Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 903, Series of Options Open for Trading, 61705-61707 [2018-25996]
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Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Eduardo A. Aleman,
Assistant Secretary.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–25997 Filed 11–29–18; 8:45 am]
[FR Doc. 2018–26001 Filed 11–29–18; 8:45 am]
BILLING CODE 8011–01–P
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84650; File No. SR–MIAX–
2018–25]
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Withdrawal of a Proposed
Rule Change To Amend the Fee
Schedule Regarding Connectivity Fees
for Members and Non-Members
November 26, 2018.
On September 18, 2018, Miami
International Securities Exchange LLC
(‘‘MIAX’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change to amend the MIAX Fee
Schedule to increase certain
connectivity fees. The proposed rule
change was immediately effective upon
filing with the Commission pursuant to
Section 19(b)(3)(A) of the Act.3 On
October 10, 2018 the proposed rule
change was published for comment in
the Federal Register and, pursuant to
Section 19(b)(3)(C) of the Act, the
Commission: (1) Temporarily
suspended the proposed rule change;
and (2) instituted proceedings to
determine whether to approve or
disapprove the proposal.4 The
Commission received one comment
letter on the proposal.5 On November
23, 2018, the Exchange withdrew the
proposed rule change (SR–MIAX–2018–
25).
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 See Securities Exchange Act Release No. 84357
(October 3, 2018), 83 FR 50976.
5 See Letter from Theodore R. Lazo, Managing
Director and Associate General Counsel, and Ellen
Greene, Managing Director, The Securities Industry
and Financial Markets Association, to Brent J.
Fields, Secretary, Commission, dated October 15,
2018.
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[Release No. 34–84649; File No. SR–
NYSEAMER–2018–51]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 903,
Series of Options Open for Trading
November 26, 2018.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 2 and
Rule 19b–4 thereunder,3 notice is
hereby given that on November 19,
2018, NYSE American LLC
(‘‘Exchange’’) 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 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
Rule 903. 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.
6 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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61705
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
Rule 903, Series of Options Open for
Trading, to permit the listing and
trading of up to ten expiration months
for long term options on the SPDR® S&P
500® Exchange-Traded Fund (the ‘‘SPY
ETF’’).
Commentary .03(a) of Rule 903
(‘‘Commentary .03’’) provides that the
Exchange may list, with respect to any
class of stock or Exchange-Traded Fund
Share options series, options having
from twelve up to thirty-nine months
from the time they are listed until
expiration (‘‘LEAPS’’). Under the
current Rule, the Exchange may list up
to six LEAPS expiration months.4 The
Exchange proposes to amend
Commentary .03 to permit up to ten
LEAPS expiration months for options on
the SPY ETF.5 This proposal, which is
substantially the same as a recent rule
amendment submitted by Nasdaq PHLX
LLC (‘‘PHLX’’) and driven by customer
demand,6 would add liquidity to the
SPY ETF options market by allowing
market participants to hedge risks
relating to SPY ETF positions over a
potentially longer time period with a
known and limited cost.
The SPY ETF options market today is
characterized by its tremendous daily
and annual liquidity. As a consequence,
the Exchange believes that the listing of
additional SPY ETF LEAPS expiration
months would be well received by
investors. This proposal to expand the
number of permitted SPY ETF LEAPS
would not apply to LEAPS on any other
4 Strike price interval, bid/ask differential and
continuity rules shall not apply to such options
series until the time to expiration is less than nine
months. See Commentary .03(a) of Rule 903.
5 See proposed Commentary .03(a) of Rule 903
(providing in relevant part, that ‘‘[t]here may be up
to ten expiration months for options on the [SPY
ETF] and up to six extended far term expiration
months for options on any other index, ExchangeTrade Fund Share, or equity option class’’). The
Exchange also proposes a technical change to
remove the errant period that appears after
‘‘(LEAPS)’’ in the title of Commentary .03, which
would add clarity and consistency to Exchange
rules. See proposed Commentary .03 of Rule 903.
6 See also Securities Exchange Act Release No.
84449 (October 18, 2018), 83 FR 53699 (October 24,
2018) (SR–Phlx–2018–64) (‘‘PHLX Rule Change’’).
The Exchange notes that the PHLX Rule Change
does not apply to LEAPS on index options, as PHLX
already provided for up to ten expirations in LEAPS
on index options in PHLX Rule 1101A(b)(iii).
Because Commentary .03 includes index options,
this proposal is consistent with both the PHLX Rule
Change and PHLX Rule 1101A(b)(iii).
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Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Notices
class of stock or Exchange-Traded Fund
Share options.7
2. Statutory Basis
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The proposed rule change is
consistent with Section 6(b) 8 of the
Securities Exchange Act of 1934 (the
‘‘Act’’), in general, and furthers the
objectives of Section 6(b)(5),9 in
particular, in that it is designed to
promote just and equitable principles of
trade, 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, by
offering market participants additional
LEAPS on SPY options for their
investment and risk management
purposes. The proposal is intended
simply to provide additional trading
opportunities which have been
requested by customers, thereby
facilitating transactions in options and
contributing to the protection of
investors and the maintenance of fair
and orderly markets. The proposed rule
change responds to the continuing
needs of market participants,
particularly portfolio managers and
other institutional customers, by
providing protection from long-term
market moves and by offering an
alternative to hedging portfolios with
futures positions or off-exchange
customized derivative instruments.
The Exchange believes that the
addition today of four additional
expiration months for SPY ETF LEAPS
does not represent a proliferation of
expiration months, but is instead a very
modest expansion of LEAPS options in
response to stated customer demand.
Significantly, the proposal would
feature new LEAPS expiration months
in only a single class of options—the
SPY ETF—that are very liquid and
heavily traded, as discussed above.
Additionally, the Exchange notes by
way of precedent that ten expiration
months are already permitted for stock
index LEAPS options on other
markets.10 Further, the Exchange has the
necessary systems capacity to support
the new SPY ETF LEAPS expiration
months.
The Exchange notes that this proposal
is substantially the same as a recent rule
amendment submitted by PHLX.11
7 Historically, SPY is the largest and most actively
traded ETF in the United States as measured by its
assets under management and the value of shares
traded.
8 15 U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
10 See NYSE Arca Rule 5.19–O(b)(1) and PHLX
Rule 1101A(b)(iii).
11 See PHLX Rule Change, supra note 6.
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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 not
necessary or appropriate in furtherance
of the purposes of the Act. The proposal
merely provides investors additional
investment and risk management
opportunities by providing flexibility to
the Exchange to list additional long term
options expiration series, expanding the
number of SPY LEAPS offered on the
Exchange from six expiration months to
ten expiration months.
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
Because the foregoing 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 12 and Rule 19b–
4(f)(6) thereunder.13
A proposed rule change filed under
Rule 19b–4(f)(6) 14 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b4(f)(6)(iii),15 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange’s proposal would conform the
Exchange’s rules relating to the
permitted number of SPY ETF LEAPS
expiration months to those of PHLX.16
Accordingly, the Commission believes
that the proposal raises no new or novel
regulatory issues, and waiver of the 30day operative delay is consistent with
the protection of investors and the
public interest. The Commission
therefore waives the 30-day operative
12 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give 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. The Exchange
has satisfied this requirement.
14 Id.
15 17 CFR 240.19b–4(f)(6)(iii).
16 See supra, note 6.
13 17
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delay and designates the proposal
operative upon filing.17
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.
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–2018–51 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–2018–51. 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
17 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).
E:\FR\FM\30NON1.SGM
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Federal Register / Vol. 83, No. 231 / Friday, November 30, 2018 / Notices
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–2018–51 and
should be submitted on or before
December 21, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–25996 Filed 11–29–18; 8:45 am]
BILLING CODE 8011–01–P
SURFACE TRANSPORTATION BOARD
Office of Environmental Analysis
[Finance Docket 36095]
Notice of Availability of the Draft
Environmental Assessment (Draft EA)
for Palmetto Railways Camp Hall Rail
Line
Surface Transportation Board
(Board) Office of Environmental
Analysis (OEA), U.S. Army Corps of
Engineers (Corps), joint lead agencies;
U.S. Coast Guard (Coast Guard), Federal
Railroad Administration (FRA),
cooperating agencies.
ACTION: Notice of Availability of the
Draft EA on November 30, 2018 and
request for comments.
AGENCY:
On August 3, 2017, Palmetto
Railways (Applicant) filed an exemption
petition with the Board pursuant to 49
U.S.C. 10502 to construct and operate
approximately 28 miles of new rail line
between the Cross Subdivision of CSX
Transportation, Inc. (CSXT) rail network
near the Santee Cooper Cross Generating
Station and the Camp Hall Commerce
Park in Berkeley County, South
Carolina. Implementation of the
proposed rail line would bring
industrial rail service to the Volvo Cars
facility, as well as areas being developed
by Santee Cooper. FRA and the Coast
Guard are cooperating agencies in the
preparation of this Draft EA pursuant to
CEQ NEPA implementing regulations
(40 CFR 1501.6).
The purpose of this Notice of
Availability (NOA) is to notify
individuals and agencies interested in
or affected by the proposed action of the
availability of the Draft EA for review
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SUMMARY:
18 17
CFR 200.30–3(a)(12).
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17:00 Nov 29, 2018
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and comment on November 30, 2018.
The Draft EA analyzes the potential
environmental impacts of the proposed
action and alternatives, including the
no-action alternative. The Draft EA
addresses environmental issues and
concerns identified during the scoping
process. It also contains OEA’s
preliminary recommendations for
environmental mitigation measures, and
Palmetto Railways’ voluntary mitigation
measures.
The Draft EA will be available on
November 30, 2018 through the Board’s
website at https://www.stb.gov by
following the decisions link, through
the project website at https://
www.CampHallRailNEPA.com, and at
all public libraries in Berkeley County,
South Carolina.
Next Steps: Following the close of the
30-day comment period on December
30, 2018 of the Draft EA, OEA, the
Corps, and the cooperating agencies will
issue a Final EA that considers
comments on the Draft EA. The Board
will then issue a final decision based on
the Draft and Final EAs and all public
and agency comments in the public
record for this proceeding. The final
decision will address the transportation
merits of the proposed project and the
entire environmental record. That final
decision will take one of three actions:
Approve the proposed project, deny it,
or approve it with mitigation
conditions, including environmental
conditions.
Written Comments: Any interested
party may submit written comments on
the Draft EA. The procedures for
submitting written comments are
outlined below:
ADDRESSES: Please mail written
comments on the Draft EA and the
recommended environmental mitigation
to: Ms. Diana Wood, Surface
Transportation Board, Docket No. FD
36095, c/o ICF, 9300 Lee Highway,
Fairfax, VA 22031. Electronic comments
on this Draft EA may also be submitted
electronically on the joint lead agencies’
project website (https://www.CampHall
RailNepa.com) or emailed to
CampHallRailLineNEPA@icf.com.
Please refer to Docket No. FD 36095 in
all correspondence, including
electronic, addressed to the joint lead
agencies.
The EA will be available for
public review and comment on
November 30, 2018. Mailed comments
must be postmarked by December 30,
2018. Electronic comments must be
received by December 30, 2018.
FOR FURTHER INFORMATION CONTACT:
Diana Wood, Surface Transportation
DATES:
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61707
Board, Docket No. FD 36095, c/o ICF,
9300 Lee Highway, Fairfax, VA 22031.
Dated: November 15, 2018.
By the Board, Victoria Ruston, Director,
Office of Environmental Analysis.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018–25446 Filed 11–29–18; 8:45 am]
BILLING CODE 4915–01–P
TENNESSEE VALLEY AUTHORITY
Meeting of the Regional Energy
Resource Council
Tennessee Valley Authority
(TVA).
ACTION: Notice of meeting.
AGENCY:
The TVA Regional Energy
Resource Council (RERC) will hold a
meeting on Tuesday, December 18,
2018, to discuss the metrics and
evaluation criteria that TVA is
establishing for the 2019 Integrated
Resource Plan (IRP). The RERC was
established to advise TVA on its energy
resource activities and the priority to be
placed among competing objectives and
values. Notice of this meeting is given
under the Federal Advisory Committee
Act (FACA).
DATES: The public meeting will be held
on Tuesday, December 18, 2018, from
9:00 a.m. to 4:00 p.m., EST.
ADDRESSES: The meeting will be held at
the Hilton Downtown Knoxville, 501
Church Street, Knoxville, Tennessee
37902, and will be open to the public.
Anyone needing special access or
accommodations should let the contact
below know at least a week in advance.
FOR FURTHER INFORMATION CONTACT: Liz
Upchurch, 865–632–8305, efupchurch@
tva.gov.
SUPPLEMENTARY INFORMATION: The
meeting agenda includes the following:
1. Introductions
2. Overview of the 2019 Integrated
Resource Plan and Supplemental
Environmental Impact Statement
Status
3. Overview of the Metrics and
Scorecard Identified for the 2019
IRP
4. Public Comments
5. Council Discussion and Advice
The RERC will hear opinions and
views of citizens by providing a public
comment session starting at 10:00 a.m.,
EST, lasting up to one hour, on
Tuesday, December 18, 2018. Persons
wishing to speak are requested to
register at the door between 9:00 a.m.
and 10:00 a.m., EST, on Tuesday,
December 18, 2018, and will be called
SUMMARY:
E:\FR\FM\30NON1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 231 (Friday, November 30, 2018)]
[Notices]
[Pages 61705-61707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25996]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84649; File No. SR-NYSEAMER-2018-51]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Rule 903, Series of Options Open for Trading
November 26, 2018.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given that on
November 19, 2018, NYSE American LLC (``Exchange'') 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 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 Rule 903. 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 purpose of this filing is to amend Rule 903, Series of Options
Open for Trading, to permit the listing and trading of up to ten
expiration months for long term options on the SPDR[supreg] S&P
500[supreg] Exchange-Traded Fund (the ``SPY ETF'').
Commentary .03(a) of Rule 903 (``Commentary .03'') provides that
the Exchange may list, with respect to any class of stock or Exchange-
Traded Fund Share options series, options having from twelve up to
thirty-nine months from the time they are listed until expiration
(``LEAPS''). Under the current Rule, the Exchange may list up to six
LEAPS expiration months.\4\ The Exchange proposes to amend Commentary
.03 to permit up to ten LEAPS expiration months for options on the SPY
ETF.\5\ This proposal, which is substantially the same as a recent rule
amendment submitted by Nasdaq PHLX LLC (``PHLX'') and driven by
customer demand,\6\ would add liquidity to the SPY ETF options market
by allowing market participants to hedge risks relating to SPY ETF
positions over a potentially longer time period with a known and
limited cost.
---------------------------------------------------------------------------
\4\ Strike price interval, bid/ask differential and continuity
rules shall not apply to such options series until the time to
expiration is less than nine months. See Commentary .03(a) of Rule
903.
\5\ See proposed Commentary .03(a) of Rule 903 (providing in
relevant part, that ``[t]here may be up to ten expiration months for
options on the [SPY ETF] and up to six extended far term expiration
months for options on any other index, Exchange-Trade Fund Share, or
equity option class''). The Exchange also proposes a technical
change to remove the errant period that appears after ``(LEAPS)'' in
the title of Commentary .03, which would add clarity and consistency
to Exchange rules. See proposed Commentary .03 of Rule 903.
\6\ See also Securities Exchange Act Release No. 84449 (October
18, 2018), 83 FR 53699 (October 24, 2018) (SR-Phlx-2018-64) (``PHLX
Rule Change''). The Exchange notes that the PHLX Rule Change does
not apply to LEAPS on index options, as PHLX already provided for up
to ten expirations in LEAPS on index options in PHLX Rule
1101A(b)(iii). Because Commentary .03 includes index options, this
proposal is consistent with both the PHLX Rule Change and PHLX Rule
1101A(b)(iii).
---------------------------------------------------------------------------
The SPY ETF options market today is characterized by its tremendous
daily and annual liquidity. As a consequence, the Exchange believes
that the listing of additional SPY ETF LEAPS expiration months would be
well received by investors. This proposal to expand the number of
permitted SPY ETF LEAPS would not apply to LEAPS on any other
[[Page 61706]]
class of stock or Exchange-Traded Fund Share options.\7\
---------------------------------------------------------------------------
\7\ Historically, SPY is the largest and most actively traded
ETF in the United States as measured by its assets under management
and the value of shares traded.
---------------------------------------------------------------------------
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \8\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5),\9\ in particular, in that it is
designed to promote just and equitable principles of trade, 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, by offering market participants additional LEAPS on
SPY options for their investment and risk management purposes. The
proposal is intended simply to provide additional trading opportunities
which have been requested by customers, thereby facilitating
transactions in options and contributing to the protection of investors
and the maintenance of fair and orderly markets. The proposed rule
change responds to the continuing needs of market participants,
particularly portfolio managers and other institutional customers, by
providing protection from long-term market moves and by offering an
alternative to hedging portfolios with futures positions or off-
exchange customized derivative instruments.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that the addition today of four additional
expiration months for SPY ETF LEAPS does not represent a proliferation
of expiration months, but is instead a very modest expansion of LEAPS
options in response to stated customer demand. Significantly, the
proposal would feature new LEAPS expiration months in only a single
class of options--the SPY ETF--that are very liquid and heavily traded,
as discussed above. Additionally, the Exchange notes by way of
precedent that ten expiration months are already permitted for stock
index LEAPS options on other markets.\10\ Further, the Exchange has the
necessary systems capacity to support the new SPY ETF LEAPS expiration
months.
---------------------------------------------------------------------------
\10\ See NYSE Arca Rule 5.19-O(b)(1) and PHLX Rule
1101A(b)(iii).
---------------------------------------------------------------------------
The Exchange notes that this proposal is substantially the same as
a recent rule amendment submitted by PHLX.\11\
---------------------------------------------------------------------------
\11\ See PHLX Rule Change, supra note 6.
---------------------------------------------------------------------------
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 merely provides
investors additional investment and risk management opportunities by
providing flexibility to the Exchange to list additional long term
options expiration series, expanding the number of SPY LEAPS offered on
the Exchange from six expiration months to ten expiration months.
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
Because the foregoing 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 \12\ and Rule 19b-
4(f)(6) thereunder.\13\
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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give 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.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \14\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\15\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange's
proposal would conform the Exchange's rules relating to the permitted
number of SPY ETF LEAPS expiration months to those of PHLX.\16\
Accordingly, the Commission believes that the proposal raises no new or
novel regulatory issues, and waiver of the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission therefore waives the 30-day operative delay and
designates the proposal operative upon filing.\17\
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\14\ Id.
\15\ 17 CFR 240.19b-4(f)(6)(iii).
\16\ See supra, note 6.
\17\ 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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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.
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-2018-51 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-2018-51. 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
[[Page 61707]]
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-
51 and should be submitted on or before December 21, 2018.
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\18\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25996 Filed 11-29-18; 8:45 am]
BILLING CODE 8011-01-P
