83 FR 42185 - Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 903 and 903A
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 161 (August 20, 2018)
Federal Register Volume 83, Issue 161 (August 20, 2018)
| Page Range | 42185-42188 | |
| FR Document | 2018-17829 |
[Federal Register Volume 83, Number 161 (Monday, August 20, 2018)] [Notices] [Pages 42185-42188] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17829] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83842; File No. SR-NYSEAMER-2018-40] Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 903 and 903A 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 American LLC (``Exchange'' or ``NYSE American'') 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 903 and 903A. 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. [[Page 42186]] 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 903 (Series of Options Open for Trading) and 903A (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 Arca Inc. --------------------------------------------------------------------------- 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). 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.\6\ And, the addition of new series in a pre-electronic trading environment was a manual process. To 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\ See supra n. 4, 82 FR 49249, at 49249. --------------------------------------------------------------------------- Accordingly, to conform to this change, the Exchange proposes to modify Commentary .03(b) to Rule 903 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).\7\ --------------------------------------------------------------------------- \7\ See proposed Commentary .03(b) to Rule 903. --------------------------------------------------------------------------- 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.\8\ 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 903A 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.'' \9\ --------------------------------------------------------------------------- \8\ See supra n. 4, 82 FR 49249, at 49250. \9\ See proposed Rule 903A(b)(i)(4). The Exchange proposes to relocate ``and'' from paragraph (2) to (3) to conform to the change. See proposed Rule 903A(b)(i)(2),(3). --------------------------------------------------------------------------- Technical Changes The Exchange proposes to modify the description of LEAPs in Commentary .03(a) to Rule 903 to clarify the application of rules regarding LEAPs. The Exchange proposes to explicitly state that a LEAP is a series ``that expire[s] twelve (12) to thirty-nine (39) months from the time they are opened for trading, and stock index options that expire twelve (12) to thirty-six (36) months from the time they are opened for trading'' and that there may up to six ``extended far term'' expiration months ``for any index, Exchange-Trade Fund Share, or equity option class.'' \10\ Currently, the Exchange rules do not set forth the minimum amount of time to expiration for consideration of an expiration month as a LEAP, nor do the rules explicate that there may only be six LEAP expiration months for any index, Exchange Traded Fund Share, or equity option class. The Exchange also does not currently specify that the potential additional expirations months are ``extended far term'' expirations months. The Exchange believes this proposed change would add clarity and transparency to Exchange rules and is consistent with analogous rules of other exchanges.\11\ --------------------------------------------------------------------------- \10\ See proposed Commentary .03(a) to Rule 903. \11\ See, e.g., NYSE Arca Rule 6.4-O(d), (e). --------------------------------------------------------------------------- The Exchange proposes to modify Commentary .03(a) to Rule 903 to delete now obsolete operational language, which dates back to when LEAPs were first adopted. The language in question provides that: Further, such option series will open for trading either when there is buying or selling interest, or 40 minutes prior to the close, whichever occurs first. No quotations need to be posted for such option series until they are opened for trading. The Exchange proposes to delete this language because when this language [[Page 42187]] was adopted LEAPs were not opened for trading until late in the trading day unless there was buying or selling interest.\12\ Today, however, technological improvements allow the Exchange to open all LEAP series at the same time as all other series in an option class. --------------------------------------------------------------------------- \12\ See proposed Commentary .03(a) to Rule 903. --------------------------------------------------------------------------- 2. Statutory Basis The proposed rule change is consistent with Section 6(b) \13\ of the Act, in general, and furthers the objectives of Section 6(b)(5),\14\ 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b). \14\ 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, 2021expiration 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 adopting language to conform the rule text to clarify the operation of LEAPs, promotes just and equitable principles of trade (which aligns with approved rules of other options exchanges (see supra n. 11), 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 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 \15\ and Rule 19b-4(f)(6) thereunder.\16\ 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. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(iii). \16\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\18\ 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.\19\ 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.\20\ --------------------------------------------------------------------------- \17\ 17 CFR 240.19b-4(f)(6). \18\ 17 CFR 240.19b-4(f)(6)(iii). \19\ See OLPP Notice, supra note 4. \20\ 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) \21\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \21\ 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: [[Page 42188]] 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-NYSEAMER-2018-40 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-2018-40. 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-NYSEAMER-2018-40 and should be submitted on or before September 10, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2018-17829 Filed 8-17-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices 42185
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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II. Self-Regulatory Organization’s which LEAPs were listed on a single result from the inability to add series as
Statement of the Purpose of, and trading day.6 And, the addition of new a result of trading following regular
Statutory Basis for, the Proposed Rule series in a pre-electronic trading trading hours, the OLPP was amended
Change environment was a manual process. To to allow an additional category by
In its filing with the Commission, the accommodate this, the addition of new which the price of an underlying
self-regulatory organization included January LEAPs series was spread across security may be measured. Specifically,
statements concerning the purpose of, three months (September, October, and to conform to the amended OLPP, the
and basis for, the proposed rule change November). Today, however, these Exchange proposes to add paragraph
and discussed any comments it received operational concerns related to January (b)(i)(4) to Rule 903A to provide that
LEAPs have been alleviated as new ‘‘for option series to be added based on
on the proposed rule change. The text
series can be added in bulk trading following regular trading
of those statements may be examined at
electronically. The Plan Participants, hours,’’ the price of the underlying
the places specified in Item IV below.
including the Exchange, believe that security is measured by ‘‘the most
The Exchange has prepared summaries,
moving the addition of new January recent share price reported by all
set forth in sections A, B, and C below,
LEAPs series to no earlier than the national securities exchanges between
of the most significant parts of such
Monday prior to the September 4:15 p.m. and 6:00 p.m. Eastern Time.’’ 9
statements.
expiration would reduce marketplace
Technical Changes
A. Self-Regulatory Organization’s confusion about available January
Statement of the Purpose of, and the LEAPs series. Where previously January The Exchange proposes to modify the
Statutory Basis for, the Proposed Rule LEAPs series for options classes on the description of LEAPs in Commentary
Change February or March expiration cycles .03(a) to Rule 903 to clarify the
would not have been available as early application of rules regarding LEAPs.
1. Purpose as January LEAPs series for options The Exchange proposes to explicitly
The purpose of this filing is to amend classes on the January expiration cycle, state that a LEAP is a series ‘‘that
Rules 903 (Series of Options Open for under the proposed change, all January expire[s] twelve (12) to thirty-nine (39)
Trading) and 903A (Select Provisions of LEAPs series will be available months from the time they are opened
the Options Listing Procedures Plan)— concurrently. for trading, and stock index options that
or OLPP—to conform to recently Accordingly, to conform to this expire twelve (12) to thirty-six (36)
approved changes to the OLPP.4 change, the Exchange proposes to months from the time they are opened
The Exchange, which is one of the modify Commentary .03(b) to Rule 903 for trading’’ and that there may up to six
Participant Exchanges 5 to the OLPP, to reflect that new January LEAPS series ‘‘extended far term’’ expiration months
currently has rules that are designed to on equity options classes, options on ‘‘for any index, Exchange-Trade Fund
incorporate the requirements of the ETFs, or options on TIRs, may not be Share, or equity option class.’’ 10
OLPP. All Participant Exchanges have added on a currently listed and traded Currently, the Exchange rules do not set
similar such (essentially uniform) rules option class earlier than the Monday forth the minimum amount of time to
to ensure consistency and compliance prior to the September expiration expiration for consideration of an
with the OLPP. The Exchange proposes (which is 28 months before the expiration month as a LEAP, nor do the
to modify such rules to reflect the recent expiration).7 rules explicate that there may only be
updates as described below. six LEAP expiration months for any
Addition of Equity, ETF, and TIR index, Exchange Traded Fund Share, or
Addition of Long-Term Equity Options Option Series After Regular Trading equity option class. The Exchange also
(‘‘LEAPS’’) Hours does not currently specify that the
First, the OLPP has been amended to Second, the OLPP has been amended potential additional expirations months
change the earliest date on which new to allow equity, ETF, and TIR option are ‘‘extended far term’’ expirations
January LEAPS on equity options, series to be added based on trading after months. The Exchange believes this
options on Exchange Traded Funds regular trading hours (i.e., after-market). proposed change would add clarity and
(‘‘ETF’’), or options on Trust Issued As noted in the OLPP Notice, the prior transparency to Exchange rules and is
Receipts (‘‘TIR’’) may be added to a version of the OLPP did not allow for consistent with analogous rules of other
single date (from three separate option series to be added based on exchanges.11
months). As noted in the OLPP Notice, trading following regular trading hours.8 The Exchange proposes to modify
in the past there were operational As such, the Exchange Participants were Commentary .03(a) to Rule 903 to delete
concerns related to adding new January are [sic] unable to add new option series now obsolete operational language,
LEAPs series for all options classes on that may result from trading following which dates back to when LEAPs were
regular trading hours until the next first adopted. The language in question
4 See Securities Exchange Act Release Nos. 82235 morning, depending on the range of provides that:
(December 7, 2017), 82 FR 58668 (December 13, prices in pre-market trading, which is Further, such option series will open for
2017) (order approving the Fourth Amendment to
the OLPP); 81893 (October 18, 2017), 82 FR 49249
significant because events that occur trading either when there is buying or selling
after regular trading hours, such as interest, or 40 minutes prior to the close,
(‘‘OLPP Notice’’).
5 In addition to the Exchange, the ‘‘Participant earnings releases, often have an whichever occurs first. No quotations need to
be posted for such option series until they are
Exchanges’’ are: Chicago Board Options Exchange, important impact on the price of an
Incorporated (now known as Cboe Exchange, Inc.), opened for trading.
underlying security. In addition, there
on behalf of the BATS Exchange, Inc. (now known The Exchange proposes to delete this
are operational difficulties for market
daltland on DSKBBV9HB2PROD with NOTICES
as Cboe BZX Exchange, Inc.); Box Options
Exchange, LLC; C2 Exchange, Incorporated (now participants throughout the industry language because when this language
known as Cboe C2 Exchange, Inc.); EDGX Exchange, adding series after system startup. To
9 See proposed Rule 903A(b)(i)(4). The Exchange
Inc. (now known as Cboe EDGX Exchange, Inc.); avoid the potential burden that would
Miami International Securities Exchange, LLC; proposes to relocate ‘‘and’’ from paragraph (2) to (3)
MIAX PEARL, LLC; Nasdaq BX, Inc.; Nasdaq to conform to the change. See proposed Rule
6 See supra n. 4, 82 FR 49249, at 49249. 903A(b)(i)(2),(3).
GEMX, LLC; Nasdaq ISE, LLC; Nasdaq MRX, LLC;
7 See proposed Commentary .03(b) to Rule 903. 10 See proposed Commentary .03(a) to Rule 903.
Nasdaq Options Market, LLC; Nasdaq PHLX, LLC;
and NYSE Arca Inc. 8 See supra n. 4, 82 FR 49249, at 49250. 11 See, e.g., NYSE Arca Rule 6.4–O(d), (e).
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Electronic Comments SECURITIES AND EXCHANGE The Exchange has prepared summaries,
COMMISSION set forth in sections A, B, and C below,
• Use the Commission’s internet of the most significant parts of such
comment form (http://www.sec.gov/ [Release No. 34–83845; File No. SR–
NYSEArca–2018–57]
statements.
rules/sro.shtml); or
A. Self-Regulatory Organization’s
• Send an email to rule-comments@ Self-Regulatory Organizations; NYSE Statement of the Purpose of, and the
sec.gov. Please include File Number SR– Arca, Inc.; Notice of Filing of Proposed Statutory Basis for, the Proposed Rule
NYSEAMER–2018–40 on the subject Rule Change, as Modified by Change
line. Amendment No. 1, To List and Trade
Shares of the Amplify BlackSwan 1. Purpose
Paper Comments
Growth & Treasury Core ETF Under The Exchange proposes to list and
• Send paper comments in triplicate Commentary .02 to NYSE Arca Rule trade shares (‘‘Shares’’) of the Amplify
to Secretary, Securities and Exchange 5.2–E(j)(3) BlackSwan Growth & Treasury Core ETF
Commission, 100 F Street NE, (‘‘Fund’’) under Commentary .02 to
August 14, 2018.
Washington, DC 20549–1090. NYSE Arca Rule 5.2–E(j)(3), which
Pursuant to Section 19(b)(1) 1 of the
governs the listing and trading of
All submissions should refer to File Securities Exchange Act of 1934
Investment Company Units (‘‘Units’’) on
Number SR–NYSEAMER–2018–40. This (‘‘Act’’) 2 and Rule 19b–4 thereunder,3
the Exchange.4 The Fund will be an
file number should be included on the notice is hereby given that on July 31,
index-based exchange traded fund
subject line if email is used. To help the 2018, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
(‘‘ETF’’). The Shares will be offered by
Commission process and review your ‘‘Exchange’’) filed with the Securities
the Amplify ETF Trust (‘‘Trust’’), which
comments more efficiently, please use and Exchange Commission
is registered with the Commission as an
only one method. The Commission will (‘‘Commission’’) a proposed rule
investment company and has filed a
change. On August 10, 2018, the
post all comments on the Commission’s registration statement on Form N–1A
Exchange filed Amendment No. 1 to the
internet website (http://www.sec.gov/ (‘‘Registration Statement’’) with the
proposed rule change, as described in
rules/sro.shtml). Copies of the Commission on behalf of the Fund.5
Items I and II below, which Items have
submission, all subsequent Amplify Investments LLC will be the
been prepared by the Exchange. The
amendments, all written statements investment adviser (‘‘Adviser’’) to the
Commission is publishing this notice to
with respect to the proposed rule Fund. CSAT Investment Advisory, L.P.,
solicit comments on the proposed rule
change that are filed with the d/b/a Exponential ETFs will serve as
change, as modified by Amendment No.
Commission, and all written sub-adviser for the Fund (‘‘Sub-
1, from interested persons.
communications relating to the Adviser’’). U.S. Bancorp Fund Services,
proposed rule change between the I. Self-Regulatory Organization’s LLC will be the administrator, custodian
Commission and any person, other than Statement of the Terms of Substance of and fund accounting and transfer agent
those that may be withheld from the the Proposed Rule Change for the Fund. Quasar Distributors LLC
public in accordance with the The Exchange proposes to list and will serve as the distributor for the
provisions of 5 U.S.C. 552, will be trade the shares of the following fund of Fund.
available for website viewing and the Amplify ETF Trust under Commentary .02(b)(i) to Rule 5.2–
printing in the Commission’s Public Commentary .02 to NYSE Arca Rule E(j)(3) provides that, if the applicable
5.2–E(j)(3) (‘‘Investment Company index is maintained by a broker-dealer
Reference Room, 100 F Street NE,
Units’’): the Amplify BlackSwan Growth or fund advisor, the broker-dealer or
Washington, DC 20549, on official
& Treasury Core ETF. This Amendment fund advisor shall erect and maintain a
business days between the hours of
No. 1 to SR–NYSEArca–2018–57 ‘‘fire wall’’ around the personnel who
10:00 a.m. and 3:00 p.m. Copies of the
replaces SR–NYSEArca–2018–57 as have access to information concerning
filing also will be available for
originally filed and supersedes such changes and adjustments to the index.6
inspection and copying at the principal
office of the Exchange. All comments filing in its entirety. The proposed 4 NYSE Arca Rule 5.2–E(j)(3)(A) provides that an
received will be posted without change. change is available on the Exchange’s Investment Company Unit is a security that
Persons submitting comments are website at www.nyse.com, at the represents an interest in a registered investment
cautioned that we do not redact or edit principal office of the Exchange, and at company that holds securities comprising, or
the Commission’s Public Reference otherwise based on or representing an interest in,
personal identifying information from an index or portfolio of securities (or holds
comment submissions. You should Room. securities in another registered investment
submit only information that you wish II. Self-Regulatory Organization’s company that holds securities comprising, or
otherwise based on or representing an interest in,
to make available publicly. All Statement of the Purpose of, and an index or portfolio of securities).
submissions should refer to File Statutory Basis for, the Proposed Rule 5 See Post-Effective Amendment No. 65 to
Number SR–NYSEAMER–2018–40 and Change Registration Statement on Form N–1A for the Trust,
should be submitted on or before dated June 26, 2018 (File Nos. 333–207937 and
In its filing with the Commission, the 811–23108). The descriptions of the Fund and the
September 10, 2018. self-regulatory organization included Shares contained herein are based, in part, on
For the Commission, by the Division of statements concerning the purpose of, information in the Registration Statement. In
addition, the Commission has issued an order
Trading and Markets, pursuant to delegated and basis for, the proposed rule change granting certain exemptive relief to the Trust under
authority.22 and discussed any comments it received
daltland on DSKBBV9HB2PROD with NOTICES
the Investment Company Act of 1940 (15 U.S.C.
Robert W. Errett, on the proposed rule change. The text 80a–1) (‘‘1940 Act’’). See Investment Company Act
of those statements may be examined at Release No. 31822 (September 14, 2015) (File No.
Deputy Secretary. 812–14424) (‘‘Exemptive Order’’).
the places specified in Item IV below.
[FR Doc. 2018–17829 Filed 8–17–18; 8:45 am] 6 An investment adviser to an open-end fund is
BILLING CODE 8011–01–P
required to be registered under the Investment
1 15 U.S.C. 78s(b)(1). Advisers Act of 1940 (the ‘‘Advisers Act’’). As a
2 15 U.S.C. 78a. result, the Adviser and Sub-adviser are subject to
22 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. the provisions of Rule 204A–1 under the Advisers
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Document Created: 2018-08-18 01:29:03
Document Modified: 2018-08-18 01:29:03
| 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 42185 |
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