Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program, 859-861 [2019-00468]
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amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices
On September 19, 2018, pursuant to
Rule 430 of the Commission’s Rules of
Practice,10 the Exchange filed a notice of
intention to petition for review of the
Order Instituting Proceedings. Such
action preserved the Exchange’s right to
file a petition to review the Division’s
action by delegated authority and,
pursuant to Rule 431(e) of the
Commission’s Rules of Practice,
triggered an automatic stay of the action
by delegated authority, which reinstated
the Exchange’s authority to charge the
connectivity fees at issue.11 On
September 26, 2018, the Exchange filed
a petition for review of the Order
Instituting Proceedings.12 On November
16, 2018, the Commission granted the
Exchange’s Petition and discontinued
the automatic stay of the delegated
action,13 thereby suspending the
Exchange’s ability to charge the
connectivity fees at issue while the
Commission conducts proceedings to
consider the proposed fees’ consistency
with the Exchange Act. In its order
granting the Petition, the Commission
also ordered that any party or other
person could file a statement by
November 27, 2018, in support or in
opposition to the action made by
delegated authority.14 The Commission
received two such statements from the
Exchange.15 Section 19(b)(2) of the
Act 16 provides that, after initiating
disapproval proceedings, the
Commission shall issue an order
approving or disapproving the proposed
rule change not later than 180 days after
the date of publication of notice of filing
of the proposed rule change. The
Commission may extend the period for
issuing an order approving or
disapproving the proposed rule change,
however, by not more than 60 days if
the Commission determines that a
longer period is appropriate and
publishes the reasons for such
determination. In this case, the
proposed rule change was published for
notice and comment in the Federal
Register on August 2, 2018.17 January
29, 2019, is 180 days from that date, and
March 30, 2019, is 240 days from that
date.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule change
so that it has sufficient time to consider
the proposed rule change. Accordingly,
the Commission, pursuant to Section
19(b)(2) of the Act,18 designates March
29, 2019, as the date by which the
Commission shall either approve or
disapprove the proposed rule change
(File No. SR–BOX–2018–24).19
Greene, Managing Director, Financial Services
Operations, Securities Industry and Financial
Markets Association, to Brent J. Fields, Secretary,
Commission, dated October 15, 2018.
10 17 CFR 201.430.
11 17 CFR 201.431(e).
12 See letter from Amir Tayrani, Partner, Gibson,
Dunn & Crutcher LLP, dated September 19, 2018;
Petition for Review of Order Temporarily
Suspending BOX Exchange LLC’s Proposal to
Amend the Fee Schedule on BOX Market LLC,
dated September 26, 2018 (‘‘Petition’’). Pursuant to
Rule 431(e) of the Commission’s Rules of Practice,
a notice of intention to petition for review results
in an automatic stay of the action by delegated
authority. 17 CFR 201.431(e).
13 See Securities Exchange Act Release No. 84614
(November 16, 2018), 83 FR 59432 (November 23,
2018).
14 See id.
15 See letter from Lisa J. Fall, President, BOX, to
Brent J. Fields, Secretary, Commission, to Brent J.
Fields, Secretary, Commission, dated December 7,
2018; and letter from Amir C. Tayrani, Gibson,
Dunn & Crutcher LLP, to Brent J. Fields, Secretary,
Commission, dated December 10, 2018 (submitted
on behalf of the Exchange).
16 15 U.S.C. 78s(b)(2).
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
21, 2018, Nasdaq GEMX, LLC (‘‘GEMX’’
or ‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II,
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
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By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2019–00508 Filed 1–30–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84955; File No. SR–GEMX–
2018–44]
Self-Regulatory Organizations; Nasdaq
GEMX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Penny
Pilot Program
December 26, 2018.
17 See
supra note 3.
U.S.C. 78s(b)(2).
19 The Commission notes that March 30, 2019, is
a Saturday and is, therefore, designating March 29,
2019, as the date by which the Commission shall
either approve or disapprove the proposed rule
change.
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
18 15
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859
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules to extend a pilot program to quote
and to trade certain options classes in
penny increments (‘‘Penny Pilot
Program’’ or ‘‘Penny Pilot’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqgemx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Under the Penny Pilot Program, the
minimum price variation for all
participating options classes, except for
the Nasdaq–100 Index Tracking Stock
(‘‘QQQQ’’), the SPDR S&P 500 Exchange
Traded Fund (‘‘SPY’’) and the iShares
Russell 2000 Index Fund (‘‘IWM’’), is
$0.01 for all quotations in options series
that are quoted at less than $3 per
contract and $0.05 for all quotations in
options series that are quoted at $3 per
contract or greater. QQQQ, SPY and
IWM are quoted in $0.01 increments for
all options series. The Penny Pilot
Program is currently scheduled to
expire on December 31, 2018.3 The
Exchange proposes to extend the Penny
Pilot Program through June 30, 2019,
and to provide a revised date for adding
replacement issues to the Penny Pilot
Program. The Exchange proposes that
any Penny Pilot Program issues that
have been delisted may be replaced on
the second trading day following
January 1, 2019. The replacement issues
will be selected based on trading
activity for the most recent six month
3 See Exchange Act Release No. 83533 (June 28,
2018), 83 FR 31233 (July 3, 2018) (SR–GEMX–2018–
23).
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Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices
period excluding the month
immediately preceding the replacement
(i.e., beginning June 1, 2018, and ending
November 30, 2018). This filing does
not propose any substantive changes to
the Penny 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 any increase
in quote traffic.
Lastly, the Exchange proposes a nonsubstantive change in Supplementary
Material .01 to Rule 710 to update
‘‘Market Information Circulars’’ to
‘‘Options Trader Alerts’’ to reflect
current practice.4
amozie on DSK3GDR082PROD with NOTICES1
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.5
Specifically, the proposed rule change is
consistent with Section 6(b)(5) of the
Act,6 because it is designed to promote
just and equitable principles of trade,
remove impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. In particular, the
proposed rule change, which extends
the Penny Pilot Program for an
additional six months, will enable
public customers and other market
participants to express their true prices
to buy and sell options to the benefit of
all market participants. Furthermore,
the Exchange’s proposal to update
‘‘Market Information Circulars’’ to
‘‘Options Trader Alerts’’ in
Supplementary Material .01 to Rule 710
will bring greater transparency to the
Exchange’s Rulebook to the benefit of all
market participants.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,7 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intramarket competition that is not
necessary or appropriate in furtherance
4 Today, the Exchange specifies which options
trade in the Penny Pilot Program, and in what
increments, in Options Trader Alerts distributed to
Members.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
7 15 U.S.C. 78f(b)(8).
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of the purposes of the Act. Specifically,
the Exchange believes that, by extending
the expiration of the Penny Pilot
Program, the proposed rule change will
allow for further analysis of the Penny
Pilot Program and a determination of
how the Penny Pilot 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.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and 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
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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.
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–
GEMX–2018–44 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–GEMX–2018–44. 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
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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Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Notices
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–GEMX–2018–44 and
should be submitted on or before
February 21, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–00468 Filed 1–30–19; 8:45 am]
BILLING CODE 8011–01–P
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s port fee schedule at Equity
7, Section 3, as described further below.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqphlx.cchwallstreet.com/,
at the principal office of the Exchange,
and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84967; File No. SR–Phlx–
2018–83]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Equity 7,
Section 3
amozie on DSK3GDR082PROD with NOTICES1
December 26, 2018.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
20, 2018, Nasdaq PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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The Exchange proposes to amend its
fee schedule, at Equity 7, Section 3, to
clarify its existing practice for assessing
port fees.
Presently, the Exchange assigns ports
to customers that request them using the
customers’ Market Participant
Identifiers or ‘‘MPIDs.’’ The Exchange
assesses ports fees in two ways.
First, for certain port types—i.e.,
Multicast TotalView-ITCH, TCP ITCH
data feed, DROP, and their
corresponding disaster recovery ports—
the Exchange assigns a port only to the
MPID of the customer that requested it.
Even if, as a practical matter, others also
utilize the port, the Exchange will only
bill the MPID of the customer that
requested the port. The requesting
customer may then, at its discretion,
subsequently bill any other users for
their shared usage of the port.
Second, for other port types—i.e.,
OUCH, FIX Trading Ports (FIX and FIX
Lite), RASH, and their corresponding
disaster recovery ports—the Exchange
assigns the port to the MPID of the
customer that requested it as well as to
any other MPIDs that the requester had
specified. In these instances, the
Exchange does not only bill the portrequesting MPID. Instead, the Exchange
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861
assesses a separate monthly fee to each
of the MPIDs it assigned to the port.
The existing port fee schedule, at
Section 3, does not explain these
nuances of Exchange’s port billing
practices. Instead, Section 3 states
simply, for all port types, that the
Exchange will assess fees of certain
stated amounts on a per port, per month
basis. Although this existing language is
accurate, the Exchange believes that it
should be more descriptive so as to
avoid confusion as to the circumstances
in which a customer will incur port
fees. The Exchange now proposes to
amend Section 3 to provide a more
fulsome explanation of its billing
practices.
To accomplish this, the Exchange
proposes to reorganize its chart of ports
and associated fees in the second
paragraph of Section 3. Specifically, the
Exchange proposes to split this chart
into two parts.
The first part of the proposed
amended chart will comprise port types
for which the Exchange will charge a
separate monthly fee to each MPID that
it has assigned to a port, i.e., OUCH, FIX
Trading Port (FIX and FIX Lite (FLITE),
RASH, and disaster recovery ports for
OUCH, FIX Trading Port, and RASH.
The first part of the chart will include
the following preface to explain the
Exchange’s pertinent billing practice:
For the port types listed immediately
below, where a customer has requested that
the Exchange assign more than one MPID to
a particular port, then the Exchange will
assess a separate monthly fee to each MPID
assigned to the port.
The Exchange also proposes to revise its
description of the price formula for each
port type therein from ‘‘$X/port/month’’
to ‘‘$X/each MPID assigned to port/
month.’’
The second part of the proposed
amended chart will comprise port types
for which the Exchange will charge a
monthly fee only to the MPID that
requested the port, i.e., Multicast
TotalView-ITCH (software based), TCP
ITCH data feed, DROP, Trading Ports
used in Test Mode, and the disaster
recover port for DROP.3 This part will
include the following preface describing
the applicable billing practice:
For the port types listed immediately
below, the Exchange will assess the monthly
fee to the single MPID that requested that
particular port.
3 It also includes ports for which the exchange
charges no fee—Data Retransmission Ports and
other disaster recover ports. The Exchange proposes
to add a parenthetical with the word ‘‘Glimpse’’
next to Data Retransmission Ports to clarify that that
such Ports include access to the ‘‘Glimpse’’ product,
which allows a subscriber to replay market data
from the current trading day.
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]]>Agencies
[Federal Register Volume 84, Number 21 (Thursday, January 31, 2019)]
[Notices]
[Pages 859-861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00468]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84955; File No. SR-GEMX-2018-44]
Self-Regulatory Organizations; Nasdaq GEMX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the Penny
Pilot Program
December 26, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 21, 2018, Nasdaq GEMX, LLC (``GEMX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II, below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 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 its rules to extend a pilot program
to quote and to trade certain options classes in penny increments
(``Penny Pilot Program'' or ``Penny Pilot'').
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqgemx.cchwallstreet.com/, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Under the Penny Pilot Program, the minimum price variation for all
participating options classes, except for the Nasdaq-100 Index Tracking
Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and
the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all
quotations in options series that are quoted at less than $3 per
contract and $0.05 for all quotations in options series that are quoted
at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01
increments for all options series. The Penny Pilot Program is currently
scheduled to expire on December 31, 2018.\3\ The Exchange proposes to
extend the Penny Pilot Program through June 30, 2019, and to provide a
revised date for adding replacement issues to the Penny Pilot Program.
The Exchange proposes that any Penny Pilot Program issues that have
been delisted may be replaced on the second trading day following
January 1, 2019. The replacement issues will be selected based on
trading activity for the most recent six month
[[Page 860]]
period excluding the month immediately preceding the replacement (i.e.,
beginning June 1, 2018, and ending November 30, 2018). This filing does
not propose any substantive changes to the Penny 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 any increase in quote traffic.
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 83533 (June 28, 2018), 83 FR
31233 (July 3, 2018) (SR-GEMX-2018-23).
---------------------------------------------------------------------------
Lastly, the Exchange proposes a non-substantive change in
Supplementary Material .01 to Rule 710 to update ``Market Information
Circulars'' to ``Options Trader Alerts'' to reflect current
practice.\4\
---------------------------------------------------------------------------
\4\ Today, the Exchange specifies which options trade in the
Penny Pilot Program, and in what increments, in Options Trader
Alerts distributed to Members.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of Section 6(b) of the Act.\5\
Specifically, the proposed rule change is consistent with Section
6(b)(5) of the Act,\6\ because it is designed to promote just and
equitable principles of trade, remove impediments to and perfect the
mechanisms of a free and open market and a national market system and,
in general, to protect investors and the public interest. In
particular, the proposed rule change, which extends the Penny Pilot
Program for an additional six months, will enable public customers and
other market participants to express their true prices to buy and sell
options to the benefit of all market participants. Furthermore, the
Exchange's proposal to update ``Market Information Circulars'' to
``Options Trader Alerts'' in Supplementary Material .01 to Rule 710
will bring greater transparency to the Exchange's Rulebook to the
benefit of all market participants.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ the Exchange does
not believe that the proposed rule change will impose any burden on
intermarket or intramarket 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 Penny
Pilot Program, the proposed rule change will allow for further analysis
of the Penny Pilot Program and a determination of how the Penny Pilot
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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 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-GEMX-2018-44 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-GEMX-2018-44. 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
[[Page 861]]
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-GEMX-2018-44 and should be
submitted on or before February 21, 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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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-00468 Filed 1-30-19; 8:45 am]
BILLING CODE 8011-01-P
