83_FR_58895 83 FR 58671 - Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 406, Long-Term Option Contracts

83 FR 58671 - Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 406, Long-Term Option Contracts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 224 (November 20, 2018)

Page Range58671-58673
FR Document2018-25237

Federal Register, Volume 83 Issue 224 (Tuesday, November 20, 2018)
[Federal Register Volume 83, Number 224 (Tuesday, November 20, 2018)]
[Notices]
[Pages 58671-58673]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25237]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84585; File No. SR-PEARL-2018-24]


Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 
406, Long-Term Option Contracts

 November 14, 2018.
    Pursuant to the provisions of Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on November 8, 2018, MIAX PEARL, LLC (``MIAX 
PEARL'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing a proposal to amend MIAX PEARL Rule 406, 
Long-Term Option Contracts.
    The text of the proposed rule change is available on the Exchange's 
website at http://www.miaxoptions.com/rule-filings/pearl at MIAX 
PEARL's principal office, and at the Commission's Public Reference 
Room.

[[Page 58672]]

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 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend MIAX PEARL Rule 406, Long-Term 
Option Contracts, to permit the listing and trading of up to ten (10) 
long-term expiration months for long term options on the SPDR[supreg] 
S&P 500[supreg] exchange-traded fund (``SPY'') in response to customer 
demand.\3\ Rule 406(a) currently provides that the Exchange may list 
long-term option contracts that expire from twelve (12) to thirty-nine 
(39) months from the time they are listed (``long-term expiration 
months'') until expiration. There may be up to six (6) long-term 
expiration months per option class.\4\ The proposal will add liquidity 
to the SPY options market by allowing market participants to hedge 
risks relating to SPY positions over a longer period with a known and 
limited cost.
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    \3\ In contrast to Rule 406(a), MIAX Options Rule 1809(b), which 
is incorporated by reference into MIAX PEARL, and which applies to 
index options, permits the Exchange to list long-term index options 
series based on either the full or reduced value of the underlying 
index, adding up to ten (10) expiration months. The Exchange seeks 
to list ten (10) long-term expiration months on SPY, just as it now 
may list ten (10) expiration months on long-term index options 
series, in order to provide investors with a wider choice of 
investments.
    \4\ Strike price interval (Rule 404) and continuous quoting 
(Rule 605(d)) Rules shall not apply to such options series until the 
time to expiration is less than nine (9) months.
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    The SPY options market today is characterized by its tremendous 
daily and annual liquidity. As a consequence the Exchange believes that 
the listing of additional SPY long-term expiration months would be well 
received by investors. This proposal to expand the number of permitted 
SPY long-term expiration months would not apply to long-term expiration 
months on any other class of options.\5\
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    \5\ Historically, SPY is the largest and most actively traded 
ETF in the United States as measured by its assets under management 
and the value of shares traded.
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    The Exchange proposes to implement the proposed rule change on 
November 16, 2018.
2. Statutory Basis
    The Exchange believes that its proposed rule change is consistent 
with Section 6(b) of the Act \6\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act \7\ in particular, in that it 
is designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to foster 
cooperation and coordination with persons engaged in facilitating 
transactions in securities, to remove impediments to and perfect the 
mechanisms 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) \8\ requirement that the rules of an exchange not be 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ Id.
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    In particular, the proposed rule change offers market participants 
additional long-term expiration months on SPY options for their 
investment and risk management purposes. The proposal is intended 
simply to provide additional trading opportunities which have been 
requested by customers, thereby facilitating transactions in options 
and contributing to the protection of investors and the maintenance of 
fair and orderly markets. The proposed rule change responds to the 
continuing needs of market participants, particularly portfolio 
managers and other institutional customers, by providing protection 
from long-term market moves and by offering an alternative to hedging 
portfolios with future positions or off-exchange customized derivative 
instruments.
    Rule 406 has permitted up to six (6) long-term expiration months in 
option classes since the launch of the Exchange, in 2017. Other 
exchanges, such as Nasdaq PHLX LLC (``Phlx''), have permitted up to six 
``LEAPS'' since 1991, when it increased the number of permissible 
expiration months from four to six. As noted by Phlx (in its recent 
proposal to permit up to ten LEAPS expiration months for options on 
SPY), when the Commission approved the increase to six expiration 
months, the Commission stated that it did not believe that increasing 
the number of expiration months to six would cause, by itself, a 
proliferation of expiration months. The Commission also required that 
Phlx monitor the volume of additional options series listed as a result 
of the rule change, and the effect on Phlx's system capacity and 
quotation dissemination displays.\9\ MIAX PEARL believes that the 
addition today of four (4) additional long-term expiration months on 
SPY options likewise does not represent a proliferation of expiration 
months, but is instead a very modest expansion of long-term options in 
response to stated customer demand. Significantly, the proposal would 
feature new long-term expiration months in only a single class of 
options that are very liquid and heavily traded, as discussed above. 
Additionally, the Exchange notes by way of precedent, that ten (10) 
expiration months are already permitted for long-term index options 
series. Further, the Exchange has the necessary systems capacity to 
support the new SPY long-term expiration months.
---------------------------------------------------------------------------

    \9\ See Securities Exchange Act Release No. 84449 (October 18, 
2018), 83 FR 53699 (October 24, 2018) (SR-Phlx-2018-64). See also 
Securities Exchange Act Release No. 29103 (April 18, 1991), 56 FR 
19132 (April 25, 1991) (approving SR-Phlx-91-18).
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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. The proposal merely provides 
investors additional investment and risk management opportunities by 
providing flexibility to the Exchange to list additional long-term 
options expiration series, expanding the number of SPY long-term 
expiration months offered on the Exchange from six (6) long-term 
expiration months to ten (10) long-term expiration months.

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

    Written comments were neither solicited nor received.

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

    Because the foregoing 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

[[Page 58673]]

operative for 30 days from the date on which it was filed, or such 
shorter time as the Commission may designate, it has become effective 
pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) 
thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4. In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its 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.
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    A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b4(f)(6)(iii),\13\ 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 on November 16, 2018, to coincide with the 
effective date of Phlx's proposed rule change on which the proposal is 
based.\14\ The Exchange's proposal would conform the Exchange's rules 
relating to permitted number of long-term expiration months on SPY 
options to those of Phlx. 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 proposal operative on November 16, 
2018.\15\
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    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ See Securities Exchange Act Release No. 84449 (October 18, 
2018), 83 FR 53699 (October 24, 2018) (SR-Phlx-2018-64).
    \15\ 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.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-PEARL-2018-24 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-PEARL-2018-24. 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-PEARL-2018-24 and should be submitted on 
or before December 11, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25237 Filed 11-19-18; 8:45 am]
 BILLING CODE 8011-01-P



                                 Federal Register / Vol. 83, No. 224 / Tuesday, November 20, 2018 / Notices                                                  58671

       Overall, the Exchange believes that its                    At any time within 60 days of the                   filing also will be available for
     proposal is consistent with the Act                       filing of the proposed rule change, the                inspection and copying at the principal
     because the proposed rule text protects                   Commission summarily may                               office of the Exchange. All comments
     investors and the public interest by                      temporarily suspend such rule change if                received will be posted without change.
     providing clear language that will be                     it appears to the Commission that such                 Persons submitting comments are
     utilized on all Nasdaq, Inc.-affiliated                   action is necessary or appropriate in the              cautioned that we do not redact or edit
     options markets for easy comparison by                    public interest, for the protection of                 personal identifying information from
     common members that are engaged in                        investors, or otherwise in furtherance of              comment submissions. You should
     market making activities on both the                      the purposes of the Act. If the                        submit only information that you wish
     Exchange and its affiliates. As discussed                 Commission takes such action, the                      to make available publicly. All
     above, the proposed changes will                          Commission shall institute proceedings                 submissions should refer to File
     restructure MRX’s current rules on                        to determine whether the proposed rule                 Number SR–MRX–2018–34 and should
     Market Maker quoting obligations to                       should be approved or disapproved.                     be submitted on or before December 11,
     conform to rule text used on its affiliate,               IV. Solicitation of Comments                           2018.
     Phlx. The Exchange further believes that                                                                           For the Commission, by the Division of
     the proposed rule changes would                             Interested persons are invited to
                                                               submit written data, views, and                        Trading and Markets, pursuant to delegated
     remove impediments to and perfect the                                                                            authority.34
     mechanism of a free and open market by                    arguments concerning the foregoing,
                                                               including whether the proposed rule                    Eduardo A. Aleman,
     ensuring that members, regulators and
                                                               change is consistent with the Act.                     Assistant Secretary.
     the public can more easily navigate and
     understand the Exchange’s rulebook,                       Comments may be submitted by any of                    [FR Doc. 2018–25234 Filed 11–19–18; 8:45 am]
     thereby avoiding potential confusion.                     the following methods:                                 BILLING CODE 8011–01–P

     B. Self-Regulatory Organization’s                         Electronic Comments
     Statement on Burden on Competition                          • Use the Commission’s internet                      SECURITIES AND EXCHANGE
       The Exchange does not believe that                      comment form (http://www.sec.gov/                      COMMISSION
     the proposed rule change will impose                      rules/sro.shtml); or
                                                                 • Send an email to rule-comments@
     any burden on competition that is not                                                                            [Release No. 34–84585; File No. SR–
                                                               sec.gov. Please include File Number SR–
     necessary or appropriate in further of                                                                           PEARL–2018–24]
                                                               MRX–2018–34 on the subject line.
     the purposes of the Act. The proposal
     does not impose a burden on                               Paper Comments                                         Self-Regulatory Organizations; MIAX
     competition because the Exchange will                                                                            PEARL, LLC; Notice of Filing and
                                                                 • Send paper comments in triplicate
     continue to uniformly calculate and                                                                              Immediate Effectiveness of a Proposed
                                                               to Secretary, Securities and Exchange
     apply the quoting obligations for all                                                                            Rule Change To Amend Rule 406,
                                                               Commission, 100 F Street NE,
     Market Makers. Other than to allow the                                                                           Long-Term Option Contracts
                                                               Washington, DC 20549–1090.
     Exchange to announce in advance a                         All submissions should refer to File                   November 14, 2018.
     higher percentage of quoting                              Number SR–MRX–2018–34. This file
     compliance standards, the Exchange’s                                                                                Pursuant to the provisions of Section
                                                               number should be included on the
     proposal does not modify the current                                                                             19(b)(1) of the Securities Exchange Act
                                                               subject line if email is used. To help the
     practice or the current quoting                                                                                  of 1934 (‘‘Act’’),1 and Rule 19b–4
                                                               Commission process and review your
     obligations on MRX, as further                                                                                   thereunder,2 notice is hereby given that
                                                               comments more efficiently, please use
     discussed above.                                                                                                 on November 8, 2018, MIAX PEARL,
                                                               only one method. The Commission will
                                                                                                                      LLC (‘‘MIAX PEARL’’ or ‘‘Exchange’’)
     C. Self-Regulatory Organization’s                         post all comments on the Commission’s
                                                                                                                      filed with the Securities and Exchange
     Statement on Comments on the                              internet website (http://www.sec.gov/
                                                                                                                      Commission (‘‘Commission’’) a
     Proposed Rule Change Received From                        rules/sro.shtml). Copies of the
                                                                                                                      proposed rule change as described in
     Members, Participants, or Others                          submission, all subsequent
                                                                                                                      Items I and II below, which Items have
                                                               amendments, all written statements
       No written comments were either                                                                                been prepared by the Exchange. The
                                                               with respect to the proposed rule
     solicited or received.                                                                                           Commission is publishing this notice to
                                                               change that are filed with the
                                                                                                                      solicit comments on the proposed rule
     III. Date of Effectiveness of the                         Commission, and all written
                                                                                                                      change from interested persons.
     Proposed Rule Change and Timing for                       communications relating to the
     Commission Action                                         proposed rule change between the                       I. Self-Regulatory Organization’s
       Because the foregoing proposed rule                     Commission and any person, other than                  Statement of the Terms of Substance of
     change does not: (i) Significantly affect                 those that may be withheld from the                    the Proposed Rule Change
     the protection of investors or the public                 public in accordance with the
                                                               provisions of 5 U.S.C. 552, will be                       The Exchange is filing a proposal to
     interest; (ii) impose any significant                                                                            amend MIAX PEARL Rule 406, Long-
     burden on competition; and (iii) become                   available for website viewing and
                                                               printing in the Commission’s Public                    Term Option Contracts.
     operative for 30 days from the date on
     which it was filed, or such shorter time                  Reference Room, 100 F Street NE,                          The text of the proposed rule change
     as the Commission may designate, it has                   Washington, DC 20549, on official                      is available on the Exchange’s website at
     become effective pursuant to Section                      business days between the hours of                     http://www.miaxoptions.com/rule-
     19(b)(3)(A)(iii) of the Act 32 and                        10:00 a.m. and 3:00 p.m. Copies of the                 filings/pearl at MIAX PEARL’s principal
     subparagraph (f)(6) of Rule 19b–4                                                                                office, and at the Commission’s Public
     thereunder.33                                             the Commission written notice of its intent to file    Reference Room.
                                                               the proposed rule change at least five business days
                                                               prior to the date of filing of the proposed rule
       32 15                                                                                                            34 17 CFR 200.30–3(a)(12).
              U.S.C. 78s(b)(3)(A)(iii).                        change, or such shorter time as designated by the
       33 17                                                                                                            1 15 U.S.C. 78s(b)(1).
              CFR 240.19b–4(f)(6). In addition, Rule 19b–      Commission. The Exchange has satisfied this
     4(f)(6) requires a self-regulatory organization to give   requirement.                                             2 17 CFR 240.19b–4.




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     58672                      Federal Register / Vol. 83, No. 224 / Tuesday, November 20, 2018 / Notices

     II. Self-Regulatory Organization’s                      long-term expiration months on any                        increase to six expiration months, the
     Statement of the Purpose of, and                        other class of options.5                                  Commission stated that it did not
     Statutory Basis for, the Proposed Rule                    The Exchange proposes to implement                      believe that increasing the number of
     Change                                                  the proposed rule change on November                      expiration months to six would cause,
                                                             16, 2018.                                                 by itself, a proliferation of expiration
       In its filing with the Commission, the                                                                          months. The Commission also required
     Exchange included statements                            2. Statutory Basis
                                                                                                                       that Phlx monitor the volume of
     concerning the purpose of and basis for                    The Exchange believes that its                         additional options series listed as a
     the proposed rule change and discussed                  proposed rule change is consistent with                   result of the rule change, and the effect
     any comments it received on the                         Section 6(b) of the Act 6 in general, and                 on Phlx’s system capacity and quotation
     proposed rule change. The text of these                 furthers the objectives of Section 6(b)(5)                dissemination displays.9 MIAX PEARL
     statements may be examined at the                       of the Act 7 in particular, in that it is                 believes that the addition today of four
     places specified in Item IV below. The                  designed to prevent fraudulent and                        (4) additional long-term expiration
     Exchange has prepared summaries, set                    manipulative acts and practices, to                       months on SPY options likewise does
     forth in sections A, B, and C below, of                 promote just and equitable principles of                  not represent a proliferation of
     the most significant aspects of such                    trade, to foster cooperation and                          expiration months, but is instead a very
     statements.                                             coordination with persons engaged in                      modest expansion of long-term options
                                                             facilitating transactions in securities, to               in response to stated customer demand.
     A. Self-Regulatory Organization’s                       remove impediments to and perfect the                     Significantly, the proposal would
     Statement of the Purpose of, and                        mechanisms of a free and open market                      feature new long-term expiration
     Statutory Basis for, the Proposed Rule                  and a national market system and, in                      months in only a single class of options
     Change                                                  general, to protect investors and the                     that are very liquid and heavily traded,
                                                             public interest. Additionally, the                        as discussed above. Additionally, the
     1. Purpose                                              Exchange believes the proposed rule                       Exchange notes by way of precedent,
        The Exchange proposes to amend                       change is consistent with the Section                     that ten (10) expiration months are
     MIAX PEARL Rule 406, Long-Term                          6(b)(5) 8 requirement that the rules of an                already permitted for long-term index
                                                             exchange not be designed to permit                        options series. Further, the Exchange
     Option Contracts, to permit the listing
                                                             unfair discrimination between                             has the necessary systems capacity to
     and trading of up to ten (10) long-term
                                                             customers, issuers, brokers, or dealers.                  support the new SPY long-term
     expiration months for long term options                    In particular, the proposed rule
     on the SPDR® S&P 500® exchange-                                                                                   expiration months.
                                                             change offers market participants
     traded fund (‘‘SPY’’) in response to                    additional long-term expiration months                    B. Self-Regulatory Organization’s
     customer demand.3 Rule 406(a)                           on SPY options for their investment and                   Statement on Burden on Competition
     currently provides that the Exchange                    risk management purposes. The                               The Exchange does not believe that
     may list long-term option contracts that                proposal is intended simply to provide                    the proposed rule change will impose
     expire from twelve (12) to thirty-nine                  additional trading opportunities which                    any burden on competition that is not
     (39) months from the time they are                      have been requested by customers,                         necessary or appropriate in furtherance
     listed (‘‘long-term expiration months’’)                thereby facilitating transactions in                      of the purposes of the Act. The proposal
     until expiration. There may be up to six                options and contributing to the                           merely provides investors additional
     (6) long-term expiration months per                     protection of investors and the                           investment and risk management
     option class.4 The proposal will add                    maintenance of fair and orderly markets.                  opportunities by providing flexibility to
     liquidity to the SPY options market by                  The proposed rule change responds to                      the Exchange to list additional long-
     allowing market participants to hedge                   the continuing needs of market                            term options expiration series,
     risks relating to SPY positions over a                  participants, particularly portfolio                      expanding the number of SPY long-term
     longer period with a known and limited                  managers and other institutional                          expiration months offered on the
     cost.                                                   customers, by providing protection from                   Exchange from six (6) long-term
        The SPY options market today is                      long-term market moves and by offering                    expiration months to ten (10) long-term
     characterized by its tremendous daily                   an alternative to hedging portfolios with                 expiration months.
                                                             future positions or off-exchange
     and annual liquidity. As a consequence                                                                            C. Self-Regulatory Organization’s
                                                             customized derivative instruments.
     the Exchange believes that the listing of                  Rule 406 has permitted up to six (6)                   Statement on Comments on the
     additional SPY long-term expiration                     long-term expiration months in option                     Proposed Rule Change Received From
     months would be well received by                        classes since the launch of the                           Members, Participants, or Others
     investors. This proposal to expand the                  Exchange, in 2017. Other exchanges,                         Written comments were neither
     number of permitted SPY long-term                       such as Nasdaq PHLX LLC (‘‘Phlx’’),                       solicited nor received.
     expiration months would not apply to                    have permitted up to six ‘‘LEAPS’’ since
                                                             1991, when it increased the number of                     III. Date of Effectiveness of the
       3 In contrast to Rule 406(a), MIAX Options Rule       permissible expiration months from four                   Proposed Rule Change and Timing for
     1809(b), which is incorporated by reference into
                                                             to six. As noted by Phlx (in its recent                   Commission Action
     MIAX PEARL, and which applies to index options,
     permits the Exchange to list long-term index            proposal to permit up to ten LEAPS                           Because the foregoing proposed rule
     options series based on either the full or reduced      expiration months for options on SPY),                    change does not: (i) Significantly affect
     value of the underlying index, adding up to ten (10)    when the Commission approved the                          the protection of investors or the public
     expiration months. The Exchange seeks to list ten
     (10) long-term expiration months on SPY, just as it
                                                                                                                       interest; (ii) impose any significant
     now may list ten (10) expiration months on long-
                                                                5 Historically, SPY is the largest and most actively   burden on competition; and (iii) become
     term index options series, in order to provide          traded ETF in the United States as measured by its
     investors with a wider choice of investments.           assets under management and the value of shares             9 See Securities Exchange Act Release No. 84449
       4 Strike price interval (Rule 404) and continuous     traded.                                                   (October 18, 2018), 83 FR 53699 (October 24, 2018)
                                                                6 15 U.S.C. 78f(b).
     quoting (Rule 605(d)) Rules shall not apply to such                                                               (SR–Phlx–2018–64). See also Securities Exchange
                                                                7 15 U.S.C. 78f(b)(5).
     options series until the time to expiration is less                                                               Act Release No. 29103 (April 18, 1991), 56 FR
     than nine (9) months.                                      8 Id.                                                  19132 (April 25, 1991) (approving SR–Phlx–91–18).



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                                 Federal Register / Vol. 83, No. 224 / Tuesday, November 20, 2018 / Notices                                                           58673

     operative for 30 days from the date on                    Comments may be submitted by any of                    SMALL BUSINESS ADMINISTRATION
     which it was filed, or such shorter time                  the following methods:
                                                                                                                      [Disaster Declaration # 15796 and # 15797;
     as the Commission may designate, it has                                                                          Virginia Disaster Number VA–00077]
                                                               Electronic Comments
     become effective pursuant to Section
     19(b)(3)(A) of the Act 10 and Rule 19b–                     • Use the Commission’s internet                      Administrative Declaration of a
     4(f)(6) thereunder.11                                     comment form (http://www.sec.gov/                      Disaster for the Commonwealth of
        A proposed rule change filed under                     rules/sro.shtml); or                                   Virginia
     Rule 19b–4(f)(6) 12 normally does not                       • Send an email to rule-comments@
     become operative prior to 30 days after                                                                          AGENCY: U.S. Small Business
                                                               sec.gov. Please include File Number SR–                Administration.
     the date of the filing. However, pursuant                 PEARL–2018–24 on the subject line.
     to Rule 19b4(f)(6)(iii),13 the Commission                                                                        ACTION: Notice.
     may designate a shorter time if such                      Paper Comments
                                                                                                                      SUMMARY: This is a notice of an
     action is consistent with the protection
     of investors and the public interest. The                   • Send paper comments in triplicate                  Administrative declaration of a disaster
                                                               to Secretary, Securities and Exchange                  for the Commonwealth of Virginia dated
     Exchange has asked the Commission to
                                                               Commission, 100 F Street NE,                           11/13/2018.
     waive the 30-day operative delay so that
                                                               Washington, DC 20549–1090.                                Incident: Tropical Storm Michael.
     the proposal may become operative on
                                                                                                                         Incident Period: 10/10/2018 through
     November 16, 2018, to coincide with the                   All submissions should refer to File                   10/15/2018.
     effective date of Phlx’s proposed rule                    Number SR–PEARL–2018–24. This file
     change on which the proposal is                                                                                  DATES: Issued on 11/13/2018. Physical
                                                               number should be included on the
     based.14 The Exchange’s proposal                                                                                 Loan Application Deadline Date: 01/14/
                                                               subject line if email is used. To help the
     would conform the Exchange’s rules                                                                               2019. Economic Injury (EIDL) Loan
                                                               Commission process and review your
     relating to permitted number of long-                                                                            Application Deadline Date: 08/13/2019.
                                                               comments more efficiently, please use
     term expiration months on SPY options                     only one method. The Commission will                   ADDRESSES: Submit completed loan
     to those of Phlx. Accordingly, the                        post all comments on the Commission’s                  applications to: U.S. Small Business
     Commission believes that the proposal                     internet website (http://www.sec.gov/                  Administration, Processing and
     raises no new or novel regulatory issues                  rules/sro.shtml). Copies of the                        Disbursement Center, 14925 Kingsport
     and waiver of the 30-day operative                        submission, all subsequent                             Road, Fort Worth, TX 76155.
     delay is consistent with the protection                   amendments, all written statements                     FOR FURTHER INFORMATION CONTACT: A.
     of investors and the public interest. The                 with respect to the proposed rule                      Escobar, Office of Disaster Assistance,
     Commission therefore waives the 30-day                    change that are filed with the                         U.S. Small Business Administration,
     operative delay and designates the                        Commission, and all written                            409 3rd Street SW, Suite 6050,
     proposal operative on November 16,                        communications relating to the                         Washington, DC 20416, (202) 205–6734.
     2018.15                                                   proposed rule change between the                       SUPPLEMENTARY INFORMATION: Notice is
        At any time within 60 days of the                      Commission and any person, other than                  hereby given that as a result of the
     filing of the proposed rule change, the                   those that may be withheld from the                    Administrator’s disaster declaration,
     Commission summarily may                                  public in accordance with the                          applications for disaster loans may be
     temporarily suspend such rule change if                   provisions of 5 U.S.C. 552, will be                    filed at the address listed above or other
     it appears to the Commission that such                    available for website viewing and                      locally announced locations.
     action is necessary or appropriate in the                 printing in the Commission’s Public                       The following areas have been
     public interest, for the protection of                    Reference Room, 100 F Street NE,                       determined to be adversely affected by
     investors, or otherwise in furtherance of                 Washington, DC 20549, on official                      the disaster:
     the purposes of the Act.                                  business days between the hours of                     Primary Areas/Cities: Independent
                                                               10:00 a.m. and 3:00 p.m. Copies of the                    Cities of Danville, Salem.
     IV. Solicitation of Comments
                                                               filing also will be available for                      Contiguous Counties:
       Interested persons are invited to                       inspection and copying at the principal                   Virginia—Pittsylvania, Roanoke,
     submit written data, views, and                           office of the Exchange. All comments                        Roanoke City.
     arguments concerning the foregoing,                       received will be posted without change.                   North Carolina—Caswell.
     including whether the proposed rule                       Persons submitting comments are                        The Interest Rates are:
     change is consistent with the Act.                        cautioned that we do not redact or edit
                                                               personal identifying information from                                                                  Percent
       10 15  U.S.C. 78s(b)(3)(A).                             comment submissions. You should
                                                                                                                      For Physical Damage:
        11 17 CFR 240.19b–4. In addition, Rule 19b–            submit only information that you wish                    Homeowners with Credit Avail-
     4(f)(6)(iii) requires a self-regulatory organization to   to make available publicly. All
     give the Commission written notice of its intent to                                                                  able Elsewhere ....................            4.000
     file the proposed rule change, along with a brief
                                                               submissions should refer to File                         Homeowners without Credit
     description and text of the proposed rule change,         Number SR–PEARL–2018–24 and                                Available Elsewhere ............               2.000
     at least five business days prior to the date of filing   should be submitted on or before                         Businesses with Credit Avail-
     of the proposed rule change, or such shorter time         December 11, 2018.                                         able Elsewhere ....................            7.350
     as designated by the Commission. The Exchange                                                                      Businesses without Credit
     has satisfied this requirement.                             For the Commission, by the Division of                   Available Elsewhere ............               3.675
        12 17 CFR 240.19b–4(f)(6).                             Trading and Markets, pursuant to delegated               Non-Profit Organizations with
        13 17 CFR 240.19b–4(f)(6)(iii).                        authority.16                                               Credit Available Elsewhere                     2.500
        14 See Securities Exchange Act Release No. 84449
                                                               Eduardo A. Aleman,                                       Non-Profit Organizations with-
     (October 18, 2018), 83 FR 53699 (October 24, 2018)
                                                               Assistant Secretary.                                       out Credit Available Else-
     (SR–Phlx–2018–64).
                                                                                                                          where ...................................      2.500
        15 For purposes only of waiving the 30-day             [FR Doc. 2018–25237 Filed 11–19–18; 8:45 am]
     operative delay, the Commission has also                                                                         For Economic Injury:
                                                               BILLING CODE 8011–01–P                                   Businesses & Small Agricul-
     considered the proposed rule’s impact on
     efficiency, competition, and capital formation. See                                                                  tural Cooperatives without
     15 U.S.C. 78c(f).                                           16 17   CFR 200.30–3(a)(12).                             Credit Available Elsewhere                     3.675



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Document Created: 2018-11-20 07:59:52
Document Modified: 2018-11-20 07:59:52
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 58671 

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