Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Apply the Position Limit Exemption Rules of NASDAQ OMX PHLX LLC For Certain Index Options, 66660-66662 [2012-27033]
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66660
Federal Register / Vol. 77, No. 215 / Tuesday, November 6, 2012 / Notices
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
All submissions should refer to File
Number SR–NASDAQ–2012–123 and
should be submitted on or before
November 27, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27000 Filed 11–5–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68124; File No. SR–
NASDAQ–2012–121]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Apply the
Position Limit Exemption Rules of
NASDAQ OMX PHLX LLC For Certain
Index Options
October 31, 2012.
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 October
18, 2012, The NASDAQ Stock Market
LLC (‘‘NASDAQ’’ 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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I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The NASDAQ Stock Market [sic] to
amend NASDAQ Options Market LLC
(‘‘NOM’’) 3 Rules at Chapter XIV,
Sections 5 (Position Limits for BroadBased Index Options) and 7 (Position
Limits for Industry and Micro-Narrow
Based Index Options) to apply the
position limit exemption rules of
9 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 NOM is NASDAQ’s facility for executing and
routing standardized equity and
index options.
1 15
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NASDAQ OMX PHLX LLC (‘‘Phlx’’) for
certain broad-based index options and
industry and micro-narrow based index
options.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://
www.nasdaq.cchwallstreet.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
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. 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 is proposing to amend
Chapter XIV, Sections 5 (Position Limits
for Broad-Based Index Options) and
Section 7 (Position Limits for Industry
and Micro-Narrow Based Index Options)
of the NASDAQ Rules to permit
NASDAQ Options Market LLC (‘‘NOM’’)
Options Participants to utilize position
limit exemptions,4 which are currently
available on Phlx with respect to certain
index options discussed below.
Currently, Chapter XIV, Sections 5
and 7 state that NOM Options
Participants shall comply with the
applicable rules of the Chicago Board
Options Exchange, Incorporated
(‘‘CBOE’’) with respect to position
limits, both for broad-based and
industry or micro-narrow index options.
The Exchange recently filed to list
options on several Phlx proprietary and
non-proprietary indexes on NOM,
which are not listed on CBOE: MSCI
EM, MSCI EAFE, PHLX Oil Service
SectorSM index (OSX), PHLX
Semiconductor SectorSM Index (SOX)
and PHLX Housing SectorTM Index
(HGX) 5 (collectively ‘‘MSCI and PHLX
4 This would include all rules relating to
exemptions. See Phlx Rule 1001A Position Limits.
5 See Securities Exchange Act Release Nos. 67582
(August 2, 2012), 77 FR 47455 (August 8, 2012)
(SR–NASDAQ–2012–092) (an immediately effective
filing relating to option [sic] on the MSCI EM and
MSCI EAFE Index [sic]) and 67105 (June 4, 2012),
77 FR 34110 (June 8, 2012) (SR–NASDAQ–2012–
065) (an immediately effective filing relating to
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Frm 00083
Fmt 4703
Sfmt 4703
Indexes’’). In each of these filings, the
Exchange sought to list and trade the
MSCI and PHLX Indexes on NOM by
amending the NOM rules to provide for
the same position limits that are applied
currently on Phlx for options overlying
the MSCI and PHLX Indexes.6 Both
filings intended that options on the
MSCI and PHLX Indexes would be
listed and traded on NOM as they are
on Phlx.7 Both filings added new
sections to Chapter XIV, Sections 5 and
7 to specify the applicable position
limits because options on the MSCI and
PHLX Indexes were not listed on
another exchange other than Phlx.8
Unlike index options that are listed
on CBOE, where applicable CBOE rules
relating to position limits, including
exemptions from position limits, are
incorporated by reference in NOM’s
rules, all applicable Phlx rules relating
to position limits for the MSCI and
PHLX Indexes, including specifically
position limit exemptions, are not
incorporated by reference in NOM’s
rules.9 Rather, only the specified
position limits for these indexes as set
forth in Phlx’s rules are replicated in
NOM’s rules.10
The Exchange is proposing to
incorporate by reference the entirety of
Phlx’s rules relating to position limits
with respect to options overlying the
MSCI and PHLX Indexes. This would
allow NOM Options Participants
desiring to trade options on the MSCI
and PHLX Indexes to avail themselves
of the same exemptions as Phlx
members receive today.
To this end, the Exchange is
proposing to amend Chapter XIV,
Section 5 to state that the applicable
Phlx position limit rules would apply to
the MSCI EAFE and MSCI EM broadbased index options. Also, the Exchange
would amend Chapter XIV, Section 7 to
state that the applicable Phlx position
limit rules would apply to PHLX Oil
Service SectorSM index (OSX), PHLX
Semiconductor SectorSM Index (SOX)
and PHLX Housing SectorTM Index
(HGX) industry and micro-narrow based
index options. The Exchange proposes
to remove section (d) of Chapter XIV,
strike price intervals and position limits for OSX,
SOX and HGX).
6 Id. Today, this does not include the application
of Phlx exemptions.
7 Id.
8 Id.
9 See Phlx Rules [sic] 1001A Position Limits. See
also NOM Rules at Chapter XIV, Section 5(d) and
Section 7(d) which replicate the Phlx position
limits for the MSCI and Phlx Indexes within the
NOM Rules.
10 See Phlx Rules [sic] 1001A Position Limits. See
also NOM Rules at Chapter XIV, Section 7(d) and
(e) which replicate the Phlx position limits for Phlx
Indexes within the NOM Rules.
E:\FR\FM\06NON1.SGM
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Federal Register / Vol. 77, No. 215 / Tuesday, November 6, 2012 / Notices
Section 5 and sections (d) and (e) of
Chapter XIV, Section 7 as that rule text
is no longer necessary because all
applicable Phlx position limit rules and
exemptions would apply going forward
to the MSCI and PHLX Indexes.
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2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act 11 in general, and furthers the
objectives of Section 6(b)(5) of the Act 12
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, by
providing NOM Options Participants
that desire to transact options on MSCI
and PHLX Indexes the ability to avail
themselves of the same position limit
rules and exemptions as Phlx members.
It was the intent of the Exchange to list
and trade options on the MSCI and
PHLX Indexes in the same manner as
those index options are traded on Phlx.
This would include providing the same
position limit rules and exemptions on
position limits as are permitted on Phlx.
The Exchange believes that permitting
applicable Phlx position limit
exemption rules, in addition to position
limits, to be applied will ensure that the
same exemptions would apply to
options on the MSCI and PHLX Indexes
on both NOM and Phlx.
Today the CBOE rules are applied on
NOM in the same manner as the
Exchange proposes to apply Phlx rules
relating to position limits and
exemptions. Those index options which
trade on CBOE and NOM are subject to
applicable CBOE rules with respect to
index option position limits and
exemptions. The Exchange believes that
because NOM does not have its own
rules governing exemptions, applying
the CBOE position limit rules, including
exemptions, ensures that NOM Options
Participants are able to trade index
options in much the same manner as
they are traded on CBOE, subject to the
same regulatory requirements. The
Exchange is proposing to similarly
apply Phlx rules in the same manner
with respect to the MSCI and PHLX
Indexes. The Exchange believes that this
filing is non-controversial because it
seeks to apply the rules of another selfregulatory organization to NOM Options
Participants in the same way as those
rules apply today to Phlx members
trading the MSCI and PHLX Indexes.
11 15
12 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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15:06 Nov 05, 2012
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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.
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 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 after the date of
the filing, 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 13 and Rule 19b–4(f)(6)
thereunder.14
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 15 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6) 16
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. The Exchange believes
that doing so would provide NOM
Options Participants with the ability to
utilize position limit exemptions for the
MCSI and PHLX Indexes and trade
options on those indexes in the same
manner as Phlx members. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.17
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change along with a brief
description and the text of 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.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6).
17 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
14 17
PO 00000
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Fmt 4703
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66661
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.
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–NASDAQ–2012–121on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NASDAQ–2012–121. 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 Web site (https://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 Web site 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;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
E:\FR\FM\06NON1.SGM
06NON1
66662
Federal Register / Vol. 77, No. 215 / Tuesday, November 6, 2012 / Notices
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2012–121 and should be
submitted on or before November 27,
2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–27033 Filed 11–5–12; 8:45 am]
BILLING CODE 8011–01–P
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
Generalized System of Preferences
(GSP): Import Statistics Relating to
Competitive Need Limitations
Office of the United States
Trade Representative.
ACTION: Notice.
AGENCY:
This notice is to inform the
public of the availability of import
statistics for the first eight months of
2012 relating to competitive need
limitations (CNLs) under the
Generalized System of Preferences
(GSP) program. These import statistics
identify some articles for which the
2012 trade levels may exceed statutory
CNLs. Interested parties may find this
information useful in deciding whether
to submit a petition to waive the CNLs
for individual beneficiary developing
countries (BDCs) with respect to specific
GSP-eligible articles. As previously
announced in the Federal Register (77
FR 44704 (July 30, 2012)), the deadline
for submission of product petitions to
waive the CNLs for individual BDCs
with respect to GSP-eligible articles is 5
p.m., November 21, 2012.
FOR FURTHER INFORMATION CONTACT:
Contact Marin Weaver, Director for GSP,
Office of the United States Trade
Representative, 600 17th Street, NW.,
Washington, DC 20508. The telephone
number is (202) 395–9618 and the email
address is Marin_Weaver@ustr.eop.gov.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
I. Competitive Need Limitations
The GSP program provides for the
duty-free importation of designated
articles when imported from designated
BDCs. The GSP program is authorized
by Title V of the Trade Act of 1974 (19
U.S.C. 2461, et seq.), as amended (the
‘‘1974 Act’’), and is implemented in
accordance with Executive Order 11888
of November 24, 1975, as modified by
subsequent Executive Orders and
Presidential Proclamations.
18 17
CFR 200.30–3(a)(12).
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Section 503(c)(2)(A) of the 1974 Act
sets out the two CNLs. When the
President determines that a BDC has
exported to the United States during a
calendar year either (1) a quantity of a
GSP-eligible article having a value in
excess of the applicable amount for that
year ($155 million for 2012), or (2) a
quantity of a GSP-eligible article having
a value equal to or greater than 50
percent of the value of total U.S. imports
of the article from all countries (the ‘‘50
percent CNL’’), the President must
terminate GSP duty-free treatment for
that article from that BDC by no later
than July 1 of the next calendar year.
Under section 503(c)(2)(F) of the 1974
Act, the President may waive the 50
percent CNL with respect to an eligible
article imported from a BDC, if the value
of total imports of that article from all
countries during the calendar year did
not exceed the applicable de minimis
amount for that year ($21 million for
2012). Further, under section
503(c)(2)(C) of the 1974 Act, if imports
of an eligible article from a BDC ceased
to receive duty-free treatment due to
exceeding a CNL in a prior year, the
President may redesignate such an
article for duty free treatment if imports
in the most recently completed year did
not exceed the CNLs.
II. Implementation of Competitive Need
Limitations
Exclusions from GSP duty-free
treatment where CNLs have been
exceeded will be effective July 1, 2013,
unless the President grants a waiver
before the exclusion goes into effect.
Exclusions for exceeding a CNL will be
based on full 2012 calendar-year import
statistics.
III. Interim 2012 Import Statistics
In order to provide advance notice of
articles that may exceed the CNLs for
2012, interim import statistics for the
first eight months of 2012 relating to
CNLs can be viewed at: https://
www.ustr.gov/trade-topics/tradedevelopment/preference-programs/
generalized-system-preferences-gsp/
current-review. Full calendar-year 2012
data for individual tariff subheadings
will be available in February 2013 on
the Web site of the U.S. International
Trade Commission at https://
dataweb.usitc.gov/.
The interim 2012 import statistics are
organized to show, for each article, the
Harmonized Tariff Schedule of the
United States (HTSUS) subheading and
BDC of origin, the value of imports of
the article from the specified country for
the first eight months of 2012, and the
corresponding share of total imports of
that article from all countries. The list
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Frm 00085
Fmt 4703
Sfmt 4703
includes the GSP-eligible articles from
BDCs that, based on interim eightmonth 2012 data, exceed $87 million
dollars, or an amount greater than 42
percent of the total value of U.S. imports
of that product and therefore may be on
track to exceed the applicable
thresholds. In all, the following twelve
products met the criteria to be placed on
the list:
• 4409.10.05—Coniferous wood
continuously shaped along any of its
ends (Brazil)
• 7202.99.20—Calcium silicon
ferroalloys (Brazil)
• 7202.30.00—Ferrosilicon manganese
(Georgia)
• 2924.29.95—Other nonaromatic
cyclic amides and their derivatives
(India)
• 2934.99.47—Nonaromatic drugs of
other heterocyclic compounds (India)
• 7307.21.50—Stainless steel, not cast,
flanges for tubes/pipes (India)
• 7307.91.50—Iron or steel (o/than
stainless), not cast, flanges for tubes/
pipes (India)
• 6911.10.37—Porcelain or non-bone
china, household table & kitchenware
sets (Indonesia)
• 2927.00.15—1,1′-Azobisformamide
(Indonesia)
• 7202.21.50—Ferrosilicon containing
between 55% and 80% of silicon
(Russia)
• 2106.90.99—Miscellaneous food
preparations not canned or frozen
(Thailand)
• 9506.70.40—Ice skates w/footwear
permanently attached (Thailand)
The list published on the USTR Web
site includes the relevant eight-month
trade statistics for each of these
products and is provided as a courtesy
for informational purposes only. The list
is based on interim 2012 trade data, and
may not include all articles that may be
affected by the GSP CNLs. Regardless of
whether or not an article is included on
the list referenced in this notice, all
determinations and decisions regarding
application of the CNLs of the GSP
program will be based on full calendaryear 2012 import data for each GSPeligible article. Each interested party is
advised to conduct its own review of
2012 import data with regard to the
possible application of GSP CNLs.
Please see the notice announcing the
2012 GSP Review which was published
in the Federal Register on July 30, 2012,
regarding submission of product
petitions requesting a waiver of a CNL.
The notice is available at https://
www.regulations.gov/
E:\FR\FM\06NON1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 215 (Tuesday, November 6, 2012)]
[Notices]
[Pages 66660-66662]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27033]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68124; File No. SR-NASDAQ-2012-121]
Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
To Apply the Position Limit Exemption Rules of NASDAQ OMX PHLX LLC For
Certain Index Options
October 31, 2012.
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 October 18, 2012, The NASDAQ Stock Market LLC (``NASDAQ'' 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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The NASDAQ Stock Market [sic] to amend NASDAQ Options Market LLC
(``NOM'') \3\ Rules at Chapter XIV, Sections 5 (Position Limits for
Broad-Based Index Options) and 7 (Position Limits for Industry and
Micro-Narrow Based Index Options) to apply the position limit exemption
rules of NASDAQ OMX PHLX LLC (``Phlx'') for certain broad-based index
options and industry and micro-narrow based index options.
---------------------------------------------------------------------------
\3\ NOM is NASDAQ's facility for executing and routing
standardized equity and
index options.
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
Web site at https://www.nasdaq.cchwallstreet.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
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. 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 is proposing to amend Chapter XIV, Sections 5
(Position Limits for Broad-Based Index Options) and Section 7 (Position
Limits for Industry and Micro-Narrow Based Index Options) of the NASDAQ
Rules to permit NASDAQ Options Market LLC (``NOM'') Options
Participants to utilize position limit exemptions,\4\ which are
currently available on Phlx with respect to certain index options
discussed below.
---------------------------------------------------------------------------
\4\ This would include all rules relating to exemptions. See
Phlx Rule 1001A Position Limits.
---------------------------------------------------------------------------
Currently, Chapter XIV, Sections 5 and 7 state that NOM Options
Participants shall comply with the applicable rules of the Chicago
Board Options Exchange, Incorporated (``CBOE'') with respect to
position limits, both for broad-based and industry or micro-narrow
index options. The Exchange recently filed to list options on several
Phlx proprietary and non-proprietary indexes on NOM, which are not
listed on CBOE: MSCI EM, MSCI EAFE, PHLX Oil Service Sector\SM\ index
(OSX), PHLX Semiconductor Sector\SM\ Index (SOX) and PHLX Housing
Sector\TM\ Index (HGX) \5\ (collectively ``MSCI and PHLX Indexes''). In
each of these filings, the Exchange sought to list and trade the MSCI
and PHLX Indexes on NOM by amending the NOM rules to provide for the
same position limits that are applied currently on Phlx for options
overlying the MSCI and PHLX Indexes.\6\ Both filings intended that
options on the MSCI and PHLX Indexes would be listed and traded on NOM
as they are on Phlx.\7\ Both filings added new sections to Chapter XIV,
Sections 5 and 7 to specify the applicable position limits because
options on the MSCI and PHLX Indexes were not listed on another
exchange other than Phlx.\8\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release Nos. 67582 (August 2,
2012), 77 FR 47455 (August 8, 2012) (SR-NASDAQ-2012-092) (an
immediately effective filing relating to option [sic] on the MSCI EM
and MSCI EAFE Index [sic]) and 67105 (June 4, 2012), 77 FR 34110
(June 8, 2012) (SR-NASDAQ-2012-065) (an immediately effective filing
relating to strike price intervals and position limits for OSX, SOX
and HGX).
\6\ Id. Today, this does not include the application of Phlx
exemptions.
\7\ Id.
\8\ Id.
---------------------------------------------------------------------------
Unlike index options that are listed on CBOE, where applicable CBOE
rules relating to position limits, including exemptions from position
limits, are incorporated by reference in NOM's rules, all applicable
Phlx rules relating to position limits for the MSCI and PHLX Indexes,
including specifically position limit exemptions, are not incorporated
by reference in NOM's rules.\9\ Rather, only the specified position
limits for these indexes as set forth in Phlx's rules are replicated in
NOM's rules.\10\
---------------------------------------------------------------------------
\9\ See Phlx Rules [sic] 1001A Position Limits. See also NOM
Rules at Chapter XIV, Section 5(d) and Section 7(d) which replicate
the Phlx position limits for the MSCI and Phlx Indexes within the
NOM Rules.
\10\ See Phlx Rules [sic] 1001A Position Limits. See also NOM
Rules at Chapter XIV, Section 7(d) and (e) which replicate the Phlx
position limits for Phlx Indexes within the NOM Rules.
---------------------------------------------------------------------------
The Exchange is proposing to incorporate by reference the entirety
of Phlx's rules relating to position limits with respect to options
overlying the MSCI and PHLX Indexes. This would allow NOM Options
Participants desiring to trade options on the MSCI and PHLX Indexes to
avail themselves of the same exemptions as Phlx members receive today.
To this end, the Exchange is proposing to amend Chapter XIV,
Section 5 to state that the applicable Phlx position limit rules would
apply to the MSCI EAFE and MSCI EM broad-based index options. Also, the
Exchange would amend Chapter XIV, Section 7 to state that the
applicable Phlx position limit rules would apply to PHLX Oil Service
Sector\SM\ index (OSX), PHLX Semiconductor Sector\SM\ Index (SOX) and
PHLX Housing Sector\TM\ Index (HGX) industry and micro-narrow based
index options. The Exchange proposes to remove section (d) of Chapter
XIV,
[[Page 66661]]
Section 5 and sections (d) and (e) of Chapter XIV, Section 7 as that
rule text is no longer necessary because all applicable Phlx position
limit rules and exemptions would apply going forward to the MSCI and
PHLX Indexes.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \11\ in general, and furthers the objectives of Section
6(b)(5) of the Act \12\ 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, by providing NOM Options Participants that desire to transact
options on MSCI and PHLX Indexes the ability to avail themselves of the
same position limit rules and exemptions as Phlx members. It was the
intent of the Exchange to list and trade options on the MSCI and PHLX
Indexes in the same manner as those index options are traded on Phlx.
This would include providing the same position limit rules and
exemptions on position limits as are permitted on Phlx. The Exchange
believes that permitting applicable Phlx position limit exemption
rules, in addition to position limits, to be applied will ensure that
the same exemptions would apply to options on the MSCI and PHLX Indexes
on both NOM and Phlx.
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\11\ 15 U.S.C. 78f(b).
\12\ 15 U.S.C. 78f(b)(5).
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Today the CBOE rules are applied on NOM in the same manner as the
Exchange proposes to apply Phlx rules relating to position limits and
exemptions. Those index options which trade on CBOE and NOM are subject
to applicable CBOE rules with respect to index option position limits
and exemptions. The Exchange believes that because NOM does not have
its own rules governing exemptions, applying the CBOE position limit
rules, including exemptions, ensures that NOM Options Participants are
able to trade index options in much the same manner as they are traded
on CBOE, subject to the same regulatory requirements. The Exchange is
proposing to similarly apply Phlx rules in the same manner with respect
to the MSCI and PHLX Indexes. The Exchange believes that this filing is
non-controversial because it seeks to apply the rules of another self-
regulatory organization to NOM Options Participants in the same way as
those rules apply today to Phlx members trading the MSCI and PHLX
Indexes.
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.
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 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 after the date of the filing, 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 \13\ and Rule 19b-4(f)(6)
thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change along with a
brief description and the text of 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6) \16\ 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. The Exchange
believes that doing so would provide NOM Options Participants with the
ability to utilize position limit exemptions for the MCSI and PHLX
Indexes and trade options on those indexes in the same manner as Phlx
members. The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest. Therefore, the Commission hereby waives the 30-day operative
delay and designates the proposal operative upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6).
\17\ For purposes only of waiving the 30-day operative delay,
the Commission has 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.
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-NASDAQ-2012-121on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NASDAQ-2012-121. 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 Web site (https://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 Web site 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; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make
[[Page 66662]]
available publicly. All submissions should refer to File Number SR-
NASDAQ-2012-121 and should be submitted on or before November 27, 2012.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Kevin M. O'Neill,
Deputy Secretary.
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\18\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2012-27033 Filed 11-5-12; 8:45 am]
BILLING CODE 8011-01-P
