83 FR 8122 - Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 100

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 37 (February 23, 2018)

Page Range		8122-8125
FR Document		2018-03694
Federal Register, Volume 83 Issue 37 (Friday, February 23, 2018)
[Federal Register Volume 83, Number 37 (Friday, February 23, 2018)]
[Notices]
[Pages 8122-8125]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-03694]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82732; File No. SR-MRX-2018-06]


Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 100

February 16, 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 13, 2018 Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``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.
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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 proposes to amend Rule 100 to include Monday and 
Wednesday 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://nasdaqmrx.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)(53) to amend Rule 100 to 
include Monday and Wednesday expirations for options listed pursuant to 
the Short Term Option Series program (``Program''), including options 
on the SPDR S&P 500 ETF Trust.
    The actual listing and trading of the options series included in 
the Program is governed by Chapter 5 (``Securities Traded on the 
Exchange''). Chapter 5 incorporates by reference the rules of Nasdaq 
ISE, LLC (``ISE''). ISE has already amended its Chapter 5 to list both 
Monday and Wednesday expirations for SPY options pursuant to its Short 
Terms Options Series program; accordingly, the Exchange's Chapter 5 
incorporates these changes by reference.\3\ Chapter 1 does not have a 
similar incorporation by reference, and so the Exchange is therefore 
submitting this proposed rule change to amend the definition of ``Short 
Term Option Series'' in Rule 100(a)(53) to include Monday and Wednesday 
expirations within that definition.
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    \3\ See Securities Exchange Act Release No. 78715 (August 29, 
2016), 81 FR 60765 (September 2, 2016) (SR-ISE-2016-18) (SPY 
Wednesdays); SR-ISE-2018-13 (SPY Mondays).
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    Currently, ``Short Term Option Series'' is defined as ``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 Thursday or 
Friday that is a business day and that expires on the Friday of the 
following business week that is a business day. If a Friday is not a 
business day, the series may be opened (or shall expire) on the first 
business day immediately prior to that Friday.'' In order to include 
Wednesday expirations within this definition, the Exchange is amending 
Rule 100(a)(53) to include a series in an option class that is opened 
for trading on any Tuesday or Wednesday that is a business day and that 
expires the Wednesday of the following business week that is a business 
day. If a Tuesday, Wednesday, Thursday is not a business day, the 
series may be opened (or shall expire) on the first business day 
immediately prior to that Tuesday, Wednesday, Thursday.
    As noted above, ISE filed its proposal to amend its Rule 100 and 
Rule 504 to provide for the listing of Wednesday expirations \4\ 
shortly after the Commission approved a similar proposal for BOX 
Options Exchange LLC.\5\ Once ISE's proposal became operative, the 
Exchange's Chapter 5 changed accordingly.
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    \4\ See supra note 4 [sic].
    \5\ See Securities Exchange Act Release No. 59696 (August 24, 
2016), 81 FR 59696 (August 30, 2016) (SR-BOX-2016-28).
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    The Exchange is also proposing to amend Rule 100(a)(53) to permit 
the listing of options series that expire on Mondays (``Monday SPY 
Expirations''). 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 following 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)(53) 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)(53) 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).
    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.\6\
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    \6\ See Securities Exchange Act Release No. 82611 (February 1, 
2018), 83 FR 5473 (February 7, 2018) (SR-Phlx-2017-103).
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    As part of this proposal, the Exchange is also amending Rule 
100(a)(53) 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

[[Page 8123]]

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.\7\ 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.\8\
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    \7\ See Rule 100(a)(53).
    \8\ 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.'').
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    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) 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. 
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.
    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. 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.
    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.\9\
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    \9\ 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.)'').
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\10\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\11\ 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.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    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 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.
    The Exchange believes that the proposed changes to Rule 100(a)(53) 
to include Wednesday expirations are also consistent with the Act. As 
noted above, while the actual listing and trading of the options series 
that are included in the Short Term Option Series are governed by 
Chapter 5, which incorporates ISE Chapter 5 by reference, Chapter 1 
does not have similar incorporation by reference. As such, this change 
will amend Rule 100(a)(53) to make that rule consistent with the 
changes made to Chapter 5 as a result of that incorporation by 
reference.
    Finally, the Exchange represents that it has an adequate 
surveillance program in place to detect manipulative trading

[[Page 8124]]

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. The Exchange does not believe that changing 
Rule 100(a)(53) to include Wednesday expirations will impose any burden 
on competition not necessary or appropriate in furtherance of the 
purposes of the Act. The Commission approved the listing and trading of 
short term options series with Wednesday expirations in 2016, and the 
majority of the options exchanges have subsequently adopted short-term 
options series with Wednesday 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 
\12\ and Rule 19b-4(f)(6) thereunder.\13\
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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.
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    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) \14\ 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.\15\ 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.\16\ 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 
operative upon filing.\17\
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    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ See supra note 6.
    \16\ The Exchange also proposes to update its Short Term Option 
Series definition to include SPY Wednesday expirations. The Exchange 
states this definitional change will make its incorporated by 
reference rulebook internally consistent and is neither novel nor 
controversial. See supra note 3.
    \17\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 Comments

     Use 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-MRX-2018-06 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-MRX-2018-06. 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-MRX-2018-06 and should be submitted on 
or before March 16, 2018.


[[Page 8125]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-03694 Filed 2-22-18; 8:45 am]
 BILLING CODE 8011-01-P
8122 Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices

the Act 31 and the rules and regulations II. Self-Regulatory Organization’s to include a series in an option class
thereunder applicable to a national Statement of the Purpose of, and that is opened for trading on any
securities exchange. Statutory Basis for, the Proposed Rule Tuesday or Wednesday that is a
Change business day and that expires the
IV. Conclusion
In its filing with the Commission, the Wednesday of the following business
It is therefore ordered, pursuant to Exchange included statements week that is a business day. If a
Section 19(b)(2) of the Act,32 that the concerning the purpose of and basis for Tuesday, Wednesday, Thursday is not a
proposed rule change (SR–NASDAQ– the proposed rule change and discussed business day, the series may be opened
2017–131) be, and it hereby is, any comments it received on the (or shall expire) on the first business
approved. proposed rule change. The text of these day immediately prior to that Tuesday,
For the Commission, by the Division of statements may be examined at the Wednesday, Thursday.
Trading and Markets, pursuant to delegated places specified in Item IV below. The As noted above, ISE filed its proposal
authority.33 Exchange has prepared summaries, set to amend its Rule 100 and Rule 504 to
forth in sections A, B, and C below, of provide for the listing of Wednesday
Eduardo A. Aleman, the most significant aspects of such expirations 4 shortly after the
Assistant Secretary. statements. Commission approved a similar
[FR Doc. 2018–03692 Filed 2–22–18; 8:45 am]
proposal for BOX Options Exchange
A. Self-Regulatory Organization’s LLC.5 Once ISE’s proposal became
BILLING CODE 8011–01–P
Statement of the Purpose of, and operative, the Exchange’s Chapter 5
Statutory Basis for, the Proposed Rule changed accordingly.
Change The Exchange is also proposing to
SECURITIES AND EXCHANGE
amend Rule 100(a)(53) to permit the
COMMISSION 1. Purpose
listing of options series that expire on
The Exchange proposes to amend Mondays (‘‘Monday SPY Expirations’’).
[Release No. 34–82732; File No. SR–MRX– Rule 100(a)(53) to amend Rule 100 to Specifically, the Exchange is proposing
2018–06] include Monday and Wednesday that it may open for trading series of
expirations for options listed pursuant options on any Monday that is a
Self-Regulatory Organizations; Nasdaq
to the Short Term Option Series business day and that expires on the
MRX, LLC; Notice of Filing and
program (‘‘Program’’), including options Monday of the following business week
Immediate Effectiveness of Proposed
on the SPDR S&P 500 ETF Trust. that is a business day. The Exchange is
Rule Change To Amend Rule 100 The actual listing and trading of the also proposing to list Monday
February 16, 2018. options series included in the Program expirations series on Fridays that
Pursuant to Section 19(b)(1) of the is governed by Chapter 5 (‘‘Securities precede the expiration Monday by one
Securities Exchange Act of 1934 Traded on the Exchange’’). Chapter 5 business week plus one business day.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 incorporates by reference the rules of Since Rule 100(a)(53) already provides
notice is hereby given that on February Nasdaq ISE, LLC (‘‘ISE’’). ISE has for the listing of short term option series
13, 2018 Nasdaq MRX, LLC (‘‘MRX’’ or already amended its Chapter 5 to list on Fridays, the Exchange is not
‘‘Exchange’’) filed with the Securities both Monday and Wednesday modifying this provision to allow for
and Exchange Commission (‘‘SEC’’ or expirations for SPY options pursuant to Friday listing of Monday expiration
‘‘Commission’’) the proposed rule its Short Terms Options Series program; series. However, the Exchange is
change as described in Items I and II accordingly, the Exchange’s Chapter 5 amending Rule 100(a)(53) to clarify that,
below, which Items have been prepared incorporates these changes by in the case of a series that is listed on
by the Exchange. The Commission is reference.3 Chapter 1 does not have a a Friday and expires on a Monday, that
publishing this notice to solicit similar incorporation by reference, and series must be listed one business week
comments on the proposed rule change so the Exchange is therefore submitting and one business day prior to that
this proposed rule change to amend the expiration (i.e., two Fridays prior to
from interested persons.
definition of ‘‘Short Term Option expiration).
I. Self-Regulatory Organization’s Series’’ in Rule 100(a)(53) to include The Exchange notes that having
Statement of the Terms of Substance of Monday and Wednesday expirations Monday expirations is not a novel
the Proposed Rule Change within that definition. proposal. Specifically, Nasdaq PHLX
Currently, ‘‘Short Term Option LLC (‘‘Phlx’’) recently received approval
The Exchange proposes to amend
Series’’ is defined as ‘‘a series in an to list Monday expirations for SPY
Rule 100 to include Monday and
option class that is approved for listing options pursuant to its Short Terms
Wednesday expirations for options
and trading on the Exchange in which Options Series program.6
listed pursuant to the Short Term
the series is opened for trading on any As part of this proposal, the Exchange
Option Series Program, including
Thursday or Friday that is a business is also amending Rule 100(a)(53) to
options on the SPDR S&P 500 ETF
day and that expires on the Friday of the address the expiration of Monday
Trust.
following business week that is a expiration series when the Monday is
The text of the proposed rule change business day. If a Friday is not a
is available on the Exchange’s website at not a business day. In that case, the rule
business day, the series may be opened will provide that the series shall expire
http://nasdaqmrx.cchwallstreet.com/, at (or shall expire) on the first business
the principal office of the Exchange, and on the first business day immediately
day immediately prior to that Friday.’’ following that Monday. This procedure
at the Commission’s Public Reference
daltland on DSKBBV9HB2PROD with NOTICES

In order to include Wednesday
Room. expirations within this definition, the 4 See supra note 4 [sic].
Exchange is amending Rule 100(a)(53) 5 See Securities Exchange Act Release No. 59696
31 15 U.S.C. 78k–1(a)(1)(C)(iii). (August 24, 2016), 81 FR 59696 (August 30, 2016)
32 15 U.S.C. 78s(b)(2).
3 See Securities Exchange Act Release No. 78715 (SR–BOX–2016–28).
33 17 CFR 200.30–3(a)(12). 6 See Securities Exchange Act Release No. 82611
(August 29, 2016), 81 FR 60765 (September 2, 2016)
1 15 U.S.C. 78s(b)(1).
(SR–ISE–2016–18) (SPY Wednesdays); SR–ISE– (February 1, 2018), 83 FR 5473 (February 7, 2018)
2 17 CFR 240.19b–4. 2018–13 (SPY Mondays). (SR–Phlx–2017–103).

VerDate Sep<11>2014 18:52 Feb 22, 2018 Jkt 244001 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 E:\FR\FM\23FEN1.SGM 23FEN1
8124 Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices

in Monday expirations, including of the Act 12 and Rule 19b–4(f)(6) IV. Solicitation of Comments
Monday SPY Expirations, in the same thereunder.13
way that it monitors trading in the Interested persons are invited to
A proposed rule change filed under submit written data, views, and
current Short Term Option Series. The Rule 19b–4(f)(6) normally does not
Exchange also represents that it has the arguments concerning the foregoing,
become operative for 30 days from the
necessary systems capacity to support including whether the proposed rule
date of filing. However, Rule 19b–
the new options series. change is consistent with the Act.
4(f)(6)(iii) 14 permits the Commission to
Comments may be submitted by any of
B. Self-Regulatory Organization’s designate a shorter time if such action
is consistent with the protection of the following methods:
Statement on Burden on Competition
investors and the public interest. The Electronic Comments
The Exchange does not believe that Exchange has asked the Commission to
the proposed rule change will impose waive the 30-day operative delay so that • Use the Commission’s internet
any burden on competition not the proposal may become operative comment form (http://www.sec.gov/
necessary or appropriate in furtherance immediately upon filing. The rules/sro.shtml); or
of the purposes of the Act. The Commission notes that it recently • Send an email to rule-comments@
Exchange notes that having Monday approved Phlx’s substantially similar sec.gov. Please include File Number SR–
expirations is not a novel proposal, as proposal to list and trade Monday SPY MRX–2018–06 on the subject line.
Phlx has received approval to list Expirations.15 The Exchange has stated
Monday expirations for SPY options, that waiver of the operative delay will Paper Comments
and Cboe currently lists and trades allow the Exchange to list and trade
short-term SPX options with a Monday Monday SPY Expirations as soon as • Send paper comments in triplicate
expiration. The Exchange does not possible, and therefore, promote to Brent J. Fields, Secretary, Securities
believe the proposal will impose any competition among the option and Exchange Commission, 100 F Street
burden on intra-market competition, as exchanges.16 For these reasons, the NE, Washington, DC 20549–1090.
all market participants will be treated in Commission believes that the proposed All submissions should refer to File
the same manner under this proposal. rule change presents no novel issues Number SR–MRX–2018–06. This file
Additionally, the Exchange does not and that waiver of the 30-day operative number should be included on the
believe the proposal will impose any delay is consistent with the protection subject line if email is used. To help the
burden on inter-market competition, as of investors and the public interest, and Commission process and review your
nothing prevents the other options will allow the Exchange to remain comments more efficiently, please use
exchanges from proposing similar rules competitive with other exchanges. only one method. The Commission will
to list and trade short-term options Therefore, the Commission hereby
series with Monday expirations. The post all comments on the Commission’s
waives the 30-day operative delay and
Exchange does not believe that changing internet website (http://www.sec.gov/
designates the proposal operative upon
Rule 100(a)(53) to include Wednesday filing.17 rules/sro.shtml). Copies of the
expirations will impose any burden on submission, all subsequent
At any time within 60 days of the amendments, all written statements
competition not necessary or filing of the proposed rule change, the
appropriate in furtherance of the with respect to the proposed rule
Commission summarily may change that are filed with the
purposes of the Act. The Commission temporarily suspend such rule change if
approved the listing and trading of short Commission, and all written
it appears to the Commission that such
term options series with Wednesday communications relating to the
action is necessary or appropriate in the
expirations in 2016, and the majority of proposed rule change between the
public interest, for the protection of
the options exchanges have investors, or otherwise in furtherance of Commission and any person, other than
subsequently adopted short-term the purposes of the Act. If the those that may be withheld from the
options series with Wednesday Commission takes such action, the public in accordance with the
expirations. Commission shall institute proceedings provisions of 5 U.S.C. 552, will be
C. Self-Regulatory Organization’s to determine whether the proposed rule available for website viewing and
Statement on Comments on the should be approved or disapproved. printing in the Commission’s Public
Proposed Rule Change Received From Reference Room, 100 F Street NE,
Members, Participants, or Others 12 15 U.S.C. 78s(b)(3)(A). Washington, DC 20549, on official
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– business days between the hours of
No written comments were either 4(f)(6) requires a self-regulatory organization to give 10:00 a.m. and 3:00 p.m. Copies of the
solicited or received. the Commission written notice of its intention to
file the proposed rule change at least five business
filing also will be available for
days prior to the date of filing of the proposed rule inspection and copying at the principal
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
change, or such shorter time as designated by the office of the Exchange. All comments
Commission. The Exchange has satisfied this received will be posted without change.
Commission Action requirement.
14 17 CFR 240.19b–4(f)(6)(iii). Persons submitting comments are
Because the foregoing proposed rule 15 See supra note 6. cautioned that we do not redact or edit
change does not: (i) Significantly affect 16 The Exchange also proposes to update its Short personal identifying information from
the protection of investors or the public Term Option Series definition to include SPY comment submissions. You should
daltland on DSKBBV9HB2PROD with NOTICES

interest; (ii) impose any significant Wednesday expirations. The Exchange states this
definitional change will make its incorporated by
submit only information that you wish
burden on competition; and (iii) become reference rulebook internally consistent and is to make available publicly. All
operative for 30 days from the date on neither novel nor controversial. See supra note 3. submissions should refer to File
which it was filed, or such shorter time 17 For purposes only of waiving the 30-day
Number SR–MRX–2018–06 and should
as the Commission may designate, the operative delay, the Commission has also
considered the proposed rule’s impact on be submitted on or before March 16,
proposed rule change has become efficiency, competition, and capital formation. See 2018.
effective pursuant to Section 19(b)(3)(A) 15 U.S.C. 78c(f).

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Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices 8125

For the Commission, by the Division of forth in sections A, B, and C below, of provide for the listing of Wednesday
Trading and Markets, pursuant to delegated the most significant aspects of such expirations 4 shortly after the
authority.18 statements. Commission approved a similar
Eduardo A. Aleman, proposal for BOX Options Exchange
A. Self-Regulatory Organization’s
Assistant Secretary. LLC.5 Once ISE’s proposal became
Statement of the Purpose of, and
[FR Doc. 2018–03694 Filed 2–22–18; 8:45 am] operative, the Exchange’s Chapter 5
Statutory Basis for, the Proposed Rule
BILLING CODE 8011–01–P changed accordingly.
Change The Exchange is also proposing to
1. Purpose amend Rule 100(a)(53) to permit the
SECURITIES AND EXCHANGE The Exchange proposes to amend listing of options series that expire on
COMMISSION Rule 100(a)(53) to amend Rule 100 to Mondays (‘‘Monday SPY Expirations’’).
include Monday and Wednesday Specifically, the Exchange is proposing
[Release No. 34–82728; File No. SR–GEMX–
expirations for options listed pursuant that it may open for trading series of
2018–07]
to the Short Term Option Series options on any Monday that is a
Self-Regulatory Organizations; Nasdaq program (‘‘Program’’), including options business day and that expires on the
GEMX, LLC; Notice of Filing and on the SPDR S&P 500 ETF Trust. Monday of the following business week
Immediate Effectiveness of Proposed The actual listing and trading of the that is a business day. The Exchange is
Rule Change To Amend Rule 100 options series included in the Program also proposing to list Monday
is governed by Chapter 5 (‘‘Securities expirations series on Fridays that
February 16, 2018. Traded on the Exchange’’). Chapter 5 precede the expiration Monday by one
Pursuant to Section 19(b)(1) of the incorporates by reference the rules of business week plus one business day.
Securities Exchange Act of 1934 Nasdaq ISE, LLC (‘‘ISE’’). ISE has Since Rule 100(a)(53) already provides
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 already amended its Chapter 5 to list for the listing of short term option series
notice is hereby given that on February both Monday and Wednesday on Fridays, the Exchange is not
13, 2018, Nasdaq GEMX, LLC (‘‘GEMX’’ expirations for SPY options pursuant to modifying this provision to allow for
or ‘‘Exchange’’) filed with the Securities its Short Terms Options Series program; Friday listing of Monday expiration
and Exchange Commission (‘‘SEC’’ or accordingly, the Exchange’s Chapter 5 series. However, the Exchange is
‘‘Commission’’) the proposed rule incorporates these changes by amending Rule 100(a)(53) to clarify that,
change as described in Items I and II reference.3 Chapter 1 does not have a in the case of a series that is listed on
below, which Items have been prepared similar incorporation by reference, and a Friday and expires on a Monday, that
by the Exchange. The Commission is so the Exchange is therefore submitting series must be listed one business week
publishing this notice to solicit this proposed rule change to amend the and one business day prior to that
comments on the proposed rule change definition of ‘‘Short Term Option expiration (i.e., two Fridays prior to
from interested persons. Series’’ in Rule 100(a)(53) to include expiration).
The Exchange notes that having
I. Self-Regulatory Organization’s Monday and Wednesday expirations
Monday expirations is not a novel
Statement of the Terms of Substance of within that definition.
Currently, ‘‘Short Term Option proposal. Specifically, Nasdaq PHLX
the Proposed Rule Change LLC (‘‘Phlx’’) recently received approval
Series’’ is defined as ‘‘a series in an
The Exchange proposes to amend option class that is approved for listing to list Monday expirations for SPY
Rule 100 to include Monday and options pursuant to its Short Terms
and trading on the Exchange in which
Wednesday expirations for options Options Series program.6
the series is opened for trading on any
listed pursuant to the Short Term As part of this proposal, the Exchange
Thursday or Friday that is a business is also amending Rule 100(a)(53) to
Option Series Program, including day and that expires on the Friday of the
options on the SPDR S&P 500 ETF address the expiration of Monday
following business week that is a expiration series when the Monday is
Trust. business day. If a Friday is not a
The text of the proposed rule change not a business day. In that case, the rule
business day, the series may be opened will provide that the series shall expire
is available on the Exchange’s website at (or shall expire) on the first business
http://nasdaqgemx.cchwallstreet.com/, on the first business day immediately
day immediately prior to that Friday.’’ following that Monday. This procedure
at the principal office of the Exchange, In order to include Wednesday
and at the Commission’s Public differs from the expiration date of
expirations within this definition, the Wednesday expiration series that are
Reference Room. Exchange is amending Rule 100(a)(53) scheduled to expire on a holiday. In that
II. Self-Regulatory Organization’s to include a series in an option class case, the Wednesday expiration series
Statement of the Purpose of, and that is opened for trading on any shall expire on the first business day
Statutory Basis for, the Proposed Rule Tuesday or Wednesday that is a immediately prior to that Wednesday,
Change business day and that expires the e.g., Tuesday of that week.7 However,
Wednesday of the following business the Exchange believes that it is
In its filing with the Commission, the
week that is a business day. If a preferable to require Monday expiration
Exchange included statements
Tuesday, Wednesday, Thursday is not a series in this scenario to expire on the
concerning the purpose of and basis for
business day, the series may be opened Tuesday of that week rather than the
the proposed rule change and discussed
(or shall expire) on the first business previous business day, e.g., the previous
any comments it received on the
day immediately prior to that Tuesday,
proposed rule change. The text of these
daltland on DSKBBV9HB2PROD with NOTICES

Wednesday, Thursday. 4 See supra note 4[sic].
statements may be examined at the As noted above, ISE filed its proposal 5 See Securities Exchange Act Release No. 59696
places specified in Item IV below. The to amend its Rule 100 and Rule 504 to (August 24, 2016), 81 FR 59696 (August 30, 2016)
Exchange has prepared summaries, set (SR–BOX–2016–28).
3 See Securities Exchange Act Release No. 78715 6 See Securities Exchange Act Release No. 82611
18 17 CFR 200.30–3(a)(12). (August 29, 2016), 81 FR 60765 (September 2, 2016) (February 1, 2018), 83 FR 5473 (February 7, 2018)
1 15 U.S.C. 78s(b)(1). (SR–Phlx–2017–103).
(SR–ISE–2016–18) (SPY Wednesdays); SR–ISE–
2 17 CFR 240.19b–4. 2018–13 (SPY Mondays). 7 See Rule 100(a)(53).

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Document Created: 2018-02-23 01:32:37
Document Modified: 2018-02-23 01:32:37
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 8122