Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot for Certain Options Market Rules That Are Linked to the Equity Market Plan To Address Extraordinary Market Volatility, 16130-16132 [2019-07618]
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<![CDATA[
16130
Federal Register / Vol. 84, No. 74 / Wednesday, April 17, 2019 / 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:
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–
CboeEDGX–2019–017 on the subject
line.
Paper Comments
amozie on DSK9F9SC42PROD with NOTICES
• 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–CboeEDGX–2019–017. 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
Number SR–CboeEDGX–2019–017 and
should be submitted on or before May
8, 2019.
VerDate Sep<11>2014
18:23 Apr 16, 2019
Jkt 247001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.71
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–07616 Filed 4–16–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85624; File No. SR–C2–
2019–008]
Self-Regulatory Organizations; Cboe
C2 Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Pilot for
Certain Options Market Rules That Are
Linked to the Equity Market Plan To
Address Extraordinary Market
Volatility
April 11, 2019.
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 April 9,
2019, Cboe C2 Exchange, Inc.
(‘‘Exchange’’ or ‘‘C2’’) 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 Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe C2 Exchange, Inc. (‘‘C2’’ or the
‘‘Exchange’’) is filing with the Securities
and Exchange Commission (the
‘‘Commission’’) a proposed rule change
to extend the pilot to the close of
business on October 18, 2019, for
certain options market rules that are
linked to the equity market Plan to
Address Extraordinary Market
Volatility. The text of the proposed rule
change is attached as Exhibit 5 [sic].
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/ctwo/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
71 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00137
Fmt 4703
Sfmt 4703
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to extend the pilot to the close
of business on October 18, 2019, for
certain options market rules that are
linked to the equity market Plan to
Address Extraordinary Market Volatility
(the ‘‘Limit Up-Limit Down Plan’’ or the
‘‘Plan’’). This change is being proposed
in connection with a proposed
amendment to the Limit Up-Limit Down
Plan that would allow the Plan to
continue to operate on a permanent
basis (‘‘Amendment 18’’).
In an attempt to address extraordinary
market volatility in NMS Stock, and, in
particular, events like the severe
volatility on May 6, 2010, U.S. national
securities exchanges and the Financial
Industry Regulatory Authority, Inc.
(collectively, ‘‘Participants’’) drafted the
Plan pursuant to Rule 608 of Regulation
NMS and under the Act.3 On May 31,
2012, the Commission approved the
Plan, as amended, on a one-year pilot
basis.4 Though the Plan was primarily
designed for equity markets, the
Exchange believed it would, indirectly,
potentially impact the options markets
as well. Thus, the Exchange has
previously amended and adopted
Interpretation and Policy .01 to Rule
6.29, Interpretation and Policy .01 to
Rule 6.32 and Rule 6.39 to ensure the
option markets were not harmed as a
result of the Plan’s implementation and
has implemented such rules on a pilot
basis that has coincided with the pilot
period for the Plan (the ‘‘Options
Pilots’’).5
3 See Securities Exchange Act Release No. 64547
(May 25, 2011), 76 FR 31647 (June 1, 2011) (File
No. 4–631).
4 See Securities and Exchange Act Release No.
67091 (May 31, 2012) 77 FR 33498 (June 6, 2012).
5 See Securities Exchange Act Release Nos. 69345
(April 8, 2013), 78 FR 21985 (April 12, 2013) (SR–
E:\FR\FM\17APN1.SGM
17APN1
Federal Register / Vol. 84, No. 74 / Wednesday, April 17, 2019 / Notices
The Commission recently published
an Amendment 18, which would allow
the Plan to operate on a permanent,
rather than pilot, basis.6 In connection
with this change, the Exchange proposes
to amend the Options Pilots to expire at
the close of business on October 18,
2019—i.e., six months after the
expiration of the current pilot period for
the Plan. Specifically, the Exchange
proposes to amend Interpretation and
Policy .01 to Rule 6.29, Interpretation
and Policy .01 to Rule 6.32 and Rule
6.39 to untie the Options Pilot’s
effectiveness from that of the Plan and
to extend the Options Pilot’s
effectiveness to the close of business on
October 18, 2019. The Exchange
understands that the other national
securities exchanges will also file
similar proposals to extend their
respective pilot programs.
The Exchange does not propose any
additional changes to Interpretation and
Policy .01 to Rule 6.29, Interpretation
and Policy .01 to Rule 6.32 and Rule
6.39. The Exchange believes the benefits
to market participants from the Options
Pilots should continue on a limited six
month pilot basis after Commission
approves the Plan to operate on a
permanent basis. Assuming the Plan is
approved by the Commission to operate
on a permanent, rather than pilot, basis
the Exchange intends to assess whether
additional changes should also be made
to the Options Pilots. Extending the
Options Pilots for an additional six
months should provide the Exchange
and other national securities exchanges
additional time to consider further
amendments to their rules in light of
proposed Amendment 18.
amozie on DSK9F9SC42PROD with NOTICES
2. Statutory Basis
The Exchange believes the proposed
rule change is consistent with the
requirements of Section 6(b) of the Act,7
in general, and Section 6(b)(5) of the
Act,8 in particular, in that it is designed
to remove impediments to and perfect
the mechanism of a free and open
market and a national market system, to
promote just and equitable principles of
trade, and, in general, to protect
C2–2013–013) (amending certain options rules to
coincide with the pilot period for the Plan,
including Rule 6.39 and Interpretation and Policy
.08 to Rule 6.15, which was later renumbered to
Interpretation and Policy .01 to Rule 6.29); and
68769 (January 30, 2013), 78 FR 8213 (February 5,
2013) (amending Interpretation and Policy .03 to
Rule 6.32, which was later renumbered to
Interpretation and Policy .01, to coincide with the
pilot period for the Plan).
6 See Securities Exchange Act Release Nos. 84843
(December 18, 2018), 83 FR 66464 (December 26,
2018) (Amendment No. 18 Proposing Release).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
18:23 Apr 16, 2019
Jkt 247001
investors and the public interest and not
to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Exchange believes that the
proposed rule change promotes just and
equitable principles of trade in that it
promotes transparency and uniformity
across markets concerning rules for
options markets adopted to coincide
with the Plan. The Exchange believes
that extending the Options Pilots for an
additional six months would help
assure that the rules subject to such
Pilots are either similarly made
permanent, amended or removed,
following additional discussion and
analysis by the Exchange and other
national securities exchanges. The
proposed rule change would also help
assure that such rules are not
immediately eliminated, thus furthering
fair and orderly markets, the protection
of investors and the public interest.
Based on the foregoing, the Exchange
believes the Options Pilots should
continue to be in effect on a pilot basis
while the Exchange and the other
national securities exchanges consider
and develop a permanent proposal for
such rules.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The proposal
would ensure the continued,
uninterrupted operation of the Options
Pilots while the Exchange and other
national securities exchanges consider
further amendments to these rules in
light of proposed Amendment 18. The
Exchange understands that the other
national securities exchanges will also
file similar proposals to extend their
respective pilot programs. Thus, the
proposed rule change will help to
ensure consistency across market
centers without implicating any
competitive issues.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No comments were solicited or
received on 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
PO 00000
Frm 00138
Fmt 4703
Sfmt 4703
16131
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
A proposed rule change filed under
Rule 19b–4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 12 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposed
rule change may become effective and
operative immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest, as it will allow the
current Options Pilots to continue
uninterrupted, without any changes,
while the Exchange and the other
national securities exchanges consider
and develop a permanent proposal for
Options Pilots. For this reason, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change as operative upon
filing.13
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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.
9 15
U.S.C. 78s(b)(3)(A)(iii).
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.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 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).
10 17
E:\FR\FM\17APN1.SGM
17APN1
16132
Federal Register / Vol. 84, No. 74 / Wednesday, April 17, 2019 / Notices
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–
C2–2019–008 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.
amozie on DSK9F9SC42PROD with NOTICES
All submissions should refer to File
Number SR–C2–2019–008. 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
Number SR–C2–2019–008 and should
be submitted on or before May 8, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019–07618 Filed 4–16–19; 8:45 am]
BILLING CODE 8011–01–P
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:23 Apr 16, 2019
Jkt 247001
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #15927 and #15928;
NEBRASKA Disaster Number NE–00074]
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of Nebraska
U.S. Small Business
Administration.
ACTION: Amendment 1.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Nebraska (FEMA–4420–DR),
dated 04/05/2019.
Incident: Severe Winter Storm,
Straight-line Winds, and Flooding.
Incident Period: 03/09/2019 through
04/01/2019.
DATES: Issued on 04/10/2019.
Physical Loan Application Deadline
Date: 06/04/2019.
Economic Injury (EIDL) Loan
Application Deadline Date: 01/06/2020.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Nebraska,
dated 04/05/2019, is hereby amended to
establish the incident period for this
disaster as beginning 03/09/2019
through 04/01/2019.
All other information in the original
declaration remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Number 59008)
James Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2019–07653 Filed 4–16–19; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #15896 and #15897;
Nebraska Disaster Number NE–00073]
Presidential Declaration Amendment of
a Major Disaster for the State of
Nebraska
U.S. Small Business
Administration.
ACTION: Amendment 3.
AGENCY:
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
This is an amendment of the
Presidential declaration of a major
disaster for the State of Nebraska
(FEMA—4420—DR), dated 03/21/2019.
Incident: Severe Winter Storm,
Straight-line Winds, and Flooding.
Incident Period: 03/09/2019 through
04/01/2019.
DATES: Issued on 04/10/2019.
Physical Loan Application Deadline
Date: 05/20/2019.
Economic Injury (EIDL) Loan
Application Deadline Date: 12/23/2019.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for the State of NEBRASKA,
dated 03/21/2019, is hereby amended to
establish the incident period for this
disaster as beginning 03/09/2019
through 04/01/2019. All other
information in the original declaration
remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Number 59008)
James Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2019–07655 Filed 4–16–19; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #15896 and #15897;
NEBRASKA Disaster Number NE–00073]
Presidential Declaration Amendment of
a Major Disaster for the State of
Nebraska
U.S. Small Business
Administration.
ACTION: Amendment 2.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for the State of Nebraska
(FEMA–4420–DR), dated 03/21/2019.
Incident: Severe Winter Storm,
Straight-line Winds, and Flooding.
Incident Period: 03/09/2019 and
continuing.
DATES: Issued on 04/10/2019.
Physical Loan Application Deadline
Date: 05/20/2019.
Economic Injury (EIDL) Loan
Application Deadline Date: 12/23/2019.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
SUMMARY:
E:\FR\FM\17APN1.SGM
17APN1
]]>Agencies
[Federal Register Volume 84, Number 74 (Wednesday, April 17, 2019)]
[Notices]
[Pages 16130-16132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07618]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85624; File No. SR-C2-2019-008]
Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Extend
the Pilot for Certain Options Market Rules That Are Linked to the
Equity Market Plan To Address Extraordinary Market Volatility
April 11, 2019.
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 April 9, 2019, Cboe C2 Exchange, Inc. (``Exchange'' or ``C2'') 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 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
Cboe C2 Exchange, Inc. (``C2'' or the ``Exchange'') is filing with
the Securities and Exchange Commission (the ``Commission'') a proposed
rule change to extend the pilot to the close of business on October 18,
2019, for certain options market rules that are linked to the equity
market Plan to Address Extraordinary Market Volatility. The text of the
proposed rule change is attached as Exhibit 5 [sic].
The text of the proposed rule change is also available on the
Exchange's website (https://markets.cboe.com/us/options/regulation/rule_filings/ctwo/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to extend the pilot to
the close of business on October 18, 2019, for certain options market
rules that are linked to the equity market Plan to Address
Extraordinary Market Volatility (the ``Limit Up-Limit Down Plan'' or
the ``Plan''). This change is being proposed in connection with a
proposed amendment to the Limit Up-Limit Down Plan that would allow the
Plan to continue to operate on a permanent basis (``Amendment 18'').
In an attempt to address extraordinary market volatility in NMS
Stock, and, in particular, events like the severe volatility on May 6,
2010, U.S. national securities exchanges and the Financial Industry
Regulatory Authority, Inc. (collectively, ``Participants'') drafted the
Plan pursuant to Rule 608 of Regulation NMS and under the Act.\3\ On
May 31, 2012, the Commission approved the Plan, as amended, on a one-
year pilot basis.\4\ Though the Plan was primarily designed for equity
markets, the Exchange believed it would, indirectly, potentially impact
the options markets as well. Thus, the Exchange has previously amended
and adopted Interpretation and Policy .01 to Rule 6.29, Interpretation
and Policy .01 to Rule 6.32 and Rule 6.39 to ensure the option markets
were not harmed as a result of the Plan's implementation and has
implemented such rules on a pilot basis that has coincided with the
pilot period for the Plan (the ``Options Pilots'').\5\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 64547 (May 25,
2011), 76 FR 31647 (June 1, 2011) (File No. 4-631).
\4\ See Securities and Exchange Act Release No. 67091 (May 31,
2012) 77 FR 33498 (June 6, 2012).
\5\ See Securities Exchange Act Release Nos. 69345 (April 8,
2013), 78 FR 21985 (April 12, 2013) (SR-C2-2013-013) (amending
certain options rules to coincide with the pilot period for the
Plan, including Rule 6.39 and Interpretation and Policy .08 to Rule
6.15, which was later renumbered to Interpretation and Policy .01 to
Rule 6.29); and 68769 (January 30, 2013), 78 FR 8213 (February 5,
2013) (amending Interpretation and Policy .03 to Rule 6.32, which
was later renumbered to Interpretation and Policy .01, to coincide
with the pilot period for the Plan).
---------------------------------------------------------------------------
[[Page 16131]]
The Commission recently published an Amendment 18, which would
allow the Plan to operate on a permanent, rather than pilot, basis.\6\
In connection with this change, the Exchange proposes to amend the
Options Pilots to expire at the close of business on October 18, 2019--
i.e., six months after the expiration of the current pilot period for
the Plan. Specifically, the Exchange proposes to amend Interpretation
and Policy .01 to Rule 6.29, Interpretation and Policy .01 to Rule 6.32
and Rule 6.39 to untie the Options Pilot's effectiveness from that of
the Plan and to extend the Options Pilot's effectiveness to the close
of business on October 18, 2019. The Exchange understands that the
other national securities exchanges will also file similar proposals to
extend their respective pilot programs.
---------------------------------------------------------------------------
\6\ See Securities Exchange Act Release Nos. 84843 (December 18,
2018), 83 FR 66464 (December 26, 2018) (Amendment No. 18 Proposing
Release).
---------------------------------------------------------------------------
The Exchange does not propose any additional changes to
Interpretation and Policy .01 to Rule 6.29, Interpretation and Policy
.01 to Rule 6.32 and Rule 6.39. The Exchange believes the benefits to
market participants from the Options Pilots should continue on a
limited six month pilot basis after Commission approves the Plan to
operate on a permanent basis. Assuming the Plan is approved by the
Commission to operate on a permanent, rather than pilot, basis the
Exchange intends to assess whether additional changes should also be
made to the Options Pilots. Extending the Options Pilots for an
additional six months should provide the Exchange and other national
securities exchanges additional time to consider further amendments to
their rules in light of proposed Amendment 18.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the requirements of Section 6(b) of the Act,\7\ in general, and Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to remove
impediments to and perfect the mechanism of a free and open market and
a national market system, to promote just and equitable principles of
trade, and, in general, to protect investors and the public interest
and not to permit unfair discrimination between customers, issuers,
brokers, or dealers. The Exchange believes that the proposed rule
change promotes just and equitable principles of trade in that it
promotes transparency and uniformity across markets concerning rules
for options markets adopted to coincide with the Plan. The Exchange
believes that extending the Options Pilots for an additional six months
would help assure that the rules subject to such Pilots are either
similarly made permanent, amended or removed, following additional
discussion and analysis by the Exchange and other national securities
exchanges. The proposed rule change would also help assure that such
rules are not immediately eliminated, thus furthering fair and orderly
markets, the protection of investors and the public interest. Based on
the foregoing, the Exchange believes the Options Pilots should continue
to be in effect on a pilot basis while the Exchange and the other
national securities exchanges consider and develop a permanent proposal
for such rules.
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\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change would
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposal would ensure
the continued, uninterrupted operation of the Options Pilots while the
Exchange and other national securities exchanges consider further
amendments to these rules in light of proposed Amendment 18. The
Exchange understands that the other national securities exchanges will
also file similar proposals to extend their respective pilot programs.
Thus, the proposed rule change will help to ensure consistency across
market centers without implicating any competitive issues.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No comments were solicited or received on 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)(iii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 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) \11\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the Commission to
designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposed
rule change may become effective and operative immediately upon filing.
The Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest, as
it will allow the current Options Pilots to continue uninterrupted,
without any changes, while the Exchange and the other national
securities exchanges consider and develop a permanent proposal for
Options Pilots. For this reason, the Commission hereby waives the 30-
day operative delay and designates the proposed rule change as
operative upon filing.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ 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 the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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.
[[Page 16132]]
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-C2-2019-008 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-C2-2019-008. 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 Number SR-C2-2019-008 and should be submitted on
or before May 8, 2019.
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\14\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-07618 Filed 4-16-19; 8:45 am]
BILLING CODE 8011-01-P
