Self-Regulatory Organizations; BOX Options Exchange LLC; Order Approving a Proposed Rule Change To Expand the Short Term Option Series Program To Allow Wednesday Expirations for SPY Options, 59696 [2016-20737]

Download as PDF 59696 Federal Register / Vol. 81, No. 168 / Tuesday, August 30, 2016 / Notices be submitted on or before September 20, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–20734 Filed 8–29–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78668; File No. SR–BOX– 2016–28] Self-Regulatory Organizations; BOX Options Exchange LLC; Order Approving a Proposed Rule Change To Expand the Short Term Option Series Program To Allow Wednesday Expirations for SPY Options August 24, 2016. I. Introduction On June 30, 2016, BOX Options Exchange LLC (‘‘BOX’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to amend its rules governing the Short Term Option Series Program 3 to allow the listing and trading of options on the SPDR S&P 500 ETF Trust (‘‘SPY’’) with Wednesday expirations. The proposed rule change was published for comment in the Federal Register on July 13, 2016.4 The Commission received no comments on the proposal. This order approves the proposed rule change. mstockstill on DSK3G9T082PROD with NOTICES II. Description of the Proposal Under the terms of the current Short Term Option Series Program, after an option class has been approved for listing and trading on the Exchange, the Exchange may open for trading on any Thursday or Friday that is a business day series of options on that class that expire on each of the next five Fridays, provided that such Friday is not a Friday in which monthly options series or Quarterly Options Series expire.5 The Exchange’s proposed rule change would expand the Short Term Option Series Program to permit BOX to open 9 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See IM–5050–6 to BOX Rule 5050. 4 See Securities Exchange Act Release No. 78243 (July 7, 2016), 81 FR 45346 (July 13, 2016) (‘‘Notice’’). 5 See Securities Exchange Act Release No. 62505 (July 15, 2010), 75 FR 42792 (July 22, 2010). 1 15 VerDate Sep<11>2014 20:04 Aug 29, 2016 Jkt 238001 for trading, on any Tuesday or Wednesday that is a business day, series of options on SPY that expire on any Wednesday of the month that is a business day and is not a Wednesday in which Quarterly Options Series expire (‘‘Wednesday SPY Expirations’’).6 Wednesday SPY Expirations would be subject to the same rules as the standard Short Term Option Series program,7 with two exceptions. The Exchange proposes that the current limitation of no more than five Short Term Option Series expiration dates in a class 8 would not include any Wednesday SPY Expiration. Instead, the Exchange proposes a separate limit of five consecutive Wednesday SPY expiration dates 9 so that the Exchange could list five Short Term Option Series expiration dates for SPY expiring on Friday as well as five Wednesday SPY Expiration dates.10 In addition, unlike other option series in the Short Term Option Series program, Wednesday SPY Expirations could expire in the same week in which monthly option series in the same class expire.11 III. Discussion and Commission Findings After careful review, the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange and, in particular, with section 6(b) of the Act.12 In particular, the Commission finds that the proposed rule change is consistent with section 6(b)(5) of the Act,13 which requires, among other things, that a national securities exchange have rules 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 regulating, clearing, settling, processing information with respect to, and 6 Under the proposal, the Exchange would expand the definition of ‘‘Short Term Option Series’’ in BOX Rule 100(a)(64) and add a description of Wednesday SPY Expirations in proposed IM–5050–6(c) to BOX Rule 5050. For further details, see Notice, supra note 4, at 45346. 7 For example, Wednesday SPY Expirations would be subject to the same series limitations and strike interval rules as standard Short Term Option Series and would be P.M.-settled. See IM–5050–6(b) to BOX Rule 5050. See also Notice, supra note 4, at 45346–47. 8 See IM–5050–6(a) to BOX Rule 5050. 9 See proposed IM–5050–6(c) to BOX Rule 5050. 10 See Notice, supra note 4, at 45346. 11 See id. 12 15 U.S.C. 78f(b). In approving this proposed rule change, 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. 78f(b)(5). PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. The Commission believes that the proposed rule change may provide the investing public and other market participants more flexibility to closely tailor their investment and hedging decisions in SPY options, thus allowing them to better manage their risk exposure. In approving this proposal, the Commission notes that the Exchange has represented that it has an adequate surveillance program in place to detect manipulative trading in Wednesday SPY Expirations.14 The Exchange further states that it has the necessary systems capacity to support the new options series.15 IV. Conclusion It is therefore ordered, pursuant to section 19(b)(2) of the Act,16 that the proposed rule change (SR–BOX–2016– 28) be, and hereby is, approved. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.17 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–20737 Filed 8–29–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–78663; File No. SR– NYSEMKT–2016–80] Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing of Proposed Rule Change Amending and Restating the Second Amended and Restated Certificate of Incorporation of the Exchange’s Ultimate Parent Company, Intercontinental Exchange, Inc. August 24, 2016. 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 August 17, 2016, 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 14 See Notice, supra note 4, at 45347. id. 16 15 U.S.C. 78s(b)(2). 17 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 15 U.S.C. 78a. 3 17 CFR 240.19b–4. 15 See E:\FR\FM\30AUN1.SGM 30AUN1

Agencies

[Federal Register Volume 81, Number 168 (Tuesday, August 30, 2016)]
[Notices]
[Page 59696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20737]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78668; File No. SR-BOX-2016-28]


Self-Regulatory Organizations; BOX Options Exchange LLC; Order 
Approving a Proposed Rule Change To Expand the Short Term Option Series 
Program To Allow Wednesday Expirations for SPY Options

August 24, 2016.

I. Introduction

    On June 30, 2016, BOX Options Exchange LLC (``BOX'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to amend its rules governing the Short Term Option 
Series Program \3\ to allow the listing and trading of options on the 
SPDR S&P 500 ETF Trust (``SPY'') with Wednesday expirations. The 
proposed rule change was published for comment in the Federal Register 
on July 13, 2016.\4\ The Commission received no comments on the 
proposal. This order approves the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See IM-5050-6 to BOX Rule 5050.
    \4\ See Securities Exchange Act Release No. 78243 (July 7, 
2016), 81 FR 45346 (July 13, 2016) (``Notice'').
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II. Description of the Proposal

    Under the terms of the current Short Term Option Series Program, 
after an option class has been approved for listing and trading on the 
Exchange, the Exchange may open for trading on any Thursday or Friday 
that is a business day series of options on that class that expire on 
each of the next five Fridays, provided that such Friday is not a 
Friday in which monthly options series or Quarterly Options Series 
expire.\5\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 62505 (July 15, 
2010), 75 FR 42792 (July 22, 2010).
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    The Exchange's proposed rule change would expand the Short Term 
Option Series Program to permit BOX to open for trading, on any Tuesday 
or Wednesday that is a business day, series of options on SPY that 
expire on any Wednesday of the month that is a business day and is not 
a Wednesday in which Quarterly Options Series expire (``Wednesday SPY 
Expirations'').\6\ Wednesday SPY Expirations would be subject to the 
same rules as the standard Short Term Option Series program,\7\ with 
two exceptions. The Exchange proposes that the current limitation of no 
more than five Short Term Option Series expiration dates in a class \8\ 
would not include any Wednesday SPY Expiration. Instead, the Exchange 
proposes a separate limit of five consecutive Wednesday SPY expiration 
dates \9\ so that the Exchange could list five Short Term Option Series 
expiration dates for SPY expiring on Friday as well as five Wednesday 
SPY Expiration dates.\10\ In addition, unlike other option series in 
the Short Term Option Series program, Wednesday SPY Expirations could 
expire in the same week in which monthly option series in the same 
class expire.\11\
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    \6\ Under the proposal, the Exchange would expand the definition 
of ``Short Term Option Series'' in BOX Rule 100(a)(64) and add a 
description of Wednesday SPY Expirations in proposed IM-5050-6(c) to 
BOX Rule 5050. For further details, see Notice, supra note 4, at 
45346.
    \7\ For example, Wednesday SPY Expirations would be subject to 
the same series limitations and strike interval rules as standard 
Short Term Option Series and would be P.M.-settled. See IM-5050-6(b) 
to BOX Rule 5050. See also Notice, supra note 4, at 45346-47.
    \8\ See IM-5050-6(a) to BOX Rule 5050.
    \9\ See proposed IM-5050-6(c) to BOX Rule 5050.
    \10\ See Notice, supra note 4, at 45346.
    \11\ See id.
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the proposed rule 
change is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to a national securities exchange 
and, in particular, with section 6(b) of the Act.\12\ In particular, 
the Commission finds that the proposed rule change is consistent with 
section 6(b)(5) of the Act,\13\ which requires, among other things, 
that a national securities exchange have rules 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 regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and a national market system, and, in general, to 
protect investors and the public interest. The Commission believes that 
the proposed rule change may provide the investing public and other 
market participants more flexibility to closely tailor their investment 
and hedging decisions in SPY options, thus allowing them to better 
manage their risk exposure.
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    \12\ 15 U.S.C. 78f(b). In approving this proposed rule change, 
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. 78f(b)(5).
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    In approving this proposal, the Commission notes that the Exchange 
has represented that it has an adequate surveillance program in place 
to detect manipulative trading in Wednesday SPY Expirations.\14\ The 
Exchange further states that it has the necessary systems capacity to 
support the new options series.\15\
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    \14\ See Notice, supra note 4, at 45347.
    \15\ See id.
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IV. Conclusion

    It is therefore ordered, pursuant to section 19(b)(2) of the 
Act,\16\ that the proposed rule change (SR-BOX-2016-28) be, and hereby 
is, approved.
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    \16\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-20737 Filed 8-29-16; 8:45 am]
BILLING CODE 8011-01-P