83 FR 7248 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Short Term Option Series Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 34 (February 20, 2018)
Federal Register Volume 83, Issue 34 (February 20, 2018)
| Page Range | 7248-7251 | |
| FR Document | 2018-03309 |
[Federal Register Volume 83, Number 34 (Tuesday, February 20, 2018)] [Notices] [Pages 7248-7251] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03309] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82700; File No. SR-ISE-2018-13] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Short Term Option Series Program February 13, 2018. Pursuant to 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 February 7, 2018, Nasdaq ISE, LLC (``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in [[Page 7249]] 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. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 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 expand the Short Term Option Series Program to allow Monday expirations for options listed pursuant to the Short Term Option Series Program, including options on the SPDR S&P 500 ETF Trust. The text of the proposed rule change is available on the Exchange's website at http://ise.cchwallstreet.com/, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the 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 Rule 100(a)(51) and Rule 504, Supplementary Material .02 to expand the Short Term Option Series program (``Program'') to permit the listing and trading of options series with Monday expirations that are listed pursuant to the Program, including options on the SPDR S&P 500 ETF Trust (``SPY''). The Exchange notes that having Monday expirations is not a novel proposal. Specifically, Nasdaq PHLX LLC (``Phlx'') recently received approval to list Monday expirations for SPY options pursuant to its Short Terms Options Series program.\3\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 82611 (February 1, 2018), 83 FR 5473 (February 7, 2018) (SR-Phlx-2017-103). --------------------------------------------------------------------------- As set forth in Rule 100(a)(51), a Short Term Option Series is a series in an option class that is approved for listing and trading on the Exchange in which the series is opened for trading on any Tuesday, Wednesday, Thursday or Friday that is a business day and that expires on the Wednesday or Friday of the next business week that is a business day. The Exchange is now proposing to amend Rule 100(a)(51) to permit the listing of options series that expire on Mondays. Specifically, the Exchange is proposing that it may open for trading series of options on any Monday that is a business day and that expires on the Monday of the next business week that is a business day. The Exchange is also proposing to list Monday expirations series on Fridays that precede the expiration Monday by one business week plus one business day. Since Rule 100(a)(51) already provides for the listing of short term option series on Fridays, the Exchange is not modifying this provision to allow for Friday listing of Monday expiration series. However, the Exchange is amending Rule 100(a)(51) to clarify that, in the case of a series that is listed on a Friday and expires on a Monday, that series must be listed one business week and one business day prior to that expiration (i.e., two Fridays prior to expiration). As part of this proposal, the Exchange is also amending Rule 100(a)(51) to address the expiration of Monday expiration series when the Monday is not a business day. In that case, the rule will provide that the series shall expire on the first business day immediately following that Monday. This procedure differs from the expiration date of Wednesday expiration series that are scheduled to expire on a holiday. In that case, the Wednesday expiration series shall expire on the first business day immediately prior to that Wednesday, e.g., Tuesday of that week.\4\ However, the Exchange believes that it is preferable to require Monday expiration series in this scenario to expire on the Tuesday of that week rather than the previous business day, e.g., the previous Friday, since the Tuesday is closer in time to the scheduled expiration date of the series than the previous Friday, and therefore may be more representative of anticipated market conditions. The Exchange notes that this provision is identical to the corresponding provision recently adopted by Phlx in its proposal to list options series with Monday expirations pursuant to its Short Term Option Series program. The Exchange also notes that Cboe Exchange, Inc. (``Cboe'') uses the same procedure for options on the S&P 500 index (``SPX'') with Monday expirations that listed pursuant to its Nonstandard Expirations Pilot Program and that are scheduled to expire on a holiday.\5\ --------------------------------------------------------------------------- \4\ See Rule 100(a)(51). \5\ See CBOE Rule 24.9(e)(1) (``If the Exchange is not open for business on a respective Monday, the normally Monday expiring Weekly Expirations will expire on the following business day. If the Exchange is not open for business on a respective Wednesday or Friday, the normally Wednesday or Friday expiring Weekly Expirations will expire on the previous business day.''). --------------------------------------------------------------------------- The Exchange also proposes to make corresponding changes to Supplementary Material .02 to Rule 504, which sets forth the requirements for SPY options that are listed pursuant to the Program, to permit Monday SPY expirations (``Monday SPY Expirations''). Accordingly, the Exchange proposes to amend Supplementary Material .02 to state that, with respect to Monday SPY Expirations, the Exchange may open for trading on any Friday or Monday that is a business day series of options on the SPY to expire on any Monday of the month that is a business day and is not a Monday in which Quarterly Options Series expire, provided that Monday SPY Expirations that are listed on a Friday must be listed at least one business week and one business day prior to the expiration. As with the current rules for Wednesday SPY Expirations, the Exchange will also amend Supplementary Material .02 to state that Monday SPY Expirations will not be included in the total of the Short Term Option Expiration Dates. Relatedly, the Exchange proposes to amend Supplementary Material .02 to provide that it may list up to five consecutive Monday SPY Expirations at one time, and may have no more than a total of five Monday SPY Expirations (in addition to a maximum of five Short Term Option Series expirations for SPY expiring on Friday and five Wednesday SPY Expirations). The Exchange will also clarify that, as with Wednesday SPY Expirations, Monday SPY Expirations will be subject to the provisions of this Rule. The interval between strike prices for the proposed Monday SPY Expirations will be the same as those for the current Short Term Option Series for Wednesday and Friday SPY Expirations. Specifically, the Monday SPY Expirations will have a $0.50 strike interval minimum. As is the case with other options series listed pursuant to the Short Term Option Series, the Monday SPY Expiration series will be P.M.-settled. Currently, for each option class eligible for participation in the Program, the Exchange is limited to opening thirty (30) series for each expiration date for the specific class. The thirty (30) [[Page 7250]] series restriction does not include series that are open by other securities exchanges under their respective short term option rules; the Exchange may list these additional series that are listed by other exchanges.\6\ This thirty (30) series restriction shall apply to Monday SPY Expiration series as well. In addition, the Exchange will be able to list series that are listed by other exchanges, assuming they file similar rules with the Commission to list SPY options expiring on Mondays. --------------------------------------------------------------------------- \6\ See Supplementary Material .02(a) to Rule 504. --------------------------------------------------------------------------- Finally, the Exchange is amending Commentary .02(b) to Rule 504 which addresses the listing of Short Term Options Series that expire in the same week as monthly or quarterly options series. Currently, that rule states that no Short Term Option Series may expire in the same week in which monthly option series on the same class expire (with the exception of Wednesday SPY Expirations) or, in the case of Quarterly Options Series, on an expiration that coincides with an expiration of Quarterly Option Series on the same class. The Exchange is proposing to extend this exemption to Monday SPY Expirations. As with Wednesday SPY Expirations, the Exchange believes that it is reasonable to extend this exemption to Monday SPY Expirations because Monday SPY Expirations and standard monthly options will not expire on the same trading day, as standard monthly options expire on Fridays. Additionally, the Exchange believes that not listing Monday SPY Expirations for one week every month because there was a monthly SPY expiration on the Friday of that week would create investor confusion. For this reason, the Exchange is amending Commentary .02(b) to Rule 504 to clarify that Monday and Wednesday SPY Expirations may expire in the same week as monthly option series in the same class expire, but that no Short Term Option Series may expire on the same day as an expiration of Quarterly Option Series on the same class. The Exchange does not believe that any market disruptions will be encountered with the introduction of P.M.-settled Monday expirations. The Exchange has the necessary capacity and surveillance programs in place to support and properly monitor trading in the proposed Monday expiration series, including Monday SPY Expirations. The Exchange currently trades P.M.-settled Short Term Option Series that expire almost every Wednesday and Friday, which provide market participants a tool to hedge special events and to reduce the premium cost of buying protection. The Exchange notes that it has been listing Wednesday expirations pursuant to Rule 100 and Rule 504 since 2016.\7\ With the exception of Monday expiration series that are scheduled to expire on a holiday, the Exchange does not believe that there are any material differences between Monday expirations and Wednesday or Friday expirations for Short Term Option Series. --------------------------------------------------------------------------- \7\ See Securities Exchange Act Release No. 78715 (August 29, 2016), 81 FR 60765 (September 2, 2016) (SR-ISE-2016-18). --------------------------------------------------------------------------- The Exchange seeks to introduce Monday expirations to, among other things, expand hedging tools available to market participants and to continue the reduction of the premium cost of buying protection. The Exchange believes that Monday expirations, similar to Wednesday and Friday expirations, will allow market participants to purchase an option based on their timing as needed and allow them to tailor their investment and hedging needs more effectively. As noted above, Phlx recently received approval to list Monday expirations for SPY options pursuant to its Short Terms Options program. In addition, other exchanges currently permit Monday expirations for other options. For example, Cboe lists options on the SPX with a Monday expiration as part of its Nonstandard Expirations Pilot Program.\8\ --------------------------------------------------------------------------- \8\ See CBOE Rule 24.9(e)(1) (``The Exchange may open for trading Weekly Expirations on any broad-based index eligible for standard options trading to expire on any Monday, Wednesday, or Friday (other than the third Friday-of-the-month or days that coincide with an EOM expiration).''). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\9\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\10\ in particular, in that it is designed to promote just and equitable principles of trade, 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f(b). \10\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- In particular, the Exchange believes the Short Term Option Series Program has been successful to date and that Monday expirations, including Monday SPY Expirations, simply expand the ability of investors to hedge risk against market movements stemming from economic releases or market events that occur throughout the month in the same way that the Short Term Option Series Program has expanded the landscape of hedging. Similarly, the Exchange believes Monday expirations, including Monday SPY Expirations, should create greater trading and hedging opportunities and flexibility, and will provide customers with the ability to tailor their investment objectives more effectively. As noted above, Phlx recently received approval to list Monday expirations for SPY options pursuant to its Short Terms Options program. In addition, Cboe currently permits Monday expirations for other options with a weekly expiration, such as options on the SPX. With the exception of Monday expiration series that are scheduled to expire on a holiday, the Exchange does not believe that there are any material differences between Monday expirations, including Monday SPY expirations, and Wednesday or Friday expirations, including Wednesday and Friday SPY Expirations, for Short Term Option Series. The Exchange notes that it has been listing Wednesday expirations pursuant to Rule 100 and Rule 504 since 2016. The Exchange believes that it is consistent with the Act to treat Monday expiration series that expire on a holiday differently than Wednesday or Friday expiration series, since the proposed treatment for Monday expiration series will result in an expiration date that is closer in time to the scheduled expiration date of the series, and therefore may be more representative of anticipated market conditions. The Exchange also notes that Cboe uses the same procedure for SPX options with Monday expirations that are listed pursuant to its Nonstandard Expirations Pilot Program and that are scheduled to expire on a holiday. Given the similarities between Monday SPY Expiration series and Wednesday and Friday SPY Expiration series, the Exchange believes that applying the provisions in Commentary .02 to Rule 504 that currently apply to Wednesday SPY Expirations to Monday SPY Expirations is justified. For example, the Exchange believes that allowing Monday SPY Expirations and monthly SPY expirations in the same week will benefit investors and minimize investor confusion by providing Monday SPY Expirations in a continuous and uniform manner. The Exchange also believes that is appropriate to amend Commentary .02(b) to Rule 504 to clarify that no Short Term Option Series may expire on the same day as an expiration of Quarterly Option Series on the same class. This change will make that provision more consistent with the existing language in Commentary .02 that prohibits Wednesday SPY Expirations from expiring on a [[Page 7251]] Wednesday in which Quarterly Options Series expire. Finally, the Exchange represents that it has an adequate surveillance program in place to detect manipulative trading in Monday expirations, including Monday SPY Expirations, in the same way that it monitors trading in the current Short Term Option Series. The Exchange also represents that it has the necessary systems capacity to support the new options series. 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 not necessary or appropriate in furtherance of the purposes of the Act. The Exchange notes that having Monday expirations is not a novel proposal, as Phlx has received approval to list Monday expirations for SPY options, and Cboe currently lists and trades short-term SPX options with a Monday expiration. The Exchange does not believe the proposal will impose any burden on intra- market competition, as all market participants will be treated in the same manner under this proposal. Additionally, the Exchange does not believe the proposal will impose any burden on inter-market competition, as nothing prevents the other options exchanges from proposing similar rules to list and trade short-term options series with Monday expirations. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or 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 operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intention to file 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) normally does not become operative for 30 days from the date of filing. However, Rule 19b-4(f)(6)(iii) \13\ permits the Commission to 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 it recently approved Phlx's substantially similar proposal to list and trade Monday SPY Expirations.\14\ The Exchange has stated that waiver of the operative delay will allow the Exchange to list and trade Monday SPY Expirations as soon as possible, and therefore, promote competition among the option exchanges. For these reasons, the Commission believes that the proposed rule change presents no novel issues and that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest, and will allow the Exchange to remain competitive with other exchanges. Therefore, the Commission hereby waives the 30-day operative delay and designates the proposal effective upon filing.\15\ 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. --------------------------------------------------------------------------- \13\ 17 CFR 240.19b-4(f)(6)(iii). \14\ See supra note 3. \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). --------------------------------------------------------------------------- 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-ISE-2018-13 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. All submissions should refer to File Number SR-ISE-2018-13. 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-ISE-2018-13 and should be submitted on or before March 13, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-03309 Filed 2-16-18; 8:45 am] BILLING CODE 8011-01-P
![7248 Federal Register / Vol. 83, No. 34 / Tuesday, February 20, 2018 / Notices
B. Self-Regulatory Organization’s immediately upon filing. The comments more efficiently, please use
Statement on Burden on Competition Commission notes that it recently only one method. The Commission will
The Exchange does not believe that approved Phlx’s substantially similar post all comments on the Commission’s
the proposed rule change will impose proposal to list and trade Monday SPY internet website (http://www.sec.gov/
any burden on competition not Expirations.14 The Exchange has stated rules/sro.shtml). Copies of the
necessary or appropriate in furtherance that waiver of the operative delay will submission, all subsequent
of the purposes of the Act. The allow the Exchange to list and trade amendments, all written statements
Exchange notes that having Monday Monday SPY Expirations as soon as with respect to the proposed rule
expirations is not a novel proposal, as possible, and therefore, promote change that are filed with the
Phlx has received approval to list competition among the option Commission, and all written
Monday expirations for SPY options, exchanges. For these reasons, the communications relating to the
and Cboe currently lists and trades Commission believes that the proposed proposed rule change between the
short-term SPX options with a Monday rule change presents no novel issues Commission and any person, other than
and that waiver of the 30-day operative those that may be withheld from the
expiration. The Exchange does not
delay is consistent with the protection public in accordance with the
believe the proposal will impose any
of investors and the public interest, and provisions of 5 U.S.C. 552, will be
burden on intra-market competition, as
will allow the Exchange to remain available for website viewing and
all market participants will be treated in
competitive with other exchanges. printing in the Commission’s Public
the same manner under this proposal.
Therefore, the Commission hereby Reference Room, 100 F Street NE,
Additionally, the Exchange does not
waives the 30-day operative delay and Washington, DC 20549, on official
believe the proposal will impose any
designates the proposal effective upon business days between the hours of
burden on inter-market competition, as
filing.15 10:00 a.m. and 3:00 p.m. Copies of the
nothing prevents the other options At any time within 60 days of the filing also will be available for
exchanges from proposing similar rules filing of the proposed rule change, the inspection and copying at the principal
to list and trade short-term options Commission summarily may office of the Exchange. All comments
series with Monday expirations. temporarily suspend such rule change if received will be posted without change.
C. Self-Regulatory Organization’s it appears to the Commission that such Persons submitting comments are
Statement on Comments on the action is necessary or appropriate in the cautioned that we do not redact or edit
Proposed Rule Change Received From public interest, for the protection of personal identifying information from
Members, Participants, or Others investors, or otherwise in furtherance of comment submissions. You should
No written comments were either the purposes of the Act. If the submit only information that you wish
solicited or received. Commission takes such action, the to make available publicly. All
Commission shall institute proceedings submissions should refer to File
III. Date of Effectiveness of the to determine whether the proposed rule Number SR–BX–2018–008 and should
Proposed Rule Change and Timing for should be approved or disapproved. be submitted on or before March 13,
Commission Action 2018.
IV. Solicitation of Comments
Because the foregoing proposed rule For the Commission, by the Division of
change does not: (i) Significantly affect Interested persons are invited to Trading and Markets, pursuant to delegated
the protection of investors or the public submit written data, views, and authority.16
interest; (ii) impose any significant arguments concerning the foregoing, Eduardo A. Aleman,
burden on competition; and (iii) become including whether the proposed rule Assistant Secretary.
operative for 30 days from the date on change is consistent with the Act. [FR Doc. 2018–03312 Filed 2–16–18; 8:45 am]
which it was filed, or such shorter time Comments may be submitted by any of
BILLING CODE 8011–01–P
as the Commission may designate, the the following methods:
proposed rule change has become Electronic Comments
effective pursuant to Section SECURITIES AND EXCHANGE
• Use the Commission’s internet
19(b)(3)(A)(iii) of the Act 11 and Rule COMMISSION
comment form (http://www.sec.gov/
19b–4(f)(6) thereunder.12 rules/sro.shtml); or [Release No. 34–82700; File No. SR–ISE–
A proposed rule change filed under • Send an email to rule-comments@ 2018–13]
Rule 19b–4(f)(6) normally does not sec.gov. Please include File Number SR–
become operative for 30 days from the BX–2018–008 on the subject line. Self-Regulatory Organizations; Nasdaq
date of filing. However, Rule 19b– ISE, LLC; Notice of Filing and
4(f)(6)(iii) 13 permits the Commission to Paper Comments Immediate Effectiveness of Proposed
designate a shorter time if such action • Send paper comments in triplicate Rule Change To Expand the Short
is consistent with the protection of to Secretary, Securities and Exchange Term Option Series Program
investors and the public interest. The Commission, 100 F Street NE,
Exchange has asked the Commission to February 13, 2018.
Washington, DC 20549–1090.
waive the 30-day operative delay so that Pursuant to Section 19(b)(1) of the
All submissions should refer to File Securities Exchange Act of 1934
the proposal may become operative Number SR–BX–2018–008. This file (‘‘Act’’),1 and Rule 19b–4 thereunder,2
number should be included on the notice is hereby given that, on February
11 15 U.S.C. 78s(b)(3)(A).
subject line if email is used. To help the
sradovich on DSK3GMQ082PROD with NOTICES
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 7, 2018, Nasdaq ISE, LLC (‘‘Exchange’’)
4(f)(6) requires a self-regulatory organization to give Commission process and review your filed with the Securities and Exchange
the Commission written notice of its intention to Commission (‘‘Commission’’) the
file the proposed rule change at least five business 14 See supra note 3.
days prior to the date of filing of the proposed rule 15 For
proposed rule change as described in
purposes only of waiving the 30-day
change, or such shorter time as designated by the operative delay, the Commission has also
16 17 CFR 200.30–3(a)(12).
Commission. The Exchange has satisfied this considered the proposed rule’s impact on
requirement. efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1).
13 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 83, No. 34 / Tuesday, February 20, 2018 / Notices 7251
Wednesday in which Quarterly Options A proposed rule change filed under Paper Comments
Series expire. Rule 19b–4(f)(6) normally does not
Finally, the Exchange represents that become operative for 30 days from the • Send paper comments in triplicate
it has an adequate surveillance program date of filing. However, Rule 19b– to Brent J. Fields, Secretary, Securities
in place to detect manipulative trading 4(f)(6)(iii) 13 permits the Commission to and Exchange Commission, 100 F
in Monday expirations, including designate a shorter time if such action Street, NE, Washington, DC 20549–
Monday SPY Expirations, in the same is consistent with the protection of 1090.
way that it monitors trading in the investors and the public interest. The
All submissions should refer to File
current Short Term Option Series. The Exchange has asked the Commission to
Exchange also represents that it has the Number SR–ISE–2018–13. This file
waive the 30-day operative delay so that
necessary systems capacity to support the proposal may become operative number should be included on the
the new options series. immediately upon filing. The subject line if email is used. To help the
Commission notes that it recently Commission process and review your
B. Self-Regulatory Organization’s comments more efficiently, please use
Statement on Burden on Competition approved Phlx’s substantially similar
proposal to list and trade Monday SPY only one method. The Commission will
The Exchange does not believe that Expirations.14 The Exchange has stated post all comments on the Commission’s
the proposed rule change will impose that waiver of the operative delay will internet website (http://www.sec.gov/
any burden on competition not allow the Exchange to list and trade rules/sro.shtml). Copies of the
necessary or appropriate in furtherance Monday SPY Expirations as soon as submission, all subsequent
of the purposes of the Act. The possible, and therefore, promote amendments, all written statements
Exchange notes that having Monday competition among the option with respect to the proposed rule
expirations is not a novel proposal, as exchanges. For these reasons, the change that are filed with the
Phlx has received approval to list Commission believes that the proposed Commission, and all written
Monday expirations for SPY options, rule change presents no novel issues communications relating to the
and Cboe currently lists and trades and that waiver of the 30-day operative proposed rule change between the
short-term SPX options with a Monday delay is consistent with the protection
expiration. The Exchange does not Commission and any person, other than
of investors and the public interest, and those that may be withheld from the
believe the proposal will impose any will allow the Exchange to remain
burden on intra-market competition, as public in accordance with the
competitive with other exchanges.
all market participants will be treated in provisions of 5 U.S.C. 552, will be
Therefore, the Commission hereby
the same manner under this proposal. available for website viewing and
waives the 30-day operative delay and
Additionally, the Exchange does not designates the proposal effective upon printing in the Commission’s Public
believe the proposal will impose any filing.15 At any time within 60 days of Reference Room, 100 F Street NE,
burden on inter-market competition, as the filing of the proposed rule change, Washington, DC 20549, on official
nothing prevents the other options the Commission summarily may business days between the hours of
exchanges from proposing similar rules temporarily suspend such rule change if 10:00 a.m. and 3:00 p.m. Copies of the
to list and trade short-term options it appears to the Commission that such filing also will be available for
series with Monday expirations. action is necessary or appropriate in the inspection and copying at the principal
C. Self-Regulatory Organization’s public interest, for the protection of office of the Exchange. All comments
Statement on Comments on the investors, or otherwise in furtherance of received will be posted without change.
Proposed Rule Change Received From the purposes of the Act. If the Persons submitting comments are
Members, Participants, or Others Commission takes such action, the cautioned that we do not redact or edit
No written comments were either Commission shall institute proceedings personal identifying information from
solicited or received. to determine whether the proposed rule comment submissions. You should
should be approved or disapproved. submit only information that you wish
III. Date of Effectiveness of the to make available publicly. All
Proposed Rule Change and Timing for IV. Solicitation of Comments
submissions should refer to File
Commission Action Interested persons are invited to Number SR–ISE–2018–13 and should be
Because the foregoing proposed rule submit written data, views, and submitted on or before March 13, 2018.
change does not: (i) Significantly affect arguments concerning the foregoing,
including whether the proposed rule For the Commission, by the Division of
the protection of investors or the public Trading and Markets, pursuant to delegated
interest; (ii) impose any significant change is consistent with the Act.
Comments may be submitted by any of authority.16
burden on competition; and (iii) become
operative for 30 days from the date on the following methods: Eduardo A. Aleman,
which it was filed, or such shorter time Electronic Comments Assistant Secretary.
as the Commission may designate, the [FR Doc. 2018–03309 Filed 2–16–18; 8:45 am]
• Use the Commission’s internet
proposed rule change has become BILLING CODE 8011–01–P
comment form (http://www.sec.gov/
effective pursuant to Section 19(b)(3)(A)
rules/sro.shtml); or
of the Act 11 and Rule 19b–4(f)(6) • Send an email to rule-comments@
thereunder.12 sec.gov. Please include File Number SR–
sradovich on DSK3GMQ082PROD with NOTICES
11 15
ISE–2018–13 on the subject line.
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
13 17 CFR 240.19b–4(f)(6)(iii).
4(f)(6) requires a self-regulatory organization to give
14 See supra note 3.
the Commission written notice of its intention to
file the proposed rule change at least five business 15 For purposes only of waiving the 30-day
days prior to the date of filing of the proposed rule operative delay, the Commission has also
change, or such shorter time as designated by the considered the proposed rule’s impact on
Commission. The Exchange has satisfied this efficiency, competition, and capital formation. See
requirement. 15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 17:55 Feb 16, 2018 Jkt 244001 PO 00000 Frm 00116 Fmt 4703 Sfmt 9990 E:\FR\FM\20FEN1.SGM 20FEN1](https://thefederalregister.org/doc/83_FR_7282/page/4.svg)
Document Created: 2018-02-17 02:29:38
Document Modified: 2018-02-17 02:29:38
| 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 7248 |
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