83 FR 7513 - Self-Regulatory Organizations; The Nasdaq Stock Market 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 35 (February 21, 2018)
Federal Register Volume 83, Issue 35 (February 21, 2018)
| Page Range | 7513-7516 | |
| FR Document | 2018-03449 |
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)] [Notices] [Pages 7513-7516] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03449] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82709; File No. SR-NASDAQ-2018-011] Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Expand the Short Term Option Series Program February 14, 2018. [[Page 7514]] 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 8, 2018, The Nasdaq Stock Market LLC (``Nasdaq'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the 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 (``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://nasdaq.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 the rules of the Nasdaq Options Market LLC (``NOM'') at Chapter I, Section 1 and Chapter IV, Section 6 at Commentary .07 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 Chapter I, Section 1(a)(59), 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. The Exchange is now proposing to amend Chapter I, Section 1(a)(59) 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. 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 Chapter I, Section 1(a)(59) 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 Chapter I, Section 1(a)(59) 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 Chapter I, Section 1(a)(59) 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 Chapter I, Section 1(a)(59). \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 Commentary .07 to Chapter IV, Section 6, which sets forth the requirements for SPY options that are listed pursuant to the Short Term Options Series Program, to permit Monday SPY expirations (``Monday SPY Expirations''). Accordingly, the Exchange proposes to amend Commentary .07 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 Commentary .07 to state 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 [[Page 7515]] 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) 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 Chapter IV, Section 6 at Commentary .07(a). --------------------------------------------------------------------------- Finally, the Exchange is amending Commentary .07(b) to Chapter IV, Section 6, 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. As part of this proposal, the Exchange is amending Commentary .07(b) to Chapter IV, Section 6 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 Chapter I, Section 1 and Chapter IV, Section 6 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. 78695 (August 26, 2016), 81 FR 60072 (August 31, 2016) (SR-NASDAQ-2016-122). --------------------------------------------------------------------------- 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 Chapter I, Section 1 and Chapter IV, Section 6 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 .07 to Chapter IV, Section 6 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 [[Page 7516]] uniform manner. The Exchange also believes that is appropriate to amend Commentary .07(b) to Chapter IV, Section 6 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 .07 that prohibits Wednesday SPY Expirations from expiring on a 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, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \11\ and Rule 19b-4(f)(6) thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A)(iii). \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\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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-NASDAQ-2018-011 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-NASDAQ-2018-011. 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-NASDAQ-2018-011 and should be submitted on or before March 14, 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. 2018-03449 Filed 2-20-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices 7513
objectives of Section 6(b)(5) of the Act,14 the date of the filing. However, Rule Commission, 100 F Street NE,
in particular, in that it is designed to 19b–4(f)(6)(iii) 18 permits the Washington, DC 20549–1090.
promote just and equitable principles of Commission to designate a shorter time All submissions should refer to File
trade, to remove impediments to and if such action is consistent with the Number SR–ISE–2018–14. This file
perfect the mechanism of a free and protection of investors and the public number should be included on the
open market and a national market interest. The Exchange has asked the subject line if email is used. To help the
system, and, in general to protect Commission to waive the 30-day
Commission process and review your
investors and the public interest, by operative delay so that the Exchange
comments more efficiently, please use
clearly specifying in Section V, D that may clarify that the INET Port Fees in
only one method. The Commission will
the Exchange’s pricing regarding INET Chapter V, D will not be prorated to
post all comments on the Commission’s
ports is not prorated. The Exchange avoid any misunderstanding. The
internet website (http://www.sec.gov/
believes that its decision to not prorate Exchange notes that adding language to
rules/sro.shtml). Copies of the
these ports is consistent with the Act clarify that the Exchange will not
submission, all subsequent
because prorating billing results in prorate the INET Port Fees in Section V,
amendments, all written statements
complexity and increased costs D does not significantly affect the
with respect to the proposed rule
associated with the billing process. The protection of investors or the public
Exchange notes that this proposal does change that are filed with the
interest because there is no substantive
not amend the Exchange’s current Commission, and all written
change to the manner in which the
billing practice. communications relating to the
Exchange bills these services. The
proposed rule change between the
B. Self-Regulatory Organization’s Commission believes that waiver of the
Commission and any person, other than
Statement on Burden on Competition 30-day operative delay is consistent
those that may be withheld from the
with the protection of investors and the
The Exchange does not believe that public in accordance with the
public interest. Accordingly, the
the proposed rule change will impose provisions of 5 U.S.C. 552, will be
Commission hereby waives the
any burden on competition not available for website viewing and
operative delay and designates the
necessary or appropriate in furtherance printing in the Commission’s Public
proposed rule change as operative upon
of the purposes of the Act. The Reference Room, 100 F Street NE,
filing.19
Exchange will uniformly assess the fees At any time within 60 days of the Washington, DC 20549, on official
in Section V, D to all ISE Members in filing of the proposed rule change, the business days between the hours of
a uniform manner. Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
temporarily suspend such rule change if filing also will be available for
C. Self-Regulatory Organization’s inspection and copying at the principal
Statement on Comments on the it appears to the Commission that such
action is: (i) Necessary or appropriate in office of the Exchange. All comments
Proposed Rule Change Received From received will be posted without change.
Members, Participants, or Others the public interest; (ii) for the protection
of investors; or (iii) otherwise in Persons submitting comments are
No written comments were either furtherance of the purposes of the Act. cautioned that we do not redact or edit
solicited or received. If the Commission takes such action, the personal identifying information from
Commission shall institute proceedings comment submissions. You should
III. Date of Effectiveness of the
to determine whether the proposed rule submit only information that you wish
Proposed Rule Change and Timing for
should be approved or disapproved. to make available publicly. All
Commission Action
submissions should refer to File
Because the foregoing proposed rule IV. Solicitation of Comments Number SR–ISE–2018–14 and should be
change does not: (i) Significantly affect Interested persons are invited to submitted on or before March 14, 2018.
the protection of investors or the public submit written data, views, and For the Commission, by the Division of
interest; (ii) impose any significant arguments concerning the foregoing, Trading and Markets, pursuant to delegated
burden on competition; and (iii) become including whether the proposed rule authority.20
operative for 30 days from the date on change is consistent with the Act. Eduardo A. Aleman,
which it was filed, or such shorter time Comments may be submitted by any of Assistant Secretary.
as the Commission may designate, it has the following methods: [FR Doc. 2018–03450 Filed 2–20–18; 8:45 am]
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 15 and Electronic Comments BILLING CODE 8011–01–P
subparagraph (f)(6) of Rule 19b–4 • Use the Commission’s internet
thereunder.16 comment form (http://www.sec.gov/
A proposed rule change filed under SECURITIES AND EXCHANGE
rules/sro.shtml); or COMMISSION
Rule 19b–4(f)(6) 17 normally does not • Send an email to rule-comments@
become operative prior to 30 days after sec.gov. Please include File Number SR–
ISE–2018–14 on the subject line. [Release No. 34–82709; File No. SR–
14 15 U.S.C. 78f(b)(5). NASDAQ–2018–011]
15 15 U.S.C. 78s(b)(3)(A)(iii). Paper Comments
16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
• Send paper comments in triplicate Self-Regulatory Organizations; The
4(f)(6)(iii) requires the Exchange to give the
to Secretary, Securities and Exchange Nasdaq Stock Market LLC; Notice of
Commission written notice of the Exchange’s intent Filing and Immediate Effectiveness of
to file the proposed rule change, along with a brief
daltland on DSKBBV9HB2PROD with NOTICES
description and text of the proposed rule change, 18 17 CFR 240.19b–4(f)(6)(iii).
Proposed Rule Change To Expand the
at least five business days prior to the date of filing 19 For purposes only of waiving the 30-day Short Term Option Series Program
of the proposed rule change, or such shorter time operative delay, the Commission has also
as designated by the Commission. The Exchange considered the proposed rule’s impact on February 14, 2018.
has satisfied this requirement. efficiency, competition, and capital formation. See
17 17 CFR 240.19b–4(f)(6). 15 U.S.C. 78c(f). 20 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 19:57 Feb 20, 2018 Jkt 244001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4703 E:\FR\FM\21FEN1.SGM 21FEN1](https://thefederalregister.org/doc/83_FR_7548/page/1.svg)
![7516 Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Notices
uniform manner. The Exchange also 19(b)(3)(A)(iii) of the Act 11 and Rule change is consistent with the Act.
believes that is appropriate to amend 19b–4(f)(6) thereunder.12 Comments may be submitted by any of
Commentary .07(b) to Chapter IV, A proposed rule change filed under the following methods:
Section 6 to clarify that no Short Term Rule 19b–4(f)(6) normally does not
Electronic Comments
Option Series may expire on the same become operative for 30 days from the
day as an expiration of Quarterly Option date of filing. However, Rule 19b– • Use the Commission’s internet
Series on the same class. This change 4(f)(6)(iii) 13 permits the Commission to comment form (http://www.sec.gov/
will make that provision more designate a shorter time if such action rules/sro.shtml); or
consistent with the existing language in is consistent with the protection of • Send an email to rule-comments@
Commentary .07 that prohibits investors and the public interest. The sec.gov. Please include File Number SR–
Wednesday SPY Expirations from Exchange has asked the Commission to NASDAQ–2018–011 on the subject line.
expiring on a Wednesday in which waive the 30-day operative delay so that
Quarterly Options Series expire. the proposal may become operative Paper Comments
Finally, the Exchange represents that immediately upon filing. The • Send paper comments in triplicate
it has an adequate surveillance program Commission notes that it recently to Secretary, Securities and Exchange
in place to detect manipulative trading approved Phlx’s substantially similar Commission, 100 F Street NE,
in Monday expirations, including proposal to list and trade Monday SPY Washington, DC 20549–1090.
Monday SPY Expirations, in the same Expirations.14 The Exchange has stated
way that it monitors trading in the All submissions should refer to File
that waiver of the operative delay will
current Short Term Option Series. The Number SR–NASDAQ–2018–011. This
allow the Exchange to list and trade
Exchange also represents that it has the file number should be included on the
Monday SPY Expirations as soon as
necessary systems capacity to support subject line if email is used. To help the
possible, and therefore, promote
the new options series. Commission process and review your
competition among the option
comments more efficiently, please use
B. Self-Regulatory Organization’s exchanges. For these reasons, the
only one method. The Commission will
Statement on Burden on Competition Commission believes that the proposed
post all comments on the Commission’s
rule change presents no novel issues
The Exchange does not believe that internet website (http://www.sec.gov/
and that waiver of the 30-day operative
the proposed rule change will impose rules/sro.shtml).
delay is consistent with the protection
any burden on competition not of investors and the public interest, and Copies of the submission, all
necessary or appropriate in furtherance will allow the Exchange to remain subsequent amendments, all written
of the purposes of the Act. The competitive with other exchanges. statements with respect to the proposed
Exchange notes that having Monday Therefore, the Commission hereby rule change that are filed with the
expirations is not a novel proposal, as waives the 30-day operative delay and Commission, and all written
Phlx has received approval to list designates the proposal effective upon communications relating to the
Monday expirations for SPY options, filing.15 proposed rule change between the
and Cboe currently lists and trades At any time within 60 days of the Commission and any person, other than
short-term SPX options with a Monday filing of the proposed rule change, the those that may be withheld from the
expiration. The Exchange does not Commission summarily may public in accordance with the
believe the proposal will impose any temporarily suspend such rule change if provisions of 5 U.S.C. 552, will be
burden on intra-market competition, as it appears to the Commission that such available for website viewing and
all market participants will be treated in action is necessary or appropriate in the printing in the Commission’s Public
the same manner under this proposal. public interest, for the protection of Reference Room, 100 F Street NE,
Additionally, the Exchange does not investors, or otherwise in furtherance of Washington, DC 20549, on official
believe the proposal will impose any the purposes of the Act. If the business days between the hours of
burden on inter-market competition, as Commission takes such action, the 10:00 a.m. and 3:00 p.m. Copies of the
nothing prevents the other options Commission shall institute proceedings filing also will be available for
exchanges from proposing similar rules to determine whether the proposed rule inspection and copying at the principal
to list and trade short-term options should be approved or disapproved. office of the Exchange. All comments
series with Monday expirations. received will be posted without change.
IV. Solicitation of Comments Persons submitting comments are
C. Self-Regulatory Organization’s
Interested persons are invited to cautioned that we do not redact or edit
Statement on Comments on the
submit written data, views, and personal identifying information from
Proposed Rule Change Received From
arguments concerning the foregoing, comment submissions. You should
Members, Participants, or Others
including whether the proposed rule submit only information that you wish
No written comments were either to make available publicly. All
solicited or received. 11 15 U.S.C. 78s(b)(3)(A)(iii). submissions should refer to File
III. Date of Effectiveness of the 12 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Number SR–NASDAQ–2018–011 and
Proposed Rule Change and Timing for 4(f)(6) requires a self-regulatory organization to give should be submitted on or before March
the Commission written notice of its intention to 14, 2018.
Commission Action file the proposed rule change at least five business
Because the foregoing proposed rule days prior to the date of filing of the proposed rule For the Commission, by the Division of
change, or such shorter time as designated by the Trading and Markets, pursuant to delegated
change does not: (i) Significantly affect Commission. The Exchange has satisfied this
daltland on DSKBBV9HB2PROD with NOTICES
authority.16
the protection of investors or the public requirement.
interest; (ii) impose any significant 13 17 CFR 240.19b–4(f)(6)(iii). Eduardo A. Aleman,
burden on competition; and (iii) become 14 See supra note 3. Assistant Secretary.
15 For purposes only of waiving the 30-day [FR Doc. 2018–03449 Filed 2–20–18; 8:45 am]
operative for 30 days from the date on
operative delay, the Commission has also
which it was filed, or such shorter time considered the proposed rule’s impact on
BILLING CODE 8011–01–P
as the Commission may designate, it has efficiency, competition, and capital formation. See
become effective pursuant to Section 15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 19:57 Feb 20, 2018 Jkt 244001 PO 00000 Frm 00067 Fmt 4703 Sfmt 9990 E:\FR\FM\21FEN1.SGM 21FEN1](https://thefederalregister.org/doc/83_FR_7548/page/4.svg)
Document Created: 2018-02-21 01:48:41
Document Modified: 2018-02-21 01:48:41
| 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 7513 |
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