Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Pilot Period for the Exchange's Nonstandard Expirations Pilot Program, 16913-16915 [2019-08100]
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Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices
and therefore must remain competitive
with fee caps at other venues and
therefore must continue to be reasonable
and equitably allocated to those
Participants that opt to direct orders to
the Exchange rather than competing
venues.
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 foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Exchange Act 9 and
Rule 19b–4(f)(2) thereunder,10 because
it establishes or changes a due, or fee.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend the rule change if
it appears to the Commission that the
action is necessary or appropriate in the
public interest, for the protection of
investors, or would otherwise further
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–
BOX–2019–11 on the subject line.
jbell on DSK3GLQ082PROD with NOTICES
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–BOX–2019–11. 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 such
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–BOX–2019–11, and should
be submitted on or before May 14, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–08106 Filed 4–22–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85669; File No. SR–Phlx–
2019–13]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Pilot
Period for the Exchange’s
Nonstandard Expirations Pilot
Program
April 17, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 10,
2019, Nasdaq PHLX LLC (‘‘Phlx’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
9 15
U.S.C. 78s(b)(3)(A)(ii).
10 17 CFR 240.19b–4(f)(2).
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17:49 Apr 22, 2019
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16913
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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 extend the
pilot period for the Exchange’s
nonstandard expirations pilot program,
currently set to expire on May 6, 2019.
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
On December 15, 2017, the
Commission approved a proposed rule
change for the listing and trading on the
Exchange, on a twelve month pilot
basis, of p.m.-settled options on broadbased indexes with nonstandard
expirations dates.5 The pilot program
permits both Weekly Expirations and
End of Month (‘‘EOM’’) expirations
similar to those of the a.m.-settled
broad-based index options, except that
the exercise settlement value of the
options subject to the pilot are based on
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 See Securities Exchange Act Release No. 82341
(December 15, 2017), 82 FR 60651 (December 21,
2017) (approving SR–Phlx–2017–79) (Order
Approving a Proposed Rule Change, as Modified by
Amendment No. 1 and Granting Accelerated
Approval of Amendment No. 2, of a Proposed Rule
Change To Establish a Nonstandard Expirations
Pilot Program).
4 17
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16914
Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices
the index value derived from the closing
prices of component stocks. The
Exchange previously filed to extend the
pilot through May 6, 2019.6
Pursuant to Phlx Rule 1101A(b)(5)(A)
the Exchange may open for trading
Weekly Expirations on any broad-based
index eligible for standard options
trading to expire on any Monday,
Wednesday, or Friday (other than the
third Friday-of- the- month or days that
coincide with an EOM expiration).
Weekly Expirations are be subject to all
provisions of Exchange Rule 1101A and
are treated the same as options on the
same underlying index that expire on
the third Friday of the expiration
month. Unlike the standard monthly
options, however, Weekly Expirations
are p.m.-settled.
Similarly, pursuant Rule
1101A(b)(5)(B) the Exchange may open
for trading End of Month (‘‘EOM’’) on
any broad-based index eligible for
standard options trading to expire on
the last trading day of the month. EOMs
are subject to all provisions of Rule
1101A and treated the same as options
on the same underlying index that
expire on the third Friday of the
expiration month. However, the EOMs
are p.m.-settled.
The Exchange now proposes to amend
Exchange Rule 1101A(b)(5)(C) so that
the duration of the pilot program for
these nonstandard expirations will be
through November 4, 2019. The
Exchange continues to have sufficient
systems capacity to handle p.m.-settled
options on broad-based indexes with
nonstandard expirations dates and has
not encountered any issues or adverse
market effects as a result of listing them.
Additionally, there is continued
investor interest in these products. The
Exchange will make public on its
website any data and analysis it submits
to the Commission under the pilot
program.
Finally, the Exchange proposes to
amend Phlx Rule 1101A(b)(3)(d). The
Exchange proposes to capitalize the ‘‘d’’
so the cite becomes Phlx Rule
1101A(b)(3)(D).
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Section 6(b)(5) of the Act,8
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest. The
Exchange believes the proposed rule
change will protect investors and the
public interest by providing the
Exchange, the Commission and
investors the benefit of additional time
to analyze nonstandard expiration
options. By extending the pilot program,
investors may continue to benefit from
a wider array of investment
opportunities. Additionally, both the
Exchange and the Commission may
continue to monitor the potential for
adverse market effects of p.m.settlement on the market, including the
underlying cash equities market, at the
expiration of these options.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. Options with
nonstandard expirations would be
available for trading to all market
participants.
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
Because the proposed rule change
does not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
9 15
jbell on DSK3GLQ082PROD with NOTICES
6 See
Securities Exchange Act Release No. 84835
(December 17, 2018), 83 FR 65773 (December 21,
2018) (approving SR–Phlx–2018–80) (Notice of
Filing and Immediate Effectiveness of Proposed
Rule Change To Amend the Pilot Period for the
Exchange’s Nonstandard Expirations Pilot
Program).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule19b–
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.
10 17
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Frm 00079
Fmt 4703
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Act 11 normally does not become
operative for 30 days after the date of its
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 investors may
continue to trade nonstandard
expiration options listed by the
Exchange as part of the pilot program on
an uninterrupted basis. 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 pilot
program to continue uninterrupted,
thereby avoiding investor confusion that
could result from a temporary
interruption in the pilot program.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
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 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
change 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–
Phlx–2019–13 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.
11 17
CFR 240.19b–4(f)(6).
CFR 240.19b–4(f)(6)(iii).
13 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
12 17
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Federal Register / Vol. 84, No. 78 / Tuesday, April 23, 2019 / Notices
All submissions should refer to File
Number SR–Phlx–2019–13. 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–Phlx–2019–13 and should
be submitted on or before May 14, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–08100 Filed 4–22–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–85670; File No. SR–OCC–
2019–801]
jbell on DSK3GLQ082PROD with NOTICES
Self-Regulatory Organizations; The
Options Clearing Corporation; Notice
of Filing of Advance Notice Related to
the Options Clearing Corporation’s
Margin Methodology for Volatility
Index Futures
Settlement Supervision Act of 2010
(‘‘Clearing Supervision Act’’) 1 and Rule
19b–4(n)(1)(i) 2 under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’
or ‘‘Act’’),3 notice is hereby given that
on March 18, 2019, the Options Clearing
Corporation (‘‘OCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) an advance notice
(‘‘Advance Notice’’) as described in
Items I, II and III below, which Items
have been prepared by OCC. The
Commission is publishing this notice to
solicit comments on the advance notice
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Advance
Notice
This advance notice is in connection
with proposed changes to OCC’s margin
methodology for futures on indexes
designed to measure volatilities implied
by prices of options on a particular
underlying interest (such indexes being
‘‘Volatility Indexes,’’ and futures
contracts on such Volatility Indexes
being ‘‘Volatility Index Futures’’). The
proposed methodology enhancements
for Volatility Index Futures would
include: (1) Introducing ‘‘synthetic’’
futures (discussed below) into the daily
re-estimation of prices and correlations
for Volatility Index Futures; (2) an
enhanced statistical distribution for
modeling price returns of the
‘‘synthetic’’ futures; and (3) a new antiprocyclical floor for variance estimates.
The proposed changes are discussed in
detail in Section II below.
The proposed changes to OCC’s
Margins Methodology document are
contained in confidential Exhibit 5 of
the filing. Material proposed to be
added is marked by underlining and
material proposed to be deleted is
marked by strikethrough text. OCC also
has included backtesting and impact
analysis of the proposed model changes
in confidential Exhibit 3.
The advance notice is available on
OCC’s website at https://
www.theocc.com/about/publications/
bylaws.jsp. All terms with initial
capitalization that are not otherwise
defined herein have the same meaning
as set forth in the OCC By-Laws and
Rules.4
April 17, 2019.
Pursuant to Section 806(e)(1) of Title
VIII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act,
entitled Payment, Clearing and
14 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:49 Apr 22, 2019
Jkt 247001
1 12
U.S.C. 5465(e)(1).
CFR 240.19b–4(n)(1)(i).
3 15 U.S.C. 78a et seq.
4 OCC’s By-Laws and Rules can be found on
OCC’s public website: https://optionsclearing.com/
about/publications/bylaws.jsp.
16915
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Advance Notice
In its filing with the Commission,
OCC included statements concerning
the purpose of and basis for the advance
notice and discussed any comments it
received on the advance notice. The text
of these statements may be examined at
the places specified in Item IV below.
OCC has prepared summaries, set forth
in sections A and B below, of the most
significant aspects of these statements.
(A) Clearing Agency’s Statement on
Comments on the Advance Notice
Received from Members, Participants or
Others
Written comments were not and are
not intended to be solicited with respect
to the proposed rule change and none
have been received. OCC will notify the
Commission of any written comments
received by OCC.
(B) Advance Notices Filed Pursuant to
Section 806(e) of the Payment, Clearing,
and Settlement Supervision Act
Description of the Proposed Change
The purpose of the proposed changes
is to introduce enhancements to OCC’s
margin methodology for Volatility Index
Futures so that OCC’s margin model
reflects more current market
information for Volatility Index Futures
and allows for more appropriate
modeling of the risk attributes of such
products. Specifically, the proposed
methodology enhancements for
Volatility Index Futures would include:
(1) Introducing ‘‘synthetic’’ futures into
the process for daily re-estimation of
prices and correlations for Volatility
Index Futures; (2) an enhanced
statistical distribution for modeling
price returns for ‘‘synthetic’’ futures;
and (3) a new anti-procyclical floor for
variance estimates. OCC’s current model
for Volatility Index Futures and the
proposed changes thereto are described
in further detail below.
Background
OCC’s margin methodology, the
System for Theoretical Analysis and
Numerical Simulations (‘‘STANS’’),5 is
OCC’s proprietary risk management
system that calculates Clearing Member
margin requirements. STANS utilizes
large-scale Monte Carlo simulations to
forecast price and volatility movements
in determining a Clearing Member’s
margin requirement.6 The STANS
2 17
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5 See Securities Exchange Act Release No. 53322
(February 15, 2006), 71 FR 9403 (February 23, 2006)
(SR–OCC–2004–20).
6 See OCC Rule 601.
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]]>Agencies
[Federal Register Volume 84, Number 78 (Tuesday, April 23, 2019)]
[Notices]
[Pages 16913-16915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08100]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-85669; File No. SR-Phlx-2019-13]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Extend the
Pilot Period for the Exchange's Nonstandard Expirations Pilot Program
April 17, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 10, 2019, Nasdaq PHLX LLC (``Phlx'' or the ``Exchange'')
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 Exchange. The Exchange filed the
proposal as a ``non-controversial'' proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6)
thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the pilot period for the Exchange's
nonstandard expirations pilot program, currently set to expire on May
6, 2019.
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
On December 15, 2017, the Commission approved a proposed rule
change for the listing and trading on the Exchange, on a twelve month
pilot basis, of p.m.-settled options on broad-based indexes with
nonstandard expirations dates.\5\ The pilot program permits both Weekly
Expirations and End of Month (``EOM'') expirations similar to those of
the a.m.-settled broad-based index options, except that the exercise
settlement value of the options subject to the pilot are based on
[[Page 16914]]
the index value derived from the closing prices of component stocks.
The Exchange previously filed to extend the pilot through May 6,
2019.\6\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 82341 (December 15,
2017), 82 FR 60651 (December 21, 2017) (approving SR-Phlx-2017-79)
(Order Approving a Proposed Rule Change, as Modified by Amendment
No. 1 and Granting Accelerated Approval of Amendment No. 2, of a
Proposed Rule Change To Establish a Nonstandard Expirations Pilot
Program).
\6\ See Securities Exchange Act Release No. 84835 (December 17,
2018), 83 FR 65773 (December 21, 2018) (approving SR-Phlx-2018-80)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend the Pilot Period for the Exchange's Nonstandard
Expirations Pilot Program).
---------------------------------------------------------------------------
Pursuant to Phlx Rule 1101A(b)(5)(A) the Exchange may open for
trading Weekly Expirations on any broad-based index eligible for
standard options trading to expire on any Monday, Wednesday, or Friday
(other than the third Friday-of- the- month or days that coincide with
an EOM expiration). Weekly Expirations are be subject to all provisions
of Exchange Rule 1101A and are treated the same as options on the same
underlying index that expire on the third Friday of the expiration
month. Unlike the standard monthly options, however, Weekly Expirations
are p.m.-settled.
Similarly, pursuant Rule 1101A(b)(5)(B) the Exchange may open for
trading End of Month (``EOM'') on any broad-based index eligible for
standard options trading to expire on the last trading day of the
month. EOMs are subject to all provisions of Rule 1101A and treated the
same as options on the same underlying index that expire on the third
Friday of the expiration month. However, the EOMs are p.m.-settled.
The Exchange now proposes to amend Exchange Rule 1101A(b)(5)(C) so
that the duration of the pilot program for these nonstandard
expirations will be through November 4, 2019. The Exchange continues to
have sufficient systems capacity to handle p.m.-settled options on
broad-based indexes with nonstandard expirations dates and has not
encountered any issues or adverse market effects as a result of listing
them. Additionally, there is continued investor interest in these
products. The Exchange will make public on its website any data and
analysis it submits to the Commission under the pilot program.
Finally, the Exchange proposes to amend Phlx Rule 1101A(b)(3)(d).
The Exchange proposes to capitalize the ``d'' so the cite becomes Phlx
Rule 1101A(b)(3)(D).
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\8\ in particular, in that it is designed to promote
just and equitable principles of trade, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest.
The Exchange believes the proposed rule change will protect investors
and the public interest by providing the Exchange, the Commission and
investors the benefit of additional time to analyze nonstandard
expiration options. By extending the pilot program, investors may
continue to benefit from a wider array of investment opportunities.
Additionally, both the Exchange and the Commission may continue to
monitor the potential for adverse market effects of p.m.-settlement on
the market, including the underlying cash equities market, at the
expiration of these options.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Options with nonstandard
expirations would be available for trading to all market participants.
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
Because the proposed rule change does not: (i) Significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-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 pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its 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
investors may continue to trade nonstandard expiration options listed
by the Exchange as part of the pilot program on an uninterrupted basis.
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 pilot program to continue uninterrupted, thereby
avoiding investor confusion that could result from a temporary
interruption in the pilot program. Accordingly, the Commission hereby
waives the operative delay and designates the proposed rule change
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 also 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 change 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 [email protected]. Please include
File Number SR-Phlx-2019-13 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.
[[Page 16915]]
All submissions should refer to File Number SR-Phlx-2019-13. 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-Phlx-2019-13 and should be submitted on
or before May 14, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-08100 Filed 4-22-19; 8:45 am]
BILLING CODE 8011-01-P
