Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Nonstandard Expirations Pilot Program, 19050-19052 [2021-07387]
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19050
Federal Register / Vol. 86, No. 68 / Monday, April 12, 2021 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IA–5714]
Notice of Intention To Cancel
Registrations of Certain Investment
Advisers Pursuant to Section 203(H) of
the Investment Advisers Act of 1940
khammond on DSKJM1Z7X2PROD with NOTICES
April 6, 2021.
Notice is given that the Securities and
Exchange Commission (the
‘‘Commission’’) intends to issue an
order or orders, pursuant to section
203(h) of the Investment Advisers Act of
1940 (the ‘‘Act’’), cancelling the
registrations of the investment advisers
whose names appear in the attached
Appendix, hereinafter referred to as the
‘‘registrants.’’
Section 203(h) of the Act provides, in
pertinent part, that if the Commission
finds that any person registered under
section 203, or who has pending an
application for registration filed under
that section, is no longer in existence, is
not engaged in business as an
investment adviser, or is prohibited
from registering as an investment
adviser under section 203A, the
Commission shall, by order, cancel the
registration of such person.
Each registrant listed in the attached
Appendix has not filed a Form ADV
amendment with the Commission as
required by rule 204–1 under the Act 1
and appears to be no longer engaged in
business as an investment adviser.
Accordingly, the Commission believes
that reasonable grounds exist for a
finding that these registrants are no
longer in existence, are not engaged in
business as investment advisers, or are
prohibited from registering as
investment advisers under section
203A, and that their registrations should
be cancelled pursuant to section 203(h)
of the Act.
Notice is also given that any
interested person may, by May 3, 2021,
at 5:30 p.m. EST, submit to the
Commission in writing a request for a
hearing on the cancellation of the
registration of any registrant listed in
the attached Appendix, accompanied by
a statement as to the nature of such
person’s interest, the reason for such
person’s request, and the issues, if any,
of fact or law proposed to be
controverted, and the writer may
request to be notified if the Commission
should order a hearing thereon. Any
such communication should be emailed
1 Rule 204–1 under the Act requires any adviser
that is required to complete Form ADV to amend
the form at least annually and to submit the
amendments electronically through the Investment
Adviser Registration Depository.
VerDate Sep<11>2014
21:37 Apr 09, 2021
Jkt 253001
to the Commission’s Secretary at
Secretarys-Office@sec.gov.
At any time after May 3, 2021, the
Commission may issue an order or
orders cancelling the registrations of any
or all of the registrants listed in the
attached Appendix, upon the basis of
the information stated above, unless an
order or orders for a hearing on the
cancellation shall be issued upon
request or upon the Commission’s own
motion. Persons who requested a
hearing, or who requested to be advised
as to whether a hearing is ordered, will
receive any notices and orders issued in
this matter, including the date of the
hearing (if ordered) and any
postponements thereof. Any registrant
whose registration is cancelled under
delegated authority may appeal that
decision directly to the Commission in
accordance with rules 430 and 431 of
the Commission’s rules of practice (17
CFR 201.430 and 431).
The Commission:
Secretarys-Office@sec.gov.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Christine Schleppegrell, Senior Counsel,
at 202–551–6999; SEC, Division of
Investment Management, Investment
Adviser Regulation Office, 100 F Street
NE, Washington, DC 20549–8549.
For the Commission, by the Division of
Investment Management, pursuant to
delegated authority.2
J. Matthew DeLesDernier,
Assistant Secretary.
Appendix
SEC number
Full legal name
801–108515 ...
BAOMAP ADVISORS LIMITED.
HAITOU HUIJIN (BEIJING)
CONSULTING SERVICE
CO., LTD.
NEW ENGINE ADVISORS
LLC.
QUANTSGEEK TECHNOLOGY LIMITED.
SUNRATE ADVISORS LIMITED.
UOOLU REALTY 1701 LLC.
VIVA COMPANIONS ASSET
MANAGEMENT LLC.
801–108574 ...
801–110184 ...
801–110822 ...
801–108384 ...
801–112060 ...
801–110416 ...
[FR Doc. 2021–07358 Filed 4–9–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91484; File No. SR–Phlx–
2021–21]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the
Nonstandard Expirations Pilot
Program
April 6, 2021.
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 April 1,
2021, Nasdaq PHLX LLC (‘‘Phlx’’ 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 May 4, 2021.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/phlx/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
On December 15, 2017, the
Commission approved a proposed rule
1 15
2 17
PO 00000
CFR 200.30–5(e)(2).
Frm 00115
Fmt 4703
2 17
Sfmt 4703
E:\FR\FM\12APN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
12APN1
Federal Register / Vol. 86, No. 68 / Monday, April 12, 2021 / Notices
change for the listing and trading on the
Exchange, on a twelve month pilot
basis, of p.m.-settled options on broadbased indexes with nonstandard
expirations dates (‘‘Program’’).3 The
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
and is currently extended through May
4, 2021.4
Pursuant to Phlx Options 4A, Section
12(b)(5)(A) 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.
Similarly, pursuant to Options 4A,
Section 12(b)(5)(B) 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
Options 4A, Section 12(b)(5)(C) so that
the duration of the Program for these
nonstandard expirations will be through
November 4, 2021. The Exchange
continues to have sufficient systems
capacity to handle p.m.-settled options
on broad-based indexes with
nonstandard expirations dates and has
khammond on DSKJM1Z7X2PROD with NOTICES
3 See
Securities Exchange Act Release No. 82341
(December 15, 2017), 82 FR 60651 (December 21,
2017) (approving SR–Phlx–2017–79) (Order
Approving a Proposed Rule Change, as Modified by
Amendment No. 1 and Granting Accelerated
Approval of Amendment No. 2, of a Proposed Rule
Change To Establish a Nonstandard Expirations
Pilot Program).
4 See Securities Exchange Act Release Nos. 84835
(December 17, 2018), 83 FR 65773 (December 21,
2018) (SR–Phlx–2018–80); 85669 (April 17, 2019),
84 FR 16913 (April 23, 2019) (SR–Phlx–2019–13);
87381 (October 22, 2019), 84 FR 57788 (October
28,2 019) (SR–Phlx–2019–43); 88684 (April 17,
2020), 85 FR 22781 (April 23, 2020) (SR–Phlx–
2020–24); and 90256 (October 22, 2020), 85 FR
68393 (October 28, 2020) (SR–Phlx–2020–48).
VerDate Sep<11>2014
21:37 Apr 09, 2021
Jkt 253001
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
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
Program.
The Exchange believes that the
proposed extension of the Program will
not have an adverse impact on capacity.
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 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. In particular, the Exchange
believes that the Program has been
successful to date. The Exchange has
not encountered any problems with the
Program. By extending the 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.
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.
5 15
6 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00116
Fmt 4703
Sfmt 4703
19051
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
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 rule-comments@
sec.gov. Please include File Number SR–
Phlx–2021–21 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.
7 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
E:\FR\FM\12APN1.SGM
12APN1
19052
Federal Register / Vol. 86, No. 68 / Monday, April 12, 2021 / Notices
All submissions should refer to File
Number SR–Phlx–2021–21. 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–Phlx–2021–21, and should
be submitted on or before May 3, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–07387 Filed 4–9–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting; Cancellation
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 86 FR 17649, April 5,
2021.
khammond on DSKJM1Z7X2PROD with NOTICES
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Thursday, April 8, 2021 at
2:00 p.m.
The Closed
Meeting scheduled for Thursday, April
8, 2021 at 2:00 p.m., has been cancelled.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
CHANGES IN THE MEETING:
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: April 8, 2021.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2021–07557 Filed 4–8–21; 4:15 pm]
BILLING CODE 8011–01–P
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
21:37 Apr 09, 2021
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91485; File No. SR–ISE–
2021–05]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend the Pilot To
Permit the Listing and Trading of
Options Based on 1⁄5 the Value of the
Nasdaq–100 Index
April 6, 2021.
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 March 24,
2021, 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 May 4, 2021.
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
2 17
Jkt 253001
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
1 15
9 17
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00117
Fmt 4703
Sfmt 4703
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 (‘‘Program’’).
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
November 4, 2021. This pilot was
previously extended with the last
extension through May 4, 2021.4 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.
The Exchange believes that the
proposed extension of the Program will
not have an adverse impact on capacity.
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); 88683
(April 17, 2020), 85 FR 22768 (April 23, 2020) (SR–
ISE–2020–18); and 90257 (October 22, 2020), 85 FR
68387 (October 28, 2020) (SR–ISE–2020–33).
E:\FR\FM\12APN1.SGM
12APN1
]]>Agencies
[Federal Register Volume 86, Number 68 (Monday, April 12, 2021)]
[Notices]
[Pages 19050-19052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07387]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91484; File No. SR-Phlx-2021-21]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Extend the
Nonstandard Expirations Pilot Program
April 6, 2021.
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 April 1, 2021, Nasdaq PHLX LLC (``Phlx'' 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 May
4, 2021.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/phlx/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
On December 15, 2017, the Commission approved a proposed rule
[[Page 19051]]
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 (``Program'').\3\ The 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 and is currently extended through
May 4, 2021.\4\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 82341 (December 15,
2017), 82 FR 60651 (December 21, 2017) (approving SR-Phlx-2017-79)
(Order Approving a Proposed Rule Change, as Modified by Amendment
No. 1 and Granting Accelerated Approval of Amendment No. 2, of a
Proposed Rule Change To Establish a Nonstandard Expirations Pilot
Program).
\4\ See Securities Exchange Act Release Nos. 84835 (December 17,
2018), 83 FR 65773 (December 21, 2018) (SR-Phlx-2018-80); 85669
(April 17, 2019), 84 FR 16913 (April 23, 2019) (SR-Phlx-2019-13);
87381 (October 22, 2019), 84 FR 57788 (October 28,2 019) (SR-Phlx-
2019-43); 88684 (April 17, 2020), 85 FR 22781 (April 23, 2020) (SR-
Phlx-2020-24); and 90256 (October 22, 2020), 85 FR 68393 (October
28, 2020) (SR-Phlx-2020-48).
---------------------------------------------------------------------------
Pursuant to Phlx Options 4A, Section 12(b)(5)(A) 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.
Similarly, pursuant to Options 4A, Section 12(b)(5)(B) 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 Options 4A, Section 12(b)(5)(C)
so that the duration of the Program for these nonstandard expirations
will be through November 4, 2021. The Exchange continues to have
sufficient systems capacity to 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 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 Program.
The Exchange believes that the proposed extension of the Program
will not have an adverse impact on capacity.
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 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. In particular, the Exchange believes that the
Program has been successful to date. The Exchange has not encountered
any problems with the Program. By extending the 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(5).
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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 \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, 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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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-Phlx-2021-21 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.
[[Page 19052]]
All submissions should refer to File Number SR-Phlx-2021-21. 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-Phlx-2021-21, and should be submitted on
or before May 3, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-07387 Filed 4-9-21; 8:45 am]
BILLING CODE 8011-01-P
