83_FR_30934 83 FR 30808 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 960NY in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through December 31, 2018

83 FR 30808 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 960NY 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 Range30808-30810
FR Document2018-13979

Federal Register, Volume 83 Issue 126 (Friday, June 29, 2018)
[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)]
[Notices]
[Pages 30808-30810]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13979]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83507; File No. SR-NYSEAMER-2018-33]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Commentary .02 to Rule 960NY 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 American LLC (the ``Exchange'' or 
``NYSE American'') 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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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 960NY 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 960NY 
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. 82358 (December 19, 
2017), 82 FR 61054 (December 26, 2017) (SR-NYSEAMER-2017-38).
    \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

[[Page 30809]]

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.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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    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 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.
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    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).
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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-NYSEAMER-2018-33 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-NYSEAMER-2018-33. 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

[[Page 30810]]

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-NYSEAMER-2018-33 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. 2018-13979 Filed 6-28-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                30808                           Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices

                                                investors, or otherwise in furtherance of                 For the Commission, by the Division of               statements concerning the purpose of,
                                                the purposes of the Act.                                Trading and Markets, pursuant to delegated             and basis for, the proposed rule change
                                                                                                        authority.19                                           and discussed any comments it received
                                                IV. Solicitation of Comments                            Eduardo A. Aleman,                                     on the proposed rule change. The text
                                                  Interested persons are invited to                     Assistant Secretary.                                   of those statements may be examined at
                                                submit written data, views and                          [FR Doc. 2018–13980 Filed 6–28–18; 8:45 am]            the places specified in Item IV below.
                                                arguments concerning the foregoing,                     BILLING CODE 8011–01–P                                 The Exchange has prepared summaries,
                                                including whether the proposed rule                                                                            set forth in sections A, B, and C below,
                                                change is consistent with the Act.                                                                             of the most significant parts of such
                                                Comments may be submitted by any of                     SECURITIES AND EXCHANGE                                statements.
                                                the following methods:                                  COMMISSION
                                                                                                                                                               A. Self-Regulatory Organization’s
                                                Electronic Comments                                     [Release No. 34–83507; File No. SR–                    Statement of the Purpose of, and the
                                                                                                        NYSEAMER–2018–33]                                      Statutory Basis for, the Proposed Rule
                                                  • Use the Commission’s internet                                                                              Change
                                                comment form (http://www.sec.gov/                       Self-Regulatory Organizations; NYSE
                                                rules/sro.shtml); or                                    American LLC; Notice of Filing and                     1. Purpose
                                                  • Send an email to rule-comments@                     Immediate Effectiveness of Proposed                       The Exchange hereby proposes to
                                                sec.gov. Please include File Number SR–                 Rule Change To Amend Commentary                        amend Commentary .02 to Rule 960NY
                                                DTC–2018–005 on the subject line.                       .02 to Rule 960NY in Order To Extend                   to extend the time period of the Pilot
                                                                                                        the Penny Pilot in Options Classes in                  Program,4 which is currently scheduled
                                                Paper Comments                                          Certain Issues Through December 31,                    to expire on June 30, 2018, through
                                                                                                        2018                                                   December 31, 2018. The Exchange also
                                                  • Send paper comments in triplicate
                                                to Secretary, Securities and Exchange                   June 25, 2018.
                                                                                                                                                               proposes that the date to replace issues
                                                Commission, 100 F Street NE,                                                                                   in the Pilot Program that have been
                                                                                                           Pursuant to Section 19(b)(1) 1 of the
                                                Washington, DC 20549.                                                                                          delisted be revised to the second trading
                                                                                                        Securities Exchange Act of 1934 (the
                                                                                                                                                               day following July 1, 2018.5 The
                                                All submissions should refer to File                    ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
                                                                                                                                                               Exchange believes that extending the
                                                Number SR–DTC–2018–005. This file                       notice is hereby given that on June 21,
                                                                                                                                                               Pilot would allow for further analysis of
                                                number should be included on the                        2018, NYSE American LLC (the
                                                                                                                                                               the Pilot Program and a determination
                                                subject line if email is used. To help the              ‘‘Exchange’’ or ‘‘NYSE American’’) filed
                                                                                                                                                               of how the Pilot Program should be
                                                Commission process and review your                      with the Securities and Exchange
                                                                                                                                                               structured in the future.
                                                comments more efficiently, please use                   Commission (the ‘‘Commission’’) the                       This filing does not propose any
                                                only one method. The Commission will                    proposed rule change as described in                   substantive changes to the Pilot
                                                post all comments on the Commission’s                   Items I and II below, which Items have                 Program: All classes currently
                                                internet website (http://www.sec.gov/                   been prepared by the self-regulatory                   participating will remain the same and
                                                rules/sro.shtml). Copies of the                         organization. The Commission is                        all minimum increments will remain
                                                submission, all subsequent                              publishing this notice to solicit                      unchanged. The Exchange believes the
                                                amendments, all written statements                      comments on the proposed rule change                   benefits to public customers and other
                                                with respect to the proposed rule                       from interested persons.                               market participants who will be able to
                                                change that are filed with the                          I. Self-Regulatory Organization’s                      express their true prices to buy and sell
                                                Commission, and all written                             Statement of the Terms of Substance of                 options have been demonstrated to
                                                communications relating to the                          the Proposed Rule Change                               outweigh the increase in quote traffic.
                                                proposed rule change between the
                                                Commission and any person, other than                      The Exchange proposes to amend                      2. Statutory Basis
                                                those that may be withheld from the                     Commentary .02 to Rule 960NY in order                     The proposed rule change is
                                                public in accordance with the                           to extend the Penny Pilot in options                   consistent with Section 6(b) 6 of the
                                                provisions of 5 U.S.C. 552, will be                     classes in certain issues (‘‘Pilot                     Securities Exchange Act of 1934 (the
                                                available for website viewing and                       Program’’) previously approved by the                  ‘‘Act’’), in general, and furthers the
                                                printing in the Commission’s Public                     Securities and Exchange Commission                     objectives of Section 6(b)(5),7 in
                                                Reference Room, 100 F Street NE,                        (‘‘Commission’’) through December 31,                  particular, in that it is designed to
                                                Washington, DC 20549 on official                        2018. The Pilot Program is currently                   prevent fraudulent and manipulative
                                                business days between the hours of                      scheduled to expire on June 30, 2018.                  acts and practices, to promote just and
                                                10:00 a.m. and 3:00 p.m. Copies of the                  The proposed rule change is available                  equitable principles of trade, to foster
                                                filing also will be available for                       on the Exchange’s website at                           cooperation and coordination with
                                                inspection and copying at the principal                 www.nyse.com, at the principal office of
                                                office of DTC and on DTCC’s website                     the Exchange, and at the Commission’s                     4 See Securities Exchange Act Release No. 82358

                                                (http://dtcc.com/legal/sec-rule-                        Public Reference Room.                                 (December 19, 2017), 82 FR 61054 (December 26,
                                                                                                                                                               2017) (SR–NYSEAMER–2017–38).
                                                filings.aspx). All comments received                    II. Self-Regulatory Organization’s                        5 The month immediately preceding a
                                                will be posted without change. Persons                  Statement of the Purpose of, and                       replacement class’s addition to the Pilot Program
                                                submitting comments are cautioned that                  Statutory Basis for, the Proposed Rule                 (i.e., June) would not be used for purposes of the
                                                we do not redact or edit personal                                                                              analysis for determining the replacement class.
                                                                                                        Change
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                                                               Thus, a replacement class to be added on the
                                                identifying information from comment                                                                           second trading day following July 1, 2018 would be
                                                submissions. You should submit only                       In its filing with the Commission, the
                                                                                                                                                               identified based on The Option Clearing
                                                information that you wish to make                       self-regulatory organization included                  Corporation’s trading volume data from December
                                                available publicly. All submissions                                                                            1, 2017 through May 31, 2018. The Exchange will
                                                                                                          19 17 CFR 200.30–3(a)(12).                           announce the replacement issues to the Exchange’s
                                                should refer to File Number SR–DTC–                       1 15 U.S.C. 78s(b)(1).                               membership through a Trader Update.
                                                2018–005 and should be submitted on                       2 15 U.S.C. 78a.                                        6 15 U.S.C. 78f(b).
                                                or before July 20, 2018.                                  3 17 CFR 240.19b–4.                                     7 15 U.S.C. 78f(b)(5).




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                                                                                Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices                                                      30809

                                                persons engaged in facilitating                         exchanges. The Exchange believes that                   because doing so will allow the Pilot
                                                transactions in securities, and to remove               extending the Pilot Program will allow                  Program to continue without
                                                impediments to and perfect the                          for continued competition between                       interruption in a manner that is
                                                mechanisms of a free and open market                    Exchange market participants trading                    consistent with the Commission’s prior
                                                and a national market system.                           similar products as their counterparts                  approval of the extension and expansion
                                                   In particular, the proposed rule                     on other exchanges, while at the same                   of the Pilot Program and will allow the
                                                change, which extends the Penny Pilot                   time allowing the Exchange to continue                  Exchange and the Commission
                                                Program for six months, allows the                      to compete for order flow with other                    additional time to analyze the impact of
                                                Exchange to continue to participate in a                exchanges in option issues trading as                   the Pilot Program. Accordingly, the
                                                program that has been viewed as                         part of the Pilot Program.                              Commission designates the proposed
                                                beneficial to traders, investors and                                                                            rule change as operative upon filing
                                                public customers and viewed as                          C. Self-Regulatory Organization’s
                                                                                                                                                                with the Commission.15
                                                successful by the other options                         Statement on Comments on the
                                                exchanges participating in it.                          Proposed Rule Change Received From                      IV. Solicitation of Comments
                                                Accordingly, the Exchange believes that                 Members, Participants, or Others                          Interested persons are invited to
                                                the proposal is consistent with the Act                   No written comments were solicited                    submit written data, views, and
                                                because it will allow the Exchange to                   or received with respect to the proposed                arguments concerning the foregoing,
                                                extend the Pilot Program prior to its                   rule change.                                            including whether the proposed rule
                                                expiration on June 30, 2018. The                                                                                change is consistent with the Act.
                                                                                                        III. Date of Effectiveness of the                       Comments may be submitted by any of
                                                Exchange notes that this proposal does
                                                                                                        Proposed Rule Change and Timing for                     the following methods:
                                                not propose any new policies or
                                                                                                        Commission Action
                                                provisions that are unique or unproven,                                                                         Electronic Comments
                                                but instead relates to the continuation of                 The Exchange has filed the proposed
                                                an existing program that operates on a                  rule change pursuant to Section                            • Use the Commission’s internet
                                                pilot basis.                                            19(b)(3)(A)(iii) of the Act 8 and Rule                  comment form (http://www.sec.gov/
                                                   The Exchange believes that the Pilot                 19b–4(f)(6) thereunder.9 Because the                    rules/sro.shtml); or
                                                Program promotes just and equitable                     proposed rule change does not: (i)                         • Send an email to rule-comments@
                                                principles of trade by enabling public                  Significantly affect the protection of                  sec.gov. Please include File Number SR–
                                                customers and other market participants                 investors or the public interest; (ii)                  NYSEAMER–2018–33 on the subject
                                                to express their true prices to buy and                 impose any significant burden on                        line.
                                                sell options to the benefit of all market               competition; and (iii) become operative                 Paper Comments
                                                participants.                                           prior to 30 days from the date on which
                                                   The proposal to extend the Pilot                     it was filed, or such shorter time as the                  • Send paper comments in triplicate
                                                Program is designed to promote just and                 Commission may designate if consistent                  to Secretary, Securities and Exchange
                                                equitable principles of trade, to foster                with the protection of investors and the                Commission, 100 F Street NE,
                                                cooperation and coordination with                                                                               Washington, DC 20549–1090.
                                                                                                        public interest, the proposed rule
                                                persons engaged in facilitating                         change has become effective pursuant to                 All submissions should refer to File
                                                transactions in securities, and to remove               Section 19(b)(3)(A) of the Act 10 and                   Number SR–NYSEAMER–2018–33. This
                                                impediments to and perfect the                          Rule 19b–4(f)(6)(iii) thereunder.11                     file number should be included on the
                                                mechanisms of a free and open market                       A proposed rule change filed under                   subject line if email is used. To help the
                                                and a national market system, by                        Rule 19b–4(f)(6) 12 normally does not                   Commission process and review your
                                                allowing the Exchange and the                           become operative prior to 30 days after                 comments more efficiently, please use
                                                Commission additional time to analyze                   the date of the filing.13 However,                      only one method. The Commission will
                                                the impact of the Pilot Program while                   pursuant to Rule 19b–4(f)(6)(iii),14 the                post all comments on the Commission’s
                                                also allowing the Exchange to continue                  Commission may designate a shorter                      internet website (http://www.sec.gov/
                                                to compete for order flow with other                    time if such action is consistent with the              rules/sro.shtml). Copies of the
                                                exchanges in option issues trading as                   protection of investors and the public                  submission, all subsequent
                                                part of the Pilot Program.                              interest. Without a waiver of 30-day                    amendments, all written statements
                                                                                                        operative delay, the Exchange’s Pilot                   with respect to the proposed rule
                                                B. Self-Regulatory Organization’s                                                                               change that are filed with the
                                                Statement on Burden on Competition                      Program will expire before the extension
                                                                                                        of the Pilot Program is operative. The                  Commission, and all written
                                                  The Exchange does not believe that                    Commission believes that waiving the                    communications relating to the
                                                the proposed rule change will impose                    30-day operative delay for the instant                  proposed rule change between the
                                                any burden on competition that is not                   filing is consistent with the protection                Commission and any person, other than
                                                necessary or appropriate in furtherance                 of investors and the public interest                    those that may be withheld from the
                                                of the purposes of the Act. Specifically,                                                                       public in accordance with the
                                                the Exchange believes that, by extending                  8 15  U.S.C. 78s(b)(3)(A)(iii).                       provisions of 5 U.S.C. 552, will be
                                                the expiration of the Pilot Program, the                  9 17  CFR 240.19b–4(f)(6).                            available for website viewing and
                                                proposed rule change will allow for                       10 15 U.S.C. 78s(b)(3)(A).                            printing in the Commission’s Public
                                                further analysis of the Pilot Program and                 11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–     Reference Room, 100 F Street NE,
                                                a determination of how this Program                     4(f)(6)(iii) requires the Exchange to give the          Washington, DC 20549–1090 on official
                                                                                                        Commission written notice of the Exchange’s intent
                                                should be structured in the future. In                                                                          business days between the hours of
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        to file the proposed rule change along with a brief
                                                doing so, the proposed rule change will                 description and the text of the proposed rule           10:00 a.m. and 3:00 p.m. Copies of the
                                                also serve to promote regulatory clarity                change, at least five business days prior to the date   filing also will be available for
                                                and consistency, thereby reducing                       of filing of the proposed rule change, or such
                                                                                                        shorter time as designated by the Commission. The          15 For purposes only of waiving the operative
                                                burdens on the marketplace and                          Exchange has satisfied this pre-filing requirement.     delay for this proposal, the Commission has
                                                facilitating investor protection. The                     12 17 CFR 240.19b–4(f)(6).
                                                                                                                                                                considered the proposed rule’s impact on
                                                Pilot Program is an industry-wide                         13 17 CFR 240.19b–4(f)(6).
                                                                                                                                                                efficiency, competition, and capital formation. See
                                                initiative supported by all other option                  14 17 CFR 240.19b–4(f)(6)(iii).                       15 U.S.C. 78c(f).



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                                                30810                             Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices

                                                inspection and copying at the principal                   SBA’s business loan programs and, for                   regulatory orders and agreements (if
                                                office of the Exchange. All comments                      enforcement of the applicable rules and                 applicable and as appropriate), and staff
                                                received will be posted without change.                   regulations. Currently, the agency                      training on SBA lending.
                                                Persons submitting comments are                           guarantees more than $90 billion dollars                   2. Eligibility and Credit
                                                cautioned that we do not redact or edit                   in small business loans through these                   Administration: In reviewing these
                                                personal identifying information from                     programs. The information collection                    areas, SBA primarily requests lender’s
                                                comment submissions. You should                           described in detail below helps OCRM                    or CDC’s policies, loan sample files;
                                                submit only information that you wish                     protect the safety and soundness of the                 independent loan reviews; loan credit
                                                to make available publicly. All                           business loan programs and taxpayer                     scoring and risk rating methodologies;
                                                submissions should refer to File                          dollars.                                                and information on loans approved as
                                                Number SR–NYSEAMER–2018–33 and                              In general, SBA collects information                  exceptions to policy.
                                                should be submitted on or before July                     in connection with PARRiS 1 reviews for                    3. Compliance with Loan Program
                                                20, 2018.                                                 7(a) Federally-regulated Lenders,                       Requirements: Here, SBA collects
                                                                                                          SMART 2 reviews for CDCs, and PARRiS                    information on services and fees
                                                  For the Commission, by the Division of
                                                Trading and Markets, pursuant to delegated                Safety and Soundness Examinations for                   charged for Third-party vendors,5
                                                authority.16                                              SBA Supervised Lenders including                        lender’s FTA 6 trust account, and
                                                Eduardo A. Aleman,                                        Small Business Lending Companies                        lender’s use of the System of Awards
                                                Assistant Secretary.
                                                                                                          (SBLCs) and Non-Federally Regulated                     Management to perform agent due
                                                                                                          Lenders (NFRLs).3 SBA also requests                     diligence.
                                                [FR Doc. 2018–13979 Filed 6–28–18; 8:45 am]
                                                                                                          certain information when it conducts                       4. Portfolio Performance: In
                                                BILLING CODE 8011–01–P
                                                                                                          Delegated Authority Reviews of 7(a)                     considering lender or CDC portfolio
                                                                                                          Lenders and CDCs, and Microloan                         performance, SBA requests that lenders
                                                                                                          Intermediary Site Visits. The discussion                provide a listing of loans indicating
                                                SMALL BUSINESS ADMINISTRATION                             below identifies the nature of the                      those past due, those with servicing
                                                                                                          information to be collected for each type               actions, individual risk ratings, and
                                                Data Collection Available for Public
                                                                                                          of lender and the related review or                     those in liquidation or purchased for
                                                Comments                                                  examination. In addition, SBA has                       SBA to compare with SBA data. SBA
                                                      60-Day notice and request for
                                                ACTION:                                                   created separate lists, which are also                  also requests that lenders provide an
                                                comments.                                                 discussed below, to clearly identify the                explanation for risks identified (e.g.,
                                                                                                          information to be collected.                            identified by high risk metrics or
                                                SUMMARY:    The Paperwork Reduction Act                                                                           PARRiS flags triggered).
                                                                                                          I. 7(a) Lender and CDC PARRIS and
                                                (PRA) requires federal agencies to                                                                                   Further detail on the information SBA
                                                                                                          SMART Analytical and Full Reviews
                                                publish a notice in the Federal Register                                                                          collects in Analytical and Full Reviews
                                                                                                          and Safety and Soundness Exams
                                                concerning each proposed collection of                                                                            and Safety and Soundness Exams is
                                                information before submitting it to OMB                   A. Common Information Collected                         contained in the SBA Supervised
                                                for approval, and to allow 60 days for                       For all Analytical Reviews, Full                     Lender Safety and Soundness
                                                public comment in response to the                         Reviews, and Safety and Soundness                       Examination/Full Review Information
                                                notice. SBA initially published this                      examinations 4 of 7(a) lenders and CDCs,                Request; 7(a) Lender PARRiS Analytical
                                                required notice on April 2, 2018. SBA                     as applicable, in general, SBA requests                 Review Information Request; CDC
                                                is republishing the notice to address the                 information related to the lender’s or                  SMART Analytical Review Information
                                                two comments it received requesting                       CDC’s management and operation,                         Request; 7(a) Lender PARRiS Full
                                                greater detail on the information to be                   eligibility of its SBA loans for SBA                    Review Information Request; and, CDC
                                                collected and to provide an additional                    guaranty, compliance with SBA Loan                      SMART Full Review Information
                                                60 days for public comment.                               Program Requirements, credit                            Request. Each Information Request
                                                DATES: Submit comments on or before                       administration, and performance of its                  document is available upon request.
                                                August 28, 2018.                                          SBA loan portfolio.
                                                                                                             1. Management and Operations: The                    B. SBA Supervised Lender
                                                ADDRESSES: Send all comments to
                                                                                                          information requested generally                         Supplemental Information for Safety
                                                Adrienne Grierson, Deputy Director,
                                                                                                          includes the SBA program organization                   and Soundness Exams
                                                Office of Credit Risk Management,
                                                Small Business Administration, at                         chart with responsibilities, business                     SBA is the primary federal regulator
                                                lender.oversight@sba.gov.                                 plan, financial and program audits,                     for SBA licensed SBLCs and NFRLs that
                                                FOR FURTHER INFORMATION CONTACT:                          evidence of lender compliance with                      participate in the 7(a) program.7
                                                Adrienne Grierson, Deputy Director,
                                                                                                             1 PARRiS refers to the specific risk components         5 For purposes of this notice, Third-party vendors
                                                Office of Credit Risk Management at
                                                                                                          reviewed for 7(a) Lenders: (i) Portfolio Performance;   include, for example, Loan Agents (e.g., Packagers
                                                lender.oversight@sba.gov or 202–205–                      (ii) Asset Management; (iii) Regulatory Compliance;     and Lender Service Providers) and Professional
                                                6573, or Curtis B. Rich, Management                       (iv) Risk Management; and (v) Special Items.            Managers with management contracts.
                                                Analyst, 202–205–7030, curtis.rich@                          2 SMART refers to the specific risk components          6 FTA refers to SBA’s Fiscal and Transfer Agent.

                                                sba.gov.                                                  reviewed for Certified Development Companies: (i)       7(a) Lenders that sell SBA loans in the Secondary
                                                                                                          Solvency and Financial Condition; (ii) Management       Market are required by the terms of the Form 1086,
                                                SUPPLEMENTARY INFORMATION: SBA’s                          and Board Governance; (iii) Asset Quality and           Secondary Participation Guaranty Agreement, to
                                                Office of Credit Risk Management                          Servicing; (iv) Regulatory Compliance; and (v)          deposit the guaranteed portion of loan payments in
                                                                                                          Technical Issues and Mission.                           a segregated account for the benefit of investors.
sradovich on DSK3GMQ082PROD with NOTICES




                                                (OCRM) is responsible for the oversight                      3 SBLCs and NFRLs are defined in 15 U.S.C.              7 SBA Supervised Lenders are a relatively small
                                                and supervision of the SBA operations                     632(r) and 13 CFR 120.10.                               subset of 7(a) Lenders. 7(a) Lenders include SBA
                                                of approximately 4000 7(a) Lenders,                          4 Safety and Soundness Examinations are only         Supervised Lenders and Federally Regulated 7(a)
                                                Certified Development Companies                           performed on SBA Supervised Lenders in the 7(a)         Lenders (i.e., those lenders regulated by the federal
                                                (‘‘CDCs’’), and Microloan Intermediaries                  program. SBA Supervised Lenders include SBA             bank regulators—Federal Deposit Insurance
                                                                                                          licensed Small Business Lending Companies and           Corporation, the Office of the Comptroller of the
                                                (‘‘Intermediaries’’), that participate in                 Non-Federally Regulated Lenders as defined in 13        Currency, the Federal Reserve Board, the National
                                                                                                          CFR 120.10. Analytical Reviews and Full Reviews         Credit Union Administration, and the Farm Credit
                                                  16 17   CFR 200.30–3(a)(12).                            are performed on 7(a) Lenders and CDCs.                 Administration).



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Document Created: 2018-06-29 01:14:06
Document Modified: 2018-06-29 01:14:06
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 30808 

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