Self-Regulatory Organizations; Miami International Securities Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules 307 and 309 To Extend the SPY Pilot Program, 42032-42033 [2016-15170]
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42032
Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Notices
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–
NASDAQ–2016–084, and should be
submitted on or before July 19, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Brent J. Fields,
Secretary.
[FR Doc. 2016–15173 Filed 6–27–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–78120; File No. SR–MIAX–
2016–17]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rules
307 and 309 To Extend the SPY Pilot
Program
June 22, 2016.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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 June 10,
2016, Miami International Securities
Exchange LLC (‘‘MIAX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
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 is filing a proposal to
amend Exchange Rules 307 and 309 to
extend the pilot program that eliminates
the position and exercise limits for
physically-settled options on the SPDR®
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17:49 Jun 27, 2016
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
Exchange 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
Exchange 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
Exchange Rules 307, Position Limits,
and 309, Exercise Limits, establish
position and exercise limits for
aggregate positions in option contracts
traded on the Exchange. Interpretations
and Policies .01 to Rule 307 lists
specific position limits for options on
specific underlying securities, and
Interpretations and Policies .01 to Rule
309 lists specific exercise limits for
options on specific underlying
securities. Among the listed specific
underlying securities is the SPDR® S&P
500® ETF Trust (‘‘SPY’’). Currently,
each of these Rules provides that there
is no position limit and no exercise
limit on options overlying SPY. The
position and exercise limits for options
overlying SPY in each of these Rules are
the subject of a pilot program, which is
scheduled to expire on July 12, 2016.3
The Exchange proposes to amend
Exchange Rule 307, Interpretations and
Policies .01, and Exchange Rule 309,
Interpretations and Policies .01, to
extend the duration of the SPY Pilot
Program through July 12, 2017. There
are no substantive changes being
proposed to the SPY Pilot Program. The
Exchange affirms its consideration of
several factors that support the proposal
3 See Securities Exchange Act Release No. 75448
(July 14, 2015), 80 FR 42856 (July 20, 2015) (SR–
MIAX–2015–46) (extending the SPY Pilot Program
to July 12, 2016).
10 17
VerDate Sep<11>2014
S&P 500® ETF Trust (‘‘SPY Pilot
Program’’) and to make non-substantive
technical corrections to Interpretations
and Policies .01.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/filter/
wotitle/rule_filing, at MIAX’s principal
office, and at the Commission’s Public
Reference Room.
Jkt 238001
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
to establish and extend the SPY Pilot
Program, which include: (1) The
liquidity of the option and the
underlying security; (2) the market
capitalization of the underlying security
and the securities that make up the S&P
500 Index; (3) options reporting
requirements; and (4) financial
requirements imposed by MIAX and the
Commission.
The Exchange notes that it is not
aware of any problems created by the
current SPY Pilot Program and does not
foresee any problems with the proposed
extension. The Exchange has formally
submitted a Report for the SPY Pilot
Program as part of this filing.4 In
addition, the Exchange represents that if
it chooses to extend or seek permanent
approval of the SPY Pilot Program, the
Exchange will submit another SPY Pilot
Program Report at least thirty (30) days
prior to the expiration of the extended
SPY Pilot Program time period which
would cover the period between reports.
The SPY Pilot Program Report will
compare the impact of the pilot
program, if any, on the volumes of SPY
options and the volatility in the price of
the underlying SPY contract,
particularly at expiration. The SPY Pilot
Program Report will also detail the size
and different types of strategies
employed with respect to positions
established in SPY options; note
whether any problems, in the
underlying SPY ETF or otherwise, arose
as a result of the no-limit approach; and
include any other information that may
be useful in evaluating the effectiveness
of the SPY Pilot Program. In preparing
the Pilot Report, the Exchange will
utilize various data elements such as
volume and open interest. In addition
the Exchange would make available to
Commission staff data elements relating
to the effectiveness of the SPY Pilot
Program.
The Exchange proposes to extend the
SPY Pilot Program in order for the
Exchange and the Commission to have
additional time to evaluate the Pilot and
its effect on the market and to determine
whether to seek permanent approval.
Prior to the expiration of the SPY Pilot
Program and based upon the findings of
the SPY Pilot Program Report, the
Exchange will be able to either extend
the SPY Pilot Program, adopt the SPY
Pilot Program on a permanent basis, or
terminate the SPY Pilot Program. If the
SPY Pilot Program is not extended or
adopted on a permanent basis by the
expiration of the extended SPY Pilot
Program, the position limits for options
overlying SPY would revert to limits in
4 See
E:\FR\FM\28JNN1.SGM
Exhibit 3 attached hereto.
28JNN1
Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Notices
effect prior to the commencement of the
SPY Pilot Program.
Additionally, the Exchange proposes
to make non-substantive technical
changes to the chart of securities in
Interpretations and Policies .01 of both
Rule 307 and 309 to reflect the current
names of the underlying securities
identified in the chart.
2. Statutory Basis
MIAX believes that its proposed rule
change is consistent with Section 6(b) of
the Act 5 in general, and furthers the
objectives of Section 6(b)(5) of the Act 6
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
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
Specifically, 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. The Exchange believes that
the elimination of position limits for
SPY options would not increase market
volatility or facilitate the ability to
manipulate the market.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
asabaliauskas on DSK3SPTVN1PROD with NOTICES
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 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 the
Exchange believes other competing
options exchanges will also extend the
SPY Pilot Program for another year.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
17:49 Jun 27, 2016
Jkt 238001
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 after the date of
the filing, or such shorter time as the
Commission may designate, it has
become effective pursuant to 19(b)(3)(A)
of the Act 7 and Rule 19b–4(f)(6) 8
thereunder.
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–
MIAX–2016–17 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–MIAX–2016–17. 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
7 15
U.S.C. 78s(b)(3)(A).
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.
8 17
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
42033
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–MIAX–
2016–17, and should be submitted on or
before July 19, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Brent J. Fields,
Secretary.
[FR Doc. 2016–15170 Filed 6–27–16; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice: 9615]
Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘Los
Angeles to New York, The Dwan
Gallery 1959–1971’’ Exhibition
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), E.O. 12047 of March 27, 1978, the
Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236–3 of August 28, 2000 (and, as
appropriate, Delegation of Authority No.
257 of April 15, 2003), I hereby
determine that the objects to be
included in the exhibition ‘‘Los Angeles
to New York, The Dwan Gallery 1959–
1971,’’ imported from abroad for
temporary exhibition within the United
States, are of cultural significance. The
objects are imported pursuant to loan
SUMMARY:
9 17
E:\FR\FM\28JNN1.SGM
CFR 200.30–3(a)(12).
28JNN1
Agencies
[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Notices]
[Pages 42032-42033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15170]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-78120; File No. SR-MIAX-2016-17]
Self-Regulatory Organizations; Miami International Securities
Exchange LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rules 307 and 309 To Extend the
SPY Pilot Program
June 22, 2016.
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 June 10, 2016, Miami International Securities Exchange LLC
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by the
Exchange. 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 is filing a proposal to amend Exchange Rules 307 and
309 to extend the pilot program that eliminates the position and
exercise limits for physically-settled options on the SPDR[supreg] S&P
500[supreg] ETF Trust (``SPY Pilot Program'') and to make non-
substantive technical corrections to Interpretations and Policies .01.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.miaxoptions.com/filter/wotitle/rule_filing, at
MIAX's principal office, 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 Exchange 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 Exchange 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
Exchange Rules 307, Position Limits, and 309, Exercise Limits,
establish position and exercise limits for aggregate positions in
option contracts traded on the Exchange. Interpretations and Policies
.01 to Rule 307 lists specific position limits for options on specific
underlying securities, and Interpretations and Policies .01 to Rule 309
lists specific exercise limits for options on specific underlying
securities. Among the listed specific underlying securities is the
SPDR[supreg] S&P 500[supreg] ETF Trust (``SPY''). Currently, each of
these Rules provides that there is no position limit and no exercise
limit on options overlying SPY. The position and exercise limits for
options overlying SPY in each of these Rules are the subject of a pilot
program, which is scheduled to expire on July 12, 2016.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 75448 (July 14,
2015), 80 FR 42856 (July 20, 2015) (SR-MIAX-2015-46) (extending the
SPY Pilot Program to July 12, 2016).
---------------------------------------------------------------------------
The Exchange proposes to amend Exchange Rule 307, Interpretations
and Policies .01, and Exchange Rule 309, Interpretations and Policies
.01, to extend the duration of the SPY Pilot Program through July 12,
2017. There are no substantive changes being proposed to the SPY Pilot
Program. The Exchange affirms its consideration of several factors that
support the proposal to establish and extend the SPY Pilot Program,
which include: (1) The liquidity of the option and the underlying
security; (2) the market capitalization of the underlying security and
the securities that make up the S&P 500 Index; (3) options reporting
requirements; and (4) financial requirements imposed by MIAX and the
Commission.
The Exchange notes that it is not aware of any problems created by
the current SPY Pilot Program and does not foresee any problems with
the proposed extension. The Exchange has formally submitted a Report
for the SPY Pilot Program as part of this filing.\4\ In addition, the
Exchange represents that if it chooses to extend or seek permanent
approval of the SPY Pilot Program, the Exchange will submit another SPY
Pilot Program Report at least thirty (30) days prior to the expiration
of the extended SPY Pilot Program time period which would cover the
period between reports. The SPY Pilot Program Report will compare the
impact of the pilot program, if any, on the volumes of SPY options and
the volatility in the price of the underlying SPY contract,
particularly at expiration. The SPY Pilot Program Report will also
detail the size and different types of strategies employed with respect
to positions established in SPY options; note whether any problems, in
the underlying SPY ETF or otherwise, arose as a result of the no-limit
approach; and include any other information that may be useful in
evaluating the effectiveness of the SPY Pilot Program. In preparing the
Pilot Report, the Exchange will utilize various data elements such as
volume and open interest. In addition the Exchange would make available
to Commission staff data elements relating to the effectiveness of the
SPY Pilot Program.
---------------------------------------------------------------------------
\4\ See Exhibit 3 attached hereto.
---------------------------------------------------------------------------
The Exchange proposes to extend the SPY Pilot Program in order for
the Exchange and the Commission to have additional time to evaluate the
Pilot and its effect on the market and to determine whether to seek
permanent approval. Prior to the expiration of the SPY Pilot Program
and based upon the findings of the SPY Pilot Program Report, the
Exchange will be able to either extend the SPY Pilot Program, adopt the
SPY Pilot Program on a permanent basis, or terminate the SPY Pilot
Program. If the SPY Pilot Program is not extended or adopted on a
permanent basis by the expiration of the extended SPY Pilot Program,
the position limits for options overlying SPY would revert to limits in
[[Page 42033]]
effect prior to the commencement of the SPY Pilot Program.
Additionally, the Exchange proposes to make non-substantive
technical changes to the chart of securities in Interpretations and
Policies .01 of both Rule 307 and 309 to reflect the current names of
the underlying securities identified in the chart.
2. Statutory Basis
MIAX believes that its proposed rule change is consistent with
Section 6(b) of the Act \5\ in general, and furthers the objectives of
Section 6(b)(5) of the Act \6\ 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 mechanisms of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Specifically, 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. The Exchange believes that the
elimination of position limits for SPY options would not increase
market volatility or facilitate the ability to manipulate the market.
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 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 the Exchange believes other competing options exchanges
will also extend the SPY Pilot Program for another year.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to 19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) \8\
thereunder.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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.
---------------------------------------------------------------------------
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-MIAX-2016-17 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-MIAX-2016-17. 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-MIAX-2016-17, and should be
submitted on or before July 19, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Brent J. Fields,
Secretary.
[FR Doc. 2016-15170 Filed 6-27-16; 8:45 am]
BILLING CODE 8011-01-P