. Conclusion burden, including through the use of Aban.—in S.D., Iowa, & Neb., AB 7
It is therefore ordered, pursuant to automated techniques or other forms of (Sub-No. 88) (ICC served May 14, 1980);
Section 19(b)(2) of the Act,39 that the information technology; and (d) whether see also Napa-Platte Reg’l R.R. Auth.—
proposed rule change (SR–PEARL– there are ways to enhance the quality, Modified Rail Certificate, FD 35026, slip
2018–02), be and hereby is approved. utility, and clarity of the information. op. at 1–2 (STB served June 14, 2007).
Copies: A copy of the Form OMB The State further explains that, in 2007,
For the Commission, by the Division of 83–1, supporting statement, and other NPRRA obtained Board authority to
Trading and Markets, pursuant to delegated
documents submitted to OMB for lease and operate the Napa-Tabor Line.
authority.40
review may be obtained from the See Napa-Platte Reg’l R.R. Auth.—Lease
Eduardo A. Aleman, & Operation Exemption—Dakota Short
Agency Clearance Officer.
Assistant Secretary. Line Corp., FD 35025 (STB served May
[FR Doc. 2018–08053 Filed 4–17–18; 8:45 am] Summary of Information Collections 31, 2007). According to the State,
BILLING CODE 8011–01–P Title: Disaster Survey Worksheet. NPRRA’s last lease from the State
Description of Respondents: Affected expired on September 20, 2015. The
Disaster Areas. State claims that neither NPRRA nor
SMALL BUSINESS ADMINISTRATION Form Number: SBA Form 987. any other rail carrier provided common
Estimated Annual Respondents: carrier service over the Napa-Tabor Line
Reporting and Recordkeeping 2,760. between 2007 and September 20, 2015.
Requirements Under OMB Review Estimated Annual Responses: 2,760. The State further claims that, beginning
Estimated Annual Hour Burden: 229. September 21, 2015, the State has leased
AGENCY: Small Business Administration.
Curtis Rich, the Napa-Tabor Line and a connecting
ACTION: 30-Day notice. line segment to the Dakota Southern
Management Analyst.
SUMMARY: The Small Business Railway Company (DSRC). See Dakota
[FR Doc. 2018–08064 Filed 4–17–18; 8:45 am]
Administration (SBA) is publishing this S. Ry.—Notice of Modified Certificate of
BILLING CODE 8025–01–P Pub. Convenience & Necessity—
notice to comply with requirements of
the Paperwork Reduction Act (PRA), Yankton, Bon Homme, & Charles Mix
which requires agencies to submit Ctys., S.D., FD 36086 (STB served Jan.
proposed reporting and recordkeeping SURFACE TRANSPORTATION BOARD 25, 2017). According to the State,
requirements to OMB for review and [Docket No. AB 1253] following the termination of NPRRA’s
approval, and to publish a notice in the lease, the State requested that NPRRA
Federal Register notifying the public of State of South Dakota Acting by and seek a voluntary termination of its lease
that submission. Through its Department of and operating authority over the Napa-
DATES: Submit comments on or before Transportation—Adverse Tabor Line, but NPRRA has not done so.
Discontinuance of Operating The State now seeks Board authority
May 18, 2018.
Authority—Napa-Platte Regional through an adverse discontinuance
ADDRESSES: Comments should refer to
Railroad Authority proceeding to terminate NPRRA’s
the information collection by name regulatory authority to lease and operate
and/or OMB Control Number and On March 29, 2018, the State of South the Napa-Tabor Line. The State asserts
should be sent to: Agency Clearance Dakota acting by and through its that NPRRA does not oppose the State’s
Officer, Curtis Rich, Small Business Department of Transportation (the State) application for adverse discontinuance.
Administration, 409 3rd Street SW, 5th filed an application under 49 U.S.C. In a decision served in this
Floor, Washington, DC 20416; and SBA 10903 requesting that the Surface proceeding on May 31, 2017, the State
Desk Officer, Office of Information and Transportation Board (the Board) was granted exemptions from several
Regulatory Affairs, Office of authorize the third-party, or ‘‘adverse,’’ statutory provisions as well as waivers
Management and Budget, New discontinuance of the operating of certain Board regulations that were
Executive Office Building, Washington, authority of Napa-Platte Regional not relevant to its adverse
DC 20503. Railroad Authority (NPRRA) 1 over discontinuance application or that
FOR FURTHER INFORMATION CONTACT: approximately 13.4 miles of rail line sought information not available to the
Curtis Rich, Agency Clearance Officer, extending from milepost (MP) 0.0, State.
(202) 205–7030 curtis.rich@sba.gov. referred to as Napa Junction, in South According to the State, the Napa-
SUPPLEMENTARY INFORMATION: SBA is Dakota, to MP 13.4+/¥ near Tabor, S.D. Tabor Line does not contain federally
required to survey affected disaster (the Napa-Tabor Line). The Napa-Tabor granted rights-of-way. Any
areas, within a state upon request by the Line traverses United States Postal documentation in the State’s possession
Governor of that state to determine if Service Zip Codes 57078 and 57063.2 will be made available promptly to
there is sufficient damage to warrant a According to the State, the Napa- those requesting it. The State’s entire
Disaster Declaration, Information is Tabor Line is part of a longer line that case-in-chief for adverse abandonment
obtained from individuals, businesses, runs from MP 0.0 to MP 83.3 near Platte, and discontinuance was filed with the
and public officials. S.D. (the Napa-Platte Line). The State application.
explains that the Napa-Platte Line was Any interested person may file
Solicitation of Public Comments authorized for abandonment in 1980 written comments concerning the
Comments may be submitted on (a) but, prior to being abandoned, was proposed adverse discontinuance or
whether the collection of information is acquired by the State. See Ogilvie— protests (including protestant’s entire
amozie on DSK30RV082PROD with NOTICES
necessary for the agency to properly opposition case) by May 14, 2018.
perform its functions; (b) whether the 1 According to the State, NPRRA is a political Persons who may oppose the proposed
burden estimates are accurate; (c) subdivision of the State of South Dakota and is a adverse discontinuance but who do not
non-operating common carrier railroad. wish to participate fully in the process
whether there are ways to minimize the 2 In a letter filed April 11, 2018, the State
informed the Board that United States Postal
by submitting verified statements of
39 15 U.S.C. 78s(b)(2). Service Zip Code 57058 had inadvertently been witnesses containing detailed evidence
40 17 CFR 200.30–3(a)(12). included in its verified notice. should file comments. Persons opposing
VerDate Sep<11>2014 17:31 Apr 17, 2018 Jkt 244001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\18APN1.SGM 18APN1](https://thefederalregister.org/doc/83_FR_17281/page/4.svg)
Document Created: 2018-04-18 03:00:39
Document Modified: 2018-04-18 03:00:39
| 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 17206 |
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