Self-Regulatory Organizations; NYSE American, LLC.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Commentary .02 to Rule 960NY To Extend the Penny Pilot, 66251-66253 [2019-26062]
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Federal Register / Vol. 84, No. 232 / Tuesday, December 3, 2019 / Notices
to Index Fund Shares based on fixed
income securities will continue to apply
to any series of Index Fund Shares listed
pursuant to proposed Rule
14.11(c)(4)(B)(ii), including: (i) Index
methodology and calculation; 18 (ii)
dissemination of information; 19 (iii)
initial shares outstanding; 20 (iv) hours
of trading; 21 (v) surveillance
procedures; 22 and (vi) all continued
listing requirements under Rule
14.11(c)(9)(B).
III. Discussion and Commission’s
Findings
After careful review, the Commission
finds that the proposed rule change, as
modified by Amendment No. 1, is
consistent with the Act and the rules
and regulations thereunder applicable to
a national securities exchange.23 In
particular, the Commission finds that
the proposal is consistent with Section
6(b)(5) of the Act,24 which requires,
among other things, that the Exchange’s
rules be designed to prevent fraudulent
and manipulative acts and practices, 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.
With respect to the quantitative
requirements of proposed Rule
14.11(c)(4)(B)(ii), the original principal
amount outstanding requirement is
lower than what is currently applicable
to Index Fund Shares based on an index
or portfolio of fixed income securities.
The Commission notes, however, that
the other proposed quantitative
requirements (i.e., component
concentration, issuer diversification,
and minimum number of components)
are more stringent than the existing
generic listing requirements.
Accordingly, the Commission believes
that, taken together, the proposed
criteria are sufficiently designed to
prevent fraudulent and manipulative
acts and practices. Specifically, the
Commission believes that the proposed
generic listing requirements for an index
or portfolio of Municipal Securities, in
aggregate, should help to ensure that an
index underlying a series of Index Fund
Shares will be sufficiently large, not
concentrated, and diversified to prevent
Rule 14.11(c)(4)(C).
Rule 14.11(c)(6)(A).
20 See Rule 14.11(c)(6)(B).
21 See Rule 14.11(c)(7).
22 See Rule 14.11(c)(6)(C).
23 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
24 15 U.S.C. 78f(b)(5).
manipulation of that benchmark.
Additionally, the Commission notes that
it recently approved a proposal by
another national securities exchange to
adopt substantially similar generic
listing standards.25
The Commission also finds that the
proposed amendments to Rule
14.11(c)(5) are designed to extend the
requirements related to the generic
listing and trading of Index Fund Shares
based on a combination of two or more
types of indexes to an index of
Municipal Securities.
In support of its proposal, the
Exchange represents the following:
(1) Index Fund Shares listed pursuant to
proposed Rule 14.11(c)(4)(B)(ii) will be
subject to the existing trading surveillances,
administered by the Financial Industry
Regulatory Authority (‘‘FINRA’’) on behalf of
the Exchange, which are designed to detect
violations of Exchange rules and applicable
federal securities laws.26 The Exchange
represents that these procedures are adequate
to properly monitor Exchange trading of the
Shares in all trading sessions and to deter
and detect violations of Exchange rules and
applicable federal securities laws.27 FINRA,
on behalf of the Exchange, will communicate
as needed regarding trading in the Shares
with other markets that are members of the
Intermarket Surveillance Group (‘‘ISG’’) or
with which the Exchange has in place a
comprehensive surveillance sharing
agreement.28 FINRA also can access data
obtained from the Municipal Securities
Rulemaking Board (‘‘MSRB’’) relating to
municipal bond trading activity for
surveillance purposes.29 FINRA, on behalf of
the Exchange, is able to access, as needed,
trade information for certain fixed income
securities held by a Fund reported to
FINRA’s Trade Reporting and Compliance
Engine.30
(2) Index Fund Shares listed pursuant to
the proposed generic listing rule will comply
with all other requirements applicable to
Index Fund Shares including, but not limited
to, the applicable rules governing the trading
of equity securities, trading hours, trading
halts, surveillance, information barriers, and
the Information Circular to members, as set
forth in Exchange rules applicable to Index
Fund Shares.31
(3) The Exchange has in place surveillance
procedures relating to trading in the Index
Fund Shares and may obtain information via
ISG from other exchanges that are members
of ISG or with which the Exchange has
entered into a comprehensive surveillance
sharing agreement.32 In addition, investors
will have ready access to information
regarding the intraday indicative value and
18 See
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19 See
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NYSE Arca Proposal, supra note 9.
Amendment No. 1, supra note 9, at 14–15.
27 See id. at 15.
28 See id.
29 See id.
30 See id.
31 See id. at 16.
quotation and last-sale information for the
Index Fund Shares. Trade price and other
information relating to municipal bonds is
available through the MSRB’s Electronic
Municipal Market Access.33
This approval order is based on all of
the Exchange’s representations,
including those set forth above. For the
foregoing reasons, the Commission finds
that the proposed rule change, as
modified by Amendment No. 1, is
consistent with Section 6(b)(5) of the
Act 34 and the rules and regulations
thereunder applicable to a national
securities exchange.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,35 that the
proposed rule change (SR–CboeBZX–
2019–023), as modified by Amendment
No. 1, be, and it hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.36
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–26157 Filed 12–2–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87633; File No. SR–
NYSEAMER–2019–51]
Self-Regulatory Organizations; NYSE
American, LLC.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Commentary
.02 to Rule 960NY To Extend the Penny
Pilot
November 26, 2019.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 15, 2019, NYSE American,
LLC (‘‘NYSE American’’ 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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
25 See
26 See
32 See
PO 00000
id. at 18–19.
Frm 00106
Fmt 4703
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66251
33 See
id. at 19.
U.S.C. 78f(b)(5).
35 15 U.S.C. 78s(b)(2).
36 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
34 15
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Federal Register / Vol. 84, No. 232 / Tuesday, December 3, 2019 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Commentary .02 to Rule 960NY to
extend the Penny Pilot in options
classes in certain issues (‘‘Pilot’’)
previously approved by the Securities
and Exchange Commission
(‘‘Commission’’) through June 30, 2020.
The Pilot is currently scheduled to
expire on December 31, 2019. The
proposed rule change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, and
at the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
lotter on DSKBCFDHB2PROD with NOTICES
1. Purpose
The Exchange proposes to amend
Commentary .02 to Rule 960NY to
extend the time period of the Pilot,4
which is currently scheduled to expire
on December 31, 2019, until June 30,
2020. The Exchange believes that
extending the Pilot would allow for
further analysis of the Pilot and a
determination of how the Pilot should
be structured in the future.
This filing does not propose any
substantive changes to the Pilot: All
classes currently participating will
remain the same and all minimum
increments will remain unchanged. The
Exchange believes the benefits to public
customers and other market participants
who will be able to express their true
prices to buy and sell options have been
demonstrated to outweigh the increase
in quote traffic.
4 See Securities and Exchange Act Release No.
86061 (June 7, 2019) 84 FR 27665 (June 13, 2019)
(SR–NYSEAMER–2019–22).
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2. Statutory Basis
The proposed rule change is
consistent with Section 6(b) 5 of the Act,
in general, and furthers the objectives of
Section 6(b)(5),6 in particular, in that it
is designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system.
In particular, the proposed rule
change, which extends the Pilot for six
months, allows the Exchange to
continue to participate in a program that
has been viewed as beneficial to traders,
investors and public customers and
viewed as successful by the other
options exchanges participating in it.
Accordingly, the Exchange believes that
the proposal is consistent with the Act
because it will allow the Exchange to
extend the Pilot prior to its expiration
on December 31, 2019. The Exchange
notes that this proposal does not
propose any new policies or provisions
that are unique or unproven, but instead
relates to the continuation of an existing
program that operates on a pilot basis.
The Exchange believes that the Pilot
promotes just and equitable principles
of trade by enabling public customers
and other market participants to express
their true prices to buy and sell options
to the benefit of all market participants.
The proposal to extend the Pilot is
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in facilitating transactions in securities,
and to remove impediments to and
perfect the mechanisms of a free and
open market and a national market
system, by allowing the Exchange and
the Commission additional time to
analyze the impact of the Pilot while
also allowing the Exchange to continue
to compete for order flow with other
exchanges in option issues trading as
part of the Pilot.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange believes that, by extending
the expiration of the Pilot, the proposed
rule change will allow for further
analysis of the Pilot and a determination
5 15
6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00107
Fmt 4703
Sfmt 4703
of how this program should be
structured in the future. In doing so, the
proposed rule change will also serve to
promote regulatory clarity and
consistency, thereby reducing burdens
on the marketplace and facilitating
investor protection. The Pilot is an
industry-wide initiative supported by
all other option exchanges. The
Exchange believes that extending the
Pilot will allow for continued
competition between Exchange market
participants trading similar products as
their counterparts on other exchanges,
while at the same time allowing the
Exchange to continue to compete for
order flow with other exchanges in
option issues trading as part of the Pilot.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder. 9
At any time within 60 days of the
filing of such 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
7 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
9 15 U.S.C. 78s(b)(3)(A)(iii). 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 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 Commission notes that the
Exchange satisfied this requirement.
8 17
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Federal Register / Vol. 84, No. 232 / Tuesday, December 3, 2019 / Notices
under Section 19(b)(2)(B) 10 of the Act 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:
lotter on DSKBCFDHB2PROD 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–
NYSEAMER–2019–51 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEAMER–2019–51. 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–NYSEAMER–2019–51 and
should be submitted on or before
December 24, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–26062 Filed 12–2–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87637; File No. SR–BOX–
2019–33]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Add IM–7620–1 (SubPenny Cabinet) To Allow Transactions
To Take Place at a Price That is Below
$1 per Option Contract
November 27, 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 November
13, 2019, BOX Exchange LLC (the
‘‘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 self-regulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to add IM–
7620–1 (Sub-Penny Cabinet) to allow
transactions to take place at a price that
is below $1 per option contract. The text
of the proposed rule change is available
from the principal office of the
Exchange, at the Commission’s Public
Reference Room and also on the
Exchange’s internet website at https://
boxoptions.com.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
10 15
U.S.C. 78s(b)(2)(B).
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66253
the places specified in Item IV below.
The self-regulatory organization 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 add Rule IM–7620–1 (SubPenny Cabinet) to allow transactions to
take place at a price that is below $1 per
option contract. An ‘‘accommodation’’
or ‘‘cabinet’’ trade refers to trades in
listed options on the Exchange that are
worthless or not actively traded. Cabinet
trading is conducted in accordance with
the Exchange Rule 7620 which sets forth
the terms and conditions for engaging in
cabinet trades. Currently, a cabinet
order is defined as a closing limit order
at a price of $1 per option contract for
the account of a customer or Floor
Market Maker. In certain cases opening
orders 3 may be matched with a cabinet
order.4 Only Floor brokers may
represent cabinet orders on the BOX
Trading Floor. Cabinet transactions
occur via open outcry at a cabinet price
of $1 per option contract in any options
series open for trading in the Exchange.
Once the cabinet order has been either
crossed or matched, the Floor Broker
must submit the designated cabinet
form as soon as possible but no later
than the close of business that trading
day. Cabinet order transactions are
reported as late trades on the Exchange.5
The purpose of this rule change is to
add Rule IM–7620–1 to allow for
transactions to take place in open outcry
at a price of at least $0 but less than $1
per option contract (‘‘sub-penny cabinet
orders’’). These lower priced
transactions would be traded pursuant
to the same procedures applicable to $1
cabinet trades, except that (i) bids and
offers for opening transactions would
only be permitted to accommodate
closing transactions in order to limit use
of the procedure to liquidations of
existing positions, and (ii) the
procedures would also be made
available for trading in option classes
participating in the Penny Pilot
3 The Exchange notes an ‘‘opening order’’ is a
contra-side opening order in response to a Customer
who submits a closing order to clear their position.
4 See BOX Rule 7620(c), (d), and (e).
5 The Exchange notes there have been no issues
in processing and clearing cabinet trade
transactions since Rule 7620 has been
implemented.
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]]>Agencies
[Federal Register Volume 84, Number 232 (Tuesday, December 3, 2019)]
[Notices]
[Pages 66251-66253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26062]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87633; File No. SR-NYSEAMER-2019-51]
Self-Regulatory Organizations; NYSE American, LLC.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Commentary .02 to Rule 960NY To Extend the Penny Pilot
November 26, 2019.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on November 15, 2019, NYSE American, LLC (``NYSE American''
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 self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
[[Page 66252]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Commentary .02 to Rule 960NY to
extend the Penny Pilot in options classes in certain issues (``Pilot'')
previously approved by the Securities and Exchange Commission
(``Commission'') through June 30, 2020. The Pilot is currently
scheduled to expire on December 31, 2019. The proposed rule change is
available on the Exchange's website at www.nyse.com, at the principal
office of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Commentary .02 to Rule 960NY to
extend the time period of the Pilot,\4\ which is currently scheduled to
expire on December 31, 2019, until June 30, 2020. The Exchange believes
that extending the Pilot would allow for further analysis of the Pilot
and a determination of how the Pilot should be structured in the
future.
---------------------------------------------------------------------------
\4\ See Securities and Exchange Act Release No. 86061 (June 7,
2019) 84 FR 27665 (June 13, 2019) (SR-NYSEAMER-2019-22).
---------------------------------------------------------------------------
This filing does not propose any substantive changes to the Pilot:
All classes currently participating will remain the same and all
minimum increments will remain unchanged. The Exchange believes the
benefits to public customers and other market participants who will be
able to express their true prices to buy and sell options have been
demonstrated to outweigh the increase in quote traffic.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) \5\ of the
Act, in general, and furthers the objectives of Section 6(b)(5),\6\ in
particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to foster cooperation and coordination with
persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change, which extends the Pilot
for six months, allows the Exchange to continue to participate in a
program that has been viewed as beneficial to traders, investors and
public customers and viewed as successful by the other options
exchanges participating in it. Accordingly, the Exchange believes that
the proposal is consistent with the Act because it will allow the
Exchange to extend the Pilot prior to its expiration on December 31,
2019. The Exchange notes that this proposal does not propose any new
policies or provisions that are unique or unproven, but instead relates
to the continuation of an existing program that operates on a pilot
basis.
The Exchange believes that the Pilot promotes just and equitable
principles of trade by enabling public customers and other market
participants to express their true prices to buy and sell options to
the benefit of all market participants.
The proposal to extend the Pilot is designed to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
remove impediments to and perfect the mechanisms of a free and open
market and a national market system, by allowing the Exchange and the
Commission additional time to analyze the impact of the Pilot while
also allowing the Exchange to continue to compete for order flow with
other exchanges in option issues trading as part of the Pilot.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Specifically, the Exchange
believes that, by extending the expiration of the Pilot, the proposed
rule change will allow for further analysis of the Pilot and a
determination of how this program should be structured in the future.
In doing so, the proposed rule change will also serve to promote
regulatory clarity and consistency, thereby reducing burdens on the
marketplace and facilitating investor protection. The Pilot is an
industry-wide initiative supported by all other option exchanges. The
Exchange believes that extending the Pilot will allow for continued
competition between Exchange market participants trading similar
products as their counterparts on other exchanges, while at the same
time allowing the Exchange to continue to compete for order flow with
other exchanges in option issues trading as part of the Pilot.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\
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 prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder. \9\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A)(iii). 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 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
Commission notes that the Exchange satisfied this requirement.
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At any time within 60 days of the filing of such 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
[[Page 66253]]
under Section 19(b)(2)(B) \10\ of the Act to determine whether the
proposed rule change should be approved or disapproved.
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\10\ 15 U.S.C. 78s(b)(2)(B).
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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-NYSEAMER-2019-51 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEAMER-2019-51. 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-NYSEAMER-2019-51 and should be submitted
on or before December 24, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-26062 Filed 12-2-19; 8:45 am]
BILLING CODE 8011-01-P
