83 FR 42183 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 6.4-O and 6.4A-O
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 161 (August 20, 2018)
Federal Register Volume 83, Issue 161 (August 20, 2018)
| Page Range | 42183-42185 | |
| FR Document | 2018-17827 |
[Federal Register Volume 83, Number 161 (Monday, August 20, 2018)] [Notices] [Pages 42183-42185] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17827] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83837; File No. SR-NYSEArca-2018-59] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 6.4- O and 6.4A-O August 14, 2018. Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that, on August 3, 2018, NYSE Arca, Inc. (``Exchange'' or ``NYSE Arca'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 15 U.S.C. 78a. \3\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rules 6.4-O and 6.4A-O. 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 purpose of this filing is to amend Rules 6.4-O (Series of Options Open for Trading) and 6.4A-O (Select Provisions of the Options Listing Procedures Plan)--or OLPP--to conform to recently approved changes to the OLPP.\4\ --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release Nos. 82235 (December 7, 2017), 82 FR 58668 (December 13, 2017) (order approving the Fourth Amendment to the OLPP); 81893 (October 18, 2017), 82 FR 49249 (``OLPP Notice''). --------------------------------------------------------------------------- The Exchange, which is one of the Participant Exchanges \5\ to the OLPP, currently has rules that are designed to incorporate the requirements of the OLPP. All Participant Exchanges have similar such (essentially uniform) rules to ensure consistency and compliance with the OLPP. The Exchange proposes to modify such rules to reflect the recent updates as described below. --------------------------------------------------------------------------- \5\ In addition to the Exchange, the ``Participant Exchanges'' are: Chicago Board Options Exchange, Incorporated (now known as Cboe Exchange, Inc.), on behalf of the BATS Exchange, Inc. (now known as Cboe BZX Exchange, Inc.); Box Options Exchange, LLC; C2 Exchange, Incorporated (now known as Cboe C2 Exchange, Inc.); EDGX Exchange, Inc. (now known as Cboe EDGX Exchange, Inc.); Miami International Securities Exchange, LLC; MIAX PEARL, LLC; Nasdaq BX, Inc.; Nasdaq GEMX, LLC; Nasdaq ISE, LLC; Nasdaq MRX, LLC; Nasdaq Options Market, LLC; Nasdaq PHLX, LLC; and NYSE American, LLC. --------------------------------------------------------------------------- Addition of Long-Term Equity Options (``LEAPS'') First, the OLPP has been amended to change the earliest date on which new January LEAPS on equity options, options on Exchange Traded Funds (``ETF''), or options on Trust Issued Receipts (``TIR'') may be added to a single date (from three separate months).\6\ As noted in the OLPP Notice, in the past there were operational concerns related to adding new January LEAPs series for all options classes on which LEAPs were listed on a single trading day.\7\ And, the addition of new series in a pre-electronic trading environment was a manual process. To [[Page 42184]] accommodate this, the addition of new January LEAPs series was spread across three months (September, October, and November). Today, however, these operational concerns related to January LEAPs have been alleviated as new series can be added in bulk electronically. The Plan Participants, including the Exchange, believe that moving the addition of new January LEAPs series to no earlier than the Monday prior to the September expiration would reduce marketplace confusion about available January LEAPs series. Where previously January LEAPs series for options classes on the February or March expiration cycles would not have been available as early as January LEAPs series for options classes on the January expiration cycle, under the proposed change, all January LEAPs series will be available concurrently. --------------------------------------------------------------------------- \6\ The Exchange proposes to modify Rule 6.4-O(d) to include the title Long-Term Equity Option Series (LEAPS), to consolidate LEAPS requirements into one paragraph, and to delete extraneous references to LEAPS in current paragraphs (d) and (e) to Rule 6.4-O. See proposed Rule 6.4-O(d). Consistent with this change, the Exchange also proposes to retitle current paragraph (f) as (e). See proposed Rule 6.4-O(f). \7\ See supra n. 4, 82 FR 49249, at 49249. --------------------------------------------------------------------------- Accordingly, to conform to this change, the Exchange proposes to modify Rule 6.4-O(d)(i) to reflect that new January LEAPS series on equity options classes, options on ETFs, or options on TIRs, may not be added on a currently listed and traded option class earlier than the Monday prior to the September expiration (which is 28 months before the expiration).\8\ --------------------------------------------------------------------------- \8\ See proposed Rule 6.4-O(d)(ii). --------------------------------------------------------------------------- Addition of Equity, ETF, and TIR Option Series After Regular Trading Hours Second, the OLPP has been amended to allow equity, ETF, and TIR option series to be added based on trading after regular trading hours (i.e., after-market). As noted in the OLPP Notice, the prior version of the OLPP did not allow for option series to be added based on trading following regular trading hours.\9\ As such, the Exchange Participants were are [sic] unable to add new option series that may result from trading following regular trading hours until the next morning, depending on the range of prices in pre-market trading, which is significant because events that occur after regular trading hours, such as earnings releases, often have an important impact on the price of an underlying security. In addition, there are operational difficulties for market participants throughout the industry adding series after system startup. To avoid the potential burden that would result from the inability to add series as a result of trading following regular trading hours, the OLPP was amended to allow an additional category by which the price of an underlying security may be measured. Specifically, to conform to the amended OLPP, the Exchange proposes to add paragraph (b)(i)(4) to Rule 6.4A-O to provide that ``for option series to be added based on trading following regular trading hours,'' the price of the underlying security is measured by ``the most recent share price reported by all national securities exchanges between 4:15 p.m. and 6:00 p.m. Eastern Time.'' \10\ --------------------------------------------------------------------------- \9\ See supra n. 4, 82 FR 49249, at 49250. \10\ See proposed Rule 6.4A-O(b)(i)(4). The Exchange proposes to relocate ``and'' from paragraph (2) to (3) to conform to the change. See proposed Rule 6.4A-O(b)(i)(2),(3). --------------------------------------------------------------------------- Technical Changes The Exchange proposes to modify Rule 6.4-O(d)(i) to delete now obsolete operational language, which dates back to when LEAPs were first adopted. The language in question provides that: When open for trading, trading in such option series shall commence either when there is buying or selling interest, or forty minutes prior to the close of trading for the day, whichever occurs first. Quotations will not be posted for extended far term option series until trading in such series is commenced on the day. The Exchange proposes to delete this language because when this language was adopted LEAPs were not opened for trading until late in the trading day unless there was buying or selling interest.\11\ Today, however, technological improvements allow the Exchange to open all LEAP series at the same time as all other series in an option class. --------------------------------------------------------------------------- \11\ See proposed Rule 6.4-O(d)(i). --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \12\ of the Act, in general, and furthers the objectives of Section 6(b)(5),\13\ 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78f(b). \13\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the proposed rule change, which conforms to the recently adopted provisions of the OLPP, as amended, allows the Exchange to continue to list extended far term option series that have been viewed as beneficial to traders, investors and public customers. Accordingly, the Exchange believes that the proposal is consistent with the Act because it will allow the Exchange to list all January, 2021 expiration series on the Monday prior to the September, 2018 expiration. Moreover, this change would simplify the process for adding new January LEAP options series and reduce potential for investor confusion because all new January LEAP options would be made available beginning at the same time, consistent with the amended OLPP. The Exchange notes that this proposal does not propose any new provisions that have not already been approved by the Commission in the amended OLPP, but instead maintains series listing rules that conform to the amended OLPP. The proposal to permit series to be added based on after-market trading 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 to make series available for trading with reduced operational difficulties. The Exchange notes that this proposed change, which is consistent with the amended OLPP should provide market participants with earlier notice regarding what options series will be available for trading the following day, and should help to enhance investors' ability to plan their options trading. The Exchange also believes that the proposed technical changes, including deleting obsolete language and reorganizing and consolidating the rule, promote just and equitable principles of trade, foster cooperation and coordination with persons engaged in facilitating transactions in securities, and remove impediments to and perfect the mechanism of a free and open market and a national market system. 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 conforming Exchange rules to the amended OLPP, the Exchange would promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. The Exchange believes that adopting rules, which it anticipates will likewise be adopted by Participant Exchanges, would allow for continued competition between Exchange market participants trading similar products as their counterparts [[Page 42185]] on other exchanges, while at the same time allowing the Exchange to continue to compete for order flow with other exchanges in option issues. 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 \14\ and Rule 19b-4(f)(6) thereunder.\15\ 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 and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A)(iii). \15\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission notes that the Exchange's proposal would conform the Exchange's rules to the amended OLPP, which the Commission previously approved.\18\ Accordingly, the Commission believes that the proposal raises no new or novel regulatory issues and waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. The Commission therefore waives the 30-day operative delay and designates the proposed rule change to be operative upon filing.\19\ --------------------------------------------------------------------------- \16\ 17 CFR 240.19b-4(f)(6). \17\ 17 CFR 240.19b-4(f)(6)(iii). \18\ See OLPP Notice, supra note 4. \19\ For purposes only of waiving the 30-day operative delay, the Commission has also considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings under Section 19(b)(2)(B) \20\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-NYSEArca-2018-59 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-2018-59. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's internet website (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-NYSEArca-2018-59 and should be submitted on or before September 10, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2018-17827 Filed 8-17-18; 8:45 am] BILLING CODE 8011-01-P
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summarily may temporarily suspend submit only information that you wish the places specified in Item IV below.
such rule change if it appears to the to make available publicly. All The Exchange has prepared summaries,
Commission that such action is submissions should refer to File set forth in sections A, B, and C below,
necessary or appropriate in the public Number SR–MIAX–2018–23, and of the most significant parts of such
interest, for the protection of investors, should be submitted on or before statements.
or otherwise in furtherance of the September 10, 2018. A. Self-Regulatory Organization’s
purposes of the Act. If the Commission For the Commission, by the Division of Statement of the Purpose of, and the
takes such action, the Commission shall Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
institute proceedings to determine authority.23 Change
whether the proposed rule should be Jill M. Peterson,
approved or disapproved. Assistant Secretary. 1. Purpose
IV. Solicitation of Comments [FR Doc. 2018–17849 Filed 8–17–18; 8:45 am] The purpose of this filing is to amend
BILLING CODE 8011–01–P Rules 6.4–O (Series of Options Open for
Interested persons are invited to
Trading) and 6.4A–O (Select Provisions
submit written data, views, and
of the Options Listing Procedures
arguments concerning the foregoing,
SECURITIES AND EXCHANGE Plan)—or OLPP—to conform to recently
including whether the proposed rule
COMMISSION approved changes to the OLPP.4
change is consistent with the Act. The Exchange, which is one of the
Comments may be submitted by any of [Release No. 34–83837; File No. SR–
Participant Exchanges 5 to the OLPP,
the following methods: NYSEArca–2018–59]
currently has rules that are designed to
Electronic Comments Self-Regulatory Organizations; NYSE incorporate the requirements of the
• Use the Commission’s internet Arca, Inc.; Notice of Filing and OLPP. All Participant Exchanges have
comment form (http://www.sec.gov/ Immediate Effectiveness of Proposed similar such (essentially uniform) rules
rules/sro.shtml); or Rule Change To Amend Rules 6.4–O to ensure consistency and compliance
• Send an email to rule-comments@ and 6.4A–O with the OLPP. The Exchange proposes
sec.gov. Please include File Number SR– to modify such rules to reflect the recent
August 14, 2018. updates as described below.
MIAX–2018–23 on the subject line.
Pursuant to Section 19(b)(1) 1 of the
Paper Comments Addition of Long-Term Equity Options
Securities Exchange Act of 1934
(‘‘LEAPS’’)
• Send paper comments in triplicate (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
to Secretary, Securities and Exchange notice is hereby given that, on August First, the OLPP has been amended to
Commission, 100 F Street NE, 3, 2018, NYSE Arca, Inc. (‘‘Exchange’’ or change the earliest date on which new
Washington, DC 20549–1090. ‘‘NYSE Arca’’) filed with the Securities January LEAPS on equity options,
and Exchange Commission options on Exchange Traded Funds
All submissions should refer to File
(‘‘Commission’’) the proposed rule (‘‘ETF’’), or options on Trust Issued
Number SR–MIAX–2018–23. This file
change as described in Items I and II Receipts (‘‘TIR’’) may be added to a
number should be included on the
below, which Items have been prepared single date (from three separate
subject line if email is used. To help the
by the self-regulatory organization. The months).6 As noted in the OLPP Notice,
Commission process and review your
Commission is publishing this notice to in the past there were operational
comments more efficiently, please use
solicit comments on the proposed rule concerns related to adding new January
only one method. The Commission will
change from interested persons. LEAPs series for all options classes on
post all comments on the Commission’s
which LEAPs were listed on a single
internet website (http://www.sec.gov/ I. Self-Regulatory Organization’s trading day.7 And, the addition of new
rules/sro.shtml). Copies of the Statement of the Terms of Substance of series in a pre-electronic trading
submission, all subsequent the Proposed Rule Change environment was a manual process. To
amendments, all written statements
The Exchange proposes to amend
with respect to the proposed rule 4 See Securities Exchange Act Release Nos. 82235
Rules 6.4–O and 6.4A–O. The proposed
change that are filed with the (December 7, 2017), 82 FR 58668 (December 13,
rule change is available on the
Commission, and all written 2017) (order approving the Fourth Amendment to
Exchange’s website at www.nyse.com, at the OLPP); 81893 (October 18, 2017), 82 FR 49249
communications relating to the
the principal office of the Exchange, and (‘‘OLPP Notice’’).
proposed rule change between the
at the Commission’s Public Reference 5 In addition to the Exchange, the ‘‘Participant
Commission and any person, other than Exchanges’’ are: Chicago Board Options Exchange,
Room.
those that may be withheld from the Incorporated (now known as Cboe Exchange, Inc.),
public in accordance with the II. Self-Regulatory Organization’s on behalf of the BATS Exchange, Inc. (now known
as Cboe BZX Exchange, Inc.); Box Options
provisions of 5 U.S.C. 552, will be Statement of the Purpose of, and Exchange, LLC; C2 Exchange, Incorporated (now
available for website viewing and Statutory Basis for, the Proposed Rule known as Cboe C2 Exchange, Inc.); EDGX Exchange,
printing in the Commission’s Public Change Inc. (now known as Cboe EDGX Exchange, Inc.);
Reference Room, 100 F Street NE, Miami International Securities Exchange, LLC;
In its filing with the Commission, the MIAX PEARL, LLC; Nasdaq BX, Inc.; Nasdaq
Washington, DC 20549 on official self-regulatory organization included GEMX, LLC; Nasdaq ISE, LLC; Nasdaq MRX, LLC;
business days between the hours of statements concerning the purpose of, Nasdaq Options Market, LLC; Nasdaq PHLX, LLC;
10:00 a.m. and 3:00 p.m. Copies of the and basis for, the proposed rule change
and NYSE American, LLC.
6 The Exchange proposes to modify Rule 6.4–O(d)
filing also will be available for and discussed any comments it received
daltland on DSKBBV9HB2PROD with NOTICES
to include the title Long-Term Equity Option Series
inspection and copying at the principal on the proposed rule change. The text (LEAPS), to consolidate LEAPS requirements into
office of the Exchange. All comments of those statements may be examined at one paragraph, and to delete extraneous references
received will be posted without change. to LEAPS in current paragraphs (d) and (e) to Rule
Persons submitting comments are 6.4–O. See proposed Rule 6.4–O(d). Consistent with
23 17 CFR 200.30–3(a)(12). this change, the Exchange also proposes to retitle
cautioned that we do not redact or edit 1 15 U.S.C. 78s(b)(1). current paragraph (f) as (e). See proposed Rule 6.4–
personal identifying information from 2 15 U.S.C. 78a. O(f).
comment submissions. You should 3 17 CFR 240.19b–4. 7 See supra n. 4, 82 FR 49249, at 49249.
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accommodate this, the addition of new to conform to the amended OLPP, the allow the Exchange to list all January,
January LEAPs series was spread across Exchange proposes to add paragraph 2021 expiration series on the Monday
three months (September, October, and (b)(i)(4) to Rule 6.4A–O to provide that prior to the September, 2018 expiration.
November). Today, however, these ‘‘for option series to be added based on Moreover, this change would simplify
operational concerns related to January trading following regular trading the process for adding new January
LEAPs have been alleviated as new hours,’’ the price of the underlying LEAP options series and reduce
series can be added in bulk security is measured by ‘‘the most potential for investor confusion because
electronically. The Plan Participants, recent share price reported by all all new January LEAP options would be
including the Exchange, believe that national securities exchanges between made available beginning at the same
moving the addition of new January 4:15 p.m. and 6:00 p.m. Eastern time, consistent with the amended
LEAPs series to no earlier than the Time.’’ 10 OLPP. The Exchange notes that this
Monday prior to the September proposal does not propose any new
Technical Changes
expiration would reduce marketplace provisions that have not already been
confusion about available January The Exchange proposes to modify approved by the Commission in the
LEAPs series. Where previously January Rule 6.4–O(d)(i) to delete now obsolete amended OLPP, but instead maintains
LEAPs series for options classes on the operational language, which dates back series listing rules that conform to the
February or March expiration cycles to when LEAPs were first adopted. The amended OLPP.
would not have been available as early language in question provides that: The proposal to permit series to be
as January LEAPs series for options When open for trading, trading in such added based on after-market trading is
classes on the January expiration cycle, option series shall commence either when designed to promote just and equitable
under the proposed change, all January there is buying or selling interest, or forty principles of trade, to foster cooperation
LEAPs series will be available minutes prior to the close of trading for the and coordination with persons engaged
concurrently. day, whichever occurs first. Quotations will in facilitating transactions in securities,
Accordingly, to conform to this not be posted for extended far term option and to remove impediments to and
series until trading in such series is
change, the Exchange proposes to commenced on the day.
perfect the mechanisms of a free and
modify Rule 6.4–O(d)(i) to reflect that open market and a national market
new January LEAPS series on equity The Exchange proposes to delete this system, by allowing the Exchange to
options classes, options on ETFs, or language because when this language make series available for trading with
options on TIRs, may not be added on was adopted LEAPs were not opened for reduced operational difficulties. The
a currently listed and traded option trading until late in the trading day Exchange notes that this proposed
class earlier than the Monday prior to unless there was buying or selling change, which is consistent with the
the September expiration (which is 28 interest.11 Today, however, amended OLPP should provide market
months before the expiration).8 technological improvements allow the participants with earlier notice
Exchange to open all LEAP series at the regarding what options series will be
Addition of Equity, ETF, and TIR same time as all other series in an available for trading the following day,
Option Series After Regular Trading option class. and should help to enhance investors’
Hours
2. Statutory Basis ability to plan their options trading.
Second, the OLPP has been amended The Exchange also believes that the
to allow equity, ETF, and TIR option The proposed rule change is proposed technical changes, including
series to be added based on trading after consistent with Section 6(b) 12 of the deleting obsolete language and
regular trading hours (i.e., after-market). Act, in general, and furthers the reorganizing and consolidating the rule,
As noted in the OLPP Notice, the prior objectives of Section 6(b)(5),13 in promote just and equitable principles of
version of the OLPP did not allow for particular, in that it is designed to trade, foster cooperation and
option series to be added based on prevent fraudulent and manipulative coordination with persons engaged in
trading following regular trading hours.9 acts and practices, to promote just and facilitating transactions in securities,
As such, the Exchange Participants were equitable principles of trade, to foster and remove impediments to and perfect
are [sic] unable to add new option series cooperation and coordination with the mechanism of a free and open
that may result from trading following persons engaged in facilitating market and a national market system.
regular trading hours until the next transactions in securities, and to remove
impediments to and perfect the B. Self-Regulatory Organization’s
morning, depending on the range of
mechanisms of a free and open market Statement on Burden on Competition
prices in pre-market trading, which is
significant because events that occur and a national market system. The Exchange does not believe that
after regular trading hours, such as In particular, the proposed rule the proposed rule change will impose
earnings releases, often have an change, which conforms to the recently any burden on competition that is not
important impact on the price of an adopted provisions of the OLPP, as necessary or appropriate in furtherance
underlying security. In addition, there amended, allows the Exchange to of the purposes of the Act. Specifically,
are operational difficulties for market continue to list extended far term option the Exchange believes that by
participants throughout the industry series that have been viewed as conforming Exchange rules to the
adding series after system startup. To beneficial to traders, investors and amended OLPP, the Exchange would
avoid the potential burden that would public customers. Accordingly, the promote regulatory clarity and
result from the inability to add series as Exchange believes that the proposal is consistency, thereby reducing burdens
a result of trading following regular consistent with the Act because it will on the marketplace and facilitating
daltland on DSKBBV9HB2PROD with NOTICES
trading hours, the OLPP was amended investor protection. The Exchange
to allow an additional category by 10 See proposed Rule 6.4A–O(b)(i)(4). The
believes that adopting rules, which it
Exchange proposes to relocate ‘‘and’’ from anticipates will likewise be adopted by
which the price of an underlying paragraph (2) to (3) to conform to the change. See
security may be measured. Specifically, proposed Rule 6.4A–O(b)(i)(2),(3). Participant Exchanges, would allow for
11 See proposed Rule 6.4–O(d)(i). continued competition between
8 See proposed Rule 6.4–O(d)(ii). 12 15 U.S.C. 78f(b). Exchange market participants trading
9 See supra n. 4, 82 FR 49249, at 49250. 13 15 U.S.C. 78f(b)(5). similar products as their counterparts
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on other exchanges, while at the same At any time within 60 days of the filing also will be available for
time allowing the Exchange to continue filing of such proposed rule change, the inspection and copying at the principal
to compete for order flow with other Commission summarily may office of the Exchange. All comments
exchanges in option issues. temporarily suspend such rule change if received will be posted without change.
it appears to the Commission that such Persons submitting comments are
C. Self-Regulatory Organization’s
action is necessary or appropriate in the cautioned that we do not redact or edit
Statement on Comments on the
public interest, for the protection of personal identifying information from
Proposed Rule Change Received From
investors, or otherwise in furtherance of comment submissions. You should
Members, Participants, or Others
the purposes of the Act. If the submit only information that you wish
No written comments were solicited Commission takes such action, the to make available publicly. All
or received with respect to the proposed Commission shall institute proceedings submissions should refer to File
rule change. under Section 19(b)(2)(B) 20 of the Act to Number SR–NYSEArca–2018–59 and
determine whether the proposed rule should be submitted on or before
III. Date of Effectiveness of the
change should be approved or September 10, 2018.
Proposed Rule Change and Timing for
disapproved.
Commission Action For the Commission, by the Division of
IV. Solicitation of Comments Trading and Markets, pursuant to delegated
The Exchange has filed the proposed
rule change pursuant to Section Interested persons are invited to authority.21
19(b)(3)(A)(iii) of the Act 14 and Rule submit written data, views, and Robert W. Errett,
19b–4(f)(6) thereunder.15 Because the arguments concerning the foregoing, Deputy Secretary.
proposed rule change does not: (i) including whether the proposed rule [FR Doc. 2018–17827 Filed 8–17–18; 8:45 am]
Significantly affect the protection of change is consistent with the Act.
BILLING CODE 8011–01–P
investors or the public interest; (ii) Comments may be submitted by any of
impose any significant burden on the following methods:
competition; and (iii) become operative Electronic Comments SECURITIES AND EXCHANGE
prior to 30 days from the date on which COMMISSION
it was filed, or such shorter time as the • Use the Commission’s internet
Commission may designate, if comment form (http://www.sec.gov/
rules/sro.shtml); or [Release No. 34–83842; File No. SR–
consistent with the protection of
• Send an email to rule-comments@ NYSEAMER–2018–40]
investors and the public interest, the
sec.gov. Please include File Number SR–
proposed rule change has become Self-Regulatory Organizations; NYSE
NYSEArca–2018–59 on the subject line.
effective pursuant to Section 19(b)(3)(A) American LLC; Notice of Filing and
of the Act and Rule 19b–4(f)(6)(iii) Paper Comments Immediate Effectiveness of Proposed
thereunder. • Send paper comments in triplicate Rule Change To Amend Rules 903 and
A proposed rule change filed under to Secretary, Securities and Exchange 903A
Rule 19b–4(f)(6) 16 normally does not Commission, 100 F Street NE,
become operative prior to 30 days after Washington, DC 20549–1090. August 14, 2018.
the date of the filing. However, pursuant All submissions should refer to File Pursuant to Section 19(b)(1) 1 of the
to Rule 19b–4(f)(6)(iii),17 the Number SR–NYSEArca–2018–59. This Securities Exchange Act of 1934
Commission may designate a shorter file number should be included on the (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
time if such action is consistent with the subject line if email is used. To help the notice is hereby given that on August 3,
protection of investors and the public Commission process and review your 2018, NYSE American LLC (‘‘Exchange’’
interest. The Exchange has asked the comments more efficiently, please use
Commission to waive the 30-day or ‘‘NYSE American’’) filed with the
only one method. The Commission will Securities and Exchange Commission
operative delay so that the proposal may post all comments on the Commission’s
become operative immediately upon (‘‘Commission’’) the proposed rule
internet website (http://www.sec.gov/ change as described in Items I and II
filing. The Commission notes that the rules/sro.shtml). Copies of the
Exchange’s proposal would conform the below, which Items have been prepared
submission, all subsequent by the self-regulatory organization. The
Exchange’s rules to the amended OLPP, amendments, all written statements
which the Commission previously Commission is publishing this notice to
with respect to the proposed rule solicit comments on the proposed rule
approved.18 Accordingly, the change that are filed with the
Commission believes that the proposal change from interested persons.
Commission, and all written
raises no new or novel regulatory issues communications relating to the I. Self-Regulatory Organization’s
and waiver of the 30-day operative proposed rule change between the Statement of the Terms of Substance of
delay is consistent with the protection Commission and any person, other than the Proposed Rule Change
of investors and the public interest. The those that may be withheld from the
Commission therefore waives the 30-day public in accordance with the The Exchange proposes to amend
operative delay and designates the provisions of 5 U.S.C. 552, will be Rules 903 and 903A. The proposed rule
proposed rule change to be operative available for website viewing and change is available on the Exchange’s
upon filing.19 printing in the Commission’s Public website at www.nyse.com, at the
Reference Room, 100 F Street NE, principal office of the Exchange, and at
daltland on DSKBBV9HB2PROD with NOTICES
14 15 U.S.C. 78s(b)(3)(A)(iii).
15 17
Washington, DC 20549, on official the Commission’s Public Reference
CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6). business days between the hours of Room.
17 17 CFR 240.19b–4(f)(6)(iii). 10:00 a.m. and 3:00 p.m. Copies of the
18 See OLPP Notice, supra note 4. 21 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
19 For purposes only of waiving the 30-day efficiency, competition, and capital formation. See
operative delay, the Commission has also 15 U.S.C. 78c(f). 2 15 U.S.C. 78a.
considered the proposed rule’s impact on 20 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4.
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Document Created: 2018-08-18 01:29:30
Document Modified: 2018-08-18 01:29:30
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 42183 |
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