Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot on the Nasdaq-100 Reduced Value Index, 68385-68387 [2020-23802]
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Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Notices
filing, Trading Permit Holders could
reduce the amount of order flow and
liquidity they provide. Such actions
may undermine the quality of the
markets available to customers and
other market participants. Accordingly,
the proposed rule change is designed to
encourage Trading Permit Holders to
submit additional order flow and
liquidity to the Exchange. The proposed
flexibility may similarly provide
additional execution opportunities,
which further benefits liquidity in
potentially volatile markets. In addition,
providing Trading Permit Holders with
more tools for managing risk will
facilitate transactions in securities
because, as noted above, Trading Permit
Holders will have more confidence
protections are in place that reduce the
risks from potential system errors and
market events.
The proposed clarifying and
nonsubstantive changes are consistent
with current functionality and are
intended to add clarity to the Rules, and
thus the Exchange expects those
changes to have no competitive impact.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 18 and
subparagraph (f)(6) of Rule 19b-4
thereunder.19
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) otherwise in
jbell on DSKJLSW7X2PROD with NOTICES
18 15
U.S.C. 78s(b)(3)(A)(iii).
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.
19 17
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18:29 Oct 27, 2020
Jkt 253001
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–
CboeEDGX–2020–049 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–CboeEDGX–2020–049. 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–CboeEDGX–2020–049 and
PO 00000
Frm 00101
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68385
should be submitted on or before
November 18, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–23796 Filed 10–27–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90257; File No. SR–ISE–
2020–33]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend a Pilot on the
Nasdaq–100 Reduced Value Index
October 22, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
14, 2020, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to extend the
pilot to permit the listing and trading of
options based on 1⁄5 the value of the
Nasdaq–100 Index (‘‘Nasdaq–100’’)
currently set to expire on November 2,
2020.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/ise/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
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Notices
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
jbell on DSKJLSW7X2PROD with NOTICES
ISE filed a proposed rule change to
permit the listing and trading of index
options on the Nasdaq 100 Reduced
Value Index (‘‘NQX’’) on a twelve
month pilot basis.3
NQX options trade independently of
and in addition to NDX options, and the
NQX options are subject to the same
rules that presently govern the trading
of index options based on the Nasdaq–
100, including sales practice rules,
margin requirements, trading rules, and
position and exercise limits. Similar to
NDX, NQX options are European-style
and cash-settled, and have a contract
multiplier of 100. The contract
specifications for NQX options mirror in
all respects those of the NDX options
contract listed on the Exchange, except
that NQX options are based on 1⁄5 of the
value of the Nasdaq–100, and are P.M.settled pursuant to Options 4A, Section
12(a)(6).
The Exchange proposes to amend ISE
Options 4A, Section 12(a)(6) to extend
the current NQX pilot period to May 4,
2021. This pilot was previously
extended with the last extension
through November 2, 2020.4 The
Exchange continues to have sufficient
capacity to handle additional quotations
and message traffic associated with the
proposed listing and trading of NQX
options. In addition, index options are
integrated into the Exchange’s existing
surveillance system architecture and are
thus subject to the relevant surveillance
processes. The Exchange also continues
to have adequate surveillance
procedures to monitor trading in NQX
options thereby aiding in the
maintenance of a fair and orderly
market. Additionally, there is continued
investor interest in these products and
this extension will provide additional
time to collect data related to the pilot.
3 See Securities Exchange Act Release No. 82911
(March 20, 2018), 83 FR 12966 (March 26, 2018)
(SR–ISE–2017–106) (Approval Order).
4 See Securities Exchange Act Release Nos. 86071
(June 10, 2019), 84 FR 27822 (June 14, 2019) (SR–
ISE–2019–18); 87379 (October 22, 2019), 84 FR
57793 (October 28, 2019) (SR–ISE–2019–27); and
88683 (April 17, 2020), 85 FR 22768 (April 23,
2020) (SR–ISE–2020–18).
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18:29 Oct 27, 2020
Jkt 253001
Pilot Report
The Exchange currently makes public
on its website the data and analysis
previously submitted to the Commission
on the Pilot Program and will continue
to make public any data or analysis it
submits under the Pilot Program in the
future. The Exchange will be submitting
a rule change to request that the pilot
program become permanent. In lieu of
submitting any additional annual
reports, the Exchange would provide
additional information requested by the
Commission in connection with the
permanency rule change for this pilot
program.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 in particular, in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system, and, in
general to protect investors and the
public interest. By extending the pilot,
the Exchange believes it will attract
order flow to the Exchange, increase the
variety of listed options, and provide a
valuable hedge tool to retail and other
investors. Specifically, the Exchange
believes that the pilot will provide
additional trading and hedging
opportunities for investors while
providing the Commission with data to
monitor for and assess any potential for
adverse market effects of allowing P.M.settlement for NQX options, including
on the underlying component stocks.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. NQX options
would be available for trading to all
market participants and therefore would
not impose an undue burden on intramarket competition. The Exchange
believes that the proposed rule change
will not impose an undue burden on
inter-market competition as this rule
change will continue to facilitate the
listing and trading of a new option
product that will enhance competition
among market participants, to the
benefit of investors and the marketplace.
The continued listing of NQX will
enhance competition by providing
investors with an additional investment
5 15
6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00102
Fmt 4703
Sfmt 4703
vehicle, in a fully-electronic trading
environment, through which investors
can gain and hedge exposure to the
Nasdaq–100. Furthermore, this product
could offer a competitive alternative to
other existing investment products that
seek to allow investors to gain broad
market exposure. Finally, it is possible
for other exchanges to develop or
license the use of a new or different
index to compete with the Nasdaq–100
and seek Commission approval to list
and trade options on such an index.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the 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
subparagraph (f)(6) of Rule 19b–4
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 asked
the Commission to waive the 30-day
operative delay so that investors may
continue to trade NQX options listed by
the Exchange as part of the pilot
program on an uninterrupted basis. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest as it will allow the pilot
program to continue uninterrupted,
thereby avoiding investor confusion that
could result from a temporary
interruption in the pilot program.
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).
8 17
E:\FR\FM\28OCN1.SGM
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jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 85, No. 209 / Wednesday, October 28, 2020 / Notices
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.
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–ISE–2020–33, and should
be submitted on or before November 18,
2020.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
J. Matthew DeLesDernier,
Assistant Secretary.
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ISE–2020–33 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE–2020–33. 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
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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18:29 Oct 27, 2020
Jkt 253001
[FR Doc. 2020–23802 Filed 10–27–20; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–90251; File No. SR–MIAX–
2020–33]
Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule 518,
Complex Orders and Rule 519A, Risk
Protection Monitor
October 22, 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, Miami International Securities
Exchange, LLC (‘‘MIAX Options’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III 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 is filing a proposal to
amend Exchange Rule 518, Complex
Orders; and Rule 519A, Risk Protection
Monitor.
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
68387
The text of the proposed rule change
is available on the Exchange’s website at
https://www.miaxoptions.com/rulefilings/ at MIAX Options’ principal
office, 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 Exchange proposes to amend
Exchange Rule 518 and Exchange Rule
519A to facilitate the use of Related
Futures Cross (‘‘RFC’’) orders on the
Exchange. The Exchange recently
adopted the RFC order type for trading
on the Exchange.3 RFC orders provide
market participants with the ability to
exchange SPIKES options positions with
corresponding futures positions, or to
exchange corresponding futures
positions with SPIKES options
positions.4
Specifically, the Exchange proposes to
amend Policy .05(e)(1)(iii) of Rule 518,
entitled, Wide Market Condition 5 and
cPRIME,6 cC2C,7 and cQCC 8 Orders, to
3 See Securities Exchange Act Release No. 89213
(July 1, 2020), 85 FR 41077 (July 8, 2020) (SR–
MIAX–2020–11).
4 See Policy .08 of Exchange Rule 518.
5 A ‘‘wide market condition’’ is defined as any
individual option component of a complex strategy
having, at the time of evaluation, an MBBO quote
width that is wider than the permissible valid quote
width as defined in Rule 603(b)(4). See Policy
.05(e)(1) of Exchange Rule 518.
6 A Complex PRIME or ‘‘cPRIME’’ Order is a
complex order (as defined in Rule 518(a)(5)) that is
submitted for participation in a cPRIME Auction.
Trading of cPRIME Orders is governed by Rule
515A, Interpretations and Policies .12. See
Exchange Rule 518(b)(7).
7 A Complex Customer Cross or ‘‘cC2C’’ Order is
comprised of one Priority Customer complex order
to buy and one Priority Customer complex order to
sell at the same price and for the same quantity.
Trading of cC2C Orders is governed by Rule
515(h)(3). See Exchange Rule 518(b)(5).
8 A Complex Qualified Contingent Cross or
‘‘cQCC’’ Order is comprised of an originating
complex order to buy or sell where each component
Continued
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]]>Agencies
[Federal Register Volume 85, Number 209 (Wednesday, October 28, 2020)]
[Notices]
[Pages 68385-68387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23802]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90257; File No. SR-ISE-2020-33]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend a Pilot
on the Nasdaq-100 Reduced Value Index
October 22, 2020.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 14, 2020, Nasdaq ISE, LLC (``ISE'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the pilot to permit the listing and
trading of options based on \1/5\ the value of the Nasdaq-100 Index
(``Nasdaq-100'') currently set to expire on November 2, 2020.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/ise/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
[[Page 68386]]
places specified in Item IV below. The Exchange has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
ISE filed a proposed rule change to permit the listing and trading
of index options on the Nasdaq 100 Reduced Value Index (``NQX'') on a
twelve month pilot basis.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 82911 (March 20,
2018), 83 FR 12966 (March 26, 2018) (SR-ISE-2017-106) (Approval
Order).
---------------------------------------------------------------------------
NQX options trade independently of and in addition to NDX options,
and the NQX options are subject to the same rules that presently govern
the trading of index options based on the Nasdaq-100, including sales
practice rules, margin requirements, trading rules, and position and
exercise limits. Similar to NDX, NQX options are European-style and
cash-settled, and have a contract multiplier of 100. The contract
specifications for NQX options mirror in all respects those of the NDX
options contract listed on the Exchange, except that NQX options are
based on \1/5\ of the value of the Nasdaq-100, and are P.M.-settled
pursuant to Options 4A, Section 12(a)(6).
The Exchange proposes to amend ISE Options 4A, Section 12(a)(6) to
extend the current NQX pilot period to May 4, 2021. This pilot was
previously extended with the last extension through November 2,
2020.\4\ The Exchange continues to have sufficient capacity to handle
additional quotations and message traffic associated with the proposed
listing and trading of NQX options. In addition, index options are
integrated into the Exchange's existing surveillance system
architecture and are thus subject to the relevant surveillance
processes. The Exchange also continues to have adequate surveillance
procedures to monitor trading in NQX options thereby aiding in the
maintenance of a fair and orderly market. Additionally, there is
continued investor interest in these products and this extension will
provide additional time to collect data related to the pilot.
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release Nos. 86071 (June 10,
2019), 84 FR 27822 (June 14, 2019) (SR-ISE-2019-18); 87379 (October
22, 2019), 84 FR 57793 (October 28, 2019) (SR-ISE-2019-27); and
88683 (April 17, 2020), 85 FR 22768 (April 23, 2020) (SR-ISE-2020-
18).
---------------------------------------------------------------------------
Pilot Report
The Exchange currently makes public on its website the data and
analysis previously submitted to the Commission on the Pilot Program
and will continue to make public any data or analysis it submits under
the Pilot Program in the future. The Exchange will be submitting a rule
change to request that the pilot program become permanent. In lieu of
submitting any additional annual reports, the Exchange would provide
additional information requested by the Commission in connection with
the permanency rule change for this pilot program.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\5\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general to protect
investors and the public interest. By extending the pilot, the Exchange
believes it will attract order flow to the Exchange, increase the
variety of listed options, and provide a valuable hedge tool to retail
and other investors. Specifically, the Exchange believes that the pilot
will provide additional trading and hedging opportunities for investors
while providing the Commission with data to monitor for and assess any
potential for adverse market effects of allowing P.M.-settlement for
NQX options, including on the underlying component stocks.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. NQX options would be
available for trading to all market participants and therefore would
not impose an undue burden on intra-market competition. The Exchange
believes that the proposed rule change will not impose an undue burden
on inter-market competition as this rule change will continue to
facilitate the listing and trading of a new option product that will
enhance competition among market participants, to the benefit of
investors and the marketplace. The continued listing of NQX will
enhance competition by providing investors with an additional
investment vehicle, in a fully-electronic trading environment, through
which investors can gain and hedge exposure to the Nasdaq-100.
Furthermore, this product could offer a competitive alternative to
other existing investment products that seek to allow investors to gain
broad market exposure. Finally, it is possible for other exchanges to
develop or license the use of a new or different index to compete with
the Nasdaq-100 and seek Commission approval to list and trade options
on such an index.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the 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 subparagraph (f)(6) of Rule 19b-4
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.
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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 asked the Commission to waive the 30-day operative delay so that
investors may continue to trade NQX options listed by the Exchange as
part of the pilot program on an uninterrupted basis. The Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest as it will allow the
pilot program to continue uninterrupted, thereby avoiding investor
confusion that could result from a temporary interruption in the pilot
program.
[[Page 68387]]
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-ISE-2020-33 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2020-33. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of the Exchange. All comments
received will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-ISE-2020-33, and should be submitted on
or before November 18, 2020.
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. 2020-23802 Filed 10-27-20; 8:45 am]
BILLING CODE 8011-01-P
