83 FR 56119 - Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Renew the Nonstandard Expirations Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 218 (November 9, 2018)
Federal Register Volume 83, Issue 218 (November 9, 2018)
| Page Range | 56119-56121 | |
| FR Document | 2018-24522 |
[Federal Register Volume 83, Number 218 (Friday, November 9, 2018)] [Notices] [Pages 56119-56121] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-24522] [[Page 56119]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84534; File No. SR-CBOE-2018-070] Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Renew the Nonstandard Expirations Pilot Program November 5, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on November 2, 2018, Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') 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 Exchange. The Exchange filed the proposal as a ``non-controversial'' proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A)(iii). \4\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes to renew an existing pilot program until May 6, 2019. Under the existing pilot program, the Exchange is permitted to list P.M.-settled options on broad-based indexes that expire on: (a) Any Monday, Wednesday, or Friday (``Weekly Expirations'') and (b) the last trading day of the month (``End of Month Expirations'' or ``EOMs''). (additions are italicized; deletions are [bracketed]) * * * * * Cboe Exchange, Inc. Rules [sic] * * * * * Rule 24.9. Terms of Index Option Contracts (a)-(d) (No change). (e) Nonstandard Expirations Pilot Program (1)-(2) (No change). (3) Duration of Nonstandard Expirations Pilot Program. The Nonstandard Expirations Pilot Program shall be through [November 5, 2018] May 6, 2019. (4) (No change). . . . Interpretations and Policies: .01-.14 (No change). * * * * * The text of the proposed rule change is also available on the Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the Secretary, 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 Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose On September 14, 2010, the Commission approved a Cboe Options proposal to establish a pilot program under which the Exchange is permitted to list P.M.-settled options on broad-based indexes to expire on (a) any Friday of the month, other than the third Friday-of-the- month, and (b) the last trading day of the month.\5\ On January 14, 2016, the Commission approved a Cboe Options proposal to expand the pilot program to allow P.M.-settled options on broad-based indexes to expire on any Wednesday of month, other than those that coincide with an EOM.\6\ On August 10, 2016, the Commission approved a Cboe Options proposal to expand the pilot program to allow P.M.-settled options on broad-based indexes to expire on any Monday of month, other than those that coincide with an EOM.\7\ Under the terms of the Nonstandard Expirations Pilot Program (``Program''), Weekly Expirations and EOMs are permitted on any broad-based index that is eligible for regular options trading. Weekly Expirations and EOMs are cash-settled and have European-style exercise. The proposal became effective on a pilot basis for a period of fourteen months that commenced on the next full month after approval was received to establish the Program \8\ and was subsequently extended.\9\ The Program is scheduled to expire on November 5, 2018. The Exchange believes that the Program has been successful and well received by its Trading Permit Holders and the investing public during that the time that it has been in operation. The Exchange hereby proposes to extend the Program until May 6, 2019. This proposal does not request any other changes to the Program. --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release 62911 (September 14, 2010), 75 FR 57539 (September 21, 2010) (order approving SR-CBOE- 2009-075). \6\ See Securities Exchange Act Release 76909 (January 14, 2016), 81 FR 3512 (January 21, 2016) (order approving SR-CBOE-2015- 106). \7\ See Securities Exchange Act Release 78531 (August 10, 2016), 81 FR 54643 (August 16, 2016) (order approving SR-CBOE-2016-046). \8\ Id. \9\ See Securities Exchange Act Release 65741 (November 14, 2011), 76 FR 72016 (November 21, 2011) (immediately effective rule change extending the Program through February 14, 2013). See also Securities Exchange Act Release 68933 (February 14, 2013), 78 FR 12374 (February 22, 2013) (immediately effective rule change extending the Program through April 14, 2014); 71836 (April 1, 2014), 79 FR 19139 (April 7, 2014) (immediately effective rule change extending the Program through November 3, 2014); 73422 (October 24, 2014), 79 FR 64640 (October 30, 2014) (immediately effective rule change extending the Program through May 3, 2016); 76909 (January 14, 2016), 81 FR 3512 (January 21, 2016) (extending the Program through May 3, 2017); 80387 (April 6, 2017), 82 FR 17706 (April 12, 2017) (extending the Program through May 3, 2018); and 83165 (May 3, 2018), 83 FR 21316 (May 9, 2018) (SR-CBOE-2018-038) (extending the Program through November 8, 2018). --------------------------------------------------------------------------- Pursuant to the order approving the establishment of the Program, two months prior to the conclusion of the pilot period, Cboe Options is required to submit an annual report to the Commission, which addresses the following areas: Analysis of Volume & Open Interest, Monthly Analysis of Weekly Expirations & EOM Trading Patterns and Provisional Analysis of Index Price Volatility. The Exchange has submitted, under separate cover, the annual report in connection with the present proposed rule change. Additionally, the Exchange will provide the Commission with any additional data or analyses the Commission requests because it deems such data or analyses necessary to determine whether the Program is consistent with the Exchange Act. The Exchange is in the process of making public on its website data and analyses previously submitted to the Commission under the Program, which it expects to complete in the fourth quarter of 2018, and will make public any data and analyses it submits to the Commission under the Program in the future. [[Page 56120]] If, in the future, the Exchange proposes an additional extension of the Program, or should the Exchange propose to make the Program permanent (which the Exchange currently intends to do), the Exchange will submit an annual report (addressing the same areas referenced above and consistent with the order approving the establishment of the Program) to the Commission at least two months prior to the expiration date of the Program. Any positions established under the Program will not be impacted by the expiration of the Program. The Exchange believes there is sufficient investor interest and demand in the Program to warrant its extension. The Exchange believes that the Program has provided investors with additional means of managing their risk exposures and carrying out their investment objectives. Furthermore, the Exchange has not experienced any adverse market effects with respect to the Program. The Exchange believes that the proposed extension of the Program will not have an adverse impact on capacity. 2. Statutory Basis The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the ``Act'') and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.\10\ Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \11\ requirements that the rules of an exchange be 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 regulating, clearing, settling, processing information with respect to, and facilitation transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) \12\ requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f(b). \11\ 15 U.S.C. 78f(b)(5). \12\ Id. --------------------------------------------------------------------------- In particular, the Exchange believes that the Program has been successful to date and states that it has not encountered any problems with the Program. The proposed rule change allows for an extension of the Program for the benefit of market participants. Additionally, the Exchange believes that there is demand for the expirations offered under the Program and believes that that Weekly Expirations and EOMs will continue to provide the investing public and other market participants increased opportunities to better manage their risk exposure. B. Self-Regulatory Organization's Statement on Burden on Competition Cboe Options 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 Program, the proposed rule change will allow for further analysis of the Program and a determination of how the Program shall 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. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange neither solicited nor received comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the proposed rule change does not (i) significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days 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 \13\ and Rule 19b-4(f)(6) thereunder.\14\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(3)(A). \14\ 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 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 requirement. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally does not become operative for 30 days after the date of filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ 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 Exchange states that such waiver will allow the Exchange to extend the pilot program prior to its expiration on November 5, 2018, and maintain the status quo, thereby reducing market disruption. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest as it will allow the pilot program to continue uninterrupted, thereby avoiding investor confusion that could result from a temporary interruption in the pilot program. For this reason, the Commission designates the proposed rule change to be operative upon filing.\17\ --------------------------------------------------------------------------- \15\ 17 CFR 240.19b-4(f)(6). \16\ 17 CFR 240.19b-4(f)(6)(iii). \17\ 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 the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-CBOE-2018-070 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-CBOE-2018-070. This file number should be included on the [[Page 56121]] 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 a.m. and 3 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- CBOE-2018-070, and should be submitted on or before November 30, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-24522 Filed 11-8-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Notices 56119
SECURITIES AND EXCHANGE shall be through [November 5, 2018] (‘‘Program’’), Weekly Expirations and
COMMISSION May 6, 2019. EOMs are permitted on any broad-based
(4) (No change). index that is eligible for regular options
[Release No. 34–84534; File No. SR–CBOE– . . . Interpretations and Policies: trading. Weekly Expirations and EOMs
2018–070] .01–.14 (No change). are cash-settled and have European-
Self-Regulatory Organizations; Cboe * * * * * style exercise. The proposal became
Exchange, Inc.; Notice of Filing and The text of the proposed rule change effective on a pilot basis for a period of
Immediate Effectiveness of a Proposed is also available on the Exchange’s fourteen months that commenced on the
Rule Change To Renew the website (http://www.cboe.com/ next full month after approval was
Nonstandard Expirations Pilot AboutCBOE/CBOELegal received to establish the Program 8 and
Program RegulatoryHome.aspx), at the was subsequently extended.9 The
Exchange’s Office of the Secretary, and Program is scheduled to expire on
November 5, 2018. at the Commission’s Public Reference November 5, 2018. The Exchange
Pursuant to Section 19(b)(1) of the Room. believes that the Program has been
Securities Exchange Act of 1934 (the II. Self-Regulatory Organization’s successful and well received by its
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Statement of the Purpose of, and Trading Permit Holders and the
notice is hereby given that on November Statutory Basis for, the Proposed Rule investing public during that the time
2, 2018, Cboe Exchange, Inc. (the Change that it has been in operation. The
‘‘Exchange’’ or ‘‘Cboe Options’’) filed Exchange hereby proposes to extend the
with the Securities and Exchange In its filing with the Commission, the Program until May 6, 2019. This
Commission (the ‘‘Commission’’) the Exchange included statements proposal does not request any other
proposed rule change as described in concerning the purpose of and basis for changes to the Program.
Items I and II below, which Items have the proposed rule change and discussed Pursuant to the order approving the
been prepared by the Exchange. The any comments it received on the establishment of the Program, two
Exchange filed the proposal as a ‘‘non- proposed rule change. The text of these months prior to the conclusion of the
statements may be examined at the pilot period, Cboe Options is required to
controversial’’ proposed rule change
places specified in Item IV below. The submit an annual report to the
pursuant to Section 19(b)(3)(A)(iii) of
Exchange has prepared summaries, set Commission, which addresses the
the Act 3 and Rule 19b–4(f)(6)
forth in sections A, B, and C below, of following areas: Analysis of Volume &
thereunder.4 The Commission is
the most significant aspects of such Open Interest, Monthly Analysis of
publishing this notice to solicit
statements. Weekly Expirations & EOM Trading
comments on the proposed rule change
from interested persons. A. Self-Regulatory Organization’s Patterns and Provisional Analysis of
Statement of the Purpose of, and the Index Price Volatility. The Exchange has
I. Self-Regulatory Organization’s Statutory Basis for, the Proposed Rule submitted, under separate cover, the
Statement of the Terms of Substance of Change annual report in connection with the
the Proposed Rule Change present proposed rule change.
1. Purpose Additionally, the Exchange will provide
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to renew On September 14, 2010, the the Commission with any additional
an existing pilot program until May 6, Commission approved a Cboe Options data or analyses the Commission
2019. Under the existing pilot program, proposal to establish a pilot program requests because it deems such data or
the Exchange is permitted to list P.M.- under which the Exchange is permitted analyses necessary to determine
settled options on broad-based indexes to list P.M.-settled options on broad- whether the Program is consistent with
that expire on: (a) Any Monday, based indexes to expire on (a) any the Exchange Act. The Exchange is in
Wednesday, or Friday (‘‘Weekly Friday of the month, other than the the process of making public on its
Expirations’’) and (b) the last trading third Friday-of-the-month, and (b) the website data and analyses previously
day of the month (‘‘End of Month last trading day of the month.5 On submitted to the Commission under the
Expirations’’ or ‘‘EOMs’’). January 14, 2016, the Commission Program, which it expects to complete
approved a Cboe Options proposal to in the fourth quarter of 2018, and will
(additions are italicized; deletions are expand the pilot program to allow P.M.- make public any data and analyses it
[bracketed]) settled options on broad-based indexes submits to the Commission under the
* * * * * to expire on any Wednesday of month, Program in the future.
other than those that coincide with an
Cboe Exchange, Inc. Rules [sic] EOM.6 On August 10, 2016, the
8 Id.
9 See Securities Exchange Act Release 65741
* * * * * Commission approved a Cboe Options (November 14, 2011), 76 FR 72016 (November 21,
proposal to expand the pilot program to 2011) (immediately effective rule change extending
Rule 24.9. Terms of Index Option
allow P.M.-settled options on broad- the Program through February 14, 2013). See also
Contracts Securities Exchange Act Release 68933 (February
based indexes to expire on any Monday
14, 2013), 78 FR 12374 (February 22, 2013)
(a)–(d) (No change). of month, other than those that coincide (immediately effective rule change extending the
(e) Nonstandard Expirations Pilot with an EOM.7 Under the terms of the Program through April 14, 2014); 71836 (April 1,
Program Nonstandard Expirations Pilot Program 2014), 79 FR 19139 (April 7, 2014) (immediately
(1)–(2) (No change). effective rule change extending the Program
through November 3, 2014); 73422 (October 24,
khammond on DSK30JT082PROD with NOTICES
(3) Duration of Nonstandard 5 See Securities Exchange Act Release 62911
2014), 79 FR 64640 (October 30, 2014) (immediately
Expirations Pilot Program. The (September 14, 2010), 75 FR 57539 (September 21, effective rule change extending the Program
2010) (order approving SR–CBOE–2009–075).
Nonstandard Expirations Pilot Program 6 See Securities Exchange Act Release 76909
through May 3, 2016); 76909 (January 14, 2016), 81
FR 3512 (January 21, 2016) (extending the Program
(January 14, 2016), 81 FR 3512 (January 21, 2016) through May 3, 2017); 80387 (April 6, 2017), 82 FR
1 15 U.S.C. 78s(b)(1). (order approving SR–CBOE–2015–106). 17706 (April 12, 2017) (extending the Program
2 17 CFR 240.19b–4. 7 See Securities Exchange Act Release 78531 through May 3, 2018); and 83165 (May 3, 2018), 83
3 15 U.S.C. 78s(b)(3)(A)(iii).
(August 10, 2016), 81 FR 54643 (August 16, 2016) FR 21316 (May 9, 2018) (SR–CBOE–2018–038)
4 17 CFR 240.19b–4(f)(6). (order approving SR–CBOE–2016–046). (extending the Program through November 8, 2018).
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![Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Notices 56121
subject line if email is used. To help the (‘‘OMB’’) a request for approval of there were 3,893 registered broker-
Commission process and review your extension of the previously approved dealers. Each of these broker-dealers
comments more efficiently, please use collection of information provided for in could clear trades through a participant
only one method. The Commission will Rule 204 (17 CFR 242.204), under the of a registered clearing agency and,
post all comments on the Commission’s Securities Exchange Act of 1934 (15 therefore, become subject to the
internet website (http://www.sec.gov/ U.S.C. 78a et seq.). notification requirements of Rule
rules/sro.shtml). Copies of the Rule 204(a) provides that a participant 204(d). If a participant allocates a fail to
submission, all subsequent of a registered clearing agency must deliver position to a broker or dealer
amendments, all written statements deliver securities to a registered clearing pursuant to Rule 204(d), the broker or
with respect to the proposed rule agency for clearance and settlement on dealer that has been allocated the fail to
change that are filed with the a long or short sale in any equity deliver position in an equity security
Commission, and all written security by settlement date, or if a must determine whether or not such fail
communications relating to the participant of a registered clearing to deliver position was closed out in
proposed rule change between the agency has a fail to deliver position at accordance with Rule 204(a). If such
Commission and any person, other than a registered clearing agency in any broker or dealer does not comply with
those that may be withheld from the equity security for a long or short sale the provisions of Rule 204(a), such
public in accordance with the transaction in the equity security, the broker or dealer must immediately
provisions of 5 U.S.C. 552, will be participant shall, by no later than the notify the participant that it has become
available for website viewing and beginning of regular trading hours on subject to the requirements of Rule
printing in the Commission’s Public the applicable close-out date, 204(b). We estimate that a broker or
Reference Room, 100 F Street, NE, immediately close out its fail to deliver dealer could have to make such
Washington, DC 20549, on official positions by borrowing or purchasing determination and notification with
business days between the hours of 10 securities of like kind and quantity. For respect to approximately 1.76 equity
a.m. and 3 p.m. Copies of the filing also a short sale transaction, the participant securities per day.1 We estimate a total
will be available for inspection and must close out a fail to deliver by no of 1,719,772 potential notifications in
copying at the principal office of the later than the beginning of regular accordance with Rule 204(d) across all
Exchange. All comments received will trading hours on the settlement day registered broker-dealers (that could be
be posted without change. Persons following the settlement date. If a allocated responsibility to close out a
submitting comments are cautioned that participant has a fail to deliver that the fail to deliver position) per year (3,893
we do not redact or edit personal participant can demonstrate on its books registered broker-dealers notifying
identifying information from comment and records resulted from a long sale, or participants once per day 2 on 1.76
submissions. You should submit only that is attributable to bona-fide market equity securities, multiplied by 251
information that you wish to make making activities, the participant must trading days in 2017). The total
available publicly. All submissions close out the fail to deliver by no later estimated annual burden hours per year
should refer to File Number SR–CBOE– than the beginning of regular trading will be approximately 275,164 burden
2018–070, and should be submitted on hours on the third consecutive hours (1,719,772 multiplied by 0.16
or before November 30, 2018. settlement day following the settlement hours/notification).
date. Rule 204 is intended to help II. Demonstration Requirement for
For the Commission, by the Division of further the Commission’s goal of Fails to Deliver on Long Sales: As of
Trading and Markets, pursuant to delegated reducing fails to deliver by maintaining
authority.18
December 5, 2017, there were 132
the reductions in fails to deliver participants of NSCC that were
Eduardo A. Aleman, achieved by the adoption of temporary registered as broker-dealers. If a
Assistant Secretary. Rule 204T, as well as other actions participant of a registered clearing
[FR Doc. 2018–24522 Filed 11–8–18; 8:45 am] taken by the Commission. In addition, agency has a fail to deliver position in
BILLING CODE 8011–01–P Rule 204 is intended to help further the an equity security at a registered
Commission’s goal of addressing clearing agency and determined that
potentially abusive ‘‘naked’’ short such fail to deliver position resulted
SECURITIES AND EXCHANGE selling in all equity securities. from a long sale, we estimate that a
COMMISSION The information collected under Rule participant of a registered clearing
204 will continue to be retained and/or agency will have to make such
Submission for OMB Review; provided to other entities pursuant to
Comment Request determination with respect to
the specific rule provisions and will be approximately 33 securities per day.3
Upon Written Request, Copies Available available to the Commission and self-
From: Securities and Exchange regulatory organization (‘‘SRO’’) 1 The Commission’s Division of Economic and
Commission, Office of FOIA Services, examiners upon request. The Risk Analysis (‘‘DERA’’) estimates that there were
information collected will continue to approximately 6,868 average daily fail to deliver
100 F Street NE, Washington, DC positions during 2017. Across 3,893 registered
20549–2736 aid the Commission and SROs in broker-dealers, the number of securities per
monitoring compliance with these registered broker-dealer per trading day is
Extension: requirements. In addition, the approximately 1.76 equity securities.
Rule 204, SEC File No. 270–586, OMB
information collected will aid those 2 Because failure to comply with the close-out
Control No. 3235–0647 requirements of Rule 204(a) is a violation of the
subject to Rule 204 in complying with
Notice is hereby given that pursuant rule, we believe that a broker or dealer would make
khammond on DSK30JT082PROD with NOTICES
its requirements. These collections of the notification to a participant that it is subject to
to the Paperwork Reduction Act of 1995 information are mandatory. the borrowing requirements of Rule 204(b) at most
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Several provisions under Rule 204 once per day.
Securities and Exchange Commission will impose a ‘‘collection of 3 DERA estimates that during 2017 approximately
(‘‘Commission’’) has submitted to the information’’ within the meaning of the 62.93% of trade volume was long. DERA estimates
that there were approximately 6,868 average daily
Office of Management and Budget Paperwork Reduction Act. fail to deliver positions during 2017. Across 132
I. Allocation Notification broker-dealer participants of the NSCC, the number
18 17 CFR 200.30–3(a)(12). Requirement: As of December 31, 2017, Continued
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Document Created: 2018-11-09 03:33:18
Document Modified: 2018-11-09 03:33:18
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 56119 |
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