Sunshine Act Meeting; Cancellation, 13322-13323 [2018-06294]
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Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices
arise from eliminating position and
exercise limits.34 Furthermore, as
described more fully above, options on
other ETFs have the position limits
proposed herein and those ETFs have
trading characteristics and trading
volumes that are similar to those of the
ETFs subject to this proposed rule
change.
Last, the Commission has expressed
the belief that removing position and
exercise limits may bring additional
depth and liquidity without increasing
concerns regarding intermarket
manipulation or disruption of the
options or the underlying securities.35
The Exchange’s enhanced surveillance
and reporting safeguards continue to be
designed to deter and detect possible
manipulative behavior which might
arise from eliminating position and
exercise limits.
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. On the
contrary, the Exchange believes that the
proposed rule change will result in
additional 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.
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
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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 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 36 and Rule 19b–
4(f)(6) thereunder.37
34 Id.
35 Id.
36 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of the proposed rule
change, at least five business days prior to the date
37 17
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A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 38 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 39
permits the Commission to 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 proposed
rule change may become effective and
operative upon filing. The Exchange
states that waiver of the operative delay
would permit the Exchange to
immediately implement the proposed
rule change to increase the position
limits as proposed herein and thereby
seamlessly continue to offer traders and
the investing public the ability to use
these products as effective hedging and
trading vehicles. The Exchange further
states that waiver would allow the
Exchange to remain competitive with
other exchanges. The Commission
believes that waiving the 30-day
operative delay is consistent with the
protection of investors and the public
interest. Therefore, the Commission
hereby waives the operative delay and
designates the proposal as operative
upon filing.40
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
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
38 17 CFR 240.19b–4(f)(6).
39 17 CFR 240.19b–4(f)(6)(iii).
40 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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• Send an email to rule-comments@
sec.gov. Please include File Number SR–
Phlx–2018–24 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–Phlx–2018–24. 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 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.
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–Phlx–2018–24, and should
be submitted on or before April 18,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.41
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–06140 Filed 3–27–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: To be published.
41 17
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CFR 200.30–3(a)(12).
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Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Thursday, March 29, 2018
at 2:00 p.m.
The Closed
Meeting scheduled for Thursday, March
29, 2018 at 2:00 p.m., has been
cancelled.
CONTACT PERSON FOR MORE INFORMATION:
For further information and to ascertain
what, if any, matters have been added,
deleted or postponed, please contact
Brent J. Fields of the Office of the
Secretary at (202) 551–5400.
CHANGES IN THE MEETING:
Dated: March 23, 2018.
Brent J. Fields,
Secretary.
[FR Doc. 2018–06294 Filed 3–26–18; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82931; File No. SR–MIAX–
2018–10]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule 307,
Position Limits, and Exchange Rule
309, Exercise Limits
March 22, 2018.
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Pursuant to the provisions of 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 8, 2018, Miami International
Securities Exchange, LLC (‘‘MIAX
Options’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule 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 the Substance
of the Proposed Rule Change
The Exchange is filing a proposal to
amend Exchange Rules 307, Position
Limits, Interpretations and Policies .01,
and 309, Exercise Limits, Interpretations
and Policies .01, to increase the position
and exercise limits for options on the
following exchange traded funds
(‘‘ETFs’’): iShares China Large-Cap ETF
(‘‘FXI’’), iShares MSCI Emerging
Markets ETF (‘‘EEM’’), iShares Russell
2000 ETF (‘‘IWM’’), iShares MSCI EAFE
ETF (‘‘EFA’’), iShares MSCI Brazil
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Capped ETF (‘‘EWZ’’), iShares 20+ Year
Treasury Bond Fund ETF (‘‘TLT’’),
PowerShares QQQ Trust (‘‘QQQ’’), and
iShares MSCI Japan ETF (‘‘EWJ’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/ at MIAX Options’ 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
The purpose of the proposed rule
change is to amend Exchange Rules 307,
Position Limits, Interpretations and
Policies .01, and 309, Exercise Limits,
Interpretations and Policies .01, to
increase position and exercise limits,
respectively, for options on the
following ETFs: FXI, EEM, IWM, EFA,
EWZ, TLT, QQQ, EWJ.
Market participants’ trading activity
has been adversely impacted by the
current position limits as such limits
have caused options trading in the
symbols subject to this proposal to move
from exchanges to the over-the-counter
market. The Exchange submits this
proposal with the understanding that
market participants’ on-exchange
activity has been hindered by the
existing position limits, causing them to
be unable to provide additional
liquidity not just on the Exchange, but
also on other options exchanges on
which they participate.3 The Exchange
understands that certain market
participants wishing to make trades
involving a large number of options
3 Cboe has received approval from the
Commission for its proposed rule change to
increase its position limits for the following ETFs:
FXI, EEM, IWM, EFA, EWZ, TLT, QQQ, EWJ. See
Securities Exchange Act Release No. 82770
(February 23, 2018) (Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified
by Amendment Nos. 1 and 2) (SR–CBOE–2017–
057).
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13323
contracts in the symbols subject to this
proposal are opting to execute those
trades in the over-the-counter market.
The over-the-counter transactions occur
via bi-lateral agreements, the terms of
which are not publicly disclosed to
other market participants. Therefore,
these large trades do not contribute to
the price discovery process performed
on a lit market.
Position limits are designed to
address potential manipulative schemes
and adverse market impact surrounding
the use of options, such as disrupting
the market in the security underlying
the options. The potential manipulative
schemes and adverse market impact are
balanced against the potential of setting
the limits so low as to discourage
participation in the options market. The
level of those position limits must be
balanced between curtailing potential
manipulation and the cost of preventing
potential hedging activity that could be
used for legitimate economic purposes.
Position limits for options on ETFs,
such as those subject to this proposal
are determined pursuant to Exchange
Rule 307, and vary according to the
number of outstanding shares and the
trading volume of the underlying stocks
or ETFs over the past six-months. The
Exchange notes that the ETFs that
underlie options subject to this proposal
are highly liquid, and are based on a
broad set of highly liquid securities and
other reference assets. Likewise, the
Commission has recognized the
liquidity of the securities comprising
the underlying interest of the SPDR S&P
500 ETF (‘‘SPY’’) in permitting no
position limits on SPY options since
2012,4 and expanded position limits for
options on EEM, IWM and QQQ.
The largest in capitalization and the
most frequently traded stocks and ETFs
have an option position limit of 250,000
contracts (with adjustments for splits,
re-capitalizations, etc.) on the same side
of the market; and smaller capitalization
stocks and ETFs have position limits of
200,000, 75,000, 50,000 or 25,000
contracts (with adjustments for splits,
re-capitalizations, etc.) on the same side
of the market. Options on FXI, EFA,
EWZ, TLT, and EWJ are currently
subject to the standard position limit of
250,000 contracts, as set forth in
Exchange Rule 307. Interpretation and
Policy .01 of Exchange Rule 307 sets
forth separate position limits for options
on specific ETFs as follows:
• Options on EEM are 500,000
contracts;
4 See Securities Exchange Act Release Nos. 67672
(August 15, 2012), 77 FR 50750 (August 22, 2012)
(SR–NYSEAmex–2012–29); 67937 (September 27,
2012), 77 FR 60489 (October 3, 2012) (SR–CBOE–
2012–091).
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]]>Agencies
[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13322-13323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06294]
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SECURITIES AND EXCHANGE COMMISSION
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS ANNOUNCEMENT: To be published.
[[Page 13323]]
PREVIOUSLY ANNOUNCED TIME AND DATE OF THE MEETING: Thursday, March 29,
2018 at 2:00 p.m.
CHANGES IN THE MEETING: The Closed Meeting scheduled for Thursday,
March 29, 2018 at 2:00 p.m., has been cancelled.
CONTACT PERSON FOR MORE INFORMATION: For further information and to
ascertain what, if any, matters have been added, deleted or postponed,
please contact Brent J. Fields of the Office of the Secretary at (202)
551-5400.
Dated: March 23, 2018.
Brent J. Fields,
Secretary.
[FR Doc. 2018-06294 Filed 3-26-18; 11:15 am]
BILLING CODE 8011-01-P
