Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Proposed Rule Change Regarding the Short Term Option Series Program, 69974-69976 [2014-27709]

Download as PDF 69974 Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices commencement of trading on the Exchange. (11) The Fund will include appropriate risk disclosure in its offering documents, which will be available on the Commission’s Web site and on the Fund’s Web site, www.realityshares.com. This approval order is based on all of the Exchange’s representations, including those set forth above and in the Notice, and the Exchange’s description of the Fund. For the foregoing reasons, the Commission finds that the proposed rule change, as modified by Amendments No. 1 and No. 2 thereto, is consistent with Section 6(b)(5) of the Act 73 and the rules and regulations thereunder applicable to a national securities exchange. V. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,74 that the proposed rule change (SR–Nasdaq– 2014–038), as modified by Amendments No. 1 and No. 2 thereto, be, and it hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.75 Kevin M. O’Neill, Deputy Secretary. BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–73633; File No. SR–ISE– 2014–52] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing of Proposed Rule Change Regarding the Short Term Option Series Program asabaliauskas on DSK5VPTVN1PROD with NOTICES November 18, 2014. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that, on November 6, 2014 the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and Exchange Commission the proposed rule change, as described in Items I, II, and III below, which items have been prepared by the selfregulatory organization. The Commission is publishing this notice to U.S.C. 78f(b)(5). 74 Id. 75 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Sep<11>2014 20:32 Nov 21, 2014 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE proposes to amend its rules governing the Short Term Option Series Program to extend current $0.50 strike price intervals in non-index options to short term options with strike prices less than $100. The text of the proposed rule change is available on the Exchange’s Web site (http:// www.ise.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 self-regulatory organization 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 self-regulatory organization 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 [FR Doc. 2014–27711 Filed 11–21–14; 8:45 am] 73 15 solicit comments on the proposed rule change from interested persons. 1. Purpose The Exchange proposes to amend its rules governing the Short Term Option Series Program to introduce finer strike price intervals for certain short term options. In particular, the Exchange proposes to amend Supplementary Material .12 to Rule 504 to extend $0.50 strike price intervals in non-index options to short term options with strike prices less than $100 instead of the current $75. This proposed change is intended to eliminate gapped strikes between $75 and $100 that result from conflicting strike price parameters under the Short Term Option Series and $2.50 Strike Price Programs as described in more detail below. Under the ISE’s rules, the Exchange may list short term options in up to fifty option classes in addition to option classes that are selected by other securities exchanges that employ a similar program under their respective rules.3 On any Thursday or Friday that is a business day, the Exchange may list short term option series in designated option classes that expire at the close of 3 See Jkt 235001 PO 00000 Supplementary Material .02(a) to Rule 504. Frm 00153 Fmt 4703 Sfmt 4703 business on each of the next five Fridays that are business days and are not Fridays in which monthly or quarterly options expire.4 These short term option series trade in $0.50, $1, or $2.50 strike price intervals depending on the strike price and whether the option trades in dollar increments in the related monthly expiration.5 Specifically, short term options in non-index option classes admitted to the Short Term Options Series Program currently trade in: (1) $0.50 intervals [sic] for strike prices less than $75, or for option classes that trade in one dollar increments in the related monthly expiration option; (2) $1 intervals [sic] for strike prices that are between $75 and $150; and (3) $2.50 intervals [sic] for strike prices above $150.6 The ISE also operates a $2.50 Strike Price Program that permits the Exchange to select up to sixty options classes on individual stocks to trade in $2.50 strike price intervals, in addition to option classes selected by other securities exchanges that employ a similar program under their respective rules.7 Monthly expiration options in classes admitted to the $2.50 Strike Price Program trade in $2.50 intervals where the strike price is (1) greater than $25 but less than $50; or (2) between $50 and $100 if the strikes are no more than $10 from the closing price of the underlying stock in its primary market on the preceding day.8 These strike price parameters conflict with strike prices allowed for short term options as dollar strikes between $75 and $100 otherwise allowed under the Short Term Option Series Program may be within $0.50 of strikes listed pursuant to the $2.50 Strike Price Program. In order to remedy this conflict, the Exchange proposes to extend the $0.50 strike price intervals currently allowed for short term options with strike prices less than $75 to short term options with strike prices less than $100. With this proposed change, short term options in non-index option classes will trade in: (1) $0.50 intervals [sic] for strike prices less than $100, or for option classes that trade in one dollar increments in the related monthly expiration option; (2) $1 intervals [sic] for strike prices that are between $100 and $150; and (3) $2.50 intervals [sic] for strike prices above $150. 4 See 5 See Supplementary Material .02 to Rule 504. Supplementary Material .12 to Rule 504. 6 Id. 7 See Rule 504(g). The term ‘‘primary market’’ is defined in ISE Rule 100(a)(37) as the principal market in which an underlying security is traded. 8 Id. E:\FR\FM\24NON1.SGM 24NON1 asabaliauskas on DSK5VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.9 In particular, the proposal is consistent with Section 6(b)(5) of the Act,10 because is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. During the month prior to expiration, the Exchange is permitted to list related monthly option contracts in the narrower strike price intervals available for short term option series.11 After transitioning to short term strike price intervals, however, monthly options that trade in $2.50 intervals between $50 and $100 under the $2.50 Strike Price Program, trade with dollar strikes between $75 and $150. Due the overlap of $1 and $2.50 intervals, the Exchange cannot list certain dollar strikes between $75 and $100 that conflict with the prior $2.50 strikes. For example, if the Exchange initially listed monthly options on ABC with $75, $77.50, and $80 strikes, the Exchange could list the $76 and $79 strikes when these transition to short term intervals. The Exchange would not be permitted to list the $77 and $78 strikes, however, as these are $0.50 away from the $77.50 strike already listed on the Exchange. This creates gapped strikes between $75 and $100, where investors are not able to trade otherwise allowable dollar strikes on the Exchange. Similarly, these conflicting strike price parameters create issues for investors who want to roll their positions from monthly to weekly expirations. In the example above, for instance, an investor that purchased a monthly ABC option with a $77.50 strike price would not be able to roll that position into a later short term expiration with the same strike price as that strike is unavailable under current Short Term Option Series Program rules. Permitting $0.50 intervals for short term options up to $100 would remedy both of these issues as strikes allowed under the $2.50 Strike Price Program would not conflict with the finer $0.50 strike price interval. The Short Term Option Series Program has been well-received by market participants and the Exchange 9 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). 11 See Supplementary Material .02(e) to Rule 504. 10 15 VerDate Sep<11>2014 20:32 Nov 21, 2014 Jkt 235001 believes that introducing finer strike price intervals for short term options with strike prices between $75 and $100, and thereby eliminating the gapped strikes described above, will benefit these market participants by giving them more flexibility to closely tailor their investment and hedging decisions. With regard to the impact of this proposal on system capacity, the Exchange has analyzed its capacity and represents that it and the Options Price Reporting Authority (‘‘OPRA’’) have the necessary systems capacity to handle any potential additional traffic associated with this proposed rule change. The Exchange believes that its members will not have a capacity issue as a result of this proposal. The Exchange also represents that it does not believe this expansion will cause fragmentation of liquidity. 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 that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the Exchange believes that the proposed rule change will result in additional investment options and opportunities to achieve the investment objectives of market participants seeking efficient trading and hedging vehicles, to the benefit of investors, market participants, and the marketplace in general. C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (a) By order approve or disapprove such proposed rule change, or (b) institute proceedings to determine whether the proposed rule change should be disapproved. PO 00000 Frm 00154 Fmt 4703 Sfmt 4703 69975 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– ISE–2014–52 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–ISE–2014–52. 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 (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 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 available publicly. All submissions should refer to File Number SR–ISE– 2014–52 and should be submitted on or before December 15, 2014. E:\FR\FM\24NON1.SGM 24NON1 69976 Federal Register / Vol. 79, No. 226 / Monday, November 24, 2014 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–27709 Filed 11–21–14; 8:45 am] BILLING CODE 8011–01–P OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Notice of Meeting of the Industry Trade Advisory Committee on Small and Minority Business (ITAC–11) Office of the United States Trade Representative. ACTION: Notice of a Partially Open Meeting. AGENCY: The Industry Trade Advisory Committee on Small and Minority Business (ITAC–11) will hold a meeting on Monday, December 8, 2014. The meeting will be open to the public from 1:00 p.m. to 3:30 p.m. DATES: The meeting is scheduled for December 8, 2014, unless otherwise notified. ADDRESSES: The meeting will be held at the U.S. Department of Commerce, 1401 Constitution Avenue NW., Room 1412, Washington, DC 20230. FOR FURTHER INFORMATION CONTACT: Laura Hellstern, DFO for ITAC–11 at (202) 482–3222, Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. SUPPLEMENTARY INFORMATION: The open agenda topics to be discussed are the Export-Import Bank Reauthorization and the International Trade Administration’s Trade Barrier Reduction Efforts for U.S. Businesses. SUMMARY: Luis Jimenez, Acting Assistant U.S. Trade Representative, for Intergovernmental Affairs and Public Engagement. [FR Doc. 2014–27735 Filed 11–21–14; 8:45 am] BILLING CODE 3290–F5–P DEPARTMENT OF TRANSPORTATION asabaliauskas on DSK5VPTVN1PROD with NOTICES Federal Aviation Administration Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: Commercial Space Transportation Reusable Launch Vehicle and Reentry Licensing Regulation Federal Aviation Administration (FAA), DOT. AGENCY: 12 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 20:32 Nov 21, 2014 Jkt 235001 Notice and request for comments. ACTION: In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. The Federal Register Notice with a 60-day comment period soliciting comments on the following collection of information was published on September 9, 2014. The information is used to determine if applicants satisfy requirements for obtaining a launch license to protect the public from risks associated with reentry operations from a site not operated by or situated on a Federal launch range. DATES: Written comments should be submitted by December 24, 2014. ADDRESSES: Interested persons are invited to submit written comments on the proposed information collection to the Office of Information and Regulatory Affairs, Office of Management and Budget. Comments should be addressed to the attention of the Desk Officer, Department of Transportation/FAA, and sent via electronic mail to oira_ submission@omb.eop.gov, or faxed to (202) 395–6974, or mailed to the Office of Information and Regulatory Affairs, Office of Management and Budget, Docket Library, Room 10102, 725 17th Street NW., Washington, DC 20503. Public Comments Invited: You are asked to comment on any aspect of this information collection, including (a) Whether the proposed collection of information is necessary for FAA’s performance; (b) the accuracy of the estimated burden; (c) ways for FAA to enhance the quality, utility and clarity of the information collection; and (d) ways that the burden could be minimized without reducing the quality of the collected information. The agency will summarize and/or include your comments in the request for OMB’s clearance of this information collection. FOR FURTHER INFORMATION CONTACT: Kathy DePaepe at (405) 954–9362, or by email at: Kathy.DePaepe@faa.gov. SUPPLEMENTARY INFORMATION: OMB Control Number: 2120–0643. Title: Commercial Space Transportation Reusable Launch Vehicle and Reentry Licensing Regulation. Form Numbers: There are no FAA forms associated with this collection. Type of Review: Renewal of an information collection. Background: The Federal Register Notice with a 60-day comment period soliciting comments on the following SUMMARY: PO 00000 Frm 00155 Fmt 4703 Sfmt 4703 collection of information was published on September 9, 2014 (79 FR 53507). The data is necessary for a U.S. citizen to apply for and obtain a reusable launch vehicle (RLV) mission license or a reentry license for activities by commercial or non-federal entities (that are not done by or for the U.S. Government) as defined and required by 51 U.S.C. 509, as amended. The information is needed to demonstrate to the FAA Office of Commercial Space Transportation (FAA/AST) that the proposed activity meets applicable public safety, national security, and foreign policy interests of the United States. Respondents: Approximately 6 applicants. Frequency: Information is collected on occasion. Estimated Average Burden per Response: 5,000 hours. Estimated Total Annual Burden: 30,000 hours. Issued in Washington, DC, on November 18, 2014. Yvette Landers, Manager, IT Strategy, Policy, & Business Planning Division, ASP–100. [FR Doc. 2014–27802 Filed 11–21–14; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Agency Information Collection Activities: Requests for Comments; Clearance of Renewed Approval of Information Collection: General Operating and Flight Rules Federal Aviation Administration (FAA), DOT. ACTION: Notice and request for comments. AGENCY: In accordance with the Paperwork Reduction Act of 1995, FAA invites public comments about our intention to request the Office of Management and Budget (OMB) approval to renew an information collection. The Federal Register Notice with a 60-day comment period soliciting comments on the following collection of information was published on September 3, 2014. Part A of Subtitle VII of the Revised Title 49 U.S.C. authorizes the issuance of regulations governing the use of navigable airspace. Information is collected to determine compliance with Federal regulations. Respondents are individual airmen, state or local governments, and businesses. SUMMARY: E:\FR\FM\24NON1.SGM 24NON1

Agencies

[Federal Register Volume 79, Number 226 (Monday, November 24, 2014)]
[Notices]
[Pages 69974-69976]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-27709]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73633; File No. SR-ISE-2014-52]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing of Proposed Rule Change Regarding the Short Term 
Option Series Program

November 18, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on November 6, 2014 the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission the proposed rule change, as described in Items I, 
II, and III below, which items have been prepared by the self-
regulatory organization. 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 ISE proposes to amend its rules governing the Short Term Option 
Series Program to extend current $0.50 strike price intervals in non-
index options to short term options with strike prices less than $100. 
The text of the proposed rule change is available on the Exchange's Web 
site (http://www.ise.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 self-regulatory organization 
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 self-regulatory organization 
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 its rules governing the Short Term 
Option Series Program to introduce finer strike price intervals for 
certain short term options. In particular, the Exchange proposes to 
amend Supplementary Material .12 to Rule 504 to extend $0.50 strike 
price intervals in non-index options to short term options with strike 
prices less than $100 instead of the current $75. This proposed change 
is intended to eliminate gapped strikes between $75 and $100 that 
result from conflicting strike price parameters under the Short Term 
Option Series and $2.50 Strike Price Programs as described in more 
detail below.
    Under the ISE's rules, the Exchange may list short term options in 
up to fifty option classes in addition to option classes that are 
selected by other securities exchanges that employ a similar program 
under their respective rules.\3\ On any Thursday or Friday that is a 
business day, the Exchange may list short term option series in 
designated option classes that expire at the close of business on each 
of the next five Fridays that are business days and are not Fridays in 
which monthly or quarterly options expire.\4\ These short term option 
series trade in $0.50, $1, or $2.50 strike price intervals depending on 
the strike price and whether the option trades in dollar increments in 
the related monthly expiration.\5\ Specifically, short term options in 
non-index option classes admitted to the Short Term Options Series 
Program currently trade in: (1) $0.50 intervals [sic] for strike prices 
less than $75, or for option classes that trade in one dollar 
increments in the related monthly expiration option; (2) $1 intervals 
[sic] for strike prices that are between $75 and $150; and (3) $2.50 
intervals [sic] for strike prices above $150.\6\
---------------------------------------------------------------------------

    \3\ See Supplementary Material .02(a) to Rule 504.
    \4\ See Supplementary Material .02 to Rule 504.
    \5\ See Supplementary Material .12 to Rule 504.
    \6\ Id.
---------------------------------------------------------------------------

    The ISE also operates a $2.50 Strike Price Program that permits the 
Exchange to select up to sixty options classes on individual stocks to 
trade in $2.50 strike price intervals, in addition to option classes 
selected by other securities exchanges that employ a similar program 
under their respective rules.\7\ Monthly expiration options in classes 
admitted to the $2.50 Strike Price Program trade in $2.50 intervals 
where the strike price is (1) greater than $25 but less than $50; or 
(2) between $50 and $100 if the strikes are no more than $10 from the 
closing price of the underlying stock in its primary market on the 
preceding day.\8\ These strike price parameters conflict with strike 
prices allowed for short term options as dollar strikes between $75 and 
$100 otherwise allowed under the Short Term Option Series Program may 
be within $0.50 of strikes listed pursuant to the $2.50 Strike Price 
Program. In order to remedy this conflict, the Exchange proposes to 
extend the $0.50 strike price intervals currently allowed for short 
term options with strike prices less than $75 to short term options 
with strike prices less than $100. With this proposed change, short 
term options in non-index option classes will trade in: (1) $0.50 
intervals [sic] for strike prices less than $100, or for option classes 
that trade in one dollar increments in the related monthly expiration 
option; (2) $1 intervals [sic] for strike prices that are between $100 
and $150; and (3) $2.50 intervals [sic] for strike prices above $150.
---------------------------------------------------------------------------

    \7\ See Rule 504(g).
    \8\ Id. The term ``primary market'' is defined in ISE Rule 
100(a)(37) as the principal market in which an underlying security 
is traded.

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

[[Page 69975]]

 2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6(b) of the Act.\9\ In 
particular, the proposal is consistent with Section 6(b)(5) of the 
Act,\10\ because is designed to promote just and equitable principles 
of trade, remove impediments to and perfect the mechanisms of a free 
and open market and a national market system and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    During the month prior to expiration, the Exchange is permitted to 
list related monthly option contracts in the narrower strike price 
intervals available for short term option series.\11\ After 
transitioning to short term strike price intervals, however, monthly 
options that trade in $2.50 intervals between $50 and $100 under the 
$2.50 Strike Price Program, trade with dollar strikes between $75 and 
$150. Due the overlap of $1 and $2.50 intervals, the Exchange cannot 
list certain dollar strikes between $75 and $100 that conflict with the 
prior $2.50 strikes. For example, if the Exchange initially listed 
monthly options on ABC with $75, $77.50, and $80 strikes, the Exchange 
could list the $76 and $79 strikes when these transition to short term 
intervals. The Exchange would not be permitted to list the $77 and $78 
strikes, however, as these are $0.50 away from the $77.50 strike 
already listed on the Exchange. This creates gapped strikes between $75 
and $100, where investors are not able to trade otherwise allowable 
dollar strikes on the Exchange. Similarly, these conflicting strike 
price parameters create issues for investors who want to roll their 
positions from monthly to weekly expirations. In the example above, for 
instance, an investor that purchased a monthly ABC option with a $77.50 
strike price would not be able to roll that position into a later short 
term expiration with the same strike price as that strike is 
unavailable under current Short Term Option Series Program rules. 
Permitting $0.50 intervals for short term options up to $100 would 
remedy both of these issues as strikes allowed under the $2.50 Strike 
Price Program would not conflict with the finer $0.50 strike price 
interval.
---------------------------------------------------------------------------

    \11\ See Supplementary Material .02(e) to Rule 504.
---------------------------------------------------------------------------

    The Short Term Option Series Program has been well-received by 
market participants and the Exchange believes that introducing finer 
strike price intervals for short term options with strike prices 
between $75 and $100, and thereby eliminating the gapped strikes 
described above, will benefit these market participants by giving them 
more flexibility to closely tailor their investment and hedging 
decisions.
    With regard to the impact of this proposal on system capacity, the 
Exchange has analyzed its capacity and represents that it and the 
Options Price Reporting Authority (``OPRA'') have the necessary systems 
capacity to handle any potential additional traffic associated with 
this proposed rule change. The Exchange believes that its members will 
not have a capacity issue as a result of this proposal. The Exchange 
also represents that it does not believe this expansion will cause 
fragmentation of liquidity.

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 that is not necessary or appropriate 
in furtherance of the purposes of the Act. To the contrary, the 
Exchange believes that the proposed rule change will result in 
additional investment options and opportunities to achieve the 
investment objectives of market participants seeking efficient trading 
and hedging vehicles, to the benefit of investors, market participants, 
and the marketplace in general.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (a) By order approve or disapprove such proposed rule change, or
    (b) institute proceedings to determine whether the proposed rule 
change should be 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-ISE-2014-52 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-ISE-2014-52. 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 (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 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 available publicly. All 
submissions should refer to File Number SR-ISE-2014-52 and should be 
submitted on or before December 15, 2014.


[[Page 69976]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-27709 Filed 11-21-14; 8:45 am]
BILLING CODE 8011-01-P