Self-Regulatory Organizations; NYSE MKT LLC.; Order Granting Approval of Proposed Rule Change To Amend Commentary .04 to NYSE Amex Options Rule 903 To Permit the Exchange to List Additional Strike Prices Until the Close of Trading on the Second Business Day Prior to Monthly Expiration, 76145-76146 [2012-30890]

Download as PDF Federal Register / Vol. 77, No. 247 / Wednesday, December 26, 2012 / Notices trade, to foster cooperation and coordination with persons engaged in facilitating transaction in securities, to remove impediments and perfect the mechanisms of a free and open market, and, in general, to protect investors and the public interest. More specifically, the Exchange believes that the proposed rule change supports the objective of the Act by providing greater harmonization between CHX Rules and rules of similar purpose of other self-regulatory organizations, such as FINRA, resulting in less burdensome and more efficient regulatory compliance. In particular, CHX Participants that are also FINRA members are subject to both CHX Article 8, Rule 13 and FINRA Rule 3230; CHX believes that harmonizing these two rules would promote just and equitable principles of trade by requiring a single standard for telemarketing. In addition, CHX believes that adopting the amendments to CHX Article 8, Rule 13 will assure that the Exchange’s rules governing telemarketing meet the standards set forth in the Prevention Act. To the extent the Exchange has proposed changes that differ from the FINRA version of the CHX Rules, the Exchange believes that such changes are technical in nature and do not change the substance of the proposed CHX Rules. The Exchange also believes that the proposed rule change will update and clarify the requirements governing telemarketing, which will promote just and equitable principles of trade and help to protect investors. B. Self-Regulatory Organization’s Statement of Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. tkelley on DSK3SPTVN1PROD with C. Self-Regulatory Organization’s Statement on Comments Regarding the Proposed Rule Changes Received From Members, Participants or Others CHX neither solicited nor received written comments on the proposed rule change. III. Date of Effectiveness of the Proposed Rule Changes and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 56 and Rule 19b–4(f)(6) 57 thereunder in that it effects a change that: (i) Does not significantly affect the protection of investors or the public 56 15 57 17 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). VerDate Mar<15>2010 06:31 Dec 22, 2012 Jkt 229001 interest; (ii) does not impose any significant burden on competition; and (iii) by its terms, does not become operative for 30 days after the date of the filing, or such shorter time as the Commission may designate if consistent with the protection of investors and the public interest. 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. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposal 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 No. SR–CHX–2012–14 on 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 No. SR–CHX–2012–14. 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 changes 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 such PO 00000 Frm 00178 Fmt 4703 Sfmt 4703 76145 filing will also 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 available publicly. All submissions should refer to File No. SR–CHX–2012–14 and should be submitted on or before January 14, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.58 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–30886 Filed 12–21–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–68460; File No. SR– NYSEMKT–2012–41] Self-Regulatory Organizations; NYSE MKT LLC.; Order Granting Approval of Proposed Rule Change To Amend Commentary .04 to NYSE Amex Options Rule 903 To Permit the Exchange to List Additional Strike Prices Until the Close of Trading on the Second Business Day Prior to Monthly Expiration December 18, 2012. I. Introduction On September 6, 2012, NYSE MKT LLC (‘‘NYSE MKT’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend Commentary .04 to NYSE Amex Options Rule 903 to permit the Exchange to list additional strike prices until the close of trading on the second business day prior to monthly expiration in unusual market conditions. The proposed rule change was published for comment in the Federal Register on September 20, 2012.3 On November 1, 2012, the Commission designated a longer period to act on the proposed rule change, until December 19, 2012.4 The Commission received no comment letters on the 58 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 Securities Exchange Act Release No. 67862 (September 14, 2012), 77 FR 58429 (‘‘Notice’’). 4 Securities Exchange Act Release No. 68135, 77 FR 66896 (November 7, 2012). 1 15 E:\FR\FM\26DEN1.SGM 26DEN1 76146 Federal Register / Vol. 77, No. 247 / Wednesday, December 26, 2012 / Notices proposal. This order approves the proposed rule change. II. Description of the Proposal The Exchange proposes to amend Commentary .04 to NYSE Amex Options Rule 903 to permit the Exchange to add additional strikes until the close of trading on the second business day prior to the expiration of a monthly, or standard, option in the event of unusual market conditions. NYSE Amex Options Rule 903 currently permits the Exchange to open additional series of individual stock options until the first calendar day of the month in which the option expires or until the fifth business day prior to expiration if unusual market conditions exist.5 The Exchange claims that, under its current rules, if unusual market conditions occur anytime from five to two days prior to expiration, then market participants are unable to obtain a contract tailored to manage their risk.6 According to the Exchange, options market participants generally prefer to focus their trading in strike prices that immediately surround the price of the underlying security.7 If, however, the price of the underlying stock moves significantly, the Exchange argues that there may be a market need for additional strike prices to adequately account for market participants’ risk management in a stock.8 Accordingly, the Exchange proposes to permit the listing of additional strikes until the close of trading on the second business day prior to expiration of a monthly option in unusual market conditions. The Exchange represents that the proposal does not raise any capacity concerns on the Exchange because the proposed change presents no material difference in impact from the current rules.9 The Exchange notes that the proposed change allows for new strikes that it would otherwise be permitted to add under existing rules either on the fifth day prior to or immediately after expiration. The Exchange further represents that it discussed the proposed change with the Options Clearing Corporation (‘‘OCC’’).10 According to the Exchange, the OCC represented that it is able to accommodate the proposal and will have no operational concerns with adding new series on any day, except the last day of trading an expiring series.11 The Exchange states that, since the implementation of the fifth business day restriction on listing additional strikes, improved communications and the adoption of the Streamline Options Series Adds by OCC allows notification of new strikes in real time throughout the industry.12 tkelley on DSK3SPTVN1PROD with Exchange may make the determination to open additional series for trading when the Exchange deems it necessary to maintain an orderly market, to meet customer demand, or when certain price movements take place in the underlying market. See Notice, supra note 3 at 58429. 6 See Notice, supra note 3 at 58429. 7 See id. 8 See id. 9 See id. at 58430. The Exchange also stated that any new strikes added under this proposal would be added in a manner consistent with the range limitations described in NYSE Amex Options Rule 903A. 10 See id. VerDate Mar<15>2010 06:31 Dec 22, 2012 Jkt 229001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–30890 Filed 12–21–12; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION III. Discussion and Commission Findings [Release No. 34–68472; File No. SR–MSRB– 2012–08] After careful review of the proposed rule change, 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.13 Specifically, the Commission finds that the proposal is consistent with Section 6(b)(5) of the Act,14 which requires, among other things, that the rules of a national securities exchange be designed to promote just and equitable principles of trade, to prevent fraudulent and manipulative acts, 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. The Commission notes that the proposed change extends the timeframe during which the Exchange may list additional series of individual stock options in unusual market conditions. The Commission believes that the proposed change will provide the investing public and other market participants with additional opportunities to tailor their investment and hedging decisions, thus allowing investors to better manage their risk exposure with additional series.15 Self-Regulatory Organizations; Municipal Securities Rulemaking Board; Order Approving a Proposed Rule Change Consisting of Amendments To Streamline New Issue Information Submission Requirements Under MSRB Rules G–32 and G–34 IV. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,16 that the 11 See id. id. at 58429 n 4. 13 In approving this proposed rule change, the Commission considered the proposed rule’s impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). 14 15 U.S.C. 78f(b)(5). 15 In approving this proposal, the Commission notes that the Exchange has stated that, although the four additional days to list additional strike prices in the event of unusual market circumstances may generate additional quote traffic, the Exchange believes that any increased traffic will not become unmanageable since the proposal remains limited to the narrow situations when an unusual market event occurs. See Notice, supra note 3 at 58430. 16 15 U.S.C. 78s(b)(2). 12 See 5 The proposed rule change (SR–NYSEMKT– 2012–41) be, and it hereby is, approved. PO 00000 Frm 00179 Fmt 4703 Sfmt 4703 December 19, 2012. I. Introduction On October 23, 2012, the Municipal Securities Rulemaking Board (‘‘MSRB’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change consisting of amendments to Rule G–8 (books and records); Rule G– 14 RTRS Procedures; 3 Rule G–32 (disclosures in connection with primary offerings); Rule G–34 (CUSIP numbers, new issue, and market information requirements); and the Electronic Municipal Market Access (‘‘EMMA®’’) system facility, to streamline the manner in which underwriters, in connection with new issues of municipal securities, satisfy certain of their submission requirements under Rule G–32. The proposed rule change was published for comment in the Federal Register on November 8, 2012.4 The Commission received no comment letters regarding the proposed rule change. This order approves the proposed rule change. II. Description of the Proposed Rule Change The MSRB proposes to amend Rules G–32 and G–34 to streamline certain 17 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 ‘‘RTRS’’ refers to the Real-time Transaction Reporting System, which is an MSRB facility for collecting and disseminating information about transactions in municipal securities. 4 Securities Exchange Act Release No. 68134 (November 1, 2012), 77 FR 67047 (SR–MSRB–2012– 08) (‘‘Notice’’). 1 15 E:\FR\FM\26DEN1.SGM 26DEN1

Agencies

[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Notices]
[Pages 76145-76146]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30890]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68460; File No. SR-NYSEMKT-2012-41]


Self-Regulatory Organizations; NYSE MKT LLC.; Order Granting 
Approval of Proposed Rule Change To Amend Commentary .04 to NYSE Amex 
Options Rule 903 To Permit the Exchange to List Additional Strike 
Prices Until the Close of Trading on the Second Business Day Prior to 
Monthly Expiration

December 18, 2012.

I. Introduction

    On September 6, 2012, NYSE MKT LLC (``NYSE MKT'' or ``Exchange'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
amend Commentary .04 to NYSE Amex Options Rule 903 to permit the 
Exchange to list additional strike prices until the close of trading on 
the second business day prior to monthly expiration in unusual market 
conditions. The proposed rule change was published for comment in the 
Federal Register on September 20, 2012.\3\ On November 1, 2012, the 
Commission designated a longer period to act on the proposed rule 
change, until December 19, 2012.\4\ The Commission received no comment 
letters on the

[[Page 76146]]

proposal. This order approves the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 67862 (September 14, 
2012), 77 FR 58429 (``Notice'').
    \4\ Securities Exchange Act Release No. 68135, 77 FR 66896 
(November 7, 2012).
---------------------------------------------------------------------------

II. Description of the Proposal

    The Exchange proposes to amend Commentary .04 to NYSE Amex Options 
Rule 903 to permit the Exchange to add additional strikes until the 
close of trading on the second business day prior to the expiration of 
a monthly, or standard, option in the event of unusual market 
conditions. NYSE Amex Options Rule 903 currently permits the Exchange 
to open additional series of individual stock options until the first 
calendar day of the month in which the option expires or until the 
fifth business day prior to expiration if unusual market conditions 
exist.\5\ The Exchange claims that, under its current rules, if unusual 
market conditions occur anytime from five to two days prior to 
expiration, then market participants are unable to obtain a contract 
tailored to manage their risk.\6\ According to the Exchange, options 
market participants generally prefer to focus their trading in strike 
prices that immediately surround the price of the underlying 
security.\7\ If, however, the price of the underlying stock moves 
significantly, the Exchange argues that there may be a market need for 
additional strike prices to adequately account for market participants' 
risk management in a stock.\8\ Accordingly, the Exchange proposes to 
permit the listing of additional strikes until the close of trading on 
the second business day prior to expiration of a monthly option in 
unusual market conditions.
---------------------------------------------------------------------------

    \5\ The Exchange may make the determination to open additional 
series for trading when the Exchange deems it necessary to maintain 
an orderly market, to meet customer demand, or when certain price 
movements take place in the underlying market. See Notice, supra 
note 3 at 58429.
    \6\ See Notice, supra note 3 at 58429.
    \7\ See id.
    \8\ See id.
---------------------------------------------------------------------------

    The Exchange represents that the proposal does not raise any 
capacity concerns on the Exchange because the proposed change presents 
no material difference in impact from the current rules.\9\ The 
Exchange notes that the proposed change allows for new strikes that it 
would otherwise be permitted to add under existing rules either on the 
fifth day prior to or immediately after expiration. The Exchange 
further represents that it discussed the proposed change with the 
Options Clearing Corporation (``OCC'').\10\ According to the Exchange, 
the OCC represented that it is able to accommodate the proposal and 
will have no operational concerns with adding new series on any day, 
except the last day of trading an expiring series.\11\ The Exchange 
states that, since the implementation of the fifth business day 
restriction on listing additional strikes, improved communications and 
the adoption of the Streamline Options Series Adds by OCC allows 
notification of new strikes in real time throughout the industry.\12\
---------------------------------------------------------------------------

    \9\ See id. at 58430. The Exchange also stated that any new 
strikes added under this proposal would be added in a manner 
consistent with the range limitations described in NYSE Amex Options 
Rule 903A.
    \10\ See id.
    \11\ See id.
    \12\ See id. at 58429 n 4.
---------------------------------------------------------------------------

III. Discussion and Commission Findings

    After careful review of the proposed rule change, 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.\13\ Specifically, the Commission finds 
that the proposal is consistent with Section 6(b)(5) of the Act,\14\ 
which requires, among other things, that the rules of a national 
securities exchange be designed to promote just and equitable 
principles of trade, to prevent fraudulent and manipulative acts, 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. The Commission notes that the 
proposed change extends the timeframe during which the Exchange may 
list additional series of individual stock options in unusual market 
conditions. The Commission believes that the proposed change will 
provide the investing public and other market participants with 
additional opportunities to tailor their investment and hedging 
decisions, thus allowing investors to better manage their risk exposure 
with additional series.\15\
---------------------------------------------------------------------------

    \13\ In approving this proposed rule change, the Commission 
considered the proposed rule's impact on efficiency, competition, 
and capital formation. See 15 U.S.C. 78c(f).
    \14\ 15 U.S.C. 78f(b)(5).
    \15\ In approving this proposal, the Commission notes that the 
Exchange has stated that, although the four additional days to list 
additional strike prices in the event of unusual market 
circumstances may generate additional quote traffic, the Exchange 
believes that any increased traffic will not become unmanageable 
since the proposal remains limited to the narrow situations when an 
unusual market event occurs. See Notice, supra note 3 at 58430.
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\16\ that the proposed rule change (SR-NYSEMKT-2012-41) be, and it 
hereby is, approved.
---------------------------------------------------------------------------

    \16\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
---------------------------------------------------------------------------

    \17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30890 Filed 12-21-12; 8:45 am]
BILLING CODE 8011-01-P
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