Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend IM-5050-6 to BOX Rule 5050 (Short Term Option Series Program), 1976-1979 [2015-00378]
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Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Notices
now or hereafter in effect. The facility
consists of a boiling-water reactor
located in Windham County, Vermont.
By letter dated September 23, 2013
(ADAMS Accession No. ML13273A204),
Entergy submitted Notification of
Permanent Cessation of Power
Operations for VY. In this letter, Entergy
provided notification to the NRC of its
intent to permanently cease power
operation at the end of the current
operating cycle, which is expected to
occur in the fourth calendar quarter of
2014. In addition, Entergy indicated
their intent to supplement the letter
certifying the date on which operations
have ceased, or will cease, in
accordance with § 50.82(a)(1)(i) of Title
10 of the Code of Federal Regulations
(10 CFR) and 10 CFR 50.4(b)(8).
On December 19, 2014, Entergy
submitted the PSDAR and DCE for VY
in accordance with § 50.82(a)(4)(i)
(ADAMS Accession No. ML14357A110).
The PSDAR includes a description of
the planned decommissioning activities,
a proposed schedule for their
accomplishment, the site-specific DCE
(submitted concurrently), and a
discussion that provides the basis for
concluding that the environmental
impacts associated with the site-specific
decommissioning activities will be
bounded by appropriate, previously
issued generic and plant-specific
environmental impact statements.
III. Request for Comment and Public
Meeting
mstockstill on DSK4VPTVN1PROD with NOTICES
The NRC is requesting public
comments on the PSDAR and DCE for
VY. The NRC will conduct a public
meeting to discuss the PSDAR and DCE
and receive comments on Wednesday,
February 19, 2015, from 6 p.m. until 9
p.m., Eastern Standard Time, at the
Quality Inn, 1380 Putney Road,
Brattleboro, VT 05301. For additional
information regarding the meeting, see
the NRC’s Public Meeting Schedule Web
site at https://meetings.nrc.gov/pmns/
mtg. The agenda will be posted no later
than 10 days prior to the meeting.
Dated at Rockville, Maryland, this 6th day
of January, 2015.
For the Nuclear Regulatory Commission.
Douglas A. Broaddus,
Chief, Plant Licensing IV–2 and
Decommissioning Transition Branch,
Division of Operator Reactor Licensing, Office
of Nuclear Reactor Regulation.
[FR Doc. 2015–00450 Filed 1–13–15; 8:45 am]
BILLING CODE 7590–01–P
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OFFICE OF PERSONNEL
MANAGEMENT
Submission for Review: Request for
Change to Unreduced Annuity, RI 20–
120, 3206–0245
Office of Personnel
Management.
ACTION: 30-Day notice and request for
comments.
AGENCY:
The Retirement Services,
Office of Personnel Management (OPM)
offers the general public and other
Federal agencies the opportunity to
comment on an extension, without
change, of a currently approved
information collection (ICR) 3206–0245,
Request for Change to Unreduced
Annuity. As required by the Paperwork
Reduction Act of 1995, (Pub. L. 104–13,
44 U.S.C. chapter 35) as amended by the
Clinger-Cohen Act (Pub. L. 104–106),
OPM is soliciting comments for this
collection. The information collection
was previously published in the Federal
Register on July 16, 2014 at 79 FR
41601, allowing for a 60-day public
comment period. No comments were
received for this information collection.
The purpose of this notice is to allow an
additional 30 days for public comments.
DATES: Comments are encouraged and
will be accepted until February 13,
2015. This process is conducted in
accordance with 5 CFR 1320.1.
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, 725 17th Street NW.,
Washington, DC 20503, Attention: Desk
Officer for the Office of Personnel
Management or sent via electronic mail
to oira_submission@omb.eop.gov or
faxed to (202) 395–6974.
FOR FURTHER INFORMATION CONTACT: A
copy of this ICR, with applicable
supporting documentation, may be
obtained by contacting the Office of
Information and Regulatory Affairs,
Office of Management and Budget, 725
17th Street NW., Washington, DC 20503,
Attention: Desk Officer for the Office of
Personnel Management or sent via
electronic mail to oira_submission@
omb.eop.gov or faxed to (202) 395–6974.
SUPPLEMENTARY INFORMATION: The Office
of Management and Budget is
particularly interested in comments
that:
1. Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
SUMMARY:
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2. Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the
methodology and assumptions used;
3. Enhance the quality, utility, and
clarity of the information to be
collected; and
4. Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., permitting electronic submissions
of responses.
RI 20–120 is designed to collect
information the Office of Personnel
Management needs to comply with the
wishes of the retired Federal employee
whose marriage has ended. This form
provides an organized way for the
retiree to give us everything at one time.
Analysis
Agency: Retirement Operations,
Retirement Services, Office of Personnel
Management.
Title: Request for Change to
Unreduced Annuity.
OMB Number: 3206–0245.
Frequency: On occasion.
Affected Public: Individuals or
households.
Number of Respondents: 5,000.
Estimated Time per Respondent: 30
minutes.
Total Burden Hours: 2,500.
U.S. Office of Personnel Management.
Katherine Archuleta,
Director.
[FR Doc. 2015–00416 Filed 1–13–15; 8:45 am]
BILLING CODE 6325–38–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74016; File No. SR–BOX–
2015–01]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend IM–
5050–6 to BOX Rule 5050 (Short Term
Option Series Program)
January 8, 2015.
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 January 7,
2015, BOX Options Exchange LLC (the
‘‘Exchange’’) filed with the Securities
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
14JAN1
Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Notices
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend IM–
5050–6 to BOX Rule 5050 (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 from the principal office of the
Exchange, at the Commission’s Public
Reference Room and also on the
Exchange’s Internet Web site at https://
boxexchange.com.
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.
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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 IM–
5050–6 to BOX Rule 5050 to extend
current $0.50 strike price intervals in
non-index options to short term options
with strike prices less than $100. This
is a competitive filing that is based on
a proposal recently submitted by the
International Securities Exchange, LLC
(‘‘ISE’’).3
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 IM–5050–6 to extend
$0.50 strike price intervals in non-index
options to short term options with strike
prices less than $100 instead of the
3 See Securities Exchange Act Release No. 73633
(November 18, 2014), 79 FR 69974 (November 24,
2014) (Notice of Filing SR–ISE–2014–52).
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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 Exchange’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.4 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.5 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.6 Specifically, short term
options in non-index option classes
admitted to the Short Term Options
Series Program currently trade in: (1)
$0.50 or greater intervals for strike
prices less than $75, or for option
classes that trade in one dollar
increments in the related monthly
expiration option; (2) $1 or greater
intervals for strike prices that are
between $75 and $150; and (3) $2.50 or
greater intervals for strike prices above
$150.7
The Exchange 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.8 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.9 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
4 See
IM–5050–6(b)(1) to Rule 5050.
IM–5050–6(a) to Rule 5050.
6 See IM–5050–6(b)(5) to Rule 5050.
7 Id.
8 See IM–5050–3 to Rule 5050.
9 Id. The term ‘‘primary market’’ is defined in
Rule 100(a)(49) as the principal market in which an
underlying security is traded.
5 See
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1977
$2.50 Strike Price Program. In order to
remedy this conflict, the Exchange
proposes to extend the $0.50 or greater
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 or greater intervals 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 for
strike prices that are between $100 and
$150; and (3) $2.50 or greater intervals
for strike prices above $150.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),10 in general, and Section 6(b)(5)
of the Act,11 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities, to
remove 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.
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.12 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 to 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
10 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
12 See IM–5050–6(b)(5) to Rule 5050.
11 15
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Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Notices
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
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.
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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. In this regard
and as indicated above, the Exchange
notes that the rule change is being
proposed as a competitive response to a
filing submitted by ISE.13 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. Additionally, the Exchange
believes that the proposed rule change
is necessary to permit fair competition
among the options exchanges with
13 See
supra, note 3.
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respect to Short Term Option Series
Programs.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange has neither solicited
nor received comments on the proposed
rule change.
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 from the date on
which it was filed, or such shorter time
as the Commission may designate, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and Rule 19b–4(f)(6)
thereunder.15
The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange stated that waiver
of this requirement will ensure fair
competition among exchanges by
allowing the Exchange 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
contemporaneously with ISE. For this
reason, the Commission believes that
the proposed rule change presents no
novel issues and that waiver of the 30day operative delay is consistent with
the protection of investors and the
public interest; and will allow the
Exchange to remain competitive with
other exchanges. Therefore, the
Commission designates the proposed
rule change to be operative upon
filing.16
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
14 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.
16 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
15 17
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public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
BOX–2015–01 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–BOX–2015–01. 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
available publicly. All submissions
should refer to File Number SR–BOX–
2015–01 and should be submitted on or
before February 4, 2015.
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Federal Register / Vol. 80, No. 9 / Wednesday, January 14, 2015 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Brent J. Fields,
Secretary.
[FR Doc. 2015–00378 Filed 1–13–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74017; File No. SR–
NYSEMKT–2014–116]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing of Proposed
Rule Change To Amend Rule 967NY
and To Adopt Rule 967.1NY To Provide
Price Protection for Market Maker
Quotes
January 8, 2015.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on December
29, 2014, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
the Securities and Exchange
Commission (the ‘‘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
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 967NY (Price Protection) and to
adopt Rule 967.1NY to provide price
protection for Market Maker quotes. The
text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
mstockstill on DSK4VPTVN1PROD with NOTICES
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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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set forth in sections A, B, and C below,
of the most significant parts 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
Rule 967NY and to adopt Rule 967.1NY
to provide price protection for Market
Maker quotes. The Exchange currently
offers price protection mechanisms for
orders and, at this time, is proposing to
expand its mechanisms to make price
protection available for Market Maker
quotes as well. The Exchange believes
that this proposed enhancement would
assist with the maintenance of fair and
orderly markets by averting the risk of
Market Maker quotes sweeping through
multiple price points resulting in
executions at prices that are through the
last sale price or National Best Bid or
Best Offer (‘‘NBBO’’) and potentially
erroneous.
Rule 967NY, which applies solely to
orders, affords price protection to orders
priced a specified percentage through
the prevailing contra-side market.4
Specifically, Rule 967NY(b) provides a
price protection filter for incoming limit
orders, pursuant to which the Exchange
rejects limit orders priced a specified
percentage 5 through the NBB or NBO
(‘‘Limit Order Filter’’).6 To clarify that
Rule 967NY applies only to orders, the
Exchange proposes [sic] append the
word ‘‘Orders’’ to the Rule 967NY
header to provide ‘‘Rule 967NY. Price
Protection—Orders.’’ The Exchange
believes that this proposed change
would reduce any potential confusion
regarding the applicability of Rule
967NY.
Proposed Market Maker Quote Price
Protection
To further enhance the price
protection functionality available on the
Exchange, the Exchange proposes to
adopt a new rule, Rule 967.1NY, that
4 The Exchange adopted Rule 967NY in 2013. See
Exchange Rule 967NY; see also Securities Exchange
Act Release No. 70037 (July 25, 2013), 78 FR 46399
(July 31, 2013) (NYSEMKT–2013–62).
5 Pursuant to Rule 967NY(b), unless determined
otherwise by the Exchange and announced to ATP
Holders via Trader Update, the specified percentage
is 100% for the contra-side NBB or NBO priced at
or below $1.00 and 50% for contra-side NBB or
NBO priced above $1.00.
6 Until recently the Limit Order Filter was only
applicable to orders received during Core Trading
Hours, but the Exchange has expanded this price
protection feature to limit orders received before the
opening of trading. See Securities Exchange Act
Release No. 73024 (September 9, 2014), 79 FR
55049 (September 15, 2014) (SR–NYSEMKT–2014–
76).
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1979
would provide for a price protection
mechanism for quotes entered by a
Market Maker. To be clear that the
proposed rule is for Market Maker
quotes only, and consistent with the
proposed change to the title for Rule
967NY, the Exchange proposes to title
this new rule ‘‘Price Protection—
Quotes.’’ In addition, Rule 967.1NY(a)
would provide that the proposed price
protection filters would be applicable
only for quotes entered by a Market
Maker pursuant to Rule 925.1NY and
would not be applicable to orders
entered by a Market Maker.7
To take into consideration the unique
role of Market Makers to enter two-sided
quotations in their appointments, the
Exchange proposes to provide for two
layers of price protection that would be
applicable to all incoming Market Maker
quotes. As discussed in detail below,
the first layer of price protection would
assess incoming sell quotes against the
National Best Bid (‘‘NBB’’) and
incoming buy quotes against the
National Best Offer (‘‘NBO’’). The
second layer of price protection would
assess the price of call or put bids
against a specified benchmark.
NBBO Price Reasonability Check
Proposed Rule 967.1NY(a)(1) would
set forth the Exchange’s proposed NBBO
price reasonability check, which would
compare Market Maker bids with the
NBO and Market Maker offers with the
NBB. This proposed price protection is
[sic] mechanism is similar to the Limit
Order Filter. Specifically, provided that
an NBBO is available, a Market Maker
quote would be rejected if it is priced a
specified dollar amount or percentage
through the contra-side NBBO as
follows:
(A) $1.00 for Market Maker bids when
the contra-side NBO is priced at or
below $1.00; or
(B) 50% for Market Maker bids (offers)
when the contra-side NBO (NBB) is
priced above $1.00.
The Exchange would reject inbound
Market Maker quotes that exceed the
parameters set forth in proposed Rule
967.1NY(a)(1)(A)–(B) as presumptively
erroneous. The Exchange believes that
the proposed percentages are
appropriate because they are based on
the percentages already approved for the
Limit Order Filter and are thus
calibrated to enable the Exchange to
reject quotes that otherwise may cause
price dislocation before the erroneous
quotes could cause harm to the market.
The Exchange is also proposing a
specific dollar threshold for when the
7 Orders entered by a Market Maker are covered
by Rule 967NY.
E:\FR\FM\14JAN1.SGM
14JAN1
]]>Agencies
[Federal Register Volume 80, Number 9 (Wednesday, January 14, 2015)]
[Notices]
[Pages 1976-1979]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-00378]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74016; File No. SR-BOX-2015-01]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
IM-5050-6 to BOX Rule 5050 (Short Term Option Series Program)
January 8, 2015.
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 January 7, 2015, BOX Options Exchange LLC (the ``Exchange'') filed
with the Securities
[[Page 1977]]
and Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been prepared by
the self-regulatory organization. The Commission is publishing this
notice to solicit comments on the proposed rule from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend IM-5050-6 to BOX Rule 5050 (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 from
the principal office of the Exchange, at the Commission's Public
Reference Room and also on the Exchange's Internet Web site at https://boxexchange.com.
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 IM-5050-6 to BOX Rule 5050 to extend
current $0.50 strike price intervals in non-index options to short term
options with strike prices less than $100. This is a competitive filing
that is based on a proposal recently submitted by the International
Securities Exchange, LLC (``ISE'').\3\
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\3\ See Securities Exchange Act Release No. 73633 (November 18,
2014), 79 FR 69974 (November 24, 2014) (Notice of Filing SR-ISE-
2014-52).
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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 IM-5050-6 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 Exchange'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.\4\ 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.\5\ 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.\6\ Specifically, short term options in
non-index option classes admitted to the Short Term Options Series
Program currently trade in: (1) $0.50 or greater intervals for strike
prices less than $75, or for option classes that trade in one dollar
increments in the related monthly expiration option; (2) $1 or greater
intervals for strike prices that are between $75 and $150; and (3)
$2.50 or greater intervals for strike prices above $150.\7\
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\4\ See IM-5050-6(b)(1) to Rule 5050.
\5\ See IM-5050-6(a) to Rule 5050.
\6\ See IM-5050-6(b)(5) to Rule 5050.
\7\ Id.
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The Exchange 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.\8\ 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.\9\ 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 or greater 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 or greater intervals 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 for strike prices
that are between $100 and $150; and (3) $2.50 or greater intervals for
strike prices above $150.
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\8\ See IM-5050-3 to Rule 5050.
\9\ Id. The term ``primary market'' is defined in Rule
100(a)(49) as the principal market in which an underlying security
is traded.
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2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Securities Exchange Act of 1934
(the ``Act''),\10\ in general, and Section 6(b)(5) of the Act,\11\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and, in general to protect investors and the
public interest.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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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.\12\ 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 to 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
[[Page 1978]]
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.
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\12\ See IM-5050-6(b)(5) to Rule 5050.
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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 not necessary or appropriate in
furtherance of the purposes of the Act. In this regard and as indicated
above, the Exchange notes that the rule change is being proposed as a
competitive response to a filing submitted by ISE.\13\ 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. Additionally, the Exchange believes
that the proposed rule change is necessary to permit fair competition
among the options exchanges with respect to Short Term Option Series
Programs.
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\13\ See supra, note 3.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has neither solicited nor received comments on the
proposed rule change.
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 from the date on which it was filed, or such shorter time as the
Commission may designate, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-4(f)(6)
thereunder.\15\
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 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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The Exchange has asked the Commission to waive the 30-day operative
delay so that the proposal may become operative immediately upon
filing. The Exchange stated that waiver of this requirement will ensure
fair competition among exchanges by allowing the Exchange 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 contemporaneously with ISE. For this reason, the
Commission believes that the proposed rule change presents no novel
issues and that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest; and will allow the
Exchange to remain competitive with other exchanges. Therefore, the
Commission designates the proposed rule change to be operative upon
filing.\16\
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\16\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-BOX-2015-01 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-BOX-2015-01. 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 available publicly. All
submissions should refer to File Number SR-BOX-2015-01 and should be
submitted on or before February 4, 2015.
[[Page 1979]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-00378 Filed 1-13-15; 8:45 am]
BILLING CODE 8011-01-P
