Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 3, Section 3 To Extend Through June 30, 2020 or the Date of Permanent Approval, 70214-70216 [2019-27461]
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Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 / Notices
including suggestions for reducing the
burden, to (1) Office of Information and
Regulatory Affairs, Office of
Management and Budget, Attention:
Desk Officer for NCUA, New Executive
Office Building, Room 10235,
Washington, DC 20503, or email at
OIRA_Submission@OMB.EOP.gov and
(2) NCUA PRA Clearance Officer, 1775
Duke Street, Suite 6032, Alexandria, VA
22314, or email at PRAComments@
ncua.gov.
FOR FURTHER INFORMATION CONTACT:
Copies of the submission may be
obtained by contacting Dawn Wolfgang
at (703) 548–2279, emailing
PRAComments@ncua.gov, or viewing
the entire information collection request
at www.reginfo.gov.
SUPPLEMENTARY INFORMATION:
OMB Number: 3133–0130.
Type of Review: Extension of a
currently approval collection.
Title: Written Reimbursement Policy,
12 CFR 701.33.
Abstract: Federal Credit Unions
(FCUs) may reimburse its board
members for reasonable and proper
costs incurred in conducting their
official responsibilities only if the
reimbursement is in accordance with
the written reimbursement policies and
procedures established by the FCU’s
board of directors. Access to this plan,
and documentation related to its
implementation is necessary for NCUA
examiners to verify compliance with
this requirement.
Affected Public: Private Sector: Notfor-profit institutions.
Estimated Total Annual Burden
Hours: 1,668.
By Gerard Poliquin, Secretary of the
Board, the National Credit Union
Administration, on December 17, 2019.
Dated: December 17, 2019.
Dawn D. Wolfgang,
NCUA PRA Clearance Officer.
[FR Doc. 2019–27530 Filed 12–19–19; 8:45 am]
BILLING CODE 7535–01–P
POSTAL SERVICE
Product Change—Priority Mail and
First-Class Package Service
Negotiated Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
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ACTION:
The Postal Service gives
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DATES:
Date of required notice:
December 20, 2019.
at the Commission’s Public Reference
Room.
FOR FURTHER INFORMATION CONTACT:
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.
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on December 16,
2019, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & First-Class Package
Service Contract 139 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2020–77,
CP2020–76.
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2019–27432 Filed 12–19–19; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87766; File No. SR–MRX–
2019–26]
Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Options 3,
Section 3 To Extend Through June 30,
2020 or the Date of Permanent
Approval
December 16, 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 December
12, 2019, Nasdaq MRX, LLC (‘‘MRX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II,
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to a proposal
to amend Options 3, Section 3
(Minimum Trading Increments) to
extend through June 30, 2020 or the date
of permanent approval, if earlier, the
Penny Pilot Program in options classes
in certain issues (‘‘Penny Pilot’’ or
‘‘Pilot’’).
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqmrx.cchwallstreet.com/, at
the principal office of the Exchange, and
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00069
Fmt 4703
Sfmt 4703
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this filing is to amend
Options 3, Section 3 to extend the
Penny Pilot through June 30, 2020 or the
date of permanent approval, if earlier.3
Under the Penny Pilot, the minimum
price variation for all participating
options classes, except for options
overlying the PowerShares QQQ Trust
(‘‘QQQQ’’), the SPDR S&P 500 Exchange
Traded Fund (‘‘SPY’’) and the iShares
Russell 2000 Index Fund (‘‘IWM’’), is
$0.01 for all quotations in options series
that are quoted at less than $3 per
contract and $0.05 for all quotations in
options series that are quoted at $3 per
contract or greater. Options overlying
QQQQ, SPY and IWM are quoted in
$0.01 increments for all options series.
The Penny Pilot is currently scheduled
to expire on December 31, 2019.4 The
Exchange now proposes to extend the
time period of the Penny Pilot through
June 30, 2020 or the date of permanent
approval, if earlier.
This filing does not propose any
substantive changes to the Penny Pilot
Program; all classes currently
participating in the Penny Pilot 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 potential
increase in quote traffic.
3 The options exchanges in the U.S. that have
pilot programs similar to the Penny Pilot (together
‘‘pilot programs’’) are currently working on a
proposal for permanent approval of the respective
pilot programs.
4 See Securities Exchange Act Release No. 86147
(June 19, 2019), 84 FR 29922 (June 25, 2019) (SR–
MRX–2019–13).
E:\FR\FM\20DEN1.SGM
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Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 / Notices
2. Statutory Basis
The Exchange believes that its
proposal 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
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
mechanism of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
In particular, the proposed rule
change, which extends the Penny Pilot
for an additional six months through
June 30, 2020 or the date of permanent
approval, if earlier, will enable public
customers and other market participants
to express their true prices to buy and
sell options for the benefit of all market
participants. This is consistent with the
Act.
jbell on DSKJLSW7X2PROD with NOTICES
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. To the
contrary, this proposal is procompetitive because it allows Penny
Pilot issues to continue trading on the
Exchange.
Moreover, the Exchange believes that
the proposed rule change will allow for
further analysis of the Pilot and a
determination of how the Pilot should
be structured in the future; and will
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 market
participants on the Exchange 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.
5 15
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
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18:30 Dec 19, 2019
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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange filed the proposed rule
change pursuant to Section 19(b)(3)(A)
of the Act 7 and Rule 19b–4(f)(6) 8
thereunder. Because the foregoing
proposed rule change does not (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days 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 Rule 19b–
4(f)(6) 10 thereunder.
A proposed rule changed filed under
Rule 19b-4(f)(6) 11 normally does not
become operative prior to 30 days after
the date of filing. However, pursuant to
Rule 19b–4(f)(6),12 the Commission may
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. The
Exchange has asked the Commission to
waive the 30-day operative delay so that
the proposal may become operative
immediately upon filing. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest because doing so will
allow the Pilot Program to continue
without interruption in a manner that is
consistent with the Commission’s prior
approval of the extension and expansion
of the Pilot Program.13 Accordingly, the
Commission designates the proposed
rule change as operative upon filing
with the Commission.14
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6).
9 15 U.S.C. 78s(b)(3)(A).
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change or just shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
13 See Securities Exchange Act Release No. 61061
(November 24, 2009), 74 FR 62857 (December 1,
2009) (SR–NYSEArca–2009–44).
14 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
8 17
PO 00000
Frm 00070
Fmt 4703
Sfmt 4703
70215
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
MRX–2019–26 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–MRX–2019–26. 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
E:\FR\FM\20DEN1.SGM
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70216
Federal Register / Vol. 84, No. 245 / Friday, December 20, 2019 / Notices
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–MRX–2019–26 and should
be submitted on or before January 10,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019–27461 Filed 12–19–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87763; File No. SR–
NYSEArca–2019–91]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Permit the Continued
Listing and Trading of Shares Under
NYSE Arca Rule 8.600–E of the
Cambria Core Equity ETF, a Series of
Cambria ETF Trust
December 16, 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 December
11, 2019, NYSE Arca, Inc. (‘‘NYSE
Arca’’ 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.
jbell on DSKJLSW7X2PROD with NOTICES
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to permit the
continued listing and trading of shares
under NYSE Arca Rule 8.600–E of the
Cambria Core Equity ETF, a series of
Cambria ETF Trust, following its
reorganization into the Core Alternative
ETF, a series of Listed Funds Trust,
notwithstanding that its investments do
not meet the requirements of
Commentary .01(d)(2) to Rule 8.600–E.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
15 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
18:30 Dec 19, 2019
Jkt 250001
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 permit the
continued listing and trading of shares
(‘‘Shares’’) under NYSE Arca Rule
8.600–E (‘‘Managed Fund Shares’’) 4 of
the Cambria Core Equity ETF, a series of
Cambria ETF Trust (the ‘‘Cambria
Trust’’), following its reorganization into
the Core Alternative ETF (the ‘‘Fund’’),
which will be a series of the Listed
Funds Trust (the ‘‘LF Trust’’ or ‘‘Trust’’).
Shares of the Cambria Core Equity ETF
commenced trading on the Exchange on
May 24, 2017, pursuant to the generic
listing criteria in Commentary .01 to
NYSE Arca Rule 8.600–E.
The LF Trust has filed a combined
prospectus and proxy statement (the
‘‘Proxy Statement’’) with the
Commission on Form N–14 describing a
reorganization plan (‘‘Reorganization’’) 5
pursuant to which, following approval
of the Cambria Core Equity ETF’s
shareholders, all or substantially all of
the assets and all of the stated liabilities
included in the financial statements of
the Cambria Core Equity ETF would be
transferred to the Fund. According to
the Proxy Statement, the investment
4 A Managed Fund Share is a security that
represents an interest in an investment company
registered under the Investment Company Act of
1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as
an open-end investment company or similar entity
that invests in a portfolio of securities selected by
its investment adviser consistent with its
investment objectives and policies. In contrast, an
open-end investment company that issues
Investment Company Units, listed and traded on
the Exchange under NYSE Arca Rule 5.2–E(j)(3),
seeks to provide investment results that correspond
generally to the price and yield performance of a
specific foreign or domestic stock index, fixed
income securities index or combination thereof.
5 See registration statement on Form N–14 under
the 1933 Act, dated September 27, 2019 (File No.
333–233973) (‘‘Proxy Statement’’).
PO 00000
Frm 00071
Fmt 4703
Sfmt 4703
objective of the Fund will be the same
as that of the Cambria Core Equity ETF
following implementation of the
Reorganization. Following shareholder
approval and closing of the
Reorganization, investors in the Cambria
Core Equity ETF will receive shares of
beneficial interest of the Fund with an
aggregate net asset value equal to the
aggregate net asset value of the Shares
of the Cambria Core Equity ETF
calculated as of the close of business on
the business day before the closing of
the Reorganization. The closing date of
the Reorganization and the first day of
trading of the Fund under its new name
is expected to be on or about December
18, 2019.
The Shares are offered by the LF
Trust, which is registered with the
Commission as an open-end
management investment company
consisting of multiple investment
series.6 The Fund is a series of the LF
Trust. U.S. Bancorp Fund Services, LLC,
doing business as U.S. Bank Global
Fund Services, LLC, will be the
administrator (the ‘‘Administrator’’) for
the Trust. U.S. Bank N.A. will serve as
the custodian for the Fund.7 Core
Alternative Capital, LLC (the ‘‘Adviser’’)
will be the investment adviser to the
Fund.
As discussed below, the Fund does
not currently meet the requirements of
Commentary .01(d)(2) to Rule 8.600–E.
The Exchange proposes to permit the
listing and trading of Shares of the Fund
notwithstanding that the Fund’s
investments do not meet requirements
of Commentary .01(d)(2) to Rule 8.600–
E.
Commentary .06 to Rule 8.600–E
provides that, if the investment adviser
to the investment company issuing
Managed Fund Shares is affiliated with
a broker-dealer, such investment adviser
shall erect and maintain a ‘‘fire wall’’
6 The Trust is registered under the 1940 Act. On
August 23, 2019, the Trust filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) a post-effective amendment to its
registration statement on Form N–1A under the
Securities Act of 1933 (15 U.S.C. 77a), and under
the 1940 Act relating to the Fund (File Nos. 333–
215588 and 811–23226) (‘‘Registration Statement’’).
Description of the operation of the Trust and of the
Fund and Shares herein is based, in part, on the
Registration Statement. There are no permissible
holdings for the Fund that are not described in this
proposal. The Commission has issued an order
granting certain exemptive relief to the Cambria
Trust under the Investment Company Act of 1940
(15 U.S.C. 80a–1) (‘‘1940 Act’’). See Investment
Company Act Release No. 30340 (January 4, 2013))
(File No. 812–13959). The LF Trust intends to
operate in conformity with such order following the
implementation of the Reorganization.
7 The Administrator to the Cambria Core Equity
ETF was SEI Investments Global Funds Services
and the custodian to the Cambria Core Equity ETF
was Brown Brothers Harriman & Co.
E:\FR\FM\20DEN1.SGM
20DEN1
]]>Agencies
[Federal Register Volume 84, Number 245 (Friday, December 20, 2019)]
[Notices]
[Pages 70214-70216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27461]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87766; File No. SR-MRX-2019-26]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 3,
Section 3 To Extend Through June 30, 2020 or the Date of Permanent
Approval
December 16, 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 December 12, 2019, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II, below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to a proposal to amend Options 3, Section 3
(Minimum Trading Increments) to extend through June 30, 2020 or the
date of permanent approval, if earlier, the Penny Pilot Program in
options classes in certain issues (``Penny Pilot'' or ``Pilot'').
The text of the proposed rule change is available on the Exchange's
website at https://nasdaqmrx.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
The purpose of this filing is to amend Options 3, Section 3 to
extend the Penny Pilot through June 30, 2020 or the date of permanent
approval, if earlier.\3\
---------------------------------------------------------------------------
\3\ The options exchanges in the U.S. that have pilot programs
similar to the Penny Pilot (together ``pilot programs'') are
currently working on a proposal for permanent approval of the
respective pilot programs.
---------------------------------------------------------------------------
Under the Penny Pilot, the minimum price variation for all
participating options classes, except for options overlying the
PowerShares QQQ Trust (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund
(``SPY'') and the iShares Russell 2000 Index Fund (``IWM''), is $0.01
for all quotations in options series that are quoted at less than $3
per contract and $0.05 for all quotations in options series that are
quoted at $3 per contract or greater. Options overlying QQQQ, SPY and
IWM are quoted in $0.01 increments for all options series. The Penny
Pilot is currently scheduled to expire on December 31, 2019.\4\ The
Exchange now proposes to extend the time period of the Penny Pilot
through June 30, 2020 or the date of permanent approval, if earlier.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 86147 (June 19,
2019), 84 FR 29922 (June 25, 2019) (SR-MRX-2019-13).
---------------------------------------------------------------------------
This filing does not propose any substantive changes to the Penny
Pilot Program; all classes currently participating in the Penny Pilot
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 potential increase
in quote traffic.
[[Page 70215]]
2. Statutory Basis
The Exchange believes that its proposal 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 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 mechanism of a free and open
market and a national market system and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change, which extends the Penny
Pilot for an additional six months through June 30, 2020 or the date of
permanent approval, if earlier, will enable public customers and other
market participants to express their true prices to buy and sell
options for the benefit of all market participants. This is consistent
with the Act.
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. To the contrary, this proposal
is pro-competitive because it allows Penny Pilot issues to continue
trading on the Exchange.
Moreover, the Exchange believes that the proposed rule change will
allow for further analysis of the Pilot and a determination of how the
Pilot should be structured in the future; and will 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 market participants on the
Exchange 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 either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \7\ and Rule 19b-4(f)(6) \8\ thereunder. Because
the foregoing proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days 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 Rule 19b-4(f)(6) \10\ thereunder.
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 17 CFR 240.19b-4(f)(6).
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change or just shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule changed filed under Rule 19b-4(f)(6) \11\ normally
does not become operative prior to 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6),\12\ the Commission may designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has asked the
Commission to waive the 30-day operative delay so that the proposal may
become operative immediately upon filing. The Commission believes that
waiving the 30-day operative delay is consistent with the protection of
investors and the public interest because doing so will allow the Pilot
Program to continue without interruption in a manner that is consistent
with the Commission's prior approval of the extension and expansion of
the Pilot Program.\13\ Accordingly, the Commission designates the
proposed rule change as operative upon filing with the Commission.\14\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ See Securities Exchange Act Release No. 61061 (November 24,
2009), 74 FR 62857 (December 1, 2009) (SR-NYSEArca-2009-44).
\14\ For purposes only of waiving the operative delay for this
proposal, the Commission has considered the proposed rule's impact
on efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-MRX-2019-26 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-MRX-2019-26. 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
[[Page 70216]]
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-MRX-2019-26 and should be
submitted on or before January 10, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-27461 Filed 12-19-19; 8:45 am]
BILLING CODE 8011-01-P
