Self-Regulatory Organizations; Options Clearing Corporation; Order Approving Proposed Rule Change Relating to Clearing Options on the CBOE Silver Volatility Index, 72483-72484 [2011-30227]
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Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
allow a total of 20 series to be opened
for trading in each class that participates
in the Weeklys Program. The proposed
rule would increase this to a total of 30
series per class that may be opened for
trading.5
In the Notice, the Exchange stated that
the principal reason for the proposed
expansion is market demand for
additional series in Weekly option
classes in which the maximum number
of series (20) has already been reached.
Specifically, CBOE cited an increased
demand for more series when marketmoving events, such as corporate events
and large price swings, have occurred
during the life span of an affected
Weekly option class. Currently, if the
maximum number of series has been
reached, the Exchange must delete or
delist certain series in order to make
room for more in-demand series. The
Exchange deletes series with no open
interest and delists series with open
interest if those series are open for
trading on another exchange.
sroberts on DSK5SPTVN1PROD with NOTICES
III. Discussion
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.6 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(5) of the
Act,7 which requires, among other
things, that the rules of a national
securities exchange be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, to remove
Release No. 59824 (April 27, 2009), 74 FR 20518
(May 4, 2009) (SR–CBOE–2009–018).
5 The Exchange previously increased the total
number of series per Weeklys option class from
seven to 20 series. See Securities Exchange Act
Release No. 58870 (October 28, 2008), 73 FR 65430
(November 3, 2008) (SR–CBOE–2008–110). The
existing rules provide that series must be added
pursuant to CBOE Rules 5.5 and 24.9. Initial series
shall be within 30% above or below the closing
price of the underlying security on the preceding
day. Any additional strikes listed by the Exchange
shall be within 30% above or below the current
price of the underlying security. The existing rules
also provide that the Exchange may open additional
strikes of Short Term Options Series that are more
than 30% above or below the current price of the
underlying security if demonstrated customer
interest exists for such series, as expressed by
institutional, corporate, or individual customers or
their brokers. Market-Makers trading for their own
account are not considered when determining
customer interest.
6 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
7 15 U.S.C. 78f(b)(5).
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17:03 Nov 22, 2011
Jkt 226001
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. The Commission
believes that the proposal strikes a
reasonable balance between the
Exchange’s desire to offer a wider array
of products and the need to avoid
unnecessary proliferation of options
series.
In approving this proposal, the
Commission notes that the Exchange
has analyzed its capacity and represents
that it and the Options Price Reporting
Authority (‘‘OPRA’’) have the necessary
systems capacity to handle the potential
additional traffic associated with trading
of an expanded number of series for
classes that participate in the Weeklys
Program. The Commission expects the
Exchange to monitor the trading volume
associated with the additional options
series listed as a result of this proposal
and the effect of these additional series
on market fragmentation and on the
capacity of the Exchange’s, OPRA’s, and
vendors’ automated systems.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,8 that the
proposed rule change (SR–CBOE–2011–
086) be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30196 Filed 11–22–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65789; File No. SR–OCC–
2011–14]
Self-Regulatory Organizations;
Options Clearing Corporation; Order
Approving Proposed Rule Change
Relating to Clearing Options on the
CBOE Silver Volatility Index
November 18, 2011.
I. Introduction
On September 27, 2011, the Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–OCC–2011–14
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
8 15
9 17
PO 00000
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
Frm 00097
Fmt 4703
Sfmt 4703
72483
(‘‘Act’’) 1 and Rule 19b–4 thereunder.2
The Commission received no comment
letters on the proposed rule change.
This order approves the proposed rule
change as amended.
II. Description
The purpose of the proposed rule
change is to remove any potential cloud
on the jurisdictional status of options on
the CBOE Silver ETF Volatility Index,
which is an index that measures the
implied volatility of options on the
iShares Silver Trust, an exchange-traded
fund designed to reflect the performance
of the price of silver.3 To accomplish
this purpose, OCC is proposing to
amend the interpretation and policy
following the introduction in Article
XVII of OCC’s By-Laws to clarify that
OCC will clear and treat as securities
options any option contracts on the
CBOE Silver ETF Volatility Index. On
June 14, 2010, the Commission
approved rule filing SR–OCC–2010–07,
which added the existing interpretation,
which relates to the treatment and
clearing of options on the CBOE Gold
ETF Volatility Index.4
In its capacity as a ‘‘derivatives
clearing organization’’ registered as such
with the CFTC, OCC has filed this
proposed rule change for prior approval
by the CFTC pursuant to provisions of
the Commodity Exchange Act (the
‘‘CEA’’) in order to foreclose any
potential liability under the CEA based
on an argument that the clearing by OCC
of such options as securities options
constitutes a violation of the CEA.
III. Discussion
Section 17A(b)(3)(F) of the Act
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and derivative
transactions.5 The proposed rule change
is similar to a proposed rule change the
Commission approved previously with
respect to the jurisdictional status CBOE
Gold ETF Volatility Index and clarifies
that OCC will clear and treat as
securities any relative performance
index, including in situations in which
one of the reference securities of a
relative performance index is an ETF
designed to measure the return of gold
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The staff notes that on August 11, 2011, the
Commission issued an Order granting approval of
a proposed rule change to trade options on the
CBOE Silver ETF Volatility Index. See Securities
Exchange Act Release No. 34–65116, 76 FR 51099
(August 17, 2011).
4 Securities Exchange Act Release No. 62290
(June 14, 2010), 75 FR 35861 (June 23, 2010).
5 15 U.S.C. 78a–1(b)(3)(F).
2 17
E:\FR\FM\23NON1.SGM
23NON1
72484
Federal Register / Vol. 76, No. 226 / Wednesday, November 23, 2011 / Notices
or silver. Any uncertainty regarding the
jurisdictional status of a product could
presumably interfere with OCC’s ability
to provide clearance and settlement
services with respect to the product.
The proposed rule change, by allowing
OCC confirm in its rules the treatment
of a relative performance index, should
facilitate the clearance and settlement of
such products and, thus, should help
promote the prompt and accurate
clearance and settlement of securities
transactions and of derivative
transactions.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 6
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,7 that the
proposed rule change (File No. SR–
OCC–2011–14) be, and hereby is,
approved.8
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2011–30227 Filed 11–22–11; 8:45 a.m.]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65768; File No. SR–
NASDAQ–2011–151]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change Relating to
Routing Fees to BATS Exchange, Inc.
November 17, 2011.
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 November
8, 2011, 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, II, and III 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
facility for executing and routing
standardized equity and index options.
In addition the Exchange is also
proposing to make minor amendments
to Rule 7053, entitled ‘‘NASDAQ
Options Market—Access Services.’’
While changes to the Fee Schedule
pursuant to this proposal are effective
upon filing, the Exchange has
designated these changes to be operative
on December 1, 2011.
The text of the proposed rule change
is set forth below. Proposed new text is
in italics and deleted text is in brackets.
*
*
*
*
*
7050. NASDAQ Options Market
The following charges shall apply to the
use of the order execution and routing
services of the NASDAQ Options Market for
all securities.
*
*
*
*
*
(4) Fees for routing contracts to markets
other than the NASDAQ Options Market
shall be assessed as provided below. The
current fees and a historical record of
applicable fees shall be posted on the
NasdaqTrader.com Web site.
The Exchange proposes to modify
Rule 7050, governing pricing for
NASDAQ members using the NASDAQ
Options Market (‘‘NOM’’), NASDAQ’s
Exchange
Customer
BATS ........................................................................................................................................
BOX .........................................................................................................................................
CBOE .......................................................................................................................................
CBOE orders greater than 99 contracts in NDX, MNX ETFs, ETNs & HOLDRs ...................
C2 ............................................................................................................................................
ISE ...........................................................................................................................................
ISE Select Symbols* ................................................................................................................
NYSE Arca Penny Pilot ...........................................................................................................
NYSE Arca Non Penny Pilot ...................................................................................................
NYSE AMEX ............................................................................................................................
PHLX (for all options other than PHLX Select Symbols) ........................................................
PHLX Select Symbols** ...........................................................................................................
$0.36
0.06
0.06
0.24
0.50
0.06
0.18
0.50
0.06
0.06
0.06
0.30
Firm
$0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
MM
$0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
0.55
Professional
$0.[36]48
0.06
0.26
0.26
0.51
0.24
0.34
0.50
0.06
0.26
0.26
0.46
* These fees are applicable to orders routed to ISE that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. See ISE’s Schedule of Fees for the complete list of symbols that are subject to these fees.
** These fees are applicable to orders routed to PHLX that are subject to Rebates and Fees for Adding and Removing Liquidity in Select Symbols. See PHLX’s Fee Schedule for the complete list of symbols that are subject to these fees.
sroberts on DSK5SPTVN1PROD with NOTICES
*
*
6 15
7 15
*
*
7053. NASDAQ Options Market—Access
Services
[Part A: The following charges are assessed
by Nasdaq for connectivity to the NASDAQ
Options Market for NOM 1.0:]
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
VerDate Mar<15>2010
17:03 Nov 22, 2011
Jkt 226001
[(a) Financial Information Exchange (FIX) ]
8 In approving this proposed rule change the
Commission has considered the proposed rule’s
impact of efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
*
9 17
PO 00000
Frm 00098
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\23NON1.SGM
23NON1
]]>Agencies
[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Pages 72483-72484]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30227]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65789; File No. SR-OCC-2011-14]
Self-Regulatory Organizations; Options Clearing Corporation;
Order Approving Proposed Rule Change Relating to Clearing Options on
the CBOE Silver Volatility Index
November 18, 2011.
I. Introduction
On September 27, 2011, the Options Clearing Corporation (``OCC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change SR-OCC-2011-14 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder.\2\ The Commission received no comment letters on the
proposed rule change. This order approves the proposed rule change as
amended.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
II. Description
The purpose of the proposed rule change is to remove any potential
cloud on the jurisdictional status of options on the CBOE Silver ETF
Volatility Index, which is an index that measures the implied
volatility of options on the iShares Silver Trust, an exchange-traded
fund designed to reflect the performance of the price of silver.\3\ To
accomplish this purpose, OCC is proposing to amend the interpretation
and policy following the introduction in Article XVII of OCC's By-Laws
to clarify that OCC will clear and treat as securities options any
option contracts on the CBOE Silver ETF Volatility Index. On June 14,
2010, the Commission approved rule filing SR-OCC-2010-07, which added
the existing interpretation, which relates to the treatment and
clearing of options on the CBOE Gold ETF Volatility Index.\4\
---------------------------------------------------------------------------
\3\ The staff notes that on August 11, 2011, the Commission
issued an Order granting approval of a proposed rule change to trade
options on the CBOE Silver ETF Volatility Index. See Securities
Exchange Act Release No. 34-65116, 76 FR 51099 (August 17, 2011).
\4\ Securities Exchange Act Release No. 62290 (June 14, 2010),
75 FR 35861 (June 23, 2010).
---------------------------------------------------------------------------
In its capacity as a ``derivatives clearing organization''
registered as such with the CFTC, OCC has filed this proposed rule
change for prior approval by the CFTC pursuant to provisions of the
Commodity Exchange Act (the ``CEA'') in order to foreclose any
potential liability under the CEA based on an argument that the
clearing by OCC of such options as securities options constitutes a
violation of the CEA.
III. Discussion
Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of a clearing agency be designed to promote the prompt and
accurate clearance and settlement of securities transactions and
derivative transactions.\5\ The proposed rule change is similar to a
proposed rule change the Commission approved previously with respect to
the jurisdictional status CBOE Gold ETF Volatility Index and clarifies
that OCC will clear and treat as securities any relative performance
index, including in situations in which one of the reference securities
of a relative performance index is an ETF designed to measure the
return of gold
[[Page 72484]]
or silver. Any uncertainty regarding the jurisdictional status of a
product could presumably interfere with OCC's ability to provide
clearance and settlement services with respect to the product. The
proposed rule change, by allowing OCC confirm in its rules the
treatment of a relative performance index, should facilitate the
clearance and settlement of such products and, thus, should help
promote the prompt and accurate clearance and settlement of securities
transactions and of derivative transactions.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78a-1(b)(3)(F).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \6\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\7\ that the proposed rule change (File No. SR-OCC-2011-14) be, and
hereby is, approved.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
\8\ In approving this proposed rule change the Commission has
considered the proposed rule's impact of efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\9\ 17 CFR 200.30-3(a)(12).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-30227 Filed 11-22-11; 8:45 a.m.]
BILLING CODE 8011-01-P
