83 FR 8125 - Self-Regulatory Organizations; Nasdaq GEMX, 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		8125-8127
FR Document		2018-03698
Federal Register, Volume 83 Issue 37 (Friday, February 23, 2018)
[Federal Register Volume 83, Number 37 (Friday, February 23, 2018)]
[Notices]
[Pages 8125-8127]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-03698]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82728; File No. SR-GEMX-2018-07]


Self-Regulatory Organizations; Nasdaq GEMX, 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 GEMX, LLC (``GEMX'' 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://nasdaqgemx.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 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

[[Page 8126]]

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 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

[[Page 8127]]

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 
effective 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 rule-comments@sec.gov. Please include 
File Number SR-GEMX-2018-07 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-GEMX-2018-07. 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-GEMX-2018-07 and should be submitted on 
or before March 16, 2018.

    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. 2018-03698 Filed 2-22-18; 8:45 am]
 BILLING CODE 8011-01-P
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).

VerDate Sep<11>2014 18:52 Feb 22, 2018 Jkt 244001 PO 00000 Frm 00081 Fmt 4703 Sfmt 4703 E:\FR\FM\23FEN1.SGM 23FEN1
Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices 8127

necessary or appropriate in furtherance 4(f)(6)(iii) 14 permits the Commission to • Send an email to rule-comments@
of the purposes of the Act. The designate a shorter time if such action sec.gov. Please include File Number SR–
Exchange notes that having Monday is consistent with the protection of GEMX–2018–07 on the subject line.
expirations is not a novel proposal, as investors and the public interest. The
Phlx has received approval to list Exchange has asked the Commission to Paper Comments
Monday expirations for SPY options, waive the 30-day operative delay so that • Send paper comments in triplicate
and Cboe currently lists and trades the proposal may become operative to Secretary, Securities and Exchange
short-term SPX options with a Monday immediately upon filing. The
Commission, 100 F Street NE,
expiration. The Exchange does not Commission notes that it recently
Washington, DC 20549–1090.
believe the proposal will impose any approved Phlx’s substantially similar
burden on intra-market competition, as proposal to list and trade Monday SPY All submissions should refer to File
all market participants will be treated in Expirations.15 The Exchange has stated Number SR–GEMX–2018–07. This file
the same manner under this proposal. that waiver of the operative delay will number should be included on the
Additionally, the Exchange does not allow the Exchange to list and trade subject line if email is used. To help the
believe the proposal will impose any Monday SPY Expirations as soon as Commission process and review your
burden on inter-market competition, as possible, and therefore, promote comments more efficiently, please use
nothing prevents the other options competition among the option only one method. The Commission will
exchanges from proposing similar rules exchanges.16 For these reasons, the post all comments on the Commission’s
to list and trade short-term options Commission believes that the proposed internet website (http://www.sec.gov/
series with Monday expirations. The rule change presents no novel issues rules/sro.shtml).
Exchange does not believe that changing and that waiver of the 30-day operative
Rule 100(a)(53) to include Wednesday delay is consistent with the protection Copies of the submission, all
expirations will impose any burden on of investors and the public interest, and subsequent amendments, all written
competition not necessary or will allow the Exchange to remain statements with respect to the proposed
appropriate in furtherance of the competitive with other exchanges. rule change that are filed with the
purposes of the Act. The Commission Therefore, the Commission hereby Commission, and all written
approved the listing and trading of short waives the 30-day operative delay and communications relating to the
term options series with Wednesday designates the proposal effective upon proposed rule change between the
expirations in 2016, and the majority of filing.17 Commission and any person, other than
the options exchanges have At any time within 60 days of the those that may be withheld from the
subsequently adopted short-term filing of the proposed rule change, the public in accordance with the
options series with Wednesday Commission summarily may provisions of 5 U.S.C. 552, will be
expirations. temporarily suspend such rule change if available for website viewing and
C. Self-Regulatory Organization’s it appears to the Commission that such printing in the Commission’s Public
Statement on Comments on the action is necessary or appropriate in the Reference Room, 100 F Street NE,
Proposed Rule Change Received From public interest, for the protection of Washington, DC 20549, on official
Members, Participants, or Others investors, or otherwise in furtherance of business days between the hours of
the purposes of the Act. If the 10:00 a.m. and 3:00 p.m. Copies of the
No written comments were either Commission takes such action, the filing also will be available for
solicited or received. Commission shall institute proceedings inspection and copying at the principal
III. Date of Effectiveness of the to determine whether the proposed rule office of the Exchange. All comments
Proposed Rule Change and Timing for should be approved or disapproved. received will be posted without change.
Commission Action IV. Solicitation of Comments Persons submitting comments are
Because the foregoing proposed rule cautioned that we do not redact or edit
Interested persons are invited to
change does not: (i) Significantly affect personal identifying information from
submit written data, views, and
the protection of investors or the public comment submissions. You should
arguments concerning the foregoing,
interest; (ii) impose any significant submit only information that you wish
including whether the proposed rule
burden on competition; and (iii) become change is consistent with the Act. to make available publicly. All
operative for 30 days from the date on Comments may be submitted by any of submissions should refer to File
which it was filed, or such shorter time the following methods: Number SR–GEMX–2018–07 and
as the Commission may designate, the should be submitted on or before March
proposed rule change has become Electronic Comments 16, 2018.
effective pursuant to Section 19(b)(3)(A) • Use the Commission’s internet For the Commission, by the Division of
of the Act 12 and Rule 19b–4(f)(6) comment form (http://www.sec.gov/ Trading and Markets, pursuant to delegated
thereunder.13 rules/sro.shtml); or authority.18
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not Eduardo A. Aleman,
14 17 CFR 240.19b–4(f)(6)(iii).
become operative for 30 days from the Assistant Secretary.
15 See supra note 6.
date of filing. However, Rule 19b– 16 The Exchange also proposes to update its Short [FR Doc. 2018–03698 Filed 2–22–18; 8:45 am]
Term Option Series definition to include SPY BILLING CODE 8011–01–P
daltland on DSKBBV9HB2PROD with NOTICES

12 15 U.S.C. 78s(b)(3)(A). Wednesday expirations. The Exchange states this
13 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– definitional change will make its incorporated by
4(f)(6) requires a self-regulatory organization to give reference rulebook internally consistent and is
the Commission written notice of its intention to neither novel nor controversial. See supra note 3.
file the proposed rule change at least five business 17 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). 18 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:52 Feb 22, 2018 Jkt 244001 PO 00000 Frm 00083 Fmt 4703 Sfmt 9990 E:\FR\FM\23FEN1.SGM 23FEN1
Document Created: 2018-02-23 01:32:40
Document Modified: 2018-02-23 01:32:40
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 8125