Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 19.6, Series of Options Contracts Open for Trading, 60424-60426 [2017-27350]
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60424
Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Notices
POSTAL SERVICE
POSTAL SERVICE
Under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35), the NRC recently
submitted a request for renewal of an
existing collection of information to
OMB for review entitled, NRC Form
445, ‘‘Request for Approval of Official
Foreign Travel.’’ The NRC hereby
informs potential respondents that an
agency may not conduct or sponsor, and
that a person is not required to respond
to, a collection of information unless it
displays a currently valid OMB control
number.
The NRC published a Federal
Register notice with a 60-day comment
period on this information collection on
September 12, 2017; 82 FR 42842.
1. The title of the information
collection: NRC Form 445, ‘‘Request for
Approval of Official Foreign Travel.’’
2. OMB approval number: 3150–0193.
3. Type of submission: Extension.
4. The form number if applicable:
NRC Form 445.
5. How often the collection is required
or requested: On occasion.
6. Who will be required or asked to
respond: Non-Federal consultants,
contractors and NRC invited travelers
(i.e., non-NRC employees).
7. The estimated number of annual
responses: 50.
8. The estimated number of annual
respondents: 50.
9. An estimate of the total number of
hours needed annually to comply with
the information collection requirement
or request: 50.
10. Abstract: Form 445, ‘‘Request for
Approval of Foreign Travel,’’ is
supplied by consultants, contractors,
and NRC invited travelers who must
travel to foreign countries in the course
of conducting business for the NRC. In
accordance with 48 CFR 20, ‘‘NRC
Acquisition Regulation,’’ contractors
traveling to foreign countries are
required to complete this form. The
information requested includes the
name of the Office Director/Regional
Administrator or Chairman, as
appropriate, the traveler’s identifying
information, purpose of travel, listing of
the trip coordinators, other NRC
travelers and contractors attending the
same meeting, and a proposed itinerary.
sradovich on DSK3GMQ082PROD with NOTICES
II. Background
Product Change—Priority Mail
Negotiated Service Agreement
Product Change—Priority Mail Express
Negotiated Service Agreement
Dated at Rockville, Maryland, this 14th day
of December, 2017.
For the Nuclear Regulatory Commission.
David Cullison,
NRC Clearance Officer, Office of the Chief
Information Officer.
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
ACTION:
SUMMARY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): December 20, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 14,
2017, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Contract 391 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2018–56, CP2018–92.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): December 20, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 14,
2017, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express Contract 55 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2018–57, CP2018–94.
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2017–27355 Filed 12–19–17; 8:45 am]
[FR Doc. 2017–27356 Filed 12–19–17; 8:45 am]
BILLING CODE 7710–12–P
BILLING CODE 7710–12–P
POSTAL SERVICE
SECURITIES AND EXCHANGE
COMMISSION
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
Notice.
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): December 20, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 14,
2017, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Contract 390 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2018–55, CP2018–91.
SUMMARY:
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2017–27354 Filed 12–19–17; 8:45 am]
BILLING CODE 7590–01–P
BILLING CODE 7710–12–P
21:36 Dec 19, 2017
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SUMMARY:
[Release No. 34–82331; File No. SR–
CboeEDGX–2017–005]
AGENCY:
[FR Doc. 2017–27383 Filed 12–19–17; 8:45 am]
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Postal ServiceTM.
Notice.
AGENCY:
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Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend Rule
19.6, Series of Options Contracts Open
for Trading
December 14, 2017.
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 December
4, 2017, Cboe EDGX Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6)(iii).
2 17
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Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Notices
upon filing with the Commission. 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 filed a proposal to
amend Rule 19.6, Series of Options
Contracts Open for Trading.
The text of the proposed rule change
is available at the Exchange’s website at
www.markets.cboe.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 parts of such
statements.
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
sradovich on DSK3GMQ082PROD with NOTICES
1. Purpose
The purpose of this filing is to amend
Rule 19.6 to modify the strike setting
regime for IVV, SPY, and DIA options.
Specifically, for IVV, SPY, and DIA
options the Exchange proposes to
explicitly allow $1 strike price intervals.
The Exchange believes that the
proposed rule change would make IVV,
SPY, and DIA options easier for
investors and traders to use and more
tailored to their investment needs, as
well as to better align BZX’s strike
regime with other options exchange.
The Exchange notes that this proposal is
based on the rules of BOX Options
Exchange LLC (‘‘Box’’) and the Cboe
Exchange, Inc. (f/k/a Chicago Board
Options Exchange, Inc.) (Cboe).5
Rule 19.6(d)(4) provides that:
The interval between strike prices of series
of options on Fund Shares approved for
options trading pursuant to Rule 19.3(i) shall
be fixed at a price per share which is
reasonably close to the price per share at
which the underlying security is traded in
the primary market at or about the same time
such series of options is first open for trading
on BZX Options, or at such intervals as may
have been established on another options
exchange prior to the initiation of trading on
BZX Options.6
Rule 19.6.02(a) provides:
BZX Options may list $1 Strike Prices on
any other option classes if those classes are
specifically designated by other national
securities exchanges that employ a similar $1
Strike Price Program under their respective
rules.7
Pursuant to Rule 19.6.02(a) and the last
clause in Rule 19.6(d)(4), IVV, SPY, and
DIA options may be listed in $1 strike
price intervals when another options
exchange lists $1 strikes. The Exchange
seeks to amend Rule 19.6(d)(4) to
explicitly allow $1 strike price intervals
regardless of whether another exchange
has already listed series of IVV, SPY,
and DIA options.
The SPY and IVV exchange-traded
funds (‘‘ETFs’’) are designed to roughly
track the performance of the S&P 500
Index. The DIA ETF is designed to
roughly track the performance of the
Dow Jones Industrial Average (‘‘DJIA’’)
with the price of SPY and IVV designed
to roughly approximate 1/10th of the
price of the S&P 500 Index and the price
of DIA designed to roughly approximate
1/100th of the price of the DJIA.
Accordingly, SPY and IVV strike prices
reflect a value roughly equal to 1/10th
of the value of the S&P 500 Index and
DIA strike prices reflect a value roughly
equal to 1/100th of the value of the DJIA
with each having a multiplier of $100.
For example, if the S&P 500 Index is at
1972.56, SPY options might have a
value of approximately 197.26 with a
notional value of $19,726. If the DJIA is
at 16,569.98, DIA options may have a
value of 165.70 with a notional value of
$16,570. In general, SPY, IVV, and DIA
options provide retail investors and
traders with the benefit of trading the
broad market in a manageably sized
contract. As options with an ETP
underlying, SPY, IVV, and DIA options
are listed in the same manner as equity
options under the Rules.
Unlike other options exchanges, BZX
rules do not specifically identify the
strike price interval for IVV, SPY, and
DIA options. This proposed rule change
seeks to match the strike setting regime
for IVV, SPY, and DIA options available
on other options exchanges.8
Due to the Exchange’s current ability
to list $1 strikes in IVV, SPY, and DIA
options when another options exchange
lists such strikes, this proposed rule
change is unlikely to augment the
6 See
Rule 19.6(d)(4).
Rule 19.6.02(a).
8 See Box Rule IM–5050–1 and Cboe Rule
5.5.08(b).
7 See
5 See Box Rule IM–5050–1 and Cboe Rule
5.5.08(b).
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60425
potential total number of options series
available on the Exchange. However, the
Exchange believes it and the Options
Price Reporting Authority (‘‘OPRA’’)
have the necessary systems capacity to
handle any potential additional traffic
associated with this proposed rule
change. The Exchange also believes that
Trading Permit Holders will not have a
capacity issue due to the proposed rule
change. In addition, the Exchange
represents that it does not believe that
this expansion will cause fragmentation
of liquidity.
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
Securities Exchange Act of 1934 (the
‘‘Act’’) and the rules and regulations
thereunder applicable to the Exchange
and, in particular, the requirements of
Section 6(b) of the Act. Specifically, the
Exchange believes the proposed rule
change is consistent with the Section
6(b)(5) requirements that the rules of an
exchange be 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.
Additionally, the Exchange believes the
proposed rule change is consistent with
the Section 6(b)(5) requirement that the
rules of an exchange not be designed to
permit unfair discrimination between
customers, issuers, brokers, or dealers.
In particular, the proposed rule
change will allow investors to more
easily use SPY, IVV, DIA options, which
protects investors and the public
interest. The Exchange also believes the
proposed rule change is consistent with
Section 6(b)(1) of the Act, which
provides that the Exchange be organized
and have the capacity to be able to carry
out the purposes of the Act and the
rules and regulations thereunder, and
the rules of the Exchange. The Exchange
does not believe that the proposed rule
would create additional capacity issues
or affect market functionality. The
Exchange believes that the proposed
rule change, like other strike price
programs currently offered by the
Exchange, will benefit investors by
giving them increased flexibility to more
closely tailor their investment and
hedging decisions. Moreover, the
E:\FR\FM\20DEN1.SGM
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Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Notices
proposed rule change is consistent with
the rules of other exchanges.9
(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. Rather, the
Exchange believes that the proposed
rule change will result in additional
investment options and opportunities to
achieve the investment and trading
objectives of market participants seeking
efficient trading and hedging vehicles,
to the benefit of investors, market
participants, and the marketplace in
general. Additionally, this proposed
rule change seeks to match the strike
setting regime for IVV, SPY, and DIA
options available on other options
exchanges; thus, the proposed rule
change may alleviate any potential
burden on competition.10
sradovich on DSK3GMQ082PROD with NOTICES
(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: (A) Significantly affect
the protection of investors or the public
interest; (B) impose any significant
burden on competition; and (C) by its
terms, become operative for 30 days
from the date on which it was filed or
such shorter time as the Commission
may designate it has become effective
pursuant to Section 19(b)(3)(A) of the
Act 11 and paragraph (f)(6) of Rule 19b–
4 thereunder,12 the Exchange has
designated this rule filing as noncontroversial. The Exchange has given
the Commission written notice of its
intent to file the proposed rule change,
along with a brief description and text
of the proposed rule change at least five
business days prior to the date of filing
of the proposed rule change, or such
shorter time as designated by the
Commission.
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: (1) Necessary or appropriate in
9 See Box Rule IM–5050–1 and Cboe Rule
5.5.08(b).
10 Id.
11 15 U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4.
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21:36 Dec 19, 2017
Jkt 244001
the public interest; (2) for the protection
of investors; or (3) 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–
CboeEDGX–2017–005 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–CboeEDGX–2017–005. 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 website (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 website 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 the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
PO 00000
Frm 00058
Fmt 4703
Sfmt 4703
Number SR–CboeEDGX–2017–005 and
should be submitted on or before
January 10, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–27350 Filed 12–19–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32939; 812–14785]
Ausdal Financial Partners, Inc. and
Ausdal Unit Investment Trust
December 14, 2017.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice.
AGENCY:
Notice of an application under (a)
section 6(c) of the Investment Company
Act of 1940 (‘‘Act’’) for an exemption
from sections 2(a)(32), 2(a)(35), 14(a),
19(b), 22(d) and 26(a)(2)(C) of the Act
and rules 19b–1 and rule 22c–1
thereunder and (b) sections 11(a) and
11(c) of the Act for approval of certain
exchange and rollover privileges.
Applicants: Ausdal Financial
Partners, Inc. (‘‘Ausdal’’) and Ausdal
Unit Investment Trust.1
Summary of Application: Applicants
request an order to permit certain unit
investment trusts (‘‘UIT’’) to: (a) impose
sales charges on a deferred basis and
waive the deferred sales charge in
certain cases; (b) offer unitholders
certain exchange and rollover options;
(c) publicly offer units without requiring
the Depositor to take for its own account
$100,000 worth of units; and (d)
distribute capital gains resulting from
the sale of portfolio securities within a
reasonable time after receipt.
Filing Dates: The application was
filed on June 20, 2017, and amended on
October 27, 2017.
Hearing or Notification of Hearing: An
order granting the requested relief will
be issued unless the Commission orders
a hearing. Interested persons may
13 17
CFR 200.30–3(a)(12).
also request relief for future
registered unit investment trusts (collectively, with
Ausdal Unit Investment Trust, the ‘‘Trusts’’) and
series of the Trusts (‘‘Series’’) that are sponsored by
Ausdal or any entity controlling, controlled by or
under common control with Ausdal (together with
Ausdal, the ‘‘Depositor’’). Any future Trust and
Series that relies on the requested order will
comply with the terms and conditions of the
application. All existing entities that currently
intend to rely on the requested order are named as
applicants.
1 Applicants
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]]>Agencies
[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Notices]
[Pages 60424-60426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27350]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82331; File No. SR-CboeEDGX-2017-005]
Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 19.6, Series of Options Contracts Open for Trading
December 14, 2017.
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 December 4, 2017, Cboe EDGX Exchange, Inc. (``Exchange'' or
``EDGX'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
has designated this proposal as a ``non-controversial'' proposed rule
change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-
4(f)(6)(iii) thereunder,\4\ which renders it effective
[[Page 60425]]
upon filing with the Commission. 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to amend Rule 19.6, Series of Options
Contracts Open for Trading.
The text of the proposed rule change is available at the Exchange's
website at www.markets.cboe.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 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 amend Rule 19.6 to modify the
strike setting regime for IVV, SPY, and DIA options. Specifically, for
IVV, SPY, and DIA options the Exchange proposes to explicitly allow $1
strike price intervals. The Exchange believes that the proposed rule
change would make IVV, SPY, and DIA options easier for investors and
traders to use and more tailored to their investment needs, as well as
to better align BZX's strike regime with other options exchange. The
Exchange notes that this proposal is based on the rules of BOX Options
Exchange LLC (``Box'') and the Cboe Exchange, Inc. (f/k/a Chicago Board
Options Exchange, Inc.) (Cboe).\5\
---------------------------------------------------------------------------
\5\ See Box Rule IM-5050-1 and Cboe Rule 5.5.08(b).
---------------------------------------------------------------------------
Rule 19.6(d)(4) provides that:
The interval between strike prices of series of options on Fund
Shares approved for options trading pursuant to Rule 19.3(i) shall
be fixed at a price per share which is reasonably close to the price
per share at which the underlying security is traded in the primary
market at or about the same time such series of options is first
open for trading on BZX Options, or at such intervals as may have
been established on another options exchange prior to the initiation
of trading on BZX Options.\6\
---------------------------------------------------------------------------
\6\ See Rule 19.6(d)(4).
---------------------------------------------------------------------------
Rule 19.6.02(a) provides:
BZX Options may list $1 Strike Prices on any other option
classes if those classes are specifically designated by other
national securities exchanges that employ a similar $1 Strike Price
Program under their respective rules.\7\
---------------------------------------------------------------------------
\7\ See Rule 19.6.02(a).
Pursuant to Rule 19.6.02(a) and the last clause in Rule 19.6(d)(4),
IVV, SPY, and DIA options may be listed in $1 strike price intervals
when another options exchange lists $1 strikes. The Exchange seeks to
amend Rule 19.6(d)(4) to explicitly allow $1 strike price intervals
regardless of whether another exchange has already listed series of
IVV, SPY, and DIA options.
The SPY and IVV exchange-traded funds (``ETFs'') are designed to
roughly track the performance of the S&P 500 Index. The DIA ETF is
designed to roughly track the performance of the Dow Jones Industrial
Average (``DJIA'') with the price of SPY and IVV designed to roughly
approximate 1/10th of the price of the S&P 500 Index and the price of
DIA designed to roughly approximate 1/100th of the price of the DJIA.
Accordingly, SPY and IVV strike prices reflect a value roughly equal to
1/10th of the value of the S&P 500 Index and DIA strike prices reflect
a value roughly equal to 1/100th of the value of the DJIA with each
having a multiplier of $100. For example, if the S&P 500 Index is at
1972.56, SPY options might have a value of approximately 197.26 with a
notional value of $19,726. If the DJIA is at 16,569.98, DIA options may
have a value of 165.70 with a notional value of $16,570. In general,
SPY, IVV, and DIA options provide retail investors and traders with the
benefit of trading the broad market in a manageably sized contract. As
options with an ETP underlying, SPY, IVV, and DIA options are listed in
the same manner as equity options under the Rules.
Unlike other options exchanges, BZX rules do not specifically
identify the strike price interval for IVV, SPY, and DIA options. This
proposed rule change seeks to match the strike setting regime for IVV,
SPY, and DIA options available on other options exchanges.\8\
---------------------------------------------------------------------------
\8\ See Box Rule IM-5050-1 and Cboe Rule 5.5.08(b).
---------------------------------------------------------------------------
Due to the Exchange's current ability to list $1 strikes in IVV,
SPY, and DIA options when another options exchange lists such strikes,
this proposed rule change is unlikely to augment the potential total
number of options series available on the Exchange. However, the
Exchange believes it and the Options Price Reporting Authority
(``OPRA'') have the necessary systems capacity to handle any potential
additional traffic associated with this proposed rule change. The
Exchange also believes that Trading Permit Holders will not have a
capacity issue due to the proposed rule change. In addition, the
Exchange represents that it does not believe that this expansion will
cause fragmentation of liquidity.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act. Specifically, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) requirements that the rules of an exchange be 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. Additionally, the Exchange
believes the proposed rule change is consistent with the Section
6(b)(5) requirement that the rules of an exchange not be designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers.
In particular, the proposed rule change will allow investors to
more easily use SPY, IVV, DIA options, which protects investors and the
public interest. The Exchange also believes the proposed rule change is
consistent with Section 6(b)(1) of the Act, which provides that the
Exchange be organized and have the capacity to be able to carry out the
purposes of the Act and the rules and regulations thereunder, and the
rules of the Exchange. The Exchange does not believe that the proposed
rule would create additional capacity issues or affect market
functionality. The Exchange believes that the proposed rule change,
like other strike price programs currently offered by the Exchange,
will benefit investors by giving them increased flexibility to more
closely tailor their investment and hedging decisions. Moreover, the
[[Page 60426]]
proposed rule change is consistent with the rules of other
exchanges.\9\
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\9\ See Box Rule IM-5050-1 and Cboe Rule 5.5.08(b).
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(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. Rather, the Exchange
believes that the proposed rule change will result in additional
investment options and opportunities to achieve the investment and
trading objectives of market participants seeking efficient trading and
hedging vehicles, to the benefit of investors, market participants, and
the marketplace in general. Additionally, this proposed rule change
seeks to match the strike setting regime for IVV, SPY, and DIA options
available on other options exchanges; thus, the proposed rule change
may alleviate any potential burden on competition.\10\
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\10\ Id.
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(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: (A)
Significantly affect the protection of investors or the public
interest; (B) impose any significant burden on competition; and (C) by
its terms, become operative for 30 days from the date on which it was
filed or such shorter time as the Commission may designate it has
become effective pursuant to Section 19(b)(3)(A) of the Act \11\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\12\ the Exchange has
designated this rule filing as non-controversial. The Exchange has
given the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change at least five business days prior to the date of filing of
the proposed rule change, or such shorter time as designated by the
Commission.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4.
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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: (1)
Necessary or appropriate in the public interest; (2) for the protection
of investors; or (3) 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 [email protected]. Please include
File Number SR-CboeEDGX-2017-005 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-CboeEDGX-2017-005. 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 website (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 website 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 the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-CboeEDGX-2017-005 and should be
submitted on or before January 10, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-27350 Filed 12-19-17; 8:45 am]
BILLING CODE 8011-01-P
