Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Technical Amendments to the Options Listing Rules, 67579-67582 [2020-23455]

Download as PDF Federal Register / Vol. 85, No. 206 / Friday, October 23, 2020 / Notices which will list the prime broker, if there is one, that is associated with each account. C. Additional Conditions for Exemptive Relief The Commission is granting the relief conditioned upon the adoption of Compliance Rules that implement the reporting requirements of the Allocation Alternative. The Commission believes that the proposed definition of Allocation is reasonable. The Commission is also exempting Participants from the requirement that they amend their Compliance Rules to require Industry Members to report Allocations for accounts other than client accounts. The Commission believes that allocations to client accounts, and not allocations to proprietary accounts or events such as step-outs and correspondent flips,18 provide regulators the necessary information to detect abuses in the allocation process because it would provide regulators with detailed information regarding the fulfillment of orders submitted by clients, while reducing reporting burdens on brokerdealers. For example, Allocation Reports would be required for allocations to registered investment advisor and money manager accounts. The Commission further believes that the proposed approach should facilitate regulators’ ability to distinguish Allocation Reports relating to allocations to client accounts from other Allocation Reports because Allocations to accounts other than client accounts would have to be identified as such. This approach could reduce the time CAT Reporters expend to comply with CAT reporting requirements and lower costs by allowing broker-dealers to use existing business practices. The Commission is conditioning this exemption on the Participants amending their Compliance Rules to require additional elements in Allocation Reports.19 These additional elements khammond on DSKJM1Z7X2PROD with NOTICES 18 See, supra notes 8 and 9. 19 Specifically, the Participants would be required to modify their Compliance Rules such that all required elements of Allocation Reports apply to both shares and contracts, as applicable, for all Eligible Securities. In addition, the Participants would be required to modify their Compliance Rules so that Allocation Reports include the following additional elements: (1) Allocation ID, which is the internal allocation identifier assigned to the allocation event by the Industry Member; (2) trade date; (3) settlement date: (4) IB/correspondent CRD Number (if applicable); (5) FDID of new order(s) (if available in the booking system); (6) allocation instruction time (optional); (7) if account meets the definition of institution under FINRA Rule 4512(c); (8) type of allocation (allocation to a custody account, allocation to a DVP account, step out, correspondent flip, allocation to a firm owned VerDate Sep<11>2014 18:09 Oct 22, 2020 Jkt 253001 would enhance the utility of CAT by providing more information related to allocations and will ultimately assist market surveillance, market reconstructions, and examinations. The Commission further believes that applying the requirements for Allocation Reports to contracts in addition to shares is appropriate because CAT reporting requirements apply to both options and equities. The proposed approach described in the August 27, 2020 Exemption Request would require Participants to amend their Compliance Rules to require Industry Members to provide Allocation Reports to the Central Repository any time they perform Allocations to a client account, whether or not the Industry Member was the executing broker for the trades. The Participants also would be required to amend their Compliance Rules to require their Industry Members reporting the Allocation Reports to include the additional elements set forth above on all Allocation Reports, in addition to those elements currently required under the CAT NMS Plan. Based on the foregoing, the Commission believes that, pursuant to Section 36 of the Exchange Act, this exemption is appropriate in the public interest and consistent with the protection of investors, and that pursuant to Rule 608(e), this exemption is consistent with the public interest, the protection of investors, the maintenance of fair and orderly markets and the removal of impediments to, and the perfection of a national market system. Accordingly, it is hereby ordered, pursuant to Section 36(a)(1) of the Exchange Act,20 and Rule 608(e) of the Exchange Act 21 and with respect to the proposed Allocation Alternative specifically described above, that the Participants are granted an exemption from the requirements set forth in Section 6.4(d)(ii)(A)(1) and (2) of the CAT NMS Plan, subject to the conditions described above. or controlled account, or other non-reportable transactions (e.g., option exercises, conversions); (9) for DVP allocations, custody broker-dealer clearing number (prime broker) if the custodian is a U.S. broker-dealer, DTCC number if the custodian is a U.S. bank, or a foreign indicator, if the custodian is a foreign entity; and (10) if an allocation was cancelled, a cancel flag, which indicates if the allocation was cancelled, and a cancel timestamp, which represents the time at which the allocation was cancelled. 20 15 U.S.C. 78mm(a)(1). 21 17 CFR 242.608(e). PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 67579 By the Commission. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–23467 Filed 10–22–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–90218; File No. SR–BX– 2020–030] Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Technical Amendments to the Options Listing Rules October 19, 2020. 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 October 8, 2020, Nasdaq BX, Inc. (‘‘BX’’ 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 amend Options 4, Section 3, ‘‘Criteria for Underlying Securities,’’ Options 4, Section 5, ‘‘Series of Options Contracts Open for Trading,’’ and Options 4, Section 6, which is currently reserved, to relocate certain rule text and make other minor technical amendments. The text of the proposed rule change is available on the Exchange’s website at https://listingcenter.nasdaq.com/ rulebook/bx/rules, 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 1 15 2 17 E:\FR\FM\23OCN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 23OCN1 67580 Federal Register / Vol. 85, No. 206 / Friday, October 23, 2020 / Notices 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 Exchange proposes to amend Options 4, Section 3, ‘‘Criteria for Underlying Securities,’’ Options 4, Section 5, ‘‘Series of Options Contracts Open for Trading,’’ and Options 4, Section 6, which is currently reserved, to relocate certain rule text and make other minor technical amendments. Options 4, Section 3 The Exchange proposes to amend Options 4, Section 3(1)(i) to add the words ‘‘or ETNs’’ after the phrase ‘‘collectively known as ‘‘Index-Linked Securities’’ ’’ for additional clarity. The Exchange believes that this addition of ‘‘ETNs’’ will assist Participants in locating this rule text. Options 4, Section 5 khammond on DSKJM1Z7X2PROD with NOTICES Relocate Rule Text The Exchange proposes to relocate certain portions of the Supplementary Material to Options 4, Section 5 in order that rule text related to certain strike listing programs be placed with related rule text. Proposed relocated rule text is not being amended with this proposal. The Exchange proposes to relocate Supplementary Material .11 within Options 4, Section 5 to new Options 4, Section 5(a)(1). The Exchange proposes to relocate Supplementary Material .14 within Options 4, Section 5 to new Options 4, Section 5(e). The Exchange proposes to relocate Supplementary Material .12 within Options 4, Section 5 to new Options 4, Section 5(f). The Exchange proposes to relocate Supplementary Material .02 within Options 4, Section 5 to new Options 4, Section 6. The Exchange proposes to relocate Supplementary Material .07 within Options 4, Section 5 to new Options 4, Section 5(h). The Exchange proposes to relocate Supplementary Material .08 within Options 4, Section 5 to new Options 4, Section 5(i). The Exchange proposes to relocate Options 4, Section 5(d)(iv) to Supplementary Material .02 within VerDate Sep<11>2014 18:09 Oct 22, 2020 Jkt 253001 Options 4, Section 5 and add a title ‘‘$2.50 Strike Price Interval Program.’’ 3 The Exchange proposes to delete the first sentence of Supplementary Material .03(e) within Options 4, Section 5, which provides ‘‘The interval between strike prices on Short Term Option Series shall be the same as the strike prices for series in that same option class that expire in accordance with the normal monthly expiration cycle.’’ The Exchange notes that this rule text is not necessary because with the relocation of the strike listing rules for Short Term Option Series, which are proposed to be relocated from Supplementary Material .12 of Options 4, Section 5 to new Options 4, Section 5(f), the reference becomes unnecessary. The Exchange proposes to relocate Supplementary Material .13 within Options 4, Section 5 to the end of Supplementary .03(e) of Options 4, Section 5. Other Technical Amendments The Exchange proposes to relocate a period currently after the term ‘‘Section’’ to after the number ‘‘5’’. The Exchange proposes to update certain outdated citations to rule text within Options 4, Section 5. The Exchange proposes to lowercase the term ‘‘customer’’ within Options 4, Section 5(c). The Exchange proposes to renumber and re-letter certain sections for consistency, and remove reserved sections from the rule. The Exchange proposes to utilize the defined term ‘‘Commission’’ 4 within Options 4, Section 5(f). The Exchange proposes to remove a stray ‘‘6’’ within Options 4, Section 5(g). The Exchange proposes to add the words ‘‘Long-Term Options Series or’’ before the term ‘‘LEAPS’’ and add quotation marks in that same sentence within current Supplementary Material .01(b)(v) at Options 5, Section 5 which is being renumbered as Supplementary Material .01(b)(5) at Options 5, Section 5. Options 4, Section 6 The Exchange proposes to amend Options 4, Section 6, which is currently reserved. Similar to Nasdaq ISE, LLC (‘‘ISE’’), the Exchange proposes to relocate current Supplementary Material .02 to Options 4, Section 5 to new Options 4, Section 6 and title the section ‘‘Select Provisions of Options Listing Procedures Plan.’’ The Exchange proposes to update and conform the rule 3 The Exchange proposes to relocate current Supplementary Material .02 to Options 4, Section 5 to new Options 4, Section 6, as described below. 4 The terms ‘‘Commission’’ or ‘‘SEC’’ mean the Securities and Exchange Commission (SEC), established pursuant to the Act. See General 1(b)(8). PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 text of current Supplementary Material .02 to Options 4, Section 5 to mirror the rule text within ISE Options 4, Section 6. The Exchange proposes to add this sentence. ‘‘A complete copy of the current OLPP may be accessed at: https:// www.optionsclearing.com/products/ options_listing_proceduresplan.pdf’’ to the end of proposed Options 4, Section 6(a) to provide greater detail. The Exchange also proposes to add a clause which provides that, ‘‘The series exercise price range limitations contained in subparagraph (a) above do not apply with regard to: The listing of Flexible Exchange Options,’’ similar to ISE. In addition to renumbering this section to correspond to ISE’s numbering, the Exchange proposes additional rule text which mirrors ISE’s rule text which states, (iii) The Exchange may designate up to five options classes to which the series exercise price range may be up to 100% above and below the price of the underlying security (which underlying security price shall be determined in accordance with subparagraph (i) above). Such designations shall be made on an annual basis and shall not be removed during the calendar year unless the options class is delisted by the Exchange, in which case the Exchange may designate another options class to replace the delisted class. If a designated options class is delisted by the Exchange but continues to trade on at least one options exchange, the options class shall be subject to the limitations on listing new series set forth in subparagraph (i) above unless designated by another exchange. (iv) If the Exchange that has designated five options classes pursuant to subparagraph (iii) above requests that one or more additional options classes be excepted from the limitations on listing new series set forth in subparagraph (i) above, the additional options class(es) shall be so designated upon the unanimous consent of all exchanges that trade the options class(es). Additionally, pursuant to the Exchange’s request, the percentage range for the listing of new series may be increased to more than 100% above and below the price of the underlying security for an options class, by the unanimous consent of all exchanges that trade the designated options class. Exceptions for an additional class or for an increase of the exercise price range shall apply to all standard expiration months existing at the time of the vote, plus the next standard expiration month to be added, and also to any non-standard expirations that occur prior to the next standard monthly expiration. The Exchange believes that the addition of this rule text will harmonize BX’s Rule to ISE’s Options 4, Section 6 and also memorialize certain aspects of the Options Listing Procedures Plan so that market participants will have ease of reference in locating language concerning the Options Listing Procedures Plan. E:\FR\FM\23OCN1.SGM 23OCN1 Federal Register / Vol. 85, No. 206 / Friday, October 23, 2020 / 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 promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest. The Exchange’s proposal to make a nonsubstantive amendment to Options 4, Section 3 to add the more commonly used term ‘‘ETN’’ next to ‘‘Index-Linked Securities’’ will allow Participants to search the rule text using the term ‘‘ETN’’. Amending Options 4, Section 5 to relocate rule text within the related listing program will make the rule easier to understand. The rule text being relocated is not amended by this proposal. The remainder of the rule changes within Options 4, Section 5 are non-substantive and intended to provide clarity to the rule text. Relocating current Supplementary Material .02 to Options 4, Section 5 to new Options 4, Section 6 and titling the section ‘‘Select Provisions of Options Listing Procedures Plan’’ will harmonize BX’s listing rules with those of ISE. Further, the Exchange believes that the addition of rule text within Options 4, Section 6, similar to ISE Options 4, Section 6, will provide market participants with ease of reference in locating language concerning the Options Listing Procedures Plan. The Exchange believes that the proposed amendments are consistent with the Act and the protection of investors and the general public because the amendments bring greater clarity to BX’s listing rules. khammond on DSKJM1Z7X2PROD 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 that is not necessary or appropriate in furtherance of the purposes of the Act. The proposed rule changes are nonsubstantive and are intended to provide greater clarity. 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. 5 15 6 15 U.S.C. 78f(b). U.S.C. 78f(b)(5). VerDate Sep<11>2014 18:09 Oct 22, 2020 Jkt 253001 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 pursuant to Rule 19b–4(f)(6) under the Act 9 normally does not become operative for 30 days after the date of its 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 requested that the Commission waive the 30-day operative delay. As the proposed rule change raises no novel issues and promotes clarity and consistency within the Exchange’s options listing rules, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby waives the operative delay and designates the proposed rule change 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. 7 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change, along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. 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). 8 17 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 67581 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– BX–2020–030 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–BX–2020–030. 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–BX–2020–030, and should be submitted on or before November 13, 2020. E:\FR\FM\23OCN1.SGM 23OCN1 67582 Federal Register / Vol. 85, No. 206 / Friday, October 23, 2020 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 J. Matthew DeLesDernier, Assistant Secretary. SMALL BUSINESS ADMINISTRATION [FR Doc. 2020–23455 Filed 10–22–20; 8:45 am] Presidential Declaration of a Major Disaster for the State of Louisiana BILLING CODE 8011–01–P [Disaster Declaration #16706 and #16707; Louisiana Disaster Number LA–00105] U.S. Small Business Administration. ACTION: Notice. AGENCY: SMALL BUSINESS ADMINISTRATION This is a Notice of the Presidential declaration of a major disaster for the State of Louisiana (FEMA–4570–DR), dated 10/16/2020. Incident: Hurricane Delta. Incident Period: 10/06/2020 through 10/10/2020. DATES: Issued on 10/16/2020. Physical Loan Application Deadline Date: 12/15/2020. Economic Injury (EIDL) Loan Application Deadline Date: 07/16/2021. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President’s major disaster declaration on 10/16/2020, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Parishes (Physical Damage and Economic Injury Loans): Acadia, Calcasieu, Cameron, Jefferson Davis, Vermilion Contiguous Parishes/Counties (Economic Injury Loans Only): Louisiana: Allen, Beauregard, Evangeline, Iberia, Lafayette, Saint Landry Texas: Jefferson, Newton, Orange The Interest Rates are: SUMMARY: [Disaster Declaration #16662 and #16663; California Disaster Number CA–00327] Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the State of California U.S. Small Business Administration. ACTION: Amendment 4. AGENCY: This is an amendment of the Presidential declaration of a major disaster for Public Assistance Only for the State of California (FEMA–4558– DR), dated 08/22/2020. Incident: Wildfires. Incident Period: 08/14/2020 through 09/26/2020. DATES: Issued on 10/18/2020. Physical Loan Application Deadline Date: 10/21/2020. Economic Injury (EIDL) Loan Application Deadline Date: 05/24/2021. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster declaration for Private Non-Profit organizations in the State of California, dated 08/22/2020, is hereby amended to include the following areas as adversely affected by the disaster. Primary Counties: Sierra, Trinity, Tuolumne. All other information in the original declaration remains unchanged. khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: (Catalog of Federal Domestic Assistance Number 59008) Cynthia Pitts, Acting Associate Administrator for Disaster Assistance. [FR Doc. 2020–23478 Filed 10–22–20; 8:45 am] BILLING CODE 8026–03–P 12 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:09 Oct 22, 2020 Jkt 253001 For Physical Damage: Homeowners With Credit Available Elsewhere ...................... Homeowners Without Credit Available Elsewhere .............. Businesses With Credit Available Elsewhere ...................... Businesses Without Credit Available Elsewhere .............. Non-Profit Organizations With Credit Available Elsewhere ... PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 Percent Non-Profit Organizations Without Credit Available Elsewhere ..................................... For Economic Injury: Businesses & Small Agricultural Cooperatives Without Credit Available Elsewhere .............. Non-Profit Organizations Without Credit Available Elsewhere ..................................... 2.750 3.000 2.750 The number assigned to this disaster for physical damage is 167068 and for economic injury is 167070. (Catalog of Federal Domestic Assistance Number 59008) Cynthia Pitts, Acting Associate Administrator for Disaster Assistance. [FR Doc. 2020–23480 Filed 10–22–20; 8:45 am] BILLING CODE 8026–03–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #16603 and #16604; California Disaster Number CA–00325] Presidential Declaration Amendment of a Major Disaster for the State of California U.S. Small Business Administration. ACTION: Amendment 7. AGENCY: This is an amendment of the Presidential declaration of a major disaster for the State of California (FEMA–4558–DR), dated 08/22/2020. Incident: Wildfires. Incident Period: 08/14/2020 through 09/26/2020. DATES: Issued on 10/18/2020. Physical Loan Application Deadline Date: 11/23/2020. Economic Injury (EIDL) Loan Application Deadline Date: 05/24/2021. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Percent Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: The notice of the President’s major disaster 2.375 declaration for the State of California, dated 08/22/2020, is hereby amended to 1.188 include the following areas as adversely affected by the disaster: 6.000 Primary Counties (Physical Damage and Economic Injury Loans): Trinity 3.000 Contiguous Counties (Economic Injury Loans Only): 2.750 SUMMARY: E:\FR\FM\23OCN1.SGM 23OCN1

Agencies

[Federal Register Volume 85, Number 206 (Friday, October 23, 2020)]
[Notices]
[Pages 67579-67582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23455]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90218; File No. SR-BX-2020-030]


Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Make Technical 
Amendments to the Options Listing Rules

October 19, 2020.
    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 October 8, 2020, Nasdaq BX, Inc. (``BX'' 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 amend Options 4, Section 3, ``Criteria for 
Underlying Securities,'' Options 4, Section 5, ``Series of Options 
Contracts Open for Trading,'' and Options 4, Section 6, which is 
currently reserved, to relocate certain rule text and make other minor 
technical amendments.
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/bx/rules, 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

[[Page 67580]]

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 Exchange proposes to amend Options 4, Section 3, ``Criteria for 
Underlying Securities,'' Options 4, Section 5, ``Series of Options 
Contracts Open for Trading,'' and Options 4, Section 6, which is 
currently reserved, to relocate certain rule text and make other minor 
technical amendments.
Options 4, Section 3
    The Exchange proposes to amend Options 4, Section 3(1)(i) to add 
the words ``or ETNs'' after the phrase ``collectively known as ``Index-
Linked Securities'' '' for additional clarity. The Exchange believes 
that this addition of ``ETNs'' will assist Participants in locating 
this rule text.
Options 4, Section 5
Relocate Rule Text
    The Exchange proposes to relocate certain portions of the 
Supplementary Material to Options 4, Section 5 in order that rule text 
related to certain strike listing programs be placed with related rule 
text. Proposed relocated rule text is not being amended with this 
proposal.
    The Exchange proposes to relocate Supplementary Material .11 within 
Options 4, Section 5 to new Options 4, Section 5(a)(1).
    The Exchange proposes to relocate Supplementary Material .14 within 
Options 4, Section 5 to new Options 4, Section 5(e).
    The Exchange proposes to relocate Supplementary Material .12 within 
Options 4, Section 5 to new Options 4, Section 5(f).
    The Exchange proposes to relocate Supplementary Material .02 within 
Options 4, Section 5 to new Options 4, Section 6.
    The Exchange proposes to relocate Supplementary Material .07 within 
Options 4, Section 5 to new Options 4, Section 5(h).
    The Exchange proposes to relocate Supplementary Material .08 within 
Options 4, Section 5 to new Options 4, Section 5(i).
    The Exchange proposes to relocate Options 4, Section 5(d)(iv) to 
Supplementary Material .02 within Options 4, Section 5 and add a title 
``$2.50 Strike Price Interval Program.'' \3\
---------------------------------------------------------------------------

    \3\ The Exchange proposes to relocate current Supplementary 
Material .02 to Options 4, Section 5 to new Options 4, Section 6, as 
described below.
---------------------------------------------------------------------------

    The Exchange proposes to delete the first sentence of Supplementary 
Material .03(e) within Options 4, Section 5, which provides ``The 
interval between strike prices on Short Term Option Series shall be the 
same as the strike prices for series in that same option class that 
expire in accordance with the normal monthly expiration cycle.'' The 
Exchange notes that this rule text is not necessary because with the 
relocation of the strike listing rules for Short Term Option Series, 
which are proposed to be relocated from Supplementary Material .12 of 
Options 4, Section 5 to new Options 4, Section 5(f), the reference 
becomes unnecessary.
    The Exchange proposes to relocate Supplementary Material .13 within 
Options 4, Section 5 to the end of Supplementary .03(e) of Options 4, 
Section 5.
Other Technical Amendments
    The Exchange proposes to relocate a period currently after the term 
``Section'' to after the number ``5''. The Exchange proposes to update 
certain outdated citations to rule text within Options 4, Section 5. 
The Exchange proposes to lowercase the term ``customer'' within Options 
4, Section 5(c). The Exchange proposes to re-number and re-letter 
certain sections for consistency, and remove reserved sections from the 
rule. The Exchange proposes to utilize the defined term ``Commission'' 
\4\ within Options 4, Section 5(f). The Exchange proposes to remove a 
stray ``6'' within Options 4, Section 5(g). The Exchange proposes to 
add the words ``Long-Term Options Series or'' before the term ``LEAPS'' 
and add quotation marks in that same sentence within current 
Supplementary Material .01(b)(v) at Options 5, Section 5 which is being 
renumbered as Supplementary Material .01(b)(5) at Options 5, Section 5.
---------------------------------------------------------------------------

    \4\ The terms ``Commission'' or ``SEC'' mean the Securities and 
Exchange Commission (SEC), established pursuant to the Act. See 
General 1(b)(8).
---------------------------------------------------------------------------

Options 4, Section 6
    The Exchange proposes to amend Options 4, Section 6, which is 
currently reserved. Similar to Nasdaq ISE, LLC (``ISE''), the Exchange 
proposes to relocate current Supplementary Material .02 to Options 4, 
Section 5 to new Options 4, Section 6 and title the section ``Select 
Provisions of Options Listing Procedures Plan.'' The Exchange proposes 
to update and conform the rule text of current Supplementary Material 
.02 to Options 4, Section 5 to mirror the rule text within ISE Options 
4, Section 6. The Exchange proposes to add this sentence. ``A complete 
copy of the current OLPP may be accessed at: https://www.optionsclearing.com/products/options_listing_proceduresplan.pdf'' 
to the end of proposed Options 4, Section 6(a) to provide greater 
detail. The Exchange also proposes to add a clause which provides that, 
``The series exercise price range limitations contained in subparagraph 
(a) above do not apply with regard to: The listing of Flexible Exchange 
Options,'' similar to ISE. In addition to renumbering this section to 
correspond to ISE's numbering, the Exchange proposes additional rule 
text which mirrors ISE's rule text which states,

    (iii) The Exchange may designate up to five options classes to 
which the series exercise price range may be up to 100% above and 
below the price of the underlying security (which underlying 
security price shall be determined in accordance with subparagraph 
(i) above). Such designations shall be made on an annual basis and 
shall not be removed during the calendar year unless the options 
class is delisted by the Exchange, in which case the Exchange may 
designate another options class to replace the delisted class. If a 
designated options class is delisted by the Exchange but continues 
to trade on at least one options exchange, the options class shall 
be subject to the limitations on listing new series set forth in 
subparagraph (i) above unless designated by another exchange.
    (iv) If the Exchange that has designated five options classes 
pursuant to subparagraph (iii) above requests that one or more 
additional options classes be excepted from the limitations on 
listing new series set forth in subparagraph (i) above, the 
additional options class(es) shall be so designated upon the 
unanimous consent of all exchanges that trade the options class(es). 
Additionally, pursuant to the Exchange's request, the percentage 
range for the listing of new series may be increased to more than 
100% above and below the price of the underlying security for an 
options class, by the unanimous consent of all exchanges that trade 
the designated options class.
    Exceptions for an additional class or for an increase of the 
exercise price range shall apply to all standard expiration months 
existing at the time of the vote, plus the next standard expiration 
month to be added, and also to any non-standard expirations that 
occur prior to the next standard monthly expiration.

    The Exchange believes that the addition of this rule text will 
harmonize BX's Rule to ISE's Options 4, Section 6 and also memorialize 
certain aspects of the Options Listing Procedures Plan so that market 
participants will have ease of reference in locating language 
concerning the Options Listing Procedures Plan.

[[Page 67581]]

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 promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest. 
The Exchange's proposal to make a non-substantive amendment to Options 
4, Section 3 to add the more commonly used term ``ETN'' next to 
``Index-Linked Securities'' will allow Participants to search the rule 
text using the term ``ETN''.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    Amending Options 4, Section 5 to relocate rule text within the 
related listing program will make the rule easier to understand. The 
rule text being relocated is not amended by this proposal. The 
remainder of the rule changes within Options 4, Section 5 are non-
substantive and intended to provide clarity to the rule text.
    Relocating current Supplementary Material .02 to Options 4, Section 
5 to new Options 4, Section 6 and titling the section ``Select 
Provisions of Options Listing Procedures Plan'' will harmonize BX's 
listing rules with those of ISE. Further, the Exchange believes that 
the addition of rule text within Options 4, Section 6, similar to ISE 
Options 4, Section 6, will provide market participants with ease of 
reference in locating language concerning the Options Listing 
Procedures Plan.
    The Exchange believes that the proposed amendments are consistent 
with the Act and the protection of investors and the general public 
because the amendments bring greater clarity to BX's listing rules.

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. The proposed rule changes 
are non-substantive and are intended to provide greater clarity.

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\
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    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its 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 requested that the Commission waive the 30-day operative delay. As 
the proposed rule change raises no novel issues and promotes clarity 
and consistency within the Exchange's options listing rules, the 
Commission believes that waiver of the 30-day operative delay is 
consistent with the protection of investors and the public interest. 
Accordingly, the Commission hereby waives the operative delay and 
designates the proposed rule change operative upon filing.\11\
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    \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).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule change should be approved or 
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BX-2020-030 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-BX-2020-030. 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-BX-2020-030, and should be submitted on 
or before November 13, 2020.


[[Page 67582]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-23455 Filed 10-22-20; 8:45 am]
BILLING CODE 8011-01-P
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