Self-Regulatory Organizations; NASDAQ Stock Market, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Chapter X, Section 7(a) of the Exchange's Options Rules, 14063-14065 [2017-05224]
Download as PDF
<![CDATA[
Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
Exchange-only) Appendix B data
required under the Plan. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change to be operative on
February 28, 2017.20
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 proposal is
consistent with the Act. Comments may
be submitted by any of the following
methods:
mstockstill on DSK3G9T082PROD with NOTICES
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 No. SR–
BatsEDGA–2017–05 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 No.
SR-BatsEDGA–2017–05. 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
20 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
17:12 Mar 15, 2017
Jkt 241001
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 will also 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 No. SR–BatsEDGA–
2017–05 and should be submitted on or
before April 6, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05222 Filed 3–15–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension: Form 6–K, OMB Control No.
3235–0116, SEC File No. 270–107.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form 6–K (17 CFR 249.306) is a
disclosure document under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) that must be filed by
a foreign private issuer to report
material information promptly after the
occurrence of specified or other
important corporate events that are
disclosed in the foreign private issuer’s
home country. The purpose of Form 6–
K is to ensure that U.S. investors have
access to the same information that
foreign investors do when making
investment decisions. Form 6–K takes
approximately 8.7 hours per response
and is filed by approximately 20,974
issuers annually. We estimate that 75%
of the 8.7 hours per response (6.525
hours) is prepared by the issuer for a
total annual reporting burden of 136,855
hours (6.525 hours per response ×
20,974 responses).
Written comments are invited on: (a)
Whether this collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information will have
practical utility; (b) the accuracy of the
agency’s estimate of the burden imposed
by the collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information collected; and
(d) ways to minimize the burden of the
collection of information on
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
unless it displays a currently valid
control number.
Please direct your written comment to
Pamela Dyson, Director/Chief
Information Officer, 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: March 13, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05270 Filed 3–15–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80217; File No. SR–
NASDAQ–2017–021]
Self-Regulatory Organizations;
NASDAQ Stock Market, LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend
Chapter X, Section 7(a) of the
Exchange’s Options Rules
March 10, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 6,
2017, NASDAQ Stock Market, LLC (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
1 15
21 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00091
Fmt 4703
Sfmt 4703
14063
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
E:\FR\FM\16MRN1.SGM
16MRN1
14064
Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Notices
change as described in Items I and II
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 Substance of
the Proposed Rule Change
The Exchange proposes to amend
Chapter X, Section 7(a) of the
Exchange’s Rules applicable to the
NASDAQ Options Market, LLC
(‘‘NOM’’), as described in further detail
below.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://nasdaq.cchwallstreet.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
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 the
Statutory Basis for, the Proposed Rule
Change
mstockstill on DSK3G9T082PROD with NOTICES
1. Purpose
The purpose of the proposed rule
change is to amend Chapter X, Section
7(a) of the Exchange’s rules (the
‘‘Rules’’) applicable to NOM, which sets
forth NOM’s minor rule violation
penalties and in particular, penalties for
violating Chapter III, Section 7 of the
Rules pertaining to position limits, so
that these penalties are consistent with
those of NOM’s sister exchange, the
International Securities Exchange, LLC
(‘‘ISE’’), as well as other competing
options exchanges.
Chapter III, Section 7 of the
Exchange’s Rules imposes position
limits for Options Participants in certain
circumstances. Meanwhile, Chapter X,
Section 7(a) of the Rules assesses fines
for minor rule violations, including
position limits violations, as follows.
First, for violations occurring in
customer accounts, Section 7(a)(i)
assesses fines based upon the
VerDate Sep<11>2014
17:12 Mar 15, 2017
Jkt 241001
cumulative number of violations that
occur over the course of a two year
rolling period. For the first six
violations that occur during any such
period, an Option Participant will either
be issued a letter of caution (to the
extent that the violations are up to five
percent in excess of applicable limits) or
assessed $1 per contract (to the extent
that the violations are more than five
percent in excess of applicable limits).
For the seventh through twelfth
violations that occur during any such
period, the fine is $1 per contract over
the limit, regardless of the extent of the
violations. Finally, for the thirteenth or
any additional violations that occur
during any such period, the fine
increases to $5 per contract over the
limit. Notwithstanding the above, the
Rule provides that the minimum fine
that the Exchange shall assess is $100.
Second, for violations that occur in
the accounts of Options Participants
(i.e., proprietary accounts and accounts
of other Options Participants), Section
7(a)(ii) again assesses fines based upon
the cumulative number of violations
that occur over the course of a two year
rolling period. For the first three
violations that occur in any such period,
an Option Participant will either be
assessed a letter of caution (to the extent
that the violations are up to five percent
in excess of applicable limits) or $1 per
contract (to the extent that the violations
are more than five percent in excess of
applicable limits). For the fourth
through the sixth violations that occur
during any such period, the fine is $1
per contract over the limit, regardless of
the extent of the violations. Finally, for
the seventh or any additional violations
that occur during any such period, the
fine increases to $5 per contract over the
limit. Notwithstanding the above, the
Rule provides that the minimum fine
that the Exchange shall assess is $100.
The Exchange proposes to replace
NOM’s schedule of fines for position
limit violations to mirror the schedule
of fines that ISE and other exchanges
apply to such violations. The ISE
schedule of position limits fines set
forth in ISE Rule 1614(d)(1) is simpler
and, in certain instances, more stringent
than the NOM schedule of fines. It
provides that for any cumulative
violations of the ISE position limits
rule 3 that occur during any rolling two
year period, ISE assesses a fine of $500
3 ISE Rule 1614(d)(1) counts as a single violation,
provided that such a violation is inadvertent: (i) A
1 trade date overage; (ii) a consecutive string of
trade date overage violations where the position
does not change or where a steady reduction in the
overage occurs; or (iii) a consecutive string of trade
date overage violations resulting from other
mitigating circumstances.
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
for the first offense, $1,000 for the
second offense, $2,500 for the third
offense, and $5,000 for the fourth and
each subsequent offense. The ISE rule is
identical to that which several other
exchanges employ.4 The proposed rule
change conforms the fine schedule of
NOM to that of ISE.
2. Statutory Basis
The Exchange believes that its
proposal 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 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.
The Exchange believes that its
proposed Rule change will be more
effective than the existing Rule in
preventing manipulative acts and
practices and protecting investors
because under the proposed Rule, the
Exchange will immediately impose a
fine upon an Options Participant that
violates its position limits, and it will
do so regardless of the extent of the
violation, as opposed to only imposing
a fine (rather than a caution letter) after
the first six violations or to the extent
that a violation exceeds 5 percent of the
applicable limits.
Moreover, the proposed Rule change
promotes fairness and consistency in
the marketplace by harmonizing
penalties across exchanges for the same
conduct. As noted above, the proposed
schedule of fines would be identical to
the schedules of fines that ISE, BATS
BZX, and C2 Options Exchange
presently employ, and similar to that
which NYSE Arca employs.
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 proposal
will adopt the same schedule of fines as
exists at other exchanges and it will
apply the same schedule of fines to all
Options Participants.
4 See BATS BZX Exchange, Inc. Rule 25.3(a); C2
Options Exchange Rule Chapter 17 (incorporating
by reference CBOE Rule 17.50(g)(1); see also NYSE
Arca, Inc. Rule 10.12(k)(i)(21) (imposing fines of
$1,000, $2,500, and $5,000 for the first, second, and
third violations, respectively while omitting
corresponding verbiage that defines the nature of a
single violation subject to a fine).
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
E:\FR\FM\16MRN1.SGM
16MRN1
Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / 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.
mstockstill on DSK3G9T082PROD with NOTICES
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 Because the
proposed rule change does not: (i)
Significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 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, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
A proposed rule change filed under
Rule 19b–4(f)(6) under the Act 9
normally does not become operative
prior to 30 days after the date of the
filing. However, pursuant to Rule 19b–
4(f)(6)(iii),10 the Commission may
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
upon filing. The Exchange has stated
that it is requesting this waiver so that
it may implement the proposed rule
change at the earliest point in time
possible. The Exchange further stated
that the proposed rule change promotes
the protection of investors and the
public interest by imposing more
immediate and significant sanctions for
violations of Exchange rules.
The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Commission notes that the proposal
harmonizes the Exchange’s schedule of
fines with respect to position limit
violations with fines currently imposed
by other exchanges, and thus does not
raise any new or novel issues. For this
reason, the Commission hereby waives
the 30-day operative delay requirement
7 15
8 17
9 Id.
CFR 240.19b–4(f)(6)(iii).
VerDate Sep<11>2014
17:12 Mar 15, 2017
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–
NASDAQ–2017–021 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–NASDAQ–2017–021. 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.,
11 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).
12 15 U.S.C. 78s(b)(2)(B).
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 17
and designates the proposed rule change
as operative upon filing.11
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) 12 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
Jkt 241001
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
14065
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–2017–021, and should be
submitted on or before April 6, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05224 Filed 3–15–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736.
Extension:
Schedule TO, OMB Control No. 3235–
0515, SEC File No. 270–456
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Schedule TO (17 CFR 240.14d–100)
must be filed by a reporting company
that makes a tender offer for its own
securities. Also, persons other than the
reporting company making a tender
offer for equity securities registered
under Section 12 of the Exchange Act
(15 U.S.C. 78l) (which offer, if
consummated, would cause that person
to own over 5% of that class of the
securities) must file Schedule TO. The
purpose of Schedule TO is to improve
communications between public
companies and investors before
companies file registration statements
involving tender offer statements.
Schedule TO takes approximately 43.5
13 17
E:\FR\FM\16MRN1.SGM
CFR 200.30–3(a)(12).
16MRN1
]]>Agencies
[Federal Register Volume 82, Number 50 (Thursday, March 16, 2017)]
[Notices]
[Pages 14063-14065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05224]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80217; File No. SR-NASDAQ-2017-021]
Self-Regulatory Organizations; NASDAQ Stock Market, LLC; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Chapter X, Section 7(a) of the Exchange's Options Rules
March 10, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 6, 2017, NASDAQ Stock Market, LLC (the ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule
[[Page 14064]]
change as described in Items I and II 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 Substance
of the Proposed Rule Change
The Exchange proposes to amend Chapter X, Section 7(a) of the
Exchange's Rules applicable to the NASDAQ Options Market, LLC
(``NOM''), as described in further detail below.
The text of the proposed rule change is available on the Exchange's
Web site at https://nasdaq.cchwallstreet.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 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend Chapter X,
Section 7(a) of the Exchange's rules (the ``Rules'') applicable to NOM,
which sets forth NOM's minor rule violation penalties and in
particular, penalties for violating Chapter III, Section 7 of the Rules
pertaining to position limits, so that these penalties are consistent
with those of NOM's sister exchange, the International Securities
Exchange, LLC (``ISE''), as well as other competing options exchanges.
Chapter III, Section 7 of the Exchange's Rules imposes position
limits for Options Participants in certain circumstances. Meanwhile,
Chapter X, Section 7(a) of the Rules assesses fines for minor rule
violations, including position limits violations, as follows.
First, for violations occurring in customer accounts, Section
7(a)(i) assesses fines based upon the cumulative number of violations
that occur over the course of a two year rolling period. For the first
six violations that occur during any such period, an Option Participant
will either be issued a letter of caution (to the extent that the
violations are up to five percent in excess of applicable limits) or
assessed $1 per contract (to the extent that the violations are more
than five percent in excess of applicable limits). For the seventh
through twelfth violations that occur during any such period, the fine
is $1 per contract over the limit, regardless of the extent of the
violations. Finally, for the thirteenth or any additional violations
that occur during any such period, the fine increases to $5 per
contract over the limit. Notwithstanding the above, the Rule provides
that the minimum fine that the Exchange shall assess is $100.
Second, for violations that occur in the accounts of Options
Participants (i.e., proprietary accounts and accounts of other Options
Participants), Section 7(a)(ii) again assesses fines based upon the
cumulative number of violations that occur over the course of a two
year rolling period. For the first three violations that occur in any
such period, an Option Participant will either be assessed a letter of
caution (to the extent that the violations are up to five percent in
excess of applicable limits) or $1 per contract (to the extent that the
violations are more than five percent in excess of applicable limits).
For the fourth through the sixth violations that occur during any such
period, the fine is $1 per contract over the limit, regardless of the
extent of the violations. Finally, for the seventh or any additional
violations that occur during any such period, the fine increases to $5
per contract over the limit. Notwithstanding the above, the Rule
provides that the minimum fine that the Exchange shall assess is $100.
The Exchange proposes to replace NOM's schedule of fines for
position limit violations to mirror the schedule of fines that ISE and
other exchanges apply to such violations. The ISE schedule of position
limits fines set forth in ISE Rule 1614(d)(1) is simpler and, in
certain instances, more stringent than the NOM schedule of fines. It
provides that for any cumulative violations of the ISE position limits
rule \3\ that occur during any rolling two year period, ISE assesses a
fine of $500 for the first offense, $1,000 for the second offense,
$2,500 for the third offense, and $5,000 for the fourth and each
subsequent offense. The ISE rule is identical to that which several
other exchanges employ.\4\ The proposed rule change conforms the fine
schedule of NOM to that of ISE.
---------------------------------------------------------------------------
\3\ ISE Rule 1614(d)(1) counts as a single violation, provided
that such a violation is inadvertent: (i) A 1 trade date overage;
(ii) a consecutive string of trade date overage violations where the
position does not change or where a steady reduction in the overage
occurs; or (iii) a consecutive string of trade date overage
violations resulting from other mitigating circumstances.
\4\ See BATS BZX Exchange, Inc. Rule 25.3(a); C2 Options
Exchange Rule Chapter 17 (incorporating by reference CBOE Rule
17.50(g)(1); see also NYSE Arca, Inc. Rule 10.12(k)(i)(21) (imposing
fines of $1,000, $2,500, and $5,000 for the first, second, and third
violations, respectively while omitting corresponding verbiage that
defines the nature of a single violation subject to a fine).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal 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 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).
---------------------------------------------------------------------------
The Exchange believes that its proposed Rule change will be more
effective than the existing Rule in preventing manipulative acts and
practices and protecting investors because under the proposed Rule, the
Exchange will immediately impose a fine upon an Options Participant
that violates its position limits, and it will do so regardless of the
extent of the violation, as opposed to only imposing a fine (rather
than a caution letter) after the first six violations or to the extent
that a violation exceeds 5 percent of the applicable limits.
Moreover, the proposed Rule change promotes fairness and
consistency in the marketplace by harmonizing penalties across
exchanges for the same conduct. As noted above, the proposed schedule
of fines would be identical to the schedules of fines that ISE, BATS
BZX, and C2 Options Exchange presently employ, and similar to that
which NYSE Arca employs.
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 proposal will adopt the
same schedule of fines as exists at other exchanges and it will apply
the same schedule of fines to all Options Participants.
[[Page 14065]]
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
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, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) under the Act
\9\ normally does not become operative prior to 30 days after the date
of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),\10\ the
Commission may 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 upon filing. The Exchange has stated
that it is requesting this waiver so that it may implement the proposed
rule change at the earliest point in time possible. The Exchange
further stated that the proposed rule change promotes the protection of
investors and the public interest by imposing more immediate and
significant sanctions for violations of Exchange rules.
---------------------------------------------------------------------------
\9\ Id.
\10\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission notes that the proposal harmonizes the Exchange's
schedule of fines with respect to position limit violations with fines
currently imposed by other exchanges, and thus does not raise any new
or novel issues. For this reason, the Commission hereby waives the 30-
day operative delay requirement and designates the proposed rule change
as operative upon filing.\11\
---------------------------------------------------------------------------
\11\ 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 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) \12\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
---------------------------------------------------------------------------
\12\ 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:
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-2017-021 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-NASDAQ-2017-021. 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-NASDAQ-2017-021, and should
be submitted on or before April 6, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05224 Filed 3-15-17; 8:45 am]
BILLING CODE 8011-01-P
