83_FR_30919 83 FR 30793 - Self-Regulatory Organizations; NYSE Arca Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 6.72-O in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through December 31, 2018

83 FR 30793 - Self-Regulatory Organizations; NYSE Arca Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 6.72-O in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through December 31, 2018

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 126 (June 29, 2018)

Page Range30793-30795
FR Document2018-13984

Federal Register, Volume 83 Issue 126 (Friday, June 29, 2018)
[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)]
[Notices]
[Pages 30793-30795]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13984]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83512; File No. SR-NYSEArca-2018-48]


Self-Regulatory Organizations; NYSE Arca Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Commentary 
.02 to Rule 6.72-O in Order To Extend the Penny Pilot in Options 
Classes in Certain Issues Through December 31, 2018

June 25, 2018.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby 
given that on June 21, 2018, NYSE Arca Inc. (the ``Exchange'' or ``NYSE 
Arca'') filed with the Securities and Exchange Commission (the 
``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.
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.

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[[Page 30794]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Commentary .02 to Rule 6.72-O in 
order to extend the Penny Pilot in options classes in certain issues 
(``Pilot Program'') previously approved by the Securities and Exchange 
Commission (``Commission'') through December 31, 2018. The Pilot 
Program is currently scheduled to expire on June 30, 2018. The proposed 
rule change is available on the Exchange's website at www.nyse.com, at 
the principal office of the Exchange, and at the Commission's Public 
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the 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 those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange hereby proposes to amend Commentary .02 to Rule 6.72-O 
to extend the time period of the Pilot Program,\4\ which is currently 
scheduled to expire on June 30, 2018, through December 31, 2018. The 
Exchange also proposes that the date to replace issues in the Pilot 
Program that have been delisted be revised to the second trading day 
following July 1, 2018.\5\ The Exchange believes that extending the 
Pilot would allow for further analysis of the Pilot Program and a 
determination of how the Pilot Program should be structured in the 
future.
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    \4\ See Securities Exchange Act Release No. 82366 (December 19, 
2017), 82 FR 61052 (December 26, 2017) (SR-NYSEArca-2017-141).
    \5\ The month immediately preceding a replacement class's 
addition to the Pilot Program (i.e., June) would not be used for 
purposes of the analysis for determining the replacement class. 
Thus, a replacement class to be added on the second trading day 
following July 1, 2018 would be identified based on The Option 
Clearing Corporation's trading volume data from December 1, 2017 
through May 31, 2018. The Exchange will announce the replacement 
issues to the Exchange's membership through a Trader Update.
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    This filing does not propose any substantive changes to the Pilot 
Program: All classes currently participating will remain the same and 
all minimum increments will remain unchanged. The Exchange believes the 
benefits to public customers and other market participants who will be 
able to express their true prices to buy and sell options have been 
demonstrated to outweigh the increase in quote traffic.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \6\ of the 
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers 
the objectives of Section 6(b)(5),\7\ in particular, in that 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, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    In particular, the proposed rule change, which extends the Penny 
Pilot Program for six months, allows the Exchange to continue to 
participate in a program that has been viewed as beneficial to traders, 
investors and public customers and viewed as successful by the other 
options exchanges participating in it. Accordingly, the Exchange 
believes that the proposal is consistent with the Act because it will 
allow the Exchange to extend the Pilot Program prior to its expiration 
on June 30, 2018. The Exchange notes that this proposal does not 
propose any new policies or provisions that are unique or unproven, but 
instead relates to the continuation of an existing program that 
operates on a pilot basis.
    The Exchange believes that the Pilot Program promotes just and 
equitable principles of trade by enabling public customers and other 
market participants to express their true prices to buy and sell 
options to the benefit of all market participants.
    The proposal to extend the Pilot Program is designed to promote 
just and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in facilitating transactions in 
securities, and to remove impediments to and perfect the mechanisms of 
a free and open market and a national market system, by allowing the 
Exchange and the Commission additional time to analyze the impact of 
the Pilot Program while also allowing the Exchange to continue to 
compete for order flow with other exchanges in option issues trading as 
part of the Pilot Program.

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. Specifically, the Exchange 
believes that, by extending the expiration of the Pilot Program, the 
proposed rule change will allow for further analysis of the Pilot 
Program and a determination of how this Program should be structured in 
the future. In doing so, the proposed rule change will also serve to 
promote regulatory clarity and consistency, thereby reducing burdens on 
the marketplace and facilitating investor protection. The Pilot Program 
is an industry-wide initiative supported by all other option exchanges. 
The Exchange believes that extending the Pilot Program will allow for 
continued competition between Exchange market participants trading 
similar products as their counterparts on other exchanges, while at the 
same time allowing the Exchange to continue to compete for order flow 
with other exchanges in option issues trading as part of the Pilot 
Program.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \8\ and Rule 19b-4(f)(6) thereunder.\9\ 
Because the 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 prior to 
30 days from the date on which it was filed, or such shorter time as 
the Commission may designate if consistent with the protection of 
investors and the public interest, the proposed rule change has become 
effective pursuant to

[[Page 30795]]

Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)(iii) 
thereunder.\11\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change along with a 
brief description and the text of 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 pre-filing requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing.\13\ However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the 
Commission may designate a shorter time if such action is consistent 
with the protection of investors and the public interest. Without a 
waiver of 30-day operative delay, the Exchange's Pilot Program will 
expire before the extension of the Pilot Program is operative. The 
Commission believes that waiving the 30-day operative delay for the 
instant filing is consistent with the protection of investors and the 
public interest because doing so will allow the Pilot Program to 
continue without interruption in a manner that is consistent with the 
Commission's prior approval of the extension and expansion of the Pilot 
Program and will allow the Exchange and the Commission additional time 
to analyze the impact of the Pilot Program. Accordingly, the Commission 
designates the proposed rule change as operative upon filing with the 
Commission.\15\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

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 Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NYSEArca-2018-48 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-NYSEArca-2018-48. 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 
20549-1090 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-NYSEArca-2018-48 and should 
be submitted on or before July 20, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13984 Filed 6-28-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices                                                 30793

                                                protection, and fostering a competitive                 Exchange and the Commission                            proposed rule change between the
                                                environment. In addition, consistent                    additional time to analyze the impact of               Commission and any person, other than
                                                with previous practices, the Exchange                   the Pilot Program.13 Accordingly, the                  those that may be withheld from the
                                                believes the other options exchanges                    Commission designates the proposed                     public in accordance with the
                                                will be filing similar extensions of the                rule change as operative upon filing                   provisions of 5 U.S.C. 552, will be
                                                Penny Pilot Program.                                    with the Commission.14                                 available for website viewing and
                                                                                                           At any time within 60 days of the                   printing in the Commission’s Public
                                                C. Self-Regulatory Organization’s
                                                                                                        filing of such proposed rule change, the               Reference Room, 100 F Street NE,
                                                Statement on Comments on the
                                                Proposed Rule Change Received From                      Commission summarily may                               Washington, DC 20549, on official
                                                Members, Participants, or Others                        temporarily suspend such rule change if                business days between the hours of
                                                                                                        it appears to the Commission that such                 10:00 a.m. and 3:00 p.m. Copies of the
                                                  Written comments were neither                         action is necessary or appropriate in the              filing also will be available for
                                                solicited nor received.                                 public interest, for the protection of                 inspection and copying at the principal
                                                III. Date of Effectiveness of the                       investors, or otherwise in furtherance of              office of the Exchange. All comments
                                                Proposed Rule Change and Timing for                     the purposes of the Act. If the                        received will be posted without change.
                                                Commission Action                                       Commission takes such action, the                      Persons submitting comments are
                                                                                                        Commission shall institute proceedings                 cautioned that we do not redact or edit
                                                   The Exchange has filed the proposed
                                                                                                        under Section 19(b)(2)(B) 15 of the Act to             personal identifying information from
                                                rule change pursuant to Section
                                                                                                        determine whether the proposed rule                    comment submissions. You should
                                                19(b)(3)(A)(iii) of the Act 8 and Rule
                                                                                                        change should be approved or                           submit only information that you wish
                                                19b–4(f)(6) thereunder.9 Because the
                                                                                                        disapproved.                                           to make available publicly.
                                                proposed rule change does not: (i)
                                                Significantly affect the protection of                                                                            All submissions should refer to File
                                                                                                        IV. Solicitation of Comments
                                                investors or the public interest; (ii)                                                                         Number SR–PEARL–2018–14 and
                                                                                                          Interested persons are invited to                    should be submitted on or before July
                                                impose any significant burden on                        submit written data, views, and
                                                competition; and (iii) become operative                                                                        20, 2018.
                                                                                                        arguments concerning the foregoing,
                                                prior to 30 days from the date on which                                                                          For the Commission, by the Division of
                                                                                                        including whether the proposed rule                    Trading and Markets, pursuant to delegated
                                                it was filed, or such shorter time as the               change is consistent with the Act.
                                                Commission may designate, if                                                                                   authority.16
                                                                                                        Comments may be submitted by any of                    Eduardo A. Aleman,
                                                consistent with the protection of                       the following methods:
                                                investors and the public interest, the                                                                         Assistant Secretary.
                                                proposed rule change has become                         Electronic Comments                                    [FR Doc. 2018–13983 Filed 6–28–18; 8:45 am]
                                                effective pursuant to Section 19(b)(3)(A)                 • Use the Commission’s internet                      BILLING CODE 8011–01–P
                                                of the Act and Rule 19b–4(f)(6)(iii)                    comment form (http://www.sec.gov/
                                                thereunder.                                             rules/sro.shtml); or
                                                   A proposed rule change filed under                     • Send an email to rule-comments@                    SECURITIES AND EXCHANGE
                                                Rule 19b–4(f)(6) 10 normally does not                   sec.gov. Please include File Number SR–                COMMISSION
                                                become operative prior to 30 days after                 PEARL–2018–14 on the subject line.
                                                the date of the filing.11 However,                                                                             [Release No. 34–83512; File No. SR–
                                                pursuant to Rule 19b–4(f)(6)(iii),12 the                Paper Comments                                         NYSEArca–2018–48]
                                                Commission may designate a shorter                        • Send paper comments in triplicate                  Self-Regulatory Organizations; NYSE
                                                time if such action is consistent with the              to Secretary, Securities and Exchange                  Arca Inc.; Notice of Filing and
                                                protection of investors and the public                  Commission, 100 F Street NE,                           Immediate Effectiveness of Proposed
                                                interest. The Exchange has asked the                    Washington, DC 20549–1090.                             Rule Change To Amend Commentary
                                                Commission to waive the 30-day                          All submissions should refer to File                   .02 to Rule 6.72–O in Order To Extend
                                                operative delay so that the proposal may                Number SR–PEARL–2018–14. This file                     the Penny Pilot in Options Classes in
                                                become operative immediately upon                       number should be included on the                       Certain Issues Through December 31,
                                                filing. The Commission believes that                    subject line if email is used. To help the             2018
                                                waiving the 30-day operative delay is                   Commission process and review your
                                                consistent with the protection of                       comments more efficiently, please use                  June 25, 2018.
                                                investors and the public interest                       only one method. The Commission will                      Pursuant to Section 19(b)(1) 1 of the
                                                because doing so will allow the Pilot                   post all comments on the Commission’s                  Securities Exchange Act of 1934 (the
                                                Program to continue without                             internet website (http://www.sec.gov/                  ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                interruption in a manner that is                        rules/sro.shtml).                                      notice is hereby given that on June 21,
                                                consistent with the Commission’s prior                    Copies of the submission, all                        2018, NYSE Arca Inc. (the ‘‘Exchange’’
                                                approval of the extension and expansion                 subsequent amendments, all written                     or ‘‘NYSE Arca’’) filed with the
                                                of the Pilot Program and will allow the                 statements with respect to the proposed                Securities and Exchange Commission
                                                                                                        rule change that are filed with the                    (the ‘‘Commission’’) the proposed rule
                                                  8 15  U.S.C. 78s(b)(3)(A)(iii).
                                                                                                        Commission, and all written                            change as described in Items I and II
                                                  9 17  CFR 240.19b–4(f)(6).
                                                  10 17 CFR 240.19b–4(f)(6).                            communications relating to the                         below, which Items have been prepared
                                                  11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                                                                                                                               by the self-regulatory organization. The
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                                                4(f)(6)(iii) requires the Exchange to give the             13 See Securities Exchange Act Release No. 61061    Commission is publishing this notice to
                                                Commission written notice of the Exchange’s intent      (November 24, 2009), 74 FR 62857 (December 1,          solicit comments on the proposed rule
                                                to file the proposed rule change along with a brief     2009) (SR–NYSEArca–2009–44).                           change from interested persons.
                                                description and the text of the proposed rule              14 For purposes only of waiving the operative

                                                change, at least five business days prior to the date   delay for this proposal, the Commission has
                                                                                                                                                                 16 17 CFR 200.30–3(a)(12).
                                                of filing of the proposed rule change, or such          considered the proposed rule’s impact on
                                                                                                                                                                 1 15 U.S.C.78s(b)(1).
                                                shorter time as designated by the Commission. The       efficiency, competition, and capital formation. See
                                                Exchange has satisfied this pre-filing requirement.     15 U.S.C. 78c(f).                                        2 15 U.S.C. 78a.
                                                  12 17 CFR 240.19b–4(f)(6)(iii).                          15 15 U.S.C. 78s(b)(2)(B).                            3 17 CFR 240.19b–4.




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                                                30794                           Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices

                                                I. Self-Regulatory Organization’s                          This filing does not propose any                      the impact of the Pilot Program while
                                                Statement of the Terms of Substance of                  substantive changes to the Pilot                         also allowing the Exchange to continue
                                                the Proposed Rule Change                                Program: All classes currently                           to compete for order flow with other
                                                   The Exchange proposes to amend                       participating will remain the same and                   exchanges in option issues trading as
                                                Commentary .02 to Rule 6.72–O in order                  all minimum increments will remain                       part of the Pilot Program.
                                                                                                        unchanged. The Exchange believes the
                                                to extend the Penny Pilot in options                                                                             B. Self-Regulatory Organization’s
                                                                                                        benefits to public customers and other
                                                classes in certain issues (‘‘Pilot                                                                               Statement on Burden on Competition
                                                                                                        market participants who will be able to
                                                Program’’) previously approved by the
                                                                                                        express their true prices to buy and sell
                                                Securities and Exchange Commission                                                                                 The Exchange does not believe that
                                                                                                        options have been demonstrated to
                                                (‘‘Commission’’) through December 31,                                                                            the proposed rule change will impose
                                                                                                        outweigh the increase in quote traffic.
                                                2018. The Pilot Program is currently                                                                             any burden on competition that is not
                                                scheduled to expire on June 30, 2018.                   2. Statutory Basis                                       necessary or appropriate in furtherance
                                                The proposed rule change is available                      The proposed rule change is                           of the purposes of the Act. Specifically,
                                                on the Exchange’s website at                            consistent with Section 6(b) 6 of the                    the Exchange believes that, by extending
                                                www.nyse.com, at the principal office of                Securities Exchange Act of 1934 (the                     the expiration of the Pilot Program, the
                                                the Exchange, and at the Commission’s                   ‘‘Act’’), in general, and furthers the                   proposed rule change will allow for
                                                Public Reference Room.                                  objectives of Section 6(b)(5),7 in                       further analysis of the Pilot Program and
                                                II. Self-Regulatory Organization’s                      particular, in that it is designed to                    a determination of how this Program
                                                Statement of the Purpose of, and                        prevent fraudulent and manipulative                      should be structured in the future. In
                                                Statutory Basis for, the Proposed Rule                  acts and practices, to promote just and                  doing so, the proposed rule change will
                                                Change                                                  equitable principles of trade, to foster                 also serve to promote regulatory clarity
                                                                                                        cooperation and coordination with                        and consistency, thereby reducing
                                                  In its filing with the Commission, the                persons engaged in facilitating
                                                self-regulatory organization included                                                                            burdens on the marketplace and
                                                                                                        transactions in securities, and to remove                facilitating investor protection. The
                                                statements concerning the purpose of,                   impediments to and perfect the
                                                and basis for, the proposed rule change                                                                          Pilot Program is an industry-wide
                                                                                                        mechanisms of a free and open market                     initiative supported by all other option
                                                and discussed any comments it received                  and a national market system.
                                                on the proposed rule change. The text                                                                            exchanges. The Exchange believes that
                                                                                                           In particular, the proposed rule
                                                of those statements may be examined at                                                                           extending the Pilot Program will allow
                                                                                                        change, which extends the Penny Pilot
                                                the places specified in Item IV below.                                                                           for continued competition between
                                                                                                        Program for six months, allows the
                                                The Exchange has prepared summaries,                                                                             Exchange market participants trading
                                                                                                        Exchange to continue to participate in a
                                                set forth in sections A, B, and C below,                program that has been viewed as                          similar products as their counterparts
                                                of the most significant parts of such                   beneficial to traders, investors and                     on other exchanges, while at the same
                                                statements.                                             public customers and viewed as                           time allowing the Exchange to continue
                                                                                                        successful by the other options                          to compete for order flow with other
                                                A. Self-Regulatory Organization’s                                                                                exchanges in option issues trading as
                                                Statement of the Purpose of, and the                    exchanges participating in it.
                                                                                                        Accordingly, the Exchange believes that                  part of the Pilot Program.
                                                Statutory Basis for, the Proposed Rule
                                                Change                                                  the proposal is consistent with the Act                  C. Self-Regulatory Organization’s
                                                                                                        because it will allow the Exchange to                    Statement on Comments on the
                                                1. Purpose                                              extend the Pilot Program prior to its                    Proposed Rule Change Received From
                                                   The Exchange hereby proposes to                      expiration on June 30, 2018. The                         Members, Participants, or Others
                                                amend Commentary .02 to Rule 6.72–O                     Exchange notes that this proposal does
                                                to extend the time period of the Pilot                  not propose any new policies or                            No written comments were solicited
                                                Program,4 which is currently scheduled                  provisions that are unique or unproven,                  or received with respect to the proposed
                                                to expire on June 30, 2018, through                     but instead relates to the continuation of               rule change.
                                                December 31, 2018. The Exchange also                    an existing program that operates on a
                                                                                                        pilot basis.                                             III. Date of Effectiveness of the
                                                proposes that the date to replace issues
                                                                                                           The Exchange believes that the Pilot                  Proposed Rule Change and Timing for
                                                in the Pilot Program that have been
                                                                                                        Program promotes just and equitable                      Commission Action
                                                delisted be revised to the second trading
                                                day following July 1, 2018.5 The                        principles of trade by enabling public
                                                                                                                                                                    The Exchange has filed the proposed
                                                Exchange believes that extending the                    customers and other market participants
                                                                                                                                                                 rule change pursuant to Section
                                                Pilot would allow for further analysis of               to express their true prices to buy and
                                                                                                                                                                 19(b)(3)(A)(iii) of the Act 8 and Rule
                                                the Pilot Program and a determination                   sell options to the benefit of all market
                                                                                                        participants.                                            19b–4(f)(6) thereunder.9 Because the
                                                of how the Pilot Program should be                                                                               proposed rule change does not: (i)
                                                structured in the future.                                  The proposal to extend the Pilot
                                                                                                        Program is designed to promote just and                  Significantly affect the protection of
                                                                                                        equitable principles of trade, to foster                 investors or the public interest; (ii)
                                                   4 See Securities Exchange Act Release No. 82366

                                                (December 19, 2017), 82 FR 61052 (December 26,          cooperation and coordination with                        impose any significant burden on
                                                2017) (SR–NYSEArca–2017–141).                           persons engaged in facilitating                          competition; and (iii) become operative
                                                   5 The month immediately preceding a
                                                                                                        transactions in securities, and to remove                prior to 30 days from the date on which
                                                replacement class’s addition to the Pilot Program                                                                it was filed, or such shorter time as the
sradovich on DSK3GMQ082PROD with NOTICES




                                                (i.e., June) would not be used for purposes of the
                                                                                                        impediments to and perfect the
                                                                                                        mechanisms of a free and open market                     Commission may designate if consistent
                                                analysis for determining the replacement class.
                                                Thus, a replacement class to be added on the            and a national market system, by                         with the protection of investors and the
                                                second trading day following July 1, 2018 would be      allowing the Exchange and the                            public interest, the proposed rule
                                                identified based on The Option Clearing                                                                          change has become effective pursuant to
                                                Corporation’s trading volume data from December
                                                                                                        Commission additional time to analyze
                                                1, 2017 through May 31, 2018. The Exchange will
                                                                                                          6 15   U.S.C. 78f(b).                                   8 15   U.S.C. 78s(b)(3)(A)(iii).
                                                announce the replacement issues to the Exchange’s
                                                membership through a Trader Update.                       7 15   U.S.C. 78f(b)(5).                                9 17   CFR 240.19b–4(f)(6).



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                                                                                 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices                                               30795

                                                Section 19(b)(3)(A) of the Act 10 and                   All submissions should refer to File                    ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                Rule 19b–4(f)(6)(iii) thereunder.11                     Number SR–NYSEArca–2018–48. This                        notice is hereby given that on June 15,
                                                   A proposed rule change filed under                   file number should be included on the                   2018, Cboe Exchange, Inc. (the
                                                Rule 19b–4(f)(6) 12 normally does not                   subject line if email is used. To help the              ‘‘Exchange’’ or ‘‘Cboe Options’’) filed
                                                become operative prior to 30 days after                 Commission process and review your                      with the Securities and Exchange
                                                the date of the filing.13 However,                      comments more efficiently, please use                   Commission (the ‘‘Commission’’) the
                                                pursuant to Rule 19b–4(f)(6)(iii),14 the                only one method. The Commission will                    proposed rule change as described in
                                                Commission may designate a shorter                      post all comments on the Commission’s                   Items I and II below, which Items have
                                                time if such action is consistent with the              internet website (http://www.sec.gov/                   been prepared by the Exchange. The
                                                protection of investors and the public                  rules/sro.shtml). Copies of the                         Exchange filed the proposal pursuant to
                                                interest. Without a waiver of 30-day                    submission, all subsequent                              Section 19(b)(3)(A)(iii) of the Act 3 and
                                                operative delay, the Exchange’s Pilot                   amendments, all written statements                      Rule 19b–4(f)(6) thereunder.4 The
                                                Program will expire before the extension                with respect to the proposed rule                       Commission is publishing this notice to
                                                of the Pilot Program is operative. The                  change that are filed with the                          solicit comments on the proposed rule
                                                Commission believes that waiving the                    Commission, and all written                             change from interested persons.
                                                30-day operative delay for the instant                  communications relating to the                          I. Self-Regulatory Organization’s
                                                filing is consistent with the protection                proposed rule change between the                        Statement of the Terms of Substance of
                                                of investors and the public interest                    Commission and any person, other than                   the Proposed Rule Change
                                                because doing so will allow the Pilot                   those that may be withheld from the
                                                Program to continue without                             public in accordance with the                              The Exchange proposes to amend
                                                interruption in a manner that is                        provisions of 5 U.S.C. 552, will be                     Rule 6.2., Hybrid Opening (and
                                                consistent with the Commission’s prior                  available for website viewing and                       Sometimes Closing) System (‘‘HOSS’’).
                                                approval of the extension and expansion                 printing in the Commission’s Public                     (additions are italicized; deletions are
                                                of the Pilot Program and will allow the                 Reference Room, 100 F Street NE,                        [bracketed])
                                                Exchange and the Commission                             Washington, DC 20549–1090 on official
                                                additional time to analyze the impact of                                                                        *          *     *       *      *
                                                                                                        business days between the hours of
                                                the Pilot Program. Accordingly, the                     10:00 a.m. and 3:00 p.m. Copies of the                  Cboe Exchange, Inc. Rules
                                                Commission designates the proposed                      filing also will be available for                       *          *     *       *      *
                                                rule change as operative upon filing                    inspection and copying at the principal
                                                with the Commission.15                                  office of the Exchange. All comments                    Rule 6.2. Hybrid Opening (and
                                                                                                        received will be posted without change.                 Sometimes Closing) System (‘‘HOSS’’)
                                                IV. Solicitation of Comments
                                                                                                        Persons submitting comments are                            (a)–(h) (No change).
                                                  Interested persons are invited to                     cautioned that we do not redact or edit                    . . . Interpretations and Policies:
                                                submit written data, views, and                         personal identifying information from                      .01 Modified Opening Procedure for
                                                arguments concerning the foregoing,                     comment submissions. You should                         Series Used to Calculate the Exercise/
                                                including whether the proposed rule                     submit only information that you wish                   Final Settlement Values of Volatility
                                                change is consistent with the Act.                      to make available publicly. All                         Indexes. All provisions set forth in Rule
                                                Comments may be submitted by any of                     submissions should refer to File                        6.2 remain in effect unless superseded
                                                the following methods:                                  Number SR–NYSEArca–2018–48 and                          or modified by this Interpretation and
                                                Electronic Comments                                     should be submitted on or before July                   Policy .01. On the dates on which the
                                                                                                        20, 2018.                                               exercise and final settlement values are
                                                  • Use the Commission’s internet                                                                               calculated for options (as determined
                                                comment form (http://www.sec.gov/                         For the Commission, by the Division of
                                                                                                        Trading and Markets, pursuant to delegated              under Rule 24.9(a)(5) or (6)) or (security)
                                                rules/sro.shtml); or                                                                                            futures contracts on a volatility index
                                                  • Send an email to rule-comments@                     authority.16
                                                                                                        Eduardo A. Aleman,                                      (i.e., expiration and final settlement
                                                sec.gov. Please include File Number SR–
                                                                                                                                                                dates), the Exchange utilizes the
                                                NYSEArca–2018–48 on the subject line.                   Assistant Secretary.
                                                                                                                                                                modified opening procedure described
                                                                                                        [FR Doc. 2018–13984 Filed 6–28–18; 8:45 am]
                                                Paper Comments                                                                                                  below for all series used to calculate the
                                                                                                        BILLING CODE 8011–01–P
                                                  • Send paper comments in triplicate                                                                           exercise/final settlement value of the
                                                to Secretary, Securities and Exchange                                                                           volatility index for expiring options and
                                                Commission, 100 F Street NE,                                                                                    (security) futures contracts (these option
                                                                                                        SECURITIES AND EXCHANGE
                                                Washington, DC 20549–1090.                                                                                      series referred to as ‘‘constituent
                                                                                                        COMMISSION
                                                                                                                                                                options’’).
                                                  10 15  U.S.C. 78s(b)(3)(A).
                                                                                                                                                                   (a) Strategy Orders. All orders for
                                                  11 17
                                                                                                        [Release No. 34–83504; File No. SR–CBOE–                participation in the modified opening
                                                         CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                4(f)(6)(iii) requires the Exchange to give the          2018–045]                                               procedure that are related to positions
                                                Commission written notice of the Exchange’s intent                                                              in, or a trading strategy involving,
                                                to file the proposed rule change along with a brief     Self-Regulatory Organizations; Cboe                     expiring volatility index options or
                                                description and the text of the proposed rule           Exchange, Inc.; Notice of Filing and                    (security) futures (‘‘strategy orders’’),
                                                change, at least five business days prior to the date   Immediate Effectiveness of a Proposed
                                                of filing of the proposed rule change, or such                                                                  and any change to or cancellation of any
                                                shorter time as designated by the Commission. The       Rule Change Relating to Exchange                        such order:
sradovich on DSK3GMQ082PROD with NOTICES




                                                Exchange has satisfied this pre-filing requirement.     Rule 6.2., Hybrid Opening (and                             (i)–(ii) (No change).
                                                   12 17 CFR 240.19b–4(f)(6).                           Sometimes Closing) System (‘‘HOSS’’)                       Whether orders are strategy orders for
                                                   13 17 CFR 240.19b–4(f)(6).
                                                   14 17 CFR 240.19b–4(f)(6)(iii).                      June 25, 2018.                                          purposes of this Rule 6.2.01 depends
                                                   15 For purposes only of waiving the operative
                                                                                                          Pursuant to Section 19(b)(1) of the                       1 15 U.S.C. 78s(b)(1).
                                                delay for this proposal, the Commission has             Securities Exchange Act of 1934 (the                        2 17 CFR 240.19b–4.
                                                considered the proposed rule’s impact on
                                                                                                                                                                    3 15 U.S.C. 78s(b)(3)(A)(iii).
                                                efficiency, competition, and capital formation. See
                                                15 U.S.C. 78c(f).                                         16 17   CFR 200.30–3(a)(12).                              4 17 CFR 240.19b–4(f)(6).




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Document Created: 2018-06-29 01:12:50
Document Modified: 2018-06-29 01:12:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 30793 

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