Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend IM-3120-2 to Rule 3120 To Extend the Pilot Program That Eliminated the Position Limits for Options on SPDR S&P 500 ETF, 7064-7066 [2015-02503]
Download as PDF
7064
Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices
Participants who have a financial
interest in the risk settings of
Participants with whom the Clearing
Participant has entered into a clearing
Letter of Guarantee to better monitor
and manage the potential risks assumed
by Clearing Participants, thereby
providing Clearing Participants with
greater control and flexibility over
setting their own risk tolerance and
exposure and aiding Clearing
Participants in complying with the Act.
To the extent a Clearing Participant
might reasonably require a Participant
to provide access to its risk setting as a
prerequisite to continuing to clear trades
on the Participant’s behalf, the
Exchange’s proposal to share those risk
settings directly reduces the
administrative burden on Participants
and ensures that Clearing Participants
are receiving information that is up to
date and conforms to the settings active
in the Exchange’s trading system.
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. The
proposed rule change is not designed to
address any competitive issues and does
not pose an undue burden on nonClearing Participants because, unlike
Clearing Participants, non-Clearing
Participants do not guarantee the
execution of a Participant’s transactions
on the Exchange. The proposal is
structured to offer the same
enhancement to all Clearing
Participants, regardless of size, and
would not impose a competitive burden
on any Participant. Any Participant that
does not wish to share its designated
risk settings with its Clearing
Participant could avoid sharing such
settings by becoming a Clearing
Participant.
mstockstill on DSK4VPTVN1PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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, it has
VerDate Sep<11>2014
17:39 Feb 06, 2015
Jkt 235001
become effective pursuant to Section
19(b)(3)(A)(ii) [sic] of the Act 11 and
subparagraph (f)(6) of Rule 19b–4
thereunder.12
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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:
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
filing also will be available for
inspection and copying at the principal
offices of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NASDAQ–2015–007, and should be
submitted on or before March 2, 2015.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015–02511 Filed 2–6–15; 8:45 am]
BILLING CODE 8011–01–P
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NASDAQ–2015–007 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–NASDAQ–2015–007. 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
15 U.S.C. 78s(b)(3)(a)(ii).
17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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. The Exchange has satisfied this
requirement.
11
12
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–74196; File No. SR–BOX–
2015–07]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
IM–3120–2 to Rule 3120 To Extend the
Pilot Program That Eliminated the
Position Limits for Options on SPDR
S&P 500 ETF
February 3, 2015.
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 January
26, 2015, BOX Options Exchange LLC
(the ‘‘Exchange’’) filed with the
Securities 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
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
The Exchange proposes to amend IM–
3120–2 to Rule 3120 to extend the pilot
program that eliminated the position
limits for options on SPDR S&P 500 ETF
17 CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
13
1 15
E:\FR\FM\09FEN1.SGM
09FEN1
Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices
(‘‘SPY’’) (‘‘SPY Pilot Program’’). 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
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Purpose
The Exchange proposes to amend IM–
3120–2 to Rule 3120 to extend the time
period of the SPY Pilot Program,3 which
is currently scheduled to expire on
January 27, 2015, through July 12, 2015.
This filing does not propose any
substantive changes to the SPY Pilot
Program. In proposing to extend the
SPY Pilot Program, the Exchange
reaffirms its consideration of several
factors that supported the original
proposal of the SPY Pilot Program,
including (1) the availability of
economically equivalent products and
their respective position limits, (2) the
liquidity of the option and the
underlying security, (3) the market
capitalization of the underlying security
and the related index, (4) the reporting
of large positions and requirements
surrounding margin, and (5) the
potential for market on close volatility.
In the original proposal to establish
the SPY Pilot Program, the Exchange
stated that if it were to propose an
extension, permanent approval or
termination of the program, the
Exchange would submit, along with any
filing proposing such amendments to
the program, a report providing an
analysis of the SPY Pilot Program
covering the first twelve (12) months
during which the SPY Pilot Program
3 See Securities Exchange Act Release No. 67936
(September 27, 2012), 77 FR 60491 (October 3,
2012) (Notice of Filing and Immediate Effectiveness
of SR–BOX–2012–013).
VerDate Sep<11>2014
17:39 Feb 06, 2015
Jkt 235001
was in effect (the ‘‘Pilot Report’’).4
Accordingly, the Exchange is submitting
the Pilot Report detailing the Exchange’s
experience with the SPY Pilot Program.
The Pilot Report is attached as Exhibit
3 to this filing. The Exchange notes that
it is unaware of any problems created by
the SPY Pilot Program and does not
foresee any as a result of the proposed
extension. In extending the SPY Pilot
Program, the Exchange states that if it
were to propose another extension,
permanent approval or termination of
the program, the Exchange will submit
another Pilot Report covering the period
since the previous extension, which will
be submitted at least 30 days before the
end of the proposed extension.
2. Statutory Basis
The Exchange believes that the
proposal is consistent with the
requirements of Section 6(b) of the Act,
in general, and Section 6(b)(5) of the
Act, in particular, in that it is designed
to prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. The Exchange believes
that extending the SPY Pilot Program
promotes just and equitable principles
of trade by permitting market
participants, including market makers,
institutional investors and retail
investors, to establish greater positions
when pursuing their investment goals
and needs.
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. The
proposed rule change is not designed to
address any aspect of competition,
whether between the Exchange and its
competitors, or among market
participants. Instead, the proposed rule
change is designed to allow the SPY
Pilot Program to continue as other SROs
have adopted similar provisions.
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.
4 See
PO 00000
supra note 3.
Frm 00121
Fmt 4703
Sfmt 4703
7065
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing 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, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 5 and Rule 19b–
4(f)(6) thereunder.6
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 7 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 8
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange believes that
waiving the 30-day operative delay is
appropriate and will benefit market
participants because immediate
operability would allow the SPY Pilot
Program to continue without
interruption. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.9
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
change should be approved or
disapproved.
5 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission 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. The
Exchange has satisfied this requirement.
7 17 CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6)(iii).
9 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule’s impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
6 17
E:\FR\FM\09FEN1.SGM
09FEN1
7066
Federal Register / Vol. 80, No. 26 / Monday, February 9, 2015 / Notices
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:
• 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–2015–07 on the subject line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–BOX–2015–07. 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 such
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–
2015–07, and should be submitted on or
before March 2, 2015.
17:39 Feb 06, 2015
[FR Doc. 2015–02503 Filed 2–6–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Jill M. Peterson,
Assistant Secretary.
Jkt 235001
[Release No. 34–74193; File No. SR–BATS–
2014–054]
Self-Regulatory Organizations; BATS
Exchange, Inc.; Order Approving a
Proposed Rule Change To List and
Trade Shares of the iShares Short
Maturity Municipal Bond ETF of the
iShares U.S. ETF Trust Under Rule
14.11(i) of BATS Exchange, Inc.
February 3, 2015.
I. Introduction
On December 12, 2014, BATS
Exchange, Inc. (the ‘‘Exchange’’ or
‘‘BATS’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘Exchange Act’’) 2 and Rule 19b–4
thereunder,3 a proposed rule change to
list and trade shares (‘‘Shares’’) of the
iShares Short Maturity Municipal Bond
ETF (the ‘‘Fund’’) under BATS Rule
14.11(i). The proposed rule change was
published for comment in the Federal
Register on December 29, 2014.4 The
Commission received no comments on
the proposed rule change. This order
approves the proposed rule change.
II. Description of the Proposal
The Exchange proposes to list and
trade the Shares under BATS Rule
14.11(i), which governs the listing and
trading of Managed Fund Shares on the
Exchange. The Exchange deems the
Shares to be equity securities, thus
rendering trading in the Shares subject
to the Exchange’s existing rules
governing the trading of equity
securities.
The Shares will be offered by the
iShares U.S. ETF Trust (the ‘‘Trust’’), a
Delaware statutory trust. The Trust is
registered with the Commission as an
open-end investment company and has
filed a registration statement on behalf
of the Fund on Form N–1A
(‘‘Registration Statement’’) with the
10 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.
4 See Securities Exchange Act Release No. 73895
(December 19, 2014), 79 FR 78125 (‘‘Notice’’).
1 15
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
Commission.5 BlackRock Fund Advisors
is the investment adviser (‘‘BFA’’ or
‘‘Adviser’’) to the Fund.6 State Street
Bank and Trust Company is the
administrator, custodian, and transfer
agent for the Trust. BlackRock
Investments, LLC serves as the
distributor for the Trust. The Exchange
represents that the Adviser is not a
registered broker-dealer, but is affiliated
with multiple broker-dealers and has
implemented fire walls with respect to
such broker-dealers regarding access to
information concerning the composition
and/or changes to the Fund’s portfolio.7
The Exchange further represents that
Adviser personnel who make decisions
regarding the Fund’s portfolio are
subject to procedures designed to
prevent the use and dissemination of
material nonpublic information
regarding the Fund’s portfolio.8
The Exchange has made the following
representations and statements
regarding the Fund.9 The Fund will seek
to maximize tax-free current income.
Generally, the Fund’s effective
duration 10 will be 1.2 years or less, and
it is not expected to exceed 1.5 years.
To achieve its objective, the Fund will
invest, under normal circumstances,11
5 See Registration Statement on Form N–1A for
the Trust, dated September 3, 2014 (File Nos. 333–
179904 and 811–22649). See also Investment
Company Act Release No. 29571 (January 24, 2011)
(File No. 812–13601).
6 BFA is an indirect wholly owned subsidiary of
BlackRock, Inc.
7 See Notice, supra note 4, at 78126.
8 See id.; see also BATS Rule 14.11(i)(7). The
Exchange also represents that in the event that (a)
the Adviser becomes registered as a broker-dealer
or newly affiliated with another broker-dealer, or (b)
any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with a brokerdealer, it will implement a fire wall with respect to
its relevant personnel or such broker-dealer
affiliate, as applicable, regarding access to
information concerning the composition and/or
changes to the portfolio, and will be subject to
procedures designed to prevent the use and
dissemination of material non-public information
regarding such portfolio.
9 The Commission notes that additional
information regarding the Trust, the Fund, and the
Shares, investment strategies, risks, net asset value
(‘‘NAV’’) calculation, creation and redemption
procedures, fees and expenses, portfolio holdings
disclosure policies, distributions, and taxes, among
other information, is included in the Notice and
Registration Statement. See supra notes 4 and 5,
respectively.
10 The Exchange states that effective duration is
a measure of the Fund’s price sensitivity to changes
in yields or interest rates. See Notice, supra note 4,
79 FR at 78126, n.11.
11 The term ‘‘under normal circumstances’’
includes, but is not limited to, the absence of
adverse market, economic, political, or other
conditions, including extreme volatility or trading
halts in the financial markets; operational issues
causing dissemination of inaccurate market
information; or force majeure type events such as
systems failure, natural or man-made disaster, act
of God, armed conflict, act of terrorism, riot, or
labor disruption, or any similar intervening
circumstance.
E:\FR\FM\09FEN1.SGM
09FEN1
Agencies
[Federal Register Volume 80, Number 26 (Monday, February 9, 2015)]
[Notices]
[Pages 7064-7066]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02503]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-74196; File No. SR-BOX-2015-07]
Self-Regulatory Organizations; BOX Options Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend IM-3120-2 to Rule 3120 To Extend the Pilot Program That
Eliminated the Position Limits for Options on SPDR S&P 500 ETF
February 3, 2015.
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 January 26, 2015, BOX Options Exchange LLC (the ``Exchange'')
filed with the Securities 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
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 the
Substance of the Proposed Rule Change
The Exchange proposes to amend IM-3120-2 to Rule 3120 to extend the
pilot program that eliminated the position limits for options on SPDR
S&P 500 ETF
[[Page 7065]]
(``SPY'') (``SPY Pilot Program''). 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-3120-2 to Rule 3120 to extend the
time period of the SPY Pilot Program,\3\ which is currently scheduled
to expire on January 27, 2015, through July 12, 2015.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 67936 (September 27,
2012), 77 FR 60491 (October 3, 2012) (Notice of Filing and Immediate
Effectiveness of SR-BOX-2012-013).
---------------------------------------------------------------------------
This filing does not propose any substantive changes to the SPY
Pilot Program. In proposing to extend the SPY Pilot Program, the
Exchange reaffirms its consideration of several factors that supported
the original proposal of the SPY Pilot Program, including (1) the
availability of economically equivalent products and their respective
position limits, (2) the liquidity of the option and the underlying
security, (3) the market capitalization of the underlying security and
the related index, (4) the reporting of large positions and
requirements surrounding margin, and (5) the potential for market on
close volatility.
In the original proposal to establish the SPY Pilot Program, the
Exchange stated that if it were to propose an extension, permanent
approval or termination of the program, the Exchange would submit,
along with any filing proposing such amendments to the program, a
report providing an analysis of the SPY Pilot Program covering the
first twelve (12) months during which the SPY Pilot Program was in
effect (the ``Pilot Report'').\4\ Accordingly, the Exchange is
submitting the Pilot Report detailing the Exchange's experience with
the SPY Pilot Program. The Pilot Report is attached as Exhibit 3 to
this filing. The Exchange notes that it is unaware of any problems
created by the SPY Pilot Program and does not foresee any as a result
of the proposed extension. In extending the SPY Pilot Program, the
Exchange states that if it were to propose another extension, permanent
approval or termination of the program, the Exchange will submit
another Pilot Report covering the period since the previous extension,
which will be submitted at least 30 days before the end of the proposed
extension.
---------------------------------------------------------------------------
\4\ See supra note 3.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposal is consistent with the
requirements of Section 6(b) of the Act, in general, and Section
6(b)(5) of the Act, in particular, in that it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The Exchange
believes that extending the SPY Pilot Program promotes just and
equitable principles of trade by permitting market participants,
including market makers, institutional investors and retail investors,
to establish greater positions when pursuing their investment goals and
needs.
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. The proposed rule change is not
designed to address any aspect of competition, whether between the
Exchange and its competitors, or among market participants. Instead,
the proposed rule change is designed to allow the SPY Pilot Program to
continue as other SROs have adopted similar provisions.
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 foregoing 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, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \5\ and Rule 19b-
4(f)(6) thereunder.\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
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. The Exchange has satisfied this requirement.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \7\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \8\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The Exchange
believes that waiving the 30-day operative delay is appropriate and
will benefit market participants because immediate operability would
allow the SPY Pilot Program to continue without interruption. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the operative delay and
designates the proposed rule change operative upon filing.\9\
---------------------------------------------------------------------------
\7\ 17 CFR 240.19b-4(f)(6).
\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ For purposes only of waiving the 30-day operative delay, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
---------------------------------------------------------------------------
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 change should be approved or
disapproved.
[[Page 7066]]
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-2015-07 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-BOX-2015-07. 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 such 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-2015-07, and should be
submitted on or before March 2, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2015-02503 Filed 2-6-15; 8:45 am]
BILLING CODE 8011-01-P