Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Extend the Pilot Period for the Exchange's Nonstandard Expirations Pilot Program, 68605-68607 [2020-23913]
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Federal Register / Vol. 85, No. 210 / Thursday, October 29, 2020 / Notices
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:
• 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–
NYSEArca–2020–93 on the subject line.
Paper Comments
jbell on DSKJLSW7X2PROD with NOTICES
• 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–NYSEArca–2020–93. 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–NYSEArca–2020–093 and
should be submitted on or before
November 19, 2020.
18:03 Oct 28, 2020
[FR Doc. 2020–23916 Filed 10–28–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
VerDate Sep<11>2014
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
J. Matthew DeLesDernier,
Assistant Secretary.
Jkt 253001
[Release No. 34–90265; File No. SR–ISE–
2020–34]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Extend the Pilot Period
for the Exchange’s Nonstandard
Expirations Pilot Program
October 23, 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
21, 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 period for the Exchange’s
nonstandard expirations pilot program,
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
places specified in Item IV below. The
Exchange has prepared summaries, set
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
68605
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 for
the listing and trading on the Exchange,
on a twelve month pilot basis, of p.m.settled options on broad-based indexes
with nonstandard expirations dates. The
pilot program permits both Weekly
Expirations and End of Month (‘‘EOM’’)
expirations similar to those of the a.m.settled broad-based index options,
except that the exercise settlement value
of the options subject to the pilot are
based on the index value derived from
the closing prices of component stocks.
This pilot was extended various times
with the last extension through
November 2, 2020.3
Supplementary Material .07(a) to
Options 4A, Section 12 provides that
the Exchange may open for trading
Weekly Expirations on any broad-based
index eligible for standard options
trading to expire on any Monday,
Wednesday, or Friday (other than the
third Friday-of- the- month or days that
coincide with an EOM expiration).
Weekly Expirations are subject to all
provisions of Options 4A, Section 12
and are treated the same as options on
the same underlying index that expire
on the third Friday of the expiration
month. Unlike the standard monthly
options, however, Weekly Expirations
are p.m.-settled.
Pursuant to Supplementary Material
.07(b) to Options 4A, Section 12 the
Exchange may open for trading EOM
expirations on any broad-based index
eligible for standard options trading to
expire on the last trading day of the
month. EOM expirations are subject to
all provisions of Options 4A, Section 12
and treated the same as options on the
same underlying index that expire on
the third Friday of the expiration
month. However, the EOM expirations
are p.m.-settled.
The Exchange now proposes to amend
Supplementary Material .07(c) to
Options4A, Section 12 so that the
duration of the pilot program for these
nonstandard expirations will be through
May 4, 2021. The Exchange continues to
have sufficient systems capacity to
3 See Securities Exchange Act Release Nos. 85030
(February 1, 2019), 84 FR 2633 (February 7, 2019)
(SR–ISE–2019–01); 85672 (April 17, 2019), 84 FR
16899 (April 23, 2019) (SR–ISE–2019–11); 87380
(October 22, 2019), 84 FR 57786 (October 28, 2019)
(SR–ISE–2019–28); and 88681 (April 17, 2020), 85
FR 22775 (April 23, 2020) (SR–ISE–2020–17).
E:\FR\FM\29OCN1.SGM
29OCN1
68606
Federal Register / Vol. 85, No. 210 / Thursday, October 29, 2020 / Notices
handle p.m.-settled options on broadbased indexes with nonstandard
expirations dates and has not
encountered any issues or adverse
market effects as a result of listing them.
Additionally, there is continued
investor interest in these products. The
Exchange will continue to make public
on its website any data and analysis it
submits to the Commission under the
pilot program.
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 its
proposal is consistent with Section 6(b)
of the Act,4 in general, and furthers the
objectives of Section 6(b)(5) of the Act,5
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 believes the proposed rule
change will protect investors and the
public interest by providing the
Exchange, the Commission and
investors the benefit of additional time
to analyze nonstandard expiration
options. By extending the pilot program,
investors may continue to benefit from
a wider array of investment
opportunities. Additionally, both the
Exchange and the Commission may
continue to monitor the potential for
adverse market effects of p.m.settlement on the market, including the
underlying cash equities market, at the
expiration of these options.
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. Options with
nonstandard expirations would be
available for trading to all market
participants.
4 15
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
VerDate Sep<11>2014
18:03 Oct 28, 2020
Jkt 253001
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 6 and
subparagraph (f)(6) of Rule 19b–4
thereunder.7
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 8 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 9
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 nonstandard
expiration 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.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.10
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
6 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule19b–
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.
8 17 CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii).
10 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).
7 17
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
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 rule-comments@
sec.gov. Please include File Number SR–
ISE–2020–34 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–2020–34. 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
E:\FR\FM\29OCN1.SGM
29OCN1
Federal Register / Vol. 85, No. 210 / Thursday, October 29, 2020 / Notices
to make available publicly. All
submissions should refer to File
Number SR–ISE–2020–34, and should
be submitted on or before November 19,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–23913 Filed 10–28–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90264; File No. SR–FINRA–
2020–034]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change To Modify
TRACE Dissemination Protocols
Regarding Agency Pass-Through MBS
or SBA-Backed ABS Traded in
Specified Pool Transactions
October 23, 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
15, 2020, the Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
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 FINRA. 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
FINRA is proposing to modify Trade
Reporting and Compliance Engine
(‘‘TRACE’’) dissemination protocols
regarding Agency Pass-Through
Mortgage-Backed Securities or Small
Business Administration (SBA)-Backed
Asset-Backed Securities traded in
Specified Pool Transactions.
The text of the proposed rule change
is available on FINRA’s website at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
18:03 Oct 28, 2020
Jkt 253001
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA 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. FINRA 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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Background
FINRA commenced dissemination of
Specified Pool Transactions in 2013.3 A
‘‘Specified Pool Transaction’’ is defined
as a transaction in an Agency PassThrough Mortgage-Backed Security
(‘‘Agency Pass-Through MBS’’) 4 or an
SBA-Backed Asset-Backed Security
(‘‘SBA-Backed ABS’’) 5 requiring the
delivery at settlement of a pool or pools
that is identified by a unique pool
identification number at the Time of
Execution.6 As described in the
Specified Pool Dissemination Filing,
FINRA currently does not disseminate a
CUSIP for Specified Pool transactions,
but rather disseminates reference data
elements, including approximations of
information widely used to project cash
3 See Securities Exchange Act Release No. 68084
(October 23, 2012), 77 FR 65436 (October 26, 2012)
(Order Approving File No. SR–FINRA–2012–042)
(‘‘Specified Pool Dissemination Filing’’). Among
other things, the filing provided for dissemination
of transactions in Agency Pass-Through MortgageBacked Securities traded in specified pools and
transactions in SBA-Backed Asset-Backed
Securities traded in specified pools or to be
announced (‘‘TBA’’), and reduced the reporting
timeframe for such transactions.
4 FINRA Rule 6710(v) generally defines an
‘‘Agency Pass-Through Mortgage-Backed Security’’
as a type of Securitized Product issued in
conformity with a program of an Agency or a
Government-Sponsored Enterprise (‘‘GSE’’) for
which the timely payment of principal and interest
is guaranteed by the Agency or GSE, representing
ownership interest in a pool (or pools) of mortgage
loans structured to ‘‘pass through’’ the principal
and interest payments to the holders of the security
on a pro rata basis.
5 FINRA Rule 6710(bb) defines an ‘‘SBA-Backed
ABS’’ as a Securitized Product issued in conformity
with a program of the SBA, for which the timely
payment of principal and interest is guaranteed by
the SBA, representing ownership interest in a pool
(or pools) of loans or debentures and structured to
‘‘pass through’’ the principal and interest payments
made by the borrowers in such loans or debentures
to the holders of the security on a pro rata basis.
6 See FINRA Rule 6710(x).
PO 00000
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68607
flows and prepayment rates, such as
loan-to-value (LTV) information. FINRA
is proposing changes to the LTV
rounding convention used for the
information publicly disseminated
through TRACE for these types of
transactions in Agency Pass-Through
MBSs and SBA-Backed ABSs.
In the process of developing the
approach adopted in the Specified Pool
Dissemination Filing, FINRA, among
other things, considered industry
feedback regarding the nature of the
market for Specified Pool Transactions
(also, ‘‘Specified Pools’’), including
concerns regarding information leakage.
Market participants’ concerns included
that dissemination of the specific CUSIP
of a Specified Pool may result in
information leakage regarding trading
strategies, positions and other sensitive
information, which may negatively
impact trading interest and liquidity in
the market for these securities.7 In
response, FINRA modified the proposal
such that the disseminated information
regarding Specified Pool Transactions
would not include the CUSIP. Instead,
FINRA adopted an approach whereby,
in lieu of a CUSIP, FINRA disseminates
reference data elements, including
approximations of information widely
used to project cash flows and
prepayment rates.
Pursuant to this approach, FINRA
groups Agency Pass-Through MBSs and
SBA-Backed ABSs into cohorts, as
discussed further below, using data
elements that are integral to describing
and valuing these types of securities,
such as the pool’s LTV ratio. The cohort
groupings are established using rounded
or truncated figures for the underlying
data elements, so that numeric values
within each cohort may be understood
within defined ranges. Each cohort is
assigned a unique identification
number—the Reference Data Identifier
(‘‘RDID’’). After a member reports a
Specified Pool Transaction to TRACE,
FINRA disseminates the corresponding
RDID in lieu of disseminating the
CUSIP. The underlying data elements
that correspond to each RDID are made
available to members through the
TRACE system.
Specifically, FINRA uses the
following ten data elements 8 to form the
RDID cohorts that describe the
underlying security traded in a
Specified Pool Transaction: (1) Issuer;
(2) Product Type; (3) Amortization
Type; (4) Coupon; (5) Original Maturity;
7 See Specified Pool Dissemination Filing, supra
note 3.
8 Issuing agencies make the data elements
publicly available on a monthly basis. Therefore,
TRACE updates RDIDs at least monthly.
E:\FR\FM\29OCN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 210 (Thursday, October 29, 2020)]
[Notices]
[Pages 68605-68607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23913]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90265; File No. SR-ISE-2020-34]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change to Extend the Pilot
Period for the Exchange's Nonstandard Expirations Pilot Program
October 23, 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 21, 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 period for the Exchange's
nonstandard expirations pilot program, 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 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 for the listing and trading on the
Exchange, on a twelve month pilot basis, of p.m.-settled options on
broad-based indexes with nonstandard expirations dates. The pilot
program permits both Weekly Expirations and End of Month (``EOM'')
expirations similar to those of the a.m.-settled broad-based index
options, except that the exercise settlement value of the options
subject to the pilot are based on the index value derived from the
closing prices of component stocks. This pilot was extended various
times with the last extension through November 2, 2020.\3\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 85030 (February 1,
2019), 84 FR 2633 (February 7, 2019) (SR-ISE-2019-01); 85672 (April
17, 2019), 84 FR 16899 (April 23, 2019) (SR-ISE-2019-11); 87380
(October 22, 2019), 84 FR 57786 (October 28, 2019) (SR-ISE-2019-28);
and 88681 (April 17, 2020), 85 FR 22775 (April 23, 2020) (SR-ISE-
2020-17).
---------------------------------------------------------------------------
Supplementary Material .07(a) to Options 4A, Section 12 provides
that the Exchange may open for trading Weekly Expirations on any broad-
based index eligible for standard options trading to expire on any
Monday, Wednesday, or Friday (other than the third Friday-of- the-
month or days that coincide with an EOM expiration). Weekly Expirations
are subject to all provisions of Options 4A, Section 12 and are treated
the same as options on the same underlying index that expire on the
third Friday of the expiration month. Unlike the standard monthly
options, however, Weekly Expirations are p.m.-settled.
Pursuant to Supplementary Material .07(b) to Options 4A, Section 12
the Exchange may open for trading EOM expirations on any broad-based
index eligible for standard options trading to expire on the last
trading day of the month. EOM expirations are subject to all provisions
of Options 4A, Section 12 and treated the same as options on the same
underlying index that expire on the third Friday of the expiration
month. However, the EOM expirations are p.m.-settled.
The Exchange now proposes to amend Supplementary Material .07(c) to
Options4A, Section 12 so that the duration of the pilot program for
these nonstandard expirations will be through May 4, 2021. The Exchange
continues to have sufficient systems capacity to
[[Page 68606]]
handle p.m.-settled options on broad-based indexes with nonstandard
expirations dates and has not encountered any issues or adverse market
effects as a result of listing them. Additionally, there is continued
investor interest in these products. The Exchange will continue to make
public on its website any data and analysis it submits to the
Commission under the pilot program.
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 its proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\5\ 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 believes the proposed rule change will protect investors
and the public interest by providing the Exchange, the Commission and
investors the benefit of additional time to analyze nonstandard
expiration options. By extending the pilot program, investors may
continue to benefit from a wider array of investment opportunities.
Additionally, both the Exchange and the Commission may continue to
monitor the potential for adverse market effects of p.m.-settlement on
the market, including the underlying cash equities market, at the
expiration of these options.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 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 not necessary or appropriate in
furtherance of the purposes of the Act. Options with nonstandard
expirations would be available for trading to all market participants.
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 \6\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-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 \8\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ 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 nonstandard expiration 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. Accordingly, the Commission hereby
waives the operative delay and designates the proposed rule change
operative upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ 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-2020-34 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-2020-34. 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
[[Page 68607]]
to make available publicly. All submissions should refer to File Number
SR-ISE-2020-34, and should be submitted on or before November 19, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-23913 Filed 10-28-20; 8:45 am]
BILLING CODE 8011-01-P
