Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 960NY in Order To Extend the Penny Pilot in Options Classes in Certain Issues Through December 31, 2018, 30808-30810 [2018-13979]
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30808
Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices
investors, or otherwise in furtherance of
the purposes of the Act.
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–
DTC–2018–005 on the subject line.
Paper Comments
sradovich on DSK3GMQ082PROD with NOTICES
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–DTC–2018–005. 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 DTC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). 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–DTC–
2018–005 and should be submitted on
or before July 20, 2018.
VerDate Sep<11>2014
17:58 Jun 28, 2018
Jkt 244001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–13980 Filed 6–28–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83507; File No. SR–
NYSEAMER–2018–33]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Commentary
.02 to Rule 960NY in Order To Extend
the Penny Pilot in Options Classes in
Certain Issues Through December 31,
2018
June 25, 2018.
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 June 21,
2018, NYSE American LLC (the
‘‘Exchange’’ or ‘‘NYSE American’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. 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
Commentary .02 to Rule 960NY in order
to extend the Penny Pilot in options
classes in certain issues (‘‘Pilot
Program’’) previously approved by the
Securities and Exchange Commission
(‘‘Commission’’) through December 31,
2018. The Pilot Program is currently
scheduled to expire on June 30, 2018.
The proposed rule change is available
on the Exchange’s website at
www.nyse.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
self-regulatory organization included
19 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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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 those 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange hereby proposes to
amend Commentary .02 to Rule 960NY
to extend the time period of the Pilot
Program,4 which is currently scheduled
to expire on June 30, 2018, through
December 31, 2018. The Exchange also
proposes that the date to replace issues
in the Pilot Program that have been
delisted be revised to the second trading
day following July 1, 2018.5 The
Exchange believes that extending the
Pilot would allow for further analysis of
the Pilot Program and a determination
of how the Pilot Program should be
structured in the future.
This filing does not propose any
substantive changes to the Pilot
Program: All classes currently
participating will remain the same and
all minimum increments will remain
unchanged. The Exchange believes the
benefits to public customers and other
market participants who will be able to
express their true prices to buy and sell
options have been demonstrated to
outweigh the increase in quote traffic.
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 6 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
objectives of Section 6(b)(5),7 in
particular, in that it is designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, to foster
cooperation and coordination with
4 See Securities Exchange Act Release No. 82358
(December 19, 2017), 82 FR 61054 (December 26,
2017) (SR–NYSEAMER–2017–38).
5 The month immediately preceding a
replacement class’s addition to the Pilot Program
(i.e., June) would not be used for purposes of the
analysis for determining the replacement class.
Thus, a replacement class to be added on the
second trading day following July 1, 2018 would be
identified based on The Option Clearing
Corporation’s trading volume data from December
1, 2017 through May 31, 2018. The Exchange will
announce the replacement issues to the Exchange’s
membership through a Trader Update.
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
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Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices
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persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system.
In particular, the proposed rule
change, which extends the Penny Pilot
Program for six months, allows the
Exchange to continue to participate in a
program that has been viewed as
beneficial to traders, investors and
public customers and viewed as
successful by the other options
exchanges participating in it.
Accordingly, the Exchange believes that
the proposal is consistent with the Act
because it will allow the Exchange to
extend the Pilot Program prior to its
expiration on June 30, 2018. The
Exchange notes that this proposal does
not propose any new policies or
provisions that are unique or unproven,
but instead relates to the continuation of
an existing program that operates on a
pilot basis.
The Exchange believes that the Pilot
Program promotes just and equitable
principles of trade by enabling public
customers and other market participants
to express their true prices to buy and
sell options to the benefit of all market
participants.
The proposal to extend the Pilot
Program is designed to promote just and
equitable principles of trade, to foster
cooperation and coordination with
persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system, by
allowing the Exchange and the
Commission additional time to analyze
the impact of the Pilot Program while
also allowing the Exchange to continue
to compete for order flow with other
exchanges in option issues trading as
part of the Pilot Program.
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. Specifically,
the Exchange believes that, by extending
the expiration of the Pilot Program, the
proposed rule change will allow for
further analysis of the Pilot Program and
a determination of how this Program
should be structured in the future. In
doing so, the proposed rule change will
also serve to promote regulatory clarity
and consistency, thereby reducing
burdens on the marketplace and
facilitating investor protection. The
Pilot Program is an industry-wide
initiative supported by all other option
VerDate Sep<11>2014
17:58 Jun 28, 2018
Jkt 244001
exchanges. The Exchange believes that
extending the Pilot Program will allow
for continued competition between
Exchange market participants trading
similar products as their counterparts
on other exchanges, while at the same
time allowing the Exchange to continue
to compete for order flow with other
exchanges in option issues trading as
part of the Pilot Program.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
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 8 and Rule
19b–4(f)(6) thereunder.9 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 10 and
Rule 19b–4(f)(6)(iii) thereunder.11
A proposed rule change filed under
Rule 19b–4(f)(6) 12 normally does not
become operative prior to 30 days after
the date of the filing.13 However,
pursuant to Rule 19b–4(f)(6)(iii),14 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. Without a waiver of 30-day
operative delay, the Exchange’s Pilot
Program will expire before the extension
of the Pilot Program is operative. The
Commission believes that waiving the
30-day operative delay for the instant
filing is consistent with the protection
of investors and the public interest
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
10 15 U.S.C. 78s(b)(3)(A).
11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s 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
of filing of the proposed rule change, or such
shorter time as designated by the Commission. The
Exchange has satisfied this pre-filing requirement.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6).
14 17 CFR 240.19b–4(f)(6)(iii).
9 17
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30809
because doing so will allow the Pilot
Program to continue without
interruption in a manner that is
consistent with the Commission’s prior
approval of the extension and expansion
of the Pilot Program and will allow the
Exchange and the Commission
additional time to analyze the impact of
the Pilot Program. Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.15
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–
NYSEAMER–2018–33 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–NYSEAMER–2018–33. 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 20549–1090 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
15 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).
E:\FR\FM\29JNN1.SGM
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Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices
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–NYSEAMER–2018–33 and
should be submitted on or before July
20, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–13979 Filed 6–28–18; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments
60-Day notice and request for
comments.
ACTION:
The Paperwork Reduction Act
(PRA) requires federal agencies to
publish a notice in the Federal Register
concerning each proposed collection of
information before submitting it to OMB
for approval, and to allow 60 days for
public comment in response to the
notice. SBA initially published this
required notice on April 2, 2018. SBA
is republishing the notice to address the
two comments it received requesting
greater detail on the information to be
collected and to provide an additional
60 days for public comment.
DATES: Submit comments on or before
August 28, 2018.
ADDRESSES: Send all comments to
Adrienne Grierson, Deputy Director,
Office of Credit Risk Management,
Small Business Administration, at
lender.oversight@sba.gov.
FOR FURTHER INFORMATION CONTACT:
Adrienne Grierson, Deputy Director,
Office of Credit Risk Management at
lender.oversight@sba.gov or 202–205–
6573, or Curtis B. Rich, Management
Analyst, 202–205–7030, curtis.rich@
sba.gov.
SUPPLEMENTARY INFORMATION: SBA’s
Office of Credit Risk Management
(OCRM) is responsible for the oversight
and supervision of the SBA operations
of approximately 4000 7(a) Lenders,
Certified Development Companies
(‘‘CDCs’’), and Microloan Intermediaries
(‘‘Intermediaries’’), that participate in
sradovich on DSK3GMQ082PROD with NOTICES
SUMMARY:
16 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:58 Jun 28, 2018
Jkt 244001
SBA’s business loan programs and, for
enforcement of the applicable rules and
regulations. Currently, the agency
guarantees more than $90 billion dollars
in small business loans through these
programs. The information collection
described in detail below helps OCRM
protect the safety and soundness of the
business loan programs and taxpayer
dollars.
In general, SBA collects information
in connection with PARRiS 1 reviews for
7(a) Federally-regulated Lenders,
SMART 2 reviews for CDCs, and PARRiS
Safety and Soundness Examinations for
SBA Supervised Lenders including
Small Business Lending Companies
(SBLCs) and Non-Federally Regulated
Lenders (NFRLs).3 SBA also requests
certain information when it conducts
Delegated Authority Reviews of 7(a)
Lenders and CDCs, and Microloan
Intermediary Site Visits. The discussion
below identifies the nature of the
information to be collected for each type
of lender and the related review or
examination. In addition, SBA has
created separate lists, which are also
discussed below, to clearly identify the
information to be collected.
I. 7(a) Lender and CDC PARRIS and
SMART Analytical and Full Reviews
and Safety and Soundness Exams
A. Common Information Collected
For all Analytical Reviews, Full
Reviews, and Safety and Soundness
examinations 4 of 7(a) lenders and CDCs,
as applicable, in general, SBA requests
information related to the lender’s or
CDC’s management and operation,
eligibility of its SBA loans for SBA
guaranty, compliance with SBA Loan
Program Requirements, credit
administration, and performance of its
SBA loan portfolio.
1. Management and Operations: The
information requested generally
includes the SBA program organization
chart with responsibilities, business
plan, financial and program audits,
evidence of lender compliance with
1 PARRiS refers to the specific risk components
reviewed for 7(a) Lenders: (i) Portfolio Performance;
(ii) Asset Management; (iii) Regulatory Compliance;
(iv) Risk Management; and (v) Special Items.
2 SMART refers to the specific risk components
reviewed for Certified Development Companies: (i)
Solvency and Financial Condition; (ii) Management
and Board Governance; (iii) Asset Quality and
Servicing; (iv) Regulatory Compliance; and (v)
Technical Issues and Mission.
3 SBLCs and NFRLs are defined in 15 U.S.C.
632(r) and 13 CFR 120.10.
4 Safety and Soundness Examinations are only
performed on SBA Supervised Lenders in the 7(a)
program. SBA Supervised Lenders include SBA
licensed Small Business Lending Companies and
Non-Federally Regulated Lenders as defined in 13
CFR 120.10. Analytical Reviews and Full Reviews
are performed on 7(a) Lenders and CDCs.
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Frm 00128
Fmt 4703
Sfmt 4703
regulatory orders and agreements (if
applicable and as appropriate), and staff
training on SBA lending.
2. Eligibility and Credit
Administration: In reviewing these
areas, SBA primarily requests lender’s
or CDC’s policies, loan sample files;
independent loan reviews; loan credit
scoring and risk rating methodologies;
and information on loans approved as
exceptions to policy.
3. Compliance with Loan Program
Requirements: Here, SBA collects
information on services and fees
charged for Third-party vendors,5
lender’s FTA 6 trust account, and
lender’s use of the System of Awards
Management to perform agent due
diligence.
4. Portfolio Performance: In
considering lender or CDC portfolio
performance, SBA requests that lenders
provide a listing of loans indicating
those past due, those with servicing
actions, individual risk ratings, and
those in liquidation or purchased for
SBA to compare with SBA data. SBA
also requests that lenders provide an
explanation for risks identified (e.g.,
identified by high risk metrics or
PARRiS flags triggered).
Further detail on the information SBA
collects in Analytical and Full Reviews
and Safety and Soundness Exams is
contained in the SBA Supervised
Lender Safety and Soundness
Examination/Full Review Information
Request; 7(a) Lender PARRiS Analytical
Review Information Request; CDC
SMART Analytical Review Information
Request; 7(a) Lender PARRiS Full
Review Information Request; and, CDC
SMART Full Review Information
Request. Each Information Request
document is available upon request.
B. SBA Supervised Lender
Supplemental Information for Safety
and Soundness Exams
SBA is the primary federal regulator
for SBA licensed SBLCs and NFRLs that
participate in the 7(a) program.7
5 For purposes of this notice, Third-party vendors
include, for example, Loan Agents (e.g., Packagers
and Lender Service Providers) and Professional
Managers with management contracts.
6 FTA refers to SBA’s Fiscal and Transfer Agent.
7(a) Lenders that sell SBA loans in the Secondary
Market are required by the terms of the Form 1086,
Secondary Participation Guaranty Agreement, to
deposit the guaranteed portion of loan payments in
a segregated account for the benefit of investors.
7 SBA Supervised Lenders are a relatively small
subset of 7(a) Lenders. 7(a) Lenders include SBA
Supervised Lenders and Federally Regulated 7(a)
Lenders (i.e., those lenders regulated by the federal
bank regulators—Federal Deposit Insurance
Corporation, the Office of the Comptroller of the
Currency, the Federal Reserve Board, the National
Credit Union Administration, and the Farm Credit
Administration).
E:\FR\FM\29JNN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)]
[Notices]
[Pages 30808-30810]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13979]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83507; File No. SR-NYSEAMER-2018-33]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Commentary .02 to Rule 960NY in Order To Extend the Penny Pilot in
Options Classes in Certain Issues Through December 31, 2018
June 25, 2018.
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 June 21, 2018, NYSE American LLC (the ``Exchange'' or
``NYSE American'') filed with the Securities and Exchange Commission
(the ``Commission'') the proposed rule change as described in Items I
and II below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 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 Commentary .02 to Rule 960NY in
order to extend the Penny Pilot in options classes in certain issues
(``Pilot Program'') previously approved by the Securities and Exchange
Commission (``Commission'') through December 31, 2018. The Pilot
Program is currently scheduled to expire on June 30, 2018. The proposed
rule change is available on the Exchange's website at www.nyse.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 self-regulatory organization
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 those 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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange hereby proposes to amend Commentary .02 to Rule 960NY
to extend the time period of the Pilot Program,\4\ which is currently
scheduled to expire on June 30, 2018, through December 31, 2018. The
Exchange also proposes that the date to replace issues in the Pilot
Program that have been delisted be revised to the second trading day
following July 1, 2018.\5\ The Exchange believes that extending the
Pilot would allow for further analysis of the Pilot Program and a
determination of how the Pilot Program should be structured in the
future.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 82358 (December 19,
2017), 82 FR 61054 (December 26, 2017) (SR-NYSEAMER-2017-38).
\5\ The month immediately preceding a replacement class's
addition to the Pilot Program (i.e., June) would not be used for
purposes of the analysis for determining the replacement class.
Thus, a replacement class to be added on the second trading day
following July 1, 2018 would be identified based on The Option
Clearing Corporation's trading volume data from December 1, 2017
through May 31, 2018. The Exchange will announce the replacement
issues to the Exchange's membership through a Trader Update.
---------------------------------------------------------------------------
This filing does not propose any substantive changes to the Pilot
Program: All classes currently participating will remain the same and
all minimum increments will remain unchanged. The Exchange believes the
benefits to public customers and other market participants who will be
able to express their true prices to buy and sell options have been
demonstrated to outweigh the increase in quote traffic.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \6\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5),\7\ in particular, in that it is
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with
[[Page 30809]]
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change, which extends the Penny
Pilot Program for six months, allows the Exchange to continue to
participate in a program that has been viewed as beneficial to traders,
investors and public customers and viewed as successful by the other
options exchanges participating in it. Accordingly, the Exchange
believes that the proposal is consistent with the Act because it will
allow the Exchange to extend the Pilot Program prior to its expiration
on June 30, 2018. The Exchange notes that this proposal does not
propose any new policies or provisions that are unique or unproven, but
instead relates to the continuation of an existing program that
operates on a pilot basis.
The Exchange believes that the Pilot Program promotes just and
equitable principles of trade by enabling public customers and other
market participants to express their true prices to buy and sell
options to the benefit of all market participants.
The proposal to extend the Pilot Program is designed to promote
just and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, and to remove impediments to and perfect the mechanisms of
a free and open market and a national market system, by allowing the
Exchange and the Commission additional time to analyze the impact of
the Pilot Program while also allowing the Exchange to continue to
compete for order flow with other exchanges in option issues trading as
part of the Pilot Program.
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. Specifically, the Exchange
believes that, by extending the expiration of the Pilot Program, the
proposed rule change will allow for further analysis of the Pilot
Program and a determination of how this Program should be structured in
the future. In doing so, the proposed rule change will also serve to
promote regulatory clarity and consistency, thereby reducing burdens on
the marketplace and facilitating investor protection. The Pilot Program
is an industry-wide initiative supported by all other option exchanges.
The Exchange believes that extending the Pilot Program will allow for
continued competition between Exchange market participants trading
similar products as their counterparts on other exchanges, while at the
same time allowing the Exchange to continue to compete for order flow
with other exchanges in option issues trading as part of the Pilot
Program.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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 \10\ and Rule 19b-
4(f)(6)(iii) thereunder.\11\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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 of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this pre-filing requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \12\ normally
does not become operative prior to 30 days after the date of the
filing.\13\ However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the
Commission may designate a shorter time if such action is consistent
with the protection of investors and the public interest. Without a
waiver of 30-day operative delay, the Exchange's Pilot Program will
expire before the extension of the Pilot Program is operative. The
Commission believes that waiving the 30-day operative delay for the
instant filing is consistent with the protection of investors and the
public interest because doing so will allow the Pilot Program to
continue without interruption in a manner that is consistent with the
Commission's prior approval of the extension and expansion of the Pilot
Program and will allow the Exchange and the Commission additional time
to analyze the impact of the Pilot Program. Accordingly, the Commission
designates the proposed rule change as operative upon filing with the
Commission.\15\
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\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6).
\14\ 17 CFR 240.19b-4(f)(6)(iii).
\15\ 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).
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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-NYSEAMER-2018-33 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-NYSEAMER-2018-33. 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
20549-1090 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
[[Page 30810]]
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-NYSEAMER-2018-33 and should
be submitted on or before July 20, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13979 Filed 6-28-18; 8:45 am]
BILLING CODE 8011-01-P
