Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending Its Program That Allows Transactions To Take Place at a Price That Is Below $1 Per Option Contract Until January 5, 2017, 79645-79647 [2015-32049]
Download as PDF
<![CDATA[
Federal Register / Vol. 80, No. 245 / Tuesday, December 22, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
arrangements, average price accounts,
and depository institutions, in a
standardized format when requested by
the Commission staff. In addition,
Paragraph (a)(3)(c) of Rule 17a–25
requires broker-dealers to submit, and
keep current, contact person
information for electronic blue sheets
(‘‘EBS’’) requests. The Commission uses
the information for enforcement
inquiries or investigations and trading
reconstructions, as well as for
inspections and examinations.
The Commission estimates that it
sends approximately 7,697 electronic
blue sheet requests per year to clearing
broker-dealers that in turn submit an
average 124,912 responses.1 It is
estimated that each broker-dealer that
responds electronically will take 8
minutes, and each broker-dealer that
responds manually will take 11⁄2 hours
to prepare and submit the securities
trading data requested by the
Commission. The annual aggregate hour
burden for electronic and manual
response firms is estimated to be 8,114
(59,958 × 8 ÷ 60 = 7,994 hours) + (80
× 1.5 = 120 hours), respectively.2 In
addition, the Commission estimates that
it will request 8 broker-dealers to supply
the contact information identified in
Rule 17a–25(c) and estimates the total
aggregate burden hours to be 2. Thus,
the annual aggregate burden for all
respondents to the collection of
information requirements of Rule 17a–
25 is estimated at 8,116 hours (7,994 +
120 + 2).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (d)
ways to minimize the burden of the
collection of information on
1 A single EBS request has a unique number
assigned to each request (e.g. ‘‘0900001’’). However,
the number of broker-dealer responses generated
from one EBS request can range from one to several
thousand. EBS requests are sent directly to clearing
firms, as the clearing firm is the repository for
trading data for securities transactions information
provided by itself and correspondent firms.
Clearing brokers respond for themselves and other
firms they clear for. There were 124,912 responses
during the 25 month period for an average of
4,996.5 responses per month or an average of 59,958
annual responses.
2 Few of respondents submit manual EBS
responses. The small percentage of respondents that
submit manual responses do so by hand, via email,
spreadsheet, disk, or other electronic media. Thus,
the number of manual submissions (80) has
minimal effect on the total annual burden hours.
VerDate Sep<11>2014
17:21 Dec 21, 2015
Jkt 238001
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Pamela Dyson, Director/Chief
Information Office, Securities and
Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: December 16, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–32053 Filed 12–21–15; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–76668; File No. SR–
NYSEMKT–2015–104]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Extending Its Program
That Allows Transactions To Take
Place at a Price That Is Below $1 Per
Option Contract Until January 5, 2017
December 16, 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
9, 2015, 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 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 extend its
program that allows transactions to take
place at a price that is below $1 per
option contract until January 5, 2017.
The proposed rule change is available
on the Exchange’s Web site at
1 15
U.S.C.78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
Frm 00091
Fmt 4703
www.nyse.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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant 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 purpose of this filing is to extend
the Pilot Program 4 under Rule 968NY to
allow accommodation transactions
(‘‘Cabinet Trades’’) to take place at a
price that is below $1 per option
contract for one additional year. The
Exchange proposes to extend the
program, which is due to expire on
January 5, 2016, until January 5, 2017.
An ‘‘accommodation’’ or ‘‘cabinet’’
trade refers to trades in listed options on
the Exchange that are worthless and
typically not actively traded. Cabinet
trading is generally conducted in
accordance with the Exchange Rules,
except as provided in Exchange Rule
968NY Accommodation Transactions
(Cabinet Trades), which sets forth
specific procedures for engaging in
cabinet trades. Rule 968NY currently
provides for cabinet transactions to
occur via open outcry at a cabinet price
of a $1 per option contract in any
options series open for trading in the
Exchange, except that the Rule is not
applicable to trading in option classes
participating in the Penny Pilot
Program. Under the procedures, bids
and offers (whether opening or closing
a position) at a price of $1 per option
contract may be represented in the
trading crowd by a Floor Broker or by
a Market Maker or provided in response
to a request by a Trading Official, a
Floor Broker or a Market Maker, but
must yield priority to all resting orders
in the Cabinet (those orders held by the
Trading Official, and which resting
cabinet orders may be closing only).
4 See Securities Exchange Act Release No. 63475
(December 8, 2010), 75 FR 77932 (December 14,
2010)(SR–NYSE Amex–2010–114).
2 15
PO 00000
79645
Sfmt 4703
E:\FR\FM\22DEN1.SGM
22DEN1
79646
Federal Register / Vol. 80, No. 245 / Tuesday, December 22, 2015 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
Provided that the buyer and the seller
yield to orders resting in the cabinet
book, opening cabinet bids can trade
with opening cabinet offers at $1 per
option contract.
The Exchange has temporarily
amended the procedures through
January 5, 2016 to allow transactions to
take place in open outcry at a price of
at least $0 but less than $1 per option
contract. These lower-priced
transactions are permitted to be traded
pursuant to the same procedures
applicable to $1 cabinet trades, except
that (i) bids and offers for opening
transactions are only permitted to
accommodate closing transactions in
order to limit use of the procedure to
liquidations of existing positions, and
(ii) the procedures are also made
available for trading in option classes
participating in the Penny Pilot
Program.5 The Exchange believes that
allowing a price of at least $0 but less
than $1 better accommodates the closing
of options positions in series that are
worthless or not actively traded,
particularly in the event where there has
been a significant move in the price of
the underlying security that results in a
large number of series being out-of-themoney. For example, a market
participant might have a long position
in a put series with a strike price of $30
and the underlying stock might be
trading at $100. In such an instance,
there might not otherwise be a market
for that person to close-out the position
even at the $1 cabinet price (e.g., the
series might be quoted no bid).
As with other accommodation
liquidations under Rule 968NY,
transactions that occur for less than $1
will not be disseminated to the public
on the consolidated tape. In addition, as
with other accommodation liquidations
under Rule 968NY the transactions will
be exempt from the Consolidated
Options Audit Trail (‘‘COATS’’)
requirements of Exchange Rule 955NY
Order Format and System Entry
Requirements. However, the Exchange
will maintain quotation, order and
transaction information for the
transactions in the same format as the
COATS data is maintained. In this
regard, all transactions for less than $1
5 Currently, the $1 cabinet trading procedures are
limited to options classes traded in $0.05 or $0.10
standard increment. The $1 cabinet trading
procedures are not available in Penny Pilot Program
classes because in those classes an option series can
trade in a standard increment as low as $0.01 per
share (or $1.00 per option contract with a 100 share
multiplier). Because the temporary procedures
allow trading below $0.01 per share (or $1.00 per
option contract with a 100 share multiplier), the
procedures are available for all classes, including
those classes participating in the Penny Pilot
Program.
VerDate Sep<11>2014
17:21 Dec 21, 2015
Jkt 238001
must be reported to the Exchange
following the close of each business
day.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with Section
6(b) 6 of the Securities Exchange Act of
1934 (the ‘‘Act’’), in general, and
furthers the objectives of Section
6(b)(5) 7 in particular in that it is
designed to promote just and equitable
principles of trade, to prevent
fraudulent and manipulative acts, to
remove impediments to and to perfect
the mechanism for a free and open
market and a national market system
and, in general, to protect investors and
the public interest. The Exchange
believes that allowing for liquidations at
a price less than $1 per option contract
will better facilitate the closing of
options positions that are worthless or
not actively trading, especially in Penny
Pilot issues where Cabinet Trades are
not otherwise permitted.
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 to extend an
established pilot program for one
additional year and continue to
facilitate ATP Holders ability to close
positions in worthless or not actively
traded series.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
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 if
consistent with the protection of
investors and the public interest,
provided that the self-regulatory
organization has given the Commission
written notice of its intent to file the
proposed rule change at least five
6 15
7 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00092
Fmt 4703
Sfmt 4703
business days prior to the date of filing
of the proposed rule change or such
shorter time as designated by the
Commission,8 the proposed rule change
has become effective pursuant to
Section 19(b)(3)(A) of the Act 9 and Rule
19b–4(f)(6) thereunder.10
Under Rule 19b–4(f)(6) of the Act,11
the proposal does not become operative
for 30 days after the date of its filing, or
such shorter time as the Commission
may designate if consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay period after which a
proposed rule change under Rule 19b–
4(f)(6) becomes operative so that the
pilot may continue without
interruption. The Commission believes
that waiver of the 30-day operative
delay is consistent with the protection
of investors and the public interest
because it will allow the pilot to
continue uninterrupted, thereby
avoiding any potential investor
confusion that could result from a
temporary interruption in the pilot and
allowing members to continue to benefit
from the program. Based on the
foregoing, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.12
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 13 of the Act to
determine whether the proposed rule
change 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:
8 The
Exchange has fulfilled this requirement.
U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6).
11 Id.
12 For purposes only of waiving the operative
delay, the Commission has considered the proposed
rule’s impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
13 15 U.S.C. 78s(b)(2)(B).
9 15
E:\FR\FM\22DEN1.SGM
22DEN1
Federal Register / Vol. 80, No. 245 / Tuesday, December 22, 2015 / Notices
Electronic Comments
SMALL BUSINESS ADMINISTRATION
• 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–
NYSEMKT–2015–104 on the subject
line.
Reporting and Recordkeeping
Requirements Under OMB Review
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–NYSEMKT–2015–104. 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–
NYSEMKT–2015–104, and should be
submitted on or before January 12, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–32049 Filed 12–21–15; 8:45 am]
BILLING CODE 8011–01–P
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:21 Dec 21, 2015
Jkt 238001
AGENCY:
ACTION:
Small Business Administration.
The Small Business
Administration (SBA) is publishing this
notice to comply with requirements of
the Paperwork Reduction Act (PRA) (44
U.S.C. Chapter 35), which requires
agencies to submit proposed reporting
and recordkeeping requirements to
OMB for review and approval, and to
publish a notice in the Federal Register
notifying the public that the agency has
made such a submission. This notice
also allows an additional 30 days for
public comments.
SUMMARY:
Submit comments on or before
January 21, 2016.
DATES:
Comments should refer to
the information collection by name and/
or OMB Control Number and should be
sent to: Agency Clearance Officer, Curtis
Rich, Small Business Administration,
409 3rd Street SW., 5th Floor,
Washington, DC 20416; and SBA Desk
Officer, Office of Information and
Regulatory Affairs, Office of
Management and Budget, New
Executive Office Building, Washington,
DC 20503.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Curtis Rich, Agency Clearance Officer,
(202) 205–7030 curtis.rich@sba.gov.
Copies: A copy of the Form OMB 83–
1, supporting statement, and other
documents submitted to OMB for
review may be obtained from the
Agency Clearance Officer.
The Small
Business Act, as amended by the Small
Business Innovation Research (SBIR)
and Small Business Technology
Transfer Program (STTR)
Reauthorization Act of 2011, requires
SBA to collect regarding the SBIR and
STTR awards made by the federal
agencies that participate in those
programs. SBA is required to maintain
this information in searchable electronic
databases and also to report the
information to Congress annually.
Title: SBA to collect regarding the
SBIR and STTR awards and Small
Business Transfer (STTR) Tech-Net
Database.
Description of Respondents: SBA to
collect regarding the SBIR and STTR
awards.
Form Number: N/A.
Estimated Annual Responses: 13,500.
PO 00000
Frm 00093
Fmt 4703
Sfmt 9990
Estimated Annual Hour Burden:
62,370.
Curtis B. Rich,
Management Analyst.
[FR Doc. 2015–32032 Filed 12–21–15; 8:45 am]
BILLING CODE 8025–01–P
30-Day Notice.
SUPPLEMENTARY INFORMATION:
79647
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments
60 Day Notice and request for
comments.
ACTION:
The Small Business
Administration (SBA) intends to request
approval, from the Office of
Management and Budget (OMB) for the
collection of information described
below. The Paperwork Reduction Act
(PRA) of 1995, 44 U.S.C. Chapter 35
requires federal agencies to publish a
notice in the Federal Register
concerning each proposed collection of
information before submission to OMB,
and to allow 60 days for public
comment in response to the notice. This
notice complies with that requirement.
DATES: Submit comments on or before
February 22, 2016.
ADDRESSES: Send all comments to, Jodie
Fenner, Administrative Support
Assistant, Office of the Ombudsman,
Small Business Administration, 409 3rd
Street SW., Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
Jodie Fenner, Administrative Support
Assistant, jodie.fenner@sba.gov 202–
205–9632, or Curtis B. Rich,
Management Analyst, 202–205–7030
curtis.rich@sba.gov.
SUPPLEMENTARY INFORMATION: The Small
Business Regulatory Enforcement
Fairness Act of 1966, 15 U.S.C. Sec.
657(b)(2)(B), requires the SBA National
Ombudsman to establish a means for
SBA to receive comments on regulatory
and compliance actions from small
entities regarding their disagreements
with a Federal Agency action. The
Ombudsman uses it to obtain the
agency’s response, encourage a fresh
look by the agency at a high level, and
build a more small business-friendly
regulatory environment.
Title: ‘‘Federal Agency Comment
Form’’.
Description of Respondents: Small
business entities.
Form Number: SBA Form 1993.
Annual Responses: 350.
Annual Burden: 263.
SUMMARY:
Curtis Rich,
Management Analyst.
[FR Doc. 2015–32066 Filed 12–21–15; 8:45 am]
BILLING CODE P
E:\FR\FM\22DEN1.SGM
22DEN1
]]>Agencies
[Federal Register Volume 80, Number 245 (Tuesday, December 22, 2015)]
[Notices]
[Pages 79645-79647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32049]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-76668; File No. SR-NYSEMKT-2015-104]
Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Extending Its Program
That Allows Transactions To Take Place at a Price That Is Below $1 Per
Option Contract Until January 5, 2017
December 16, 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 9, 2015, 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 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\ 15 U.S.C. 78a.
\3\ 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 extend its program that allows
transactions to take place at a price that is below $1 per option
contract until January 5, 2017. 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.
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, 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 purpose of this filing is to extend the Pilot Program \4\ under
Rule 968NY to allow accommodation transactions (``Cabinet Trades'') to
take place at a price that is below $1 per option contract for one
additional year. The Exchange proposes to extend the program, which is
due to expire on January 5, 2016, until January 5, 2017.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 63475 (December 8,
2010), 75 FR 77932 (December 14, 2010)(SR-NYSE Amex-2010-114).
---------------------------------------------------------------------------
An ``accommodation'' or ``cabinet'' trade refers to trades in
listed options on the Exchange that are worthless and typically not
actively traded. Cabinet trading is generally conducted in accordance
with the Exchange Rules, except as provided in Exchange Rule 968NY
Accommodation Transactions (Cabinet Trades), which sets forth specific
procedures for engaging in cabinet trades. Rule 968NY currently
provides for cabinet transactions to occur via open outcry at a cabinet
price of a $1 per option contract in any options series open for
trading in the Exchange, except that the Rule is not applicable to
trading in option classes participating in the Penny Pilot Program.
Under the procedures, bids and offers (whether opening or closing a
position) at a price of $1 per option contract may be represented in
the trading crowd by a Floor Broker or by a Market Maker or provided in
response to a request by a Trading Official, a Floor Broker or a Market
Maker, but must yield priority to all resting orders in the Cabinet
(those orders held by the Trading Official, and which resting cabinet
orders may be closing only).
[[Page 79646]]
Provided that the buyer and the seller yield to orders resting in the
cabinet book, opening cabinet bids can trade with opening cabinet
offers at $1 per option contract.
The Exchange has temporarily amended the procedures through January
5, 2016 to allow transactions to take place in open outcry at a price
of at least $0 but less than $1 per option contract. These lower-priced
transactions are permitted to be traded pursuant to the same procedures
applicable to $1 cabinet trades, except that (i) bids and offers for
opening transactions are only permitted to accommodate closing
transactions in order to limit use of the procedure to liquidations of
existing positions, and (ii) the procedures are also made available for
trading in option classes participating in the Penny Pilot Program.\5\
The Exchange believes that allowing a price of at least $0 but less
than $1 better accommodates the closing of options positions in series
that are worthless or not actively traded, particularly in the event
where there has been a significant move in the price of the underlying
security that results in a large number of series being out-of-the-
money. For example, a market participant might have a long position in
a put series with a strike price of $30 and the underlying stock might
be trading at $100. In such an instance, there might not otherwise be a
market for that person to close-out the position even at the $1 cabinet
price (e.g., the series might be quoted no bid).
---------------------------------------------------------------------------
\5\ Currently, the $1 cabinet trading procedures are limited to
options classes traded in $0.05 or $0.10 standard increment. The $1
cabinet trading procedures are not available in Penny Pilot Program
classes because in those classes an option series can trade in a
standard increment as low as $0.01 per share (or $1.00 per option
contract with a 100 share multiplier). Because the temporary
procedures allow trading below $0.01 per share (or $1.00 per option
contract with a 100 share multiplier), the procedures are available
for all classes, including those classes participating in the Penny
Pilot Program.
---------------------------------------------------------------------------
As with other accommodation liquidations under Rule 968NY,
transactions that occur for less than $1 will not be disseminated to
the public on the consolidated tape. In addition, as with other
accommodation liquidations under Rule 968NY the transactions will be
exempt from the Consolidated Options Audit Trail (``COATS'')
requirements of Exchange Rule 955NY Order Format and System Entry
Requirements. However, the Exchange will maintain quotation, order and
transaction information for the transactions in the same format as the
COATS data is maintained. In this regard, all transactions for less
than $1 must be reported to the Exchange following the close of each
business day.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
Section 6(b) \6\ of the Securities Exchange Act of 1934 (the ``Act''),
in general, and furthers the objectives of Section 6(b)(5) \7\ in
particular in that it is designed to promote just and equitable
principles of trade, to prevent fraudulent and manipulative acts, to
remove impediments to and to perfect the mechanism for a free and open
market and a national market system and, in general, to protect
investors and the public interest. The Exchange believes that allowing
for liquidations at a price less than $1 per option contract will
better facilitate the closing of options positions that are worthless
or not actively trading, especially in Penny Pilot issues where Cabinet
Trades are not otherwise permitted.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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
to extend an established pilot program for one additional year and
continue to facilitate ATP Holders ability to close positions in
worthless or not actively traded series.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule 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 if consistent with the protection of
investors and the public interest, provided that the self-regulatory
organization has given 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,\8\ the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\
---------------------------------------------------------------------------
\8\ The Exchange has fulfilled this requirement.
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
Under Rule 19b-4(f)(6) of the Act,\11\ the proposal does not become
operative for 30 days after the date of its filing, or such shorter
time as the Commission may designate if consistent with the protection
of investors and the public interest. The Exchange has requested that
the Commission waive the 30-day operative delay period after which a
proposed rule change under Rule 19b-4(f)(6) becomes operative so that
the pilot may continue without interruption. The Commission believes
that waiver of the 30-day operative delay is consistent with the
protection of investors and the public interest because it will allow
the pilot to continue uninterrupted, thereby avoiding any potential
investor confusion that could result from a temporary interruption in
the pilot and allowing members to continue to benefit from the program.
Based on the foregoing, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\12\
---------------------------------------------------------------------------
\11\ Id.
\12\ For purposes only of waiving the 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 such 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 under
Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
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:
[[Page 79647]]
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-NYSEMKT-2015-104 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-NYSEMKT-2015-104. 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-NYSEMKT-2015-104, and should
be submitted on or before January 12, 2016.
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-32049 Filed 12-21-15; 8:45 am]
BILLING CODE 8011-01-P
