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 June 30, 2019, 66789-66791 [2018-27991]
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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices
Exchange’s proposal to eliminate the
requirement that a minimum percentage
of component foreign country securities
or foreign country securities underlying
ADRs in an index be traded primarily
on markets that are members of ISG or
on markets that are parties to
comprehensive surveillance sharing
agreements with the Exchange? In light
of the proposed amendment to NYSE
Arca Rule 5.2–E (j)(6)(B)(I)(1)(b)(v) that
would eliminate the requirement that a
minimum percentage of component
foreign country securities or foreign
country securities underlying ADRs in
an index be traded primarily on markets
that are members of ISG or on markets
that are parties to comprehensive
surveillance sharing agreements with
the Exchange, what are commenters’
views about whether the Exchange has
met its burden in demonstrating that the
proposal is consistent with Section
6(b)(5) of the Act, which requires the
rules of the Exchange be designed to,
among other things, prevent fraudulent
and manipulative acts and practices?
The Commission requests any comment,
data, or analysis that commenters think
may be relevant to the Commission’s
consideration of the Exchange’s
proposal.
III. Procedure: Request for Written
Comments
khammond on DSK30JT082PROD with NOTICES
The Commission requests that
interested persons provide written
submissions of their views, data, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposal is consistent with Section
6(b)(5) or any other provision of the Act,
or the rules and regulations thereunder.
Although there do not appear to be any
issues relevant to approval or
disapproval that would be facilitated by
an oral presentation of views, data, and
arguments, the Commission will
consider, pursuant to Rule 19b–4, any
request for an opportunity to make an
oral presentation.19
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
19 Section 19(b)(2) of the Act, as amended by the
Securities Act Amendments of 1975, Public Law
94–29 (June 4, 1975), grants the Commission
flexibility to determine what type of proceeding—
either oral or notice and opportunity for written
comments—is appropriate for consideration of a
particular proposal by a self-regulatory
organization. See Securities Act Amendments of
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
VerDate Sep<11>2014
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66789
Number SR–NYSEArca–2018–67 and
should be submitted by January 17,
2019. Rebuttal comments should be
submitted by January 31, 2019.
proposal should be approved or
disapproved by January 17, 2019. Any
person who wishes to file a rebuttal to
any other person’s submission must file
that rebuttal by January 31, 2019. The
Commission asks that commenters
address the sufficiency of the
Exchange’s statements in support of the
proposal, which are set forth in the
Notice,20 in addition to any other
comments they may wish to submit
about the proposed rule change.
Comments may be submitted by any
of the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
Brent J. Fields,
Secretary.
Electronic Comments
SECURITIES AND EXCHANGE
COMMISSION
• 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–
NYSEArca–2018–67 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–NYSEArca–2018–67. 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
20 See
PO 00000
Notice, supra note 3.
Frm 00119
Fmt 4703
Sfmt 4703
[FR Doc. 2018–27999 Filed 12–26–18; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–84871; File No. SR–
NYSEAMER–2018–57]
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 June 30, 2019
December 19, 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 December
18, 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 June 30, 2019.
The Pilot Program is currently
scheduled to expire on December 31,
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.
21 17
CFR 200.30–3(a)(57).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices
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, which is currently scheduled
to expire on December 31, 2018, through
June 30, 2019.4 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 January 1, 2019.5 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.
khammond on DSK30JT082PROD with NOTICES
2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 6 of the Act,
in general, and furthers the objectives of
Section 6(b)(5),7 in particular, in that it
4 See Securities Exchange Act Release No. 83507
(June 25, 2018), 83 FR 30808 (June 29, 2018) (SR–
NYSEAMER–2018–33).
5 The month immediately preceding a
replacement class’s addition to the Pilot Program
(i.e., December) 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 January 1, 2019 would
be identified based on The Option Clearing
Corporation’s trading volume data from June 1,
2018 through November 30, 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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17:14 Dec 26, 2018
Jkt 247001
is 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
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 would allow the Exchange to
extend the Pilot Program prior to its
expiration on December 31, 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
PO 00000
Frm 00120
Fmt 4703
Sfmt 4703
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) of the Act 8 and Rule 19b–
4(f)(6) 9 thereunder. 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 after the date of
the filing, 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 19(b)(3)(A) of the
Act 10 and Rule 19b–4(f)(6) 11
thereunder.
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 filing. However, pursuant to
Rule 19b–4(f)(6)(iii),13 the Commission
may designate a shorter time if such
action is consistent with the protection
of investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
8 15
U.S.C. 78s(b)(3)(A).
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) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
12 17 CFR 240.19b–4(f)(6).
13 17 CFR 240.19b–4(f)(6)(iii).
9 17
E:\FR\FM\27DEN1.SGM
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Federal Register / Vol. 83, No. 247 / Thursday, December 27, 2018 / Notices
Commission believes that waiving the
30-day operative delay 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.14 Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.15
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.
khammond on DSK30JT082PROD with NOTICES
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:
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
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–2018–57 and
should be submitted on or before
January 17, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Brent J. Fields,
Secretary.
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–2018–57 on the subject
line.
[FR Doc. 2018–27991 Filed 12–26–18; 8:45 am]
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–2018–57. 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
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of No Objection to Advance Notice, as
Modified by Partial Amendment No. 1,
Related to The Options Clearing
Corporation’s Margin Methodology for
Incorporating Variations in Implied
Volatility
14 See Securities Exchange Release No. 61061
(November 24, 2009), 74 FR 62857 (December 1,
2009) (SR–NYSEArca–2009–44).
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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17:14 Dec 26, 2018
Jkt 247001
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84838; File No. SR–OCC–
2018–804]
December 19, 2018.
I. Introduction
On October 22, 2018, The Options
Clearing Corporation (‘‘OCC’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) advance
notice SR–OCC–2018–804 (‘‘Advance
Notice’’) pursuant to Section 806(e)(1) of
Title VIII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act,
entitled Payment, Clearing and
Settlement Supervision Act of 2010
(‘‘Clearing Supervision Act’’) 1 and Rule
16 17
1 12
PO 00000
CFR 200.30–3(a)(12).
U.S.C. 5465(e)(1).
Frm 00121
Fmt 4703
Sfmt 4703
66791
19b–4(n)(1)(i) 2 under the Securities
Exchange Act of 1934 (‘‘Exchange
Act’’) 3 to propose changes to OCC’s
model for incorporating variations in
implied volatility within OCC’s margin
methodology, the System for Theoretical
Analysis and Numerical Simulations.4
On October 30, 2018, OCC filed a
partial amendment (‘‘Partial
Amendment No. 1’’) to modify the
Advance Notice.5 The Advance Notice,
as modified by Partial Amendment No.
1, was published for public comment in
the Federal Register on November 26,
2018,6 and the Commission received no
comments regarding the proposal
contained in the Advance Notice.7 This
publication serves as notice of no
objection to the Advance Notice.
II. Background
The System for Theoretical Analysis
and Numerical Simulations (‘‘STANS’’)
is OCC’s methodology for calculating
margin. STANS includes econometric
models that incorporate a number of
risk factors. OCC defines a risk factor in
STANS as a product or attribute whose
historical data is used to estimate and
simulate the risk for an associated
product. The majority of risk factors
utilized in STANS are the returns on
individual equity securities; however, a
number of other risk factors may be
considered, including, among other
things, returns on implied volatility risk
factors.8
2 17
CFR 240.19b–4(n)(1)(i).
U.S.C. 78a et seq.
4 See Notice of Filing infra note 6, at 83 FR 60541.
5 In Partial Amendment No. 1, OCC corrected an
error in Exhibit 5 without changing the substance
of the Advance Notice. References to the Advance
Notice from this point forward refer to the Advance
Notice, as amended by Partial Amendment No. 1.
6 Securities Exchange Act Release No. 84626
(November 19, 2018), 83 FR 60541 (November 26,
2018) (SR–OCC–2018–804) (‘‘Notice of Filing’’). On
October 22, 2018, OCC also filed a related proposed
rule change (SR–OCC–2018–014) with the
Commission pursuant to Section 19(b)(1) of the
Exchange Act and Rule 19b–4 thereunder, seeking
approval of changes to its rules necessary to
implement the Advance Notice (‘‘Proposed Rule
Change’’). 15 U.S.C. 78s(b)(1) and 17 CFR 240.19b–
4, respectively. The Proposed Rule Change was
published in the Federal Register on November 8,
2018. Securities Exchange Act Release No. 84524
(Nov. 2, 2018), 83 FR 55918 (Nov. 8, 2018) (SR–
OCC–2018–014).
7 Since the proposal contained in the Advance
Notice was also filed as a proposed rule change, all
public comments received on the proposal are
considered regardless of whether the comments are
submitted on the proposed rule change or the
Advance Notice.
8 In December 2015, the Commission approved a
proposed rule change and issued a Notice of No
Objection to an advance notice filing by OCC to its
modify margin methodology by more broadly
incorporating variations in implied volatility within
STANS. See Securities Exchange Act Release No.
76781 (December 28, 2015), 81 FR 135 (January 4,
3 15
Continued
E:\FR\FM\27DEN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 247 (Thursday, December 27, 2018)]
[Notices]
[Pages 66789-66791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27991]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84871; File No. SR-NYSEAMER-2018-57]
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 June 30, 2019
December 19, 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 December 18, 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 June 30, 2019. The Pilot Program is
currently scheduled to expire on December 31, 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.
[[Page 66790]]
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, which is currently
scheduled to expire on December 31, 2018, through June 30, 2019.\4\ 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 January 1, 2019.\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. 83507 (June 25,
2018), 83 FR 30808 (June 29, 2018) (SR-NYSEAMER-2018-33).
\5\ The month immediately preceding a replacement class's
addition to the Pilot Program (i.e., December) 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 January 1, 2019 would be identified based on The Option
Clearing Corporation's trading volume data from June 1, 2018 through
November 30, 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
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
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 would
allow the Exchange to extend the Pilot Program prior to its expiration
on December 31, 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) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder. 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 after the date of the filing, 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 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6)
\11\ thereunder.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\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)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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) \12\ normally
does not become operative prior to 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\13\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The
[[Page 66791]]
Commission believes that waiving the 30-day operative delay 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.\14\
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)(iii).
\14\ See Securities Exchange Release No. 61061 (November 24,
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44).
\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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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
Send an email to rule-comments@sec.gov. Please include
File Number SR-NYSEAMER-2018-57 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-2018-57. 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
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-2018-57 and should
be submitted on or before January 17, 2019.
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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Brent J. Fields,
Secretary.
[FR Doc. 2018-27991 Filed 12-26-18; 8:45 am]
BILLING CODE 8011-01-P
