83 FR 28296 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend IM-3120-2 of BOX Rule 3120 (Position Limits) To Amend the Position and Exercise Limits for Options on the Standard and Poor's Depositary Receipts Trust (“SPY”)
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 117 (June 18, 2018)
Federal Register Volume 83, Issue 117 (June 18, 2018)
| Page Range | 28296-28298 | |
| FR Document | 2018-12930 |
[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)] [Notices] [Pages 28296-28298] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-12930] [[Page 28296]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83414; File No. SR-BOX-2018-22] Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend IM-3120-2 of BOX Rule 3120 (Position Limits) To Amend the Position and Exercise Limits for Options on the Standard and Poor's Depositary Receipts Trust (``SPY'') June 12, 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 June 6, 2018, BOX Options Exchange LLC (the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. 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 IM-3120-2 of BOX Rule 3120 (Position Limits) to amend the position and exercise limits for options on the Standard and Poor's Depositary Receipts Trust (``SPY''). The text of the proposed rule change is available from the principal office of the Exchange, at the Commission's Public Reference Room and also on the Exchange's internet website at http://boxoptions.com. 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 self-regulatory organization 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 self-regulatory organization 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 BOX Rule 3120 (Position Limits) establishes position limits for aggregate positions in option contracts traded on the Exchange. IM- 3120-2 to BOX Rule 3120 lists specific position limits for certain select underlying securities.\3\ SPY is among the certain select underlying securities listed in such Rule. Currently, this Rule provides that there are no position limits and there are no exercise limits on options overlying SPY pursuant to a pilot program, which is scheduled to expire on July 12, 2018 (``SPY Pilot Program'').\4\ --------------------------------------------------------------------------- \3\ The Exchange notes that IM-3140-1 to BOX Rule 3140 (Exercise Limits) states that exercise limits established under Rule 3140 shall be equivalent to the position limits prescribed for such options in IM-3120-2. \4\ See Securities Exchange Act Release Nos. 67936 (September 27, 2012), 77 FR 60491 (October 3, 2012) (SR-BOX-2012-013) (adoption of the SPY Pilot Program), 81092 (July 7, 2017), 82 FR 32402 (July 13, 2017) (SR-BOX-2017-22) (extending the SPY Pilot Program to July 12, 2018). --------------------------------------------------------------------------- The Exchange proposes to amend IM-3120-2 to allow the SPY Pilot Program to terminate on July 12, 2018, the current expiration date of the SPY Pilot Program. In lieu of extending the SPY Pilot Program for another year, the Exchange proposes to allow the SPY Pilot Program to terminate and to establish position and exercise limits of 1,800,000 contracts, for options on SPY, with such change becoming operative on July 12, 2018, so that there is no lapse in time between termination of the SPY Pilot Program and the establishment of the new limits. Furthermore, as a result of the termination of the SPY Pilot Program, the Exchange does not believe it is necessary to submit a SPY Pilot Program Report at the end of the SPY Pilot Program. Based on the prior SPY Pilot Program Reports provided to the Commission,\5\ the Exchange believes it is appropriate to terminate the SPY Pilot Program and that permanent position and exercise limits should be established for SPY. --------------------------------------------------------------------------- \5\ Id. --------------------------------------------------------------------------- Position limits are designed to address potential manipulative schemes and adverse market impact surrounding the use of options, such as disrupting the market in the security underlying the options. The potential manipulative schemes and adverse market impact are balanced against the potential of setting the limits so low as to discourage participation in the options market. The level of those position limits must be balanced between curtailing potential manipulation and the cost of preventing potential hedging activity that could be used for legitimate economic purposes. The SPY Pilot Program was established in 2012 in order to eliminate position and exercise limits for physically-settled SPY options.\6\ In 2005, the position limits for SPY options were increased from 75,000 contracts to 300,000 contracts on the same side of the market.\7\ In July 2011, the position limit for these options was again increased from 300,000 contracts to 900,000 contracts on the same side of the market.\8\ Then, in 2012, the position limits for SPY options were eliminated as part of the SPY Pilot Program.\9\ --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release Nos. 67672 (August 15, 2012), 77 FR 50750 (August 22, 2012) (SR-NYSEAmex-2012-29); 67937 (September 27, 2012), 77 FR 60489 (October 3, 2012) (SR-CBOE-2012- 091). \7\ See Securities Exchange Act Release No. 51041 (January 14, 2005), 70 FR 3408 (January 24, 2005) (SR-CBOE-2005-06). \8\ See Securities Exchange Act Release No. 64928 (July 20, 2011), 76 FR 44633 (July 26, 2011) (SR-CBOE-2011-065). \9\ See supra note 6. --------------------------------------------------------------------------- The underlying SPY tracks the performance of the S&P 500 Index and the Exchange notes that the SPY and SPY options have deep, liquid markets that reduce concerns regarding manipulation and disruption in the underlying markets. In support of its proposed rule change, Miami International Securities Exchange LLC (``MIAX'') has collected the following trading statistics for SPY and SPY Options: (1) The average daily volume (``ADV'') to date (as of May 15, 2018) for SPY is 108.32 million shares; (2) the ADV to date in 2018 for SPY options is 3.9 million contracts per day; (3) the total shares outstanding for SPY are 965.43 million; and (4) the fund market cap for SPY is 261.65 billion.\10\ The Exchange, based on MIAX's compiled trading statistics, represents further that there is tremendous liquidity in the securities that make up the S&P 500 Index. --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 83349 (May 30, 2018), 83 FR 26123 (June 5, 2018) (SR-MIAX-2018-11). --------------------------------------------------------------------------- Accordingly, the Exchange proposes to amend IM-3120-2 to Rule 3120 to set forth that the position and exercise limits for options on SPY would be 1,800,000 contracts on the same side of the market. These position and exercise limits equal the current position and exercise limits for options on QQQQ, which the Commission previously approved to be increased from 900,000 contracts on the same side of the market, to 1,800,000 contracts on the [[Page 28297]] same side of the market.\11\ The Exchange also notes that SPY is more liquid than QQQQ.\12\ The Exchange believes that establishing position and exercise limits for the SPY options in the amount of 1,800,000 contracts on the same side of the market subject to this proposal would allow for the maintenance of the liquid and competitive market environment for these options, which will benefit customers interested in these products. Under the proposal, the reporting requirement for the options would be unchanged. --------------------------------------------------------------------------- \11\ See Securities Exchange Act Release No. 82930 (March 22, 2018), 83 FR 13330 (March 28, 2018) (SR-BOX-2018-10); see also Securities Exchange Act Release No. 82770 (February 23, 2018), 83 FR 8907 (March 1, 2018) (SR-CBOE-2017-057). \12\ From the beginning of the year, through May 15, 2018, the ADV for SPY was 108.32 million shares while the ADV for QQQQ was 46.64 million shares (calculated using data from Yahoo Finance as of May 15, 2018). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act.\13\ Specifically, the proposal is consistent with Section 6(b)(5) of the Act \14\ because it is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in facilitating transactions in securities, 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. The Exchange believes that establishing permanent position and exercise limits for SPY options subject to this proposal will encourage Market Makers to continue to provide sufficient liquidity in SPY options on the Exchange, which will enhance the process of price discovery conducted on the Exchange. The proposal will also benefit institutional investors as well as retail traders, and public customers, by continuing to provide them with an effective trading and hedging vehicle. In addition, the Exchange believes that the structure of the SPY options subject to this proposal and the considerable liquidity of the market for those options diminishes the opportunity to manipulate this product and disrupt the underlying market that a lower position limit may protect against. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- Increased position limits for select actively traded options, such as that proposed herein (increased as compared to the 900,000 limit in place prior to the SPY Pilot Program),\15\ is not novel and has been previously approved by the Commission. For example, the Commission has previously approved a rule change permitting the Exchange to double the position and exercise limits for FXI, EEM, IWM, EFA, EWZ, TLT, QQQQ, and EWJ.\16\ Furthermore, as previously mentioned, the Commission specifically approved a proposal by the Exchange to increase the position and exercise limits for options on QQQQ from 900,000 contracts on the same side of the market to 1,800,000 contracts on the same side of the market; similar to the current proposal for options on SPY.\17\ The Exchange also notes that SPY is more liquid than QQQQ.\18\ --------------------------------------------------------------------------- \15\ See supra note 8. \16\ See supra note 10. \17\ Id. \18\ See supra note 11. --------------------------------------------------------------------------- Lastly, the Commission expressed the belief that implementing higher position and exercise limits may bring additional depth and liquidity without increasing concerns regarding intermarket manipulation or disruption of the options or the underlying securities.\19\ The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from increasing position and exercise limits (increased as compared to the 900,000 limit in place prior to the SPY Pilot Program).\20\ --------------------------------------------------------------------------- \19\ See supra note 10. \20\ See supra note 8. --------------------------------------------------------------------------- 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The Exchange believes the entire proposal is consistent with Section (6)(b)(8) of the Act \21\ in that it does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. On the contrary, the Exchange believes the proposal promotes competition because it will enable the option exchanges to attract additional order flow from the over-the-counter market, who in turn compete for those orders. The Exchange believes that the proposed rule change will result in continued opportunities to achieve the investment and trading objectives of market participants seeking efficient trading and hedging vehicles, to the benefit of investors, market participants, and the marketplace in general. BOX believes this proposed rule change is necessary to permit fair competition among the options exchanges and to establish uniform position limits for additional multiply listed option classes. --------------------------------------------------------------------------- \21\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has neither solicited nor received comments on the proposed rule change. 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 after the date of the filing, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act \22\ and Rule 19b-4(f)(6) \23\ thereunder. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A). \23\ 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings 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 rule-comments@sec.gov. Please include File Number SR-BOX-2018-22 on the subject line. [[Page 28298]] 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 SR-BOX-2018-22. 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-BOX-2018-22 and should be submitted on or before July 9, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-12930 Filed 6-15-18; 8:45 am] BILLING CODE 8011-01-P
![28296 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s level of those position limits must be
COMMISSION Statement of the Purpose of, and balanced between curtailing potential
Statutory Basis for, the Proposed Rule manipulation and the cost of preventing
[Release No. 34–83414; File No. SR–BOX–
Change potential hedging activity that could be
used for legitimate economic purposes.
2018–22] 1. Purpose The SPY Pilot Program was
BOX Rule 3120 (Position Limits) established in 2012 in order to eliminate
Self-Regulatory Organizations; BOX
establishes position limits for aggregate position and exercise limits for
Options Exchange LLC; Notice of
positions in option contracts traded on physically-settled SPY options.6 In
Filing and Immediate Effectiveness of the Exchange. IM–3120–2 to BOX Rule 2005, the position limits for SPY
a Proposed Rule Change To Amend 3120 lists specific position limits for options were increased from 75,000
IM–3120–2 of BOX Rule 3120 (Position certain select underlying securities.3 contracts to 300,000 contracts on the
Limits) To Amend the Position and SPY is among the certain select same side of the market.7 In July 2011,
Exercise Limits for Options on the underlying securities listed in such the position limit for these options was
Standard and Poor’s Depositary Rule. Currently, this Rule provides that again increased from 300,000 contracts
Receipts Trust (‘‘SPY’’) there are no position limits and there to 900,000 contracts on the same side of
are no exercise limits on options the market.8 Then, in 2012, the position
June 12, 2018.
overlying SPY pursuant to a pilot limits for SPY options were eliminated
Pursuant to Section 19(b)(1) of the program, which is scheduled to expire as part of the SPY Pilot Program.9
Securities Exchange Act of 1934 on July 12, 2018 (‘‘SPY Pilot The underlying SPY tracks the
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Program’’).4 performance of the S&P 500 Index and
notice is hereby given that on June 6, The Exchange proposes to amend IM– the Exchange notes that the SPY and
2018, BOX Options Exchange LLC (the 3120–2 to allow the SPY Pilot Program SPY options have deep, liquid markets
‘‘Exchange’’) filed with the Securities to terminate on July 12, 2018, the that reduce concerns regarding
and Exchange Commission current expiration date of the SPY Pilot manipulation and disruption in the
(‘‘Commission’’) the proposed rule Program. In lieu of extending the SPY underlying markets. In support of its
change as described in Items I and II Pilot Program for another year, the proposed rule change, Miami
below, which Items have been prepared Exchange proposes to allow the SPY International Securities Exchange LLC
by the self-regulatory organization. The Pilot Program to terminate and to (‘‘MIAX’’) has collected the following
Commission is publishing this notice to establish position and exercise limits of trading statistics for SPY and SPY
1,800,000 contracts, for options on SPY, Options: (1) The average daily volume
solicit comments on the proposed rule
with such change becoming operative (‘‘ADV’’) to date (as of May 15, 2018) for
change from interested persons.
on July 12, 2018, so that there is no SPY is 108.32 million shares; (2) the
I. Self-Regulatory Organization’s lapse in time between termination of the ADV to date in 2018 for SPY options is
Statement of the Terms of Substance of SPY Pilot Program and the 3.9 million contracts per day; (3) the
the Proposed Rule Change establishment of the new limits. total shares outstanding for SPY are
Furthermore, as a result of the 965.43 million; and (4) the fund market
The Exchange proposes to amend IM– termination of the SPY Pilot Program, cap for SPY is 261.65 billion.10 The
3120–2 of BOX Rule 3120 (Position the Exchange does not believe it is Exchange, based on MIAX’s compiled
Limits) to amend the position and necessary to submit a SPY Pilot Program trading statistics, represents further that
exercise limits for options on the Report at the end of the SPY Pilot there is tremendous liquidity in the
Standard and Poor’s Depositary Receipts Program. Based on the prior SPY Pilot securities that make up the S&P 500
Trust (‘‘SPY’’). The text of the proposed Program Reports provided to the Index.
rule change is available from the Commission,5 the Exchange believes it Accordingly, the Exchange proposes
principal office of the Exchange, at the is appropriate to terminate the SPY Pilot to amend IM–3120–2 to Rule 3120 to set
Commission’s Public Reference Room Program and that permanent position forth that the position and exercise
and also on the Exchange’s internet and exercise limits should be limits for options on SPY would be
website at http://boxoptions.com. established for SPY. 1,800,000 contracts on the same side of
Position limits are designed to the market. These position and exercise
II. Self-Regulatory Organization’s address potential manipulative schemes limits equal the current position and
Statement of the Purpose of, and and adverse market impact surrounding exercise limits for options on QQQQ,
Statutory Basis for, the Proposed Rule the use of options, such as disrupting which the Commission previously
Change the market in the security underlying approved to be increased from 900,000
the options. The potential manipulative contracts on the same side of the
In its filing with the Commission, the schemes and adverse market impact are
self-regulatory organization included market, to 1,800,000 contracts on the
balanced against the potential of setting
statements concerning the purpose of, the limits so low as to discourage 6 See Securities Exchange Act Release Nos. 67672
and basis for, the proposed rule change participation in the options market. The (August 15, 2012), 77 FR 50750 (August 22, 2012)
and discussed any comments it received (SR–NYSEAmex–2012–29); 67937 (September 27,
on the proposed rule change. The text 3 The Exchange notes that IM–3140–1 to BOX 2012), 77 FR 60489 (October 3, 2012) (SR–CBOE–
of these statements may be examined at Rule 3140 (Exercise Limits) states that exercise 2012–091).
7 See Securities Exchange Act Release No. 51041
the places specified in Item IV below. limits established under Rule 3140 shall be
amozie on DSK3GDR082PROD with NOTICES1
equivalent to the position limits prescribed for such (January 14, 2005), 70 FR 3408 (January 24, 2005)
The self-regulatory organization has options in IM–3120–2. (SR–CBOE–2005–06).
prepared summaries, set forth in 4 See Securities Exchange Act Release Nos. 67936 8 See Securities Exchange Act Release No. 64928
Sections A, B, and C below, of the most (September 27, 2012), 77 FR 60491 (October 3, (July 20, 2011), 76 FR 44633 (July 26, 2011) (SR–
2012) (SR–BOX–2012–013) (adoption of the SPY CBOE–2011–065).
significant aspects of such statements.
Pilot Program), 81092 (July 7, 2017), 82 FR 32402 9 See supra note 6.
(July 13, 2017) (SR–BOX–2017–22) (extending the 10 See Securities Exchange Act Release No. 83349
1 15 U.S.C. 78s(b)(1). SPY Pilot Program to July 12, 2018). (May 30, 2018), 83 FR 26123 (June 5, 2018) (SR–
2 17 CFR 240.19b–4. 5 Id. MIAX–2018–11).
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![28298 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices
Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and
• Send paper comments in triplicate Statutory Basis for, the Proposed Rule
to Brent J. Fields, Secretary, Securities Change
[Release No. 34–83412; File No. SR–Phlx–
and Exchange Commission, 100 F Street 2018–44]
NE, Washington, DC 20549–1090. 1. Purpose
Self-Regulatory Organizations; Nasdaq Phlx Rule 1001, entitled ‘‘Position
All submissions should refer to File Limits’’ establishes position for
Number SR–BOX–2018–22. This file PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed aggregate positions in option contracts
number should be included on the traded on the Exchange. The rule lists
Rule Change To Amend Rule 1001,
subject line if email is used. To help the specific position limits for certain select
Entitled ‘‘Position Limits’’
Commission process and review your underlying securities.4 SPY is among
comments more efficiently, please use June 12, 2018. the certain select underlying securities
only one method. The Commission will Pursuant to Section 19(b)(1) of the listed in each such Rule. Currently,
post all comments on the Commission’s Securities Exchange Act of 1934 these Rules provide that there are no
internet website (http://www.sec.gov/ (‘‘Act’’),1 and Rule 19b–4 thereunder,2 position limits and there are no exercise
rules/sro.shtml). Copies of the notice is hereby given that on June 4, limits on options overlying SPY
submission, all subsequent 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or pursuant to a pilot program, which is
amendments, all written statements ‘‘Exchange’’) filed with the Securities scheduled to expire on July 12, 2018
with respect to the proposed rule and Exchange Commission (‘‘SPY Pilot Program’’).5
change that are filed with the (‘‘Commission’’) the proposed rule The Exchange proposes to amend
Commission, and all written change as described in Items I, II, and Rule 1001 to allow the SPY Pilot
communications relating to the III below, which Items have been Program to terminate on July 12, 2018,
prepared by the Exchange. The the current expiration date of the SPY
proposed rule change between the
Commission is publishing this notice to Pilot Program. In lieu of extending the
Commission and any person, other than
solicit comments on the proposed rule SPY Pilot Program for another year, the
those that may be withheld from the
change from interested persons. Exchange proposes to allow the SPY
public in accordance with the Pilot Program to terminate and to
provisions of 5 U.S.C. 552, will be I. Self-Regulatory Organization’s establish position and exercise limits of
available for website viewing and Statement of the Terms of Substance of 1,800,000 contracts, for options on SPY,
printing in the Commission’s Public the Proposed Rule Change with such change becoming operative
Reference Room, 100 F Street NE, The Exchange proposes to amend on July 12, 2018, so that there is no
Washington, DC 20549, on official Rule 1001, entitled ‘‘Position Limits’’, to lapse in time between termination of the
business days between the hours of amend position limits for options on the SPY Pilot Program and the
10:00 a.m. and 3:00 p.m. Copies of the SPDR® S&P 500® exchange-traded fund establishment of the new limits.
filing also will be available for (‘‘SPY ETF’’ or ‘‘SPY’’),3 which list and Furthermore, as a result of the
inspection and copying at the principal trade under the symbol ‘‘SPY.’’ termination of the SPY Pilot Program,
office of the Exchange. All comments The text of the proposed rule change the Exchange does not believe it is
received will be posted without change. is available on the Exchange’s website at necessary to submit a SPY Pilot Program
Persons submitting comments are http://nasdaqphlx.cchwallstreet.com/, Report at the end of the SPY Pilot
cautioned that we do not redact or edit at the principal office of the Exchange, Program. Based on the prior SPY Pilot
personal identifying information from and at the Commission’s Public
comment submissions. You should Reference Room. 4 Rule 1002, entitled ‘‘Exercise Limits’’ notes that
‘‘except as set forth in subparagraph (c) herein, no
submit only information that you wish II. Self-Regulatory Organization’s member or member organization shall exercise, for
to make available publicly. All Statement of the Purpose of, and any account in which such member or member
submissions should refer to File organization has an interest or for the account of
Statutory Basis for, the Proposed Rule any partner, officer, director or employee thereof or
Number SR–BOX–2018–22 and should Change for the account of any customer, a long position in
be submitted on or before July 9, 2018. any option contract of a class of options dealt in on
In its filing with the Commission, the the Exchange (or, respecting an option not dealt in
For the Commission, by the Division of Exchange included statements on the Exchange, another exchange if the member
Trading and Markets, pursuant to delegated concerning the purpose of and basis for or member organization is not a member of that
authority.24 the proposed rule change and discussed exchange) if as a result thereof such member or
member organization, or partner, officer, director or
Eduardo A. Aleman, any comments it received on the employee thereof or customer, acting alone or in
Assistant Secretary. proposed rule change. The text of these concert with others, directly or indirectly, has or
[FR Doc. 2018–12930 Filed 6–15–18; 8:45 am] statements may be examined at the will have exercised within any five (5) consecutive
places specified in Item IV below. The business days aggregate long positions in that class
BILLING CODE 8011–01–P (put or call) as set forth as the position limit in Rule
Exchange has prepared summaries, set 1001, in the case of options on a stock or on an
forth in sections A, B, and C below, of Exchange-Traded Fund Share, on a foreign
the most significant aspects of such currency, or stock index warrants; without regard
statements. to the exchange on which the options were
purchased.’’
5 See Securities Exchange Act Release No. 67999
amozie on DSK3GDR082PROD with NOTICES1
1 15 U.S.C. 78s(b)(1). (October 5, 2012), 77 FR 62295 (October 12, 2012)
2 17 CFR 240.19b–4. (SR–Phlx–2012–122); 70879 (November 14, 2013),
3 ‘‘SPDR®,’’ ‘‘Standard & Poor’s®,’’ ‘‘S&P®,’’ ‘‘S&P 78FR 69731 (November 20, 2013) (SR–PHLX–2013–
500®,’’ and ‘‘Standard & Poor’s 500’’ are registered 108); 74099 (January 20, 2015), 80 FR 4021 (January
trademarks of Standard & Poor’s Financial Services 26, 2015) (SR–Phlx–2015–07); 75414 (July 9, 2015),
LLC. The SPY ETF represents ownership in the 80 FR 41538 (July 15, 2015) (SR–Phlx–2015–60);
SPDR S&P 500 Trust, a unit investment trust that 78124 (June 22, 2016), 81 FR 42008 (June 28, 2016)
generally corresponds to the price and yield (SR–Phlx–2016–68); and 81091 (July 7, 2017), 82 FR
24 17 CFR 200.30–3(a)(12). performance of the SPDR S&P 500 Index. 32404 (July 13, 2017) (SR–Phlx–2017–52).
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Document Created: 2018-06-18 15:50:57
Document Modified: 2018-06-18 15:50:57
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