Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot To Permit the Listing and Trading of Options Based on 1/5, 27822-27824 [2019-12541]
Download as PDF
<![CDATA[
27822
Federal Register / Vol. 84, No. 115 / Friday, June 14, 2019 / Notices
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:
[FR Doc. 2019–12542 Filed 6–13–19; 8:45 am]
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, as amended.
Instead, Nasdaq believes that the
proposed rule change to conform
Nasdaq Rule 5615(a) and Nasdaq Rule
5620(a) so that they are substantially
similar to Arca Rule 5.3–E may enhance
competition since Nasdaq and Arca will
have substantially similar listing
requirements for these issuers.
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–
NASDAQ–2019–039 on the subject line.
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Pilot To
Permit the Listing and Trading of
Options Based on 1⁄5 the Value of the
Nasdaq-100 Index
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–NASDAQ–2019–039. 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
June 10, 2019.
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 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 55 and
subparagraph (f)(6) of Rule 19b–4
thereunder.56
At any time within 60 days of the
filing of the proposed rule change, the
55 15
jbell on DSK3GLQ082PROD with NOTICES
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NASDAQ–2019–039, and
should be submitted on or before July 5,
2019.
Nasdaq Rule 5600 Series as well as
subject to the same filing and disclosure
requirements as Index Fund Shares.
Nasdaq also believes that the addition
of a definition for ‘‘Derivative
Securities’’ applicable to the Nasdaq
Rule 5600 Series will improve the
clarity of the rules and reduce possible
investor confusion.
For the reasons stated herein, the
Exchange believes the proposed
amendments provide appropriate levels
of investor protections, consistent with
the investor protection requirement of
Section 6(b)(5), and would conform the
listing standards across exchanges
resulting in enhanced competition
among markets and removing an
impediment to a free and open market
and national market system.
U.S.C. 78s(b)(3)(A)(iii).
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.
56 17
VerDate Sep<11>2014
17:04 Jun 13, 2019
Jkt 247001
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.57
Eduardo A. Aleman,
Deputy Secretary.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86071; File No. SR–ISE–
2019–18]
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 June 6,
2019, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the 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
The Exchange proposes to extend the
pilot to permit the listing and trading of
options based on 1⁄5 the value of the
Nasdaq-100 Index (‘‘Nasdaq-100’’)
currently set to expire on June 26, 2019.
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.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
57 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\14JNN1.SGM
14JNN1
Federal Register / Vol. 84, No. 115 / Friday, June 14, 2019 / Notices
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
jbell on DSK3GLQ082PROD with NOTICES
1. Purpose
ISE filed a proposed rule change to
permit the listing and trading of index
options on the Nasdaq 100 Reduced
Value Index (‘‘NQX’’) on a twelve
month pilot basis.3
NQX options trade independently of
and in addition to NDX options, and the
NQX options are subject to the same
rules that presently govern the trading
of index options based on the Nasdaq100, including sales practice rules,
margin requirements, trading rules, and
position and exercise limits. Similar to
NDX, NQX options are European-style
and cash-settled, and have a contract
multiplier of 100. The contract
specifications for NQX options mirror in
all respects those of the NDX options
contract listed on the Exchange, except
that NQX options are based on 1⁄5 of the
value of the Nasdaq-100, and are P.M.settled pursuant to Options 4A, Section
12(a)(6).
The Exchange proposes to amend ISE
Options 4A, Section 12(a)(6) to extend
the current NQX pilot period which
ends on the earlier of (1) 12 months
following the date of the first listing of
the option, which was June 26, 2018,4
or (2) June 30, 2019 to November 4,
2019. The Exchange continues to have
sufficient capacity to handle additional
quotations and message traffic
associated with the proposed listing and
trading of NQX options. In addition,
index options are integrated into the
Exchange’s existing surveillance system
architecture and are thus subject to the
relevant surveillance processes. The
Exchange also continues to have
adequate surveillance procedures to
monitor trading in NQX options thereby
aiding in the maintenance of a fair and
orderly market. Additionally, there is
continued investor interest in these
products and provide additional time to
collect data related to the pilot.
3 See Securities Exchange Act Release No. 82911
(March 20, 2018), 83 FR 12966 (March 26, 2018)
(SR–ISE–2017–106) (Approval Order).
4 See Options Trader Alert #2018–22.
VerDate Sep<11>2014
17:04 Jun 13, 2019
Jkt 247001
Pilot Report
The Exchange is in the process of
making public on its website data and
analysis previously submitted to the
Commission on the Pilot Program and
will make public any data or analysis it
submits under the Pilot Program in the
future. If in the future the Exchange
proposes an additional extension of the
Pilot Program or proposes to make the
Pilot Program permanent, the Exchange
will submit an annual report to the
Commission consistent with the order
approving the establishment of the Pilot
Program at least two months prior to the
expiration date of the Pilot Program.
Conditional on the findings in the Pilot
Report, the Exchange will file with the
Commission a proposal to extend the
pilot program, adopt the pilot program
on a permanent basis or terminate the
pilot.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 in particular, in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general to protect investors and the
public interest. By extending the pilot,
the Exchange believes it will attract
order flow to the Exchange, increase the
variety of listed options, and provide a
valuable hedge tool to retail and other
investors. Specifically, the Exchange
believes that the pilot will provide
additional trading and hedging
opportunities for investors while
providing the Commission with data to
monitor for and assess any potential for
adverse market effects of allowing P.M.settlement for NQX options, including
on the underlying component stocks.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. NQX options
would be available for trading to all
market participants and therefore would
not impose an undue burden on intramarket competition. The Exchange
believes that the proposed rule change
will not impose an undue burden on
inter-market competition as this rule
change will continue to facilitate the
listing and trading of a new option
5 15
6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00074
Fmt 4703
Sfmt 4703
27823
product that will enhance competition
among market participants, to the
benefit of investors and the marketplace.
The listing of NQX will enhance
competition by providing investors with
an additional investment vehicle, in a
fully-electronic trading environment,
through which investors can gain and
hedge exposure to the Nasdaq-100.
Furthermore, this product could offer a
competitive alternative to other existing
investment products that seek to allow
investors to gain broad market exposure.
Finally, it is possible for other
exchanges to develop or license the use
of a new or different index to compete
with the Nasdaq-100 and seek
Commission approval to list and trade
options on such an index.
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 foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed under
Rule 19b–4(f)(6) 9 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 10 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 NQX options listed by
the Exchange as part of the pilot
program on an uninterrupted basis. For
this reason, the Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest as it
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the 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.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
8 17
E:\FR\FM\14JNN1.SGM
14JNN1
27824
Federal Register / Vol. 84, No. 115 / Friday, June 14, 2019 / Notices
would thereby avoid any investor
confusion that could result from a
temporary interruption in the pilot
program. Accordingly, the Commission
hereby waives the 30-day operative
delay requirement and designates the
proposed rule change as operative upon
filing.11
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:
jbell on DSK3GLQ082PROD with NOTICES
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–
ISE–2019–18 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–ISE–2019–18. 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
11 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).
VerDate Sep<11>2014
17:04 Jun 13, 2019
Jkt 247001
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–ISE–2019–18 and should be
submitted on or before July 5, 2019.
comments on the proposed rule change
from interested persons.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Deputy Secretary.
Rules of Cboe BZX Exchange, Inc.
[FR Doc. 2019–12541 Filed 6–13–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–86078; File No. SR–
CboeBZX–2019–051]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Extend
Through December 31, 2019, the Penny
Pilot Program (‘‘Penny Pilot’’) in
Options Classes in Certain Issues
(‘‘Pilot Program’’) Previously Approved
by the Commission
June 10, 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 May 31,
2019, Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ 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
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe BZX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BZX’’) is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposal for the Cboe
BZX Options Market (‘‘BZX Options’’)
to extend through December 31, 2019,
the Penny Pilot Program (‘‘Penny Pilot’’)
in options classes in certain issues
(‘‘Pilot Program’’) previously approved
by the Commission. The text of the
proposed rule change is below.
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
*
*
*
*
*
Rule 21.5. Minimum Increments
(a)–(c) (No changes).
Interpretations and Policies
.01 The Exchange will operate a pilot
program set to expire on [June
30]December 31, 2019 to permit options
classes to be quoted and traded in
increments as low as $.01. The
Exchange will specify which options
trade in such pilot, and in what
increments, in Information Circulars
distributed to Members and posted on
the Exchange’s website. The Exchange
may replace any penny pilot issues that
have been delisted with the next most
actively traded multiply listed options
classes that are not yet included in the
penny pilot, based on trading activity in
the previous six months. The
replacement issues may be added to the
penny pilot on the second trading day
in the first month of each quarter.
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
equities/regulation/rule_filings/bzx/), 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
E:\FR\FM\14JNN1.SGM
14JNN1
]]>Agencies
[Federal Register Volume 84, Number 115 (Friday, June 14, 2019)]
[Notices]
[Pages 27822-27824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12541]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-86071; File No. SR-ISE-2019-18]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the Pilot
To Permit the Listing and Trading of Options Based on \1/5\ the Value
of the Nasdaq-100 Index
June 10, 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 June 6, 2019, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II below, which Items have been
prepared by the 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 extend the pilot to permit the listing and
trading of options based on \1/5\ the value of the Nasdaq-100 Index
(``Nasdaq-100'') currently set to expire on June 26, 2019.
The text of the proposed rule change is available on the Exchange's
website at https://ise.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
[[Page 27823]]
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
ISE filed a proposed rule change to permit the listing and trading
of index options on the Nasdaq 100 Reduced Value Index (``NQX'') on a
twelve month pilot basis.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 82911 (March 20,
2018), 83 FR 12966 (March 26, 2018) (SR-ISE-2017-106) (Approval
Order).
---------------------------------------------------------------------------
NQX options trade independently of and in addition to NDX options,
and the NQX options are subject to the same rules that presently govern
the trading of index options based on the Nasdaq-100, including sales
practice rules, margin requirements, trading rules, and position and
exercise limits. Similar to NDX, NQX options are European-style and
cash-settled, and have a contract multiplier of 100. The contract
specifications for NQX options mirror in all respects those of the NDX
options contract listed on the Exchange, except that NQX options are
based on \1/5\ of the value of the Nasdaq-100, and are P.M.-settled
pursuant to Options 4A, Section 12(a)(6).
The Exchange proposes to amend ISE Options 4A, Section 12(a)(6) to
extend the current NQX pilot period which ends on the earlier of (1) 12
months following the date of the first listing of the option, which was
June 26, 2018,\4\ or (2) June 30, 2019 to November 4, 2019. The
Exchange continues to have sufficient capacity to handle additional
quotations and message traffic associated with the proposed listing and
trading of NQX options. In addition, index options are integrated into
the Exchange's existing surveillance system architecture and are thus
subject to the relevant surveillance processes. The Exchange also
continues to have adequate surveillance procedures to monitor trading
in NQX options thereby aiding in the maintenance of a fair and orderly
market. Additionally, there is continued investor interest in these
products and provide additional time to collect data related to the
pilot.
---------------------------------------------------------------------------
\4\ See Options Trader Alert #2018-22.
---------------------------------------------------------------------------
Pilot Report
The Exchange is in the process of making public on its website data
and analysis previously submitted to the Commission on the Pilot
Program and will make public any data or analysis it submits under the
Pilot Program in the future. If in the future the Exchange proposes an
additional extension of the Pilot Program or proposes to make the Pilot
Program permanent, the Exchange will submit an annual report to the
Commission consistent with the order approving the establishment of the
Pilot Program at least two months prior to the expiration date of the
Pilot Program. Conditional on the findings in the Pilot Report, the
Exchange will file with the Commission a proposal to extend the pilot
program, adopt the pilot program on a permanent basis or terminate the
pilot.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general to protect
investors and the public interest. By extending the pilot, the Exchange
believes it will attract order flow to the Exchange, increase the
variety of listed options, and provide a valuable hedge tool to retail
and other investors. Specifically, the Exchange believes that the pilot
will provide additional trading and hedging opportunities for investors
while providing the Commission with data to monitor for and assess any
potential for adverse market effects of allowing P.M.-settlement for
NQX options, including on the underlying component stocks.
---------------------------------------------------------------------------
\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
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. NQX options would be
available for trading to all market participants and therefore would
not impose an undue burden on intra-market competition. The Exchange
believes that the proposed rule change will not impose an undue burden
on inter-market competition as this rule change will continue to
facilitate the listing and trading of a new option product that will
enhance competition among market participants, to the benefit of
investors and the marketplace. The listing of NQX will enhance
competition by providing investors with an additional investment
vehicle, in a fully-electronic trading environment, through which
investors can gain and hedge exposure to the Nasdaq-100. Furthermore,
this product could offer a competitive alternative to other existing
investment products that seek to allow investors to gain broad market
exposure. Finally, it is possible for other exchanges to develop or
license the use of a new or different index to compete with the Nasdaq-
100 and seek Commission approval to list and trade options on such an
index.
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 foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the 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.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally
does not become operative prior to 30 days after the date of the
filing. However, Rule 19b-4(f)(6)(iii) \10\ 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 NQX options listed by the Exchange as part of the
pilot program on an uninterrupted basis. For this reason, the
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest as
it
[[Page 27824]]
would thereby avoid any investor confusion that could result from a
temporary interruption in the pilot program. Accordingly, the
Commission hereby waives the 30-day operative delay requirement and
designates the proposed rule change as operative upon filing.\11\
---------------------------------------------------------------------------
\9\ 17 CFR 240.19b-4(f)(6).
\10\ 17 CFR 240.19b-4(f)(6)(iii).
\11\ 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).
---------------------------------------------------------------------------
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-ISE-2019-18 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-ISE-2019-18. 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-ISE-2019-18 and should be submitted on
or before July 5, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-12541 Filed 6-13-19; 8:45 am]
BILLING CODE 8011-01-P
