Self-Regulatory Organizations; Nasdaq PHLX LLC; Order Approving a Proposed Rule Change To Permit Monday and Wednesday Expirations for Options Listed Pursuant to the Short Term Options Program on the Invesco QQQ TrustSM, 22082-22083 [2021-08565]
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Federal Register / Vol. 86, No. 78 / Monday, April 26, 2021 / Notices
restrictions, as there is a more active
trading market for CDOs and CLOs than
for Private Funds and there is more
consistency and transparency in valuing
them.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The purpose
of the proposal is to enhance
competition by providing a listing
market for Funds that wish to have the
ability to invest in Private Funds, while
appropriately restricting Funds in
pursuing that strategy to protect
investors. The proposed amendment
would not impose any burden on
competition between newly-listed
Funds and those that are already listed,
as currently-listed Funds that are in
good standing would be eligible to
invest in Private Funds on the same
terms as newly-listed Funds. Other
listing venues can adopt similar rules if
they so desire. As such, the Exchange
does not believe that the proposal
imposes any burden on competition.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or up to 90 days (i) as the
Commission may designate if it finds
such longer period to be appropriate
and publishes its reasons for so finding
or (ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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:
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18:01 Apr 23, 2021
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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–
NYSE–2021–20 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–NYSE–2021–20. 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–NYSE–2021–20 and should
be submitted on or before May 17, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–08566 Filed 4–23–21; 8:45 am]
BILLING CODE 8011–01–P
7 17
PO 00000
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91614; File No. SR–Phlx–
2021–10]
Self-Regulatory Organizations; Nasdaq
PHLX LLC; Order Approving a
Proposed Rule Change To Permit
Monday and Wednesday Expirations
for Options Listed Pursuant to the
Short Term Options Program on the
Invesco QQQ TrustSM Series ETF Trust
April 20, 2021.
I. Introduction
On February 22, 2021, Nasdaq PHLX
LLC (‘‘Phlx’’ or ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’),1 and
Rule 19b–4 thereunder,2 a proposed rule
change to amend Phlx Options 4,
Section 5 at Commentary .11 to allow
Monday and Wednesday expirations for
options listed pursuant to the
Exchange’s short term option series
program (‘‘Short Term Option Series
Program’’) on the Invesco QQQ TrustSM
Series (‘‘QQQ’’) ETF Trust. The
proposed rule change was published for
comment in the Federal Register on
March 8, 2021.3 The Commission
received no comments on the proposal.
This order approves the proposed rule
change.
II. Description of the Proposal
Under the terms of the current Short
Term Option Series Program, after an
option class has been approved for
listing and trading on the Exchange, the
Exchange may open for trading on any
Thursday or Friday that is a business
day series of options on that class that
expire on each of the next five
consecutive Fridays that are business
days,4 provided that such Friday does
not occur in the same week in which
monthly options series on the same
class expire or is not a Friday on which
Quarterly Options Series on the same
class expire.5 If the Exchange is not
open for business on the Friday of the
following business week, the series will
expire on the first business day
immediately prior to that Friday.6 In
addition, the Exchange may open for
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 91238
(March 2, 2021), 86 FR 13404 (‘‘Notice’’).
4 See Commentary .11 to Phlx Options 4, Section
5.
5 See Commentary .11(b) to Phlx Options 4,
Section 5.
6 See Commentary .11 to Phlx Options 4, Section
5.
2 17
E:\FR\FM\26APN1.SGM
26APN1
Federal Register / Vol. 86, No. 78 / Monday, April 26, 2021 / Notices
trading on any Friday or Monday that is
a business day series of options on the
SPDR S&P 500 ETF Trust (‘‘SPY’’) to
expire on any Monday of the month that
is a business day and is not a Monday
in which Quarterly Options Series
expire, provided that expirations that
are listed on a Friday must be listed at
least one business week and one
business day prior to the expiration.7
The Exchange also may open for trading
on any Tuesday or Wednesday that is a
business day series of options on SPY to
expire on any Wednesday of the month
that is a business day and is not a
Wednesday in which Quarterly Options
Series expire.8
The Exchange proposes to expand the
Short Term Option Series Program to
permit Phlx to open for trading, on any
Monday or Friday that is a business day,
series of options on QQQ that expire on
any Monday of the month that is a
business day and is not a Monday in
which Quarterly Options Series on the
same class expire (‘‘Monday QQQ
Expirations’’). In the case of a series that
is listed on a Friday and expires on a
Monday, it must be listed at least one
business week and one business day
prior to that Monday expiration. If the
Monday QQQ Expiration falls on a
Monday that is not a business day, the
series shall expire on the first business
day immediately following that
Monday.
Similarly, the Exchange also proposes
to expand the Short Term Option Series
Program to permit Phlx to open for
trading, on any Tuesday or Wednesday
that is a business day, series of options
on QQQ to expire on any Wednesday of
the month that is a business day and is
not a Wednesday in which Quarterly
Options Series on the same class expire
(‘‘Wednesday QQQ Expirations’’). If the
Wednesday QQQ Expiration falls on a
Wednesday that is not a business day,
the series shall expire on the first
business day immediately prior to that
Wednesday.
In addition, the Exchange proposes to
amend Commentary .11 to Options 4,
Section 5, to state that it may list up to
five consecutive Monday QQQ
Expirations at one time and up to five
consecutive Wednesday QQQ
Expirations at one time, and that there
may be no more than a total of five
Monday QQQ Expirations and no more
than a total of five Wednesday QQQ
Expirations. The Exchange also
proposes to amend Commentary .11(b)
to Options 4, Section 5 to permit
Monday QQQ Expirations and
Wednesday QQQ Expirations to expire
7 See
id.
8 See id.
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18:01 Apr 23, 2021
Jkt 253001
in the same week in which monthly
options series on the same class expire.
Otherwise, Monday QQQ Expirations
and Wednesday QQQ Expirations will
be subject to the same rules as standard
Short Term Option Series.9
III. Discussion and Commission’s
Findings
The Commission has carefully
reviewed the proposed rule change and
finds that it is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
a national securities exchange and, in
particular, the requirements of Section
6(b) of the Act.10 Specifically, the
Commission finds that the proposal is
consistent with the requirements of
Sections 6(b)(5) of the Act,11 which
requires, among other things, that a
national securities exchange have rules
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, 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 Commission
believes that the proposed rule change
may provide the investing public and
other market participants more
flexibility to closely tailor their
investment and hedging decisions in
QQQ options, thus allowing them to
better manage their risk exposure. In
addition, the Commission notes that the
Exchange has similar rules permitting
the listing and trading of Monday and
Wednesday expirations on SPY.12
In approving the proposal, the
Commission notes that the Exchange
has represented that it has an adequate
surveillance program in place to detect
manipulative trading in Monday QQQ
Expirations and Wednesday QQQ
Expirations.13 The Exchange further
states that it has the necessary systems
9 For example, the Monday QQQ Expirations and
Wednesday QQQ Expirations would be subject to
the same series limitations and strike interval rules
as standard Short Term Option Series. See Notice,
supra note 3, at 13404–5.
10 15 U.S.C. 78f. In approving this proposed rule
change, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
11 15 U.S.C. 78f(b)(5).
12 See Commentary .11 to Phlx Options 4, Section
5.
13 See Notice, supra note 3, at 13406.
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22083
capacity to support the new options
series.14
IV. Conclusion
It is therefore ordered that pursuant to
Section 19(b)(2) of the Act 15 that the
proposed rule change (SR–Phlx–2021–
10) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–08565 Filed 4–23–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
2:00 p.m. on Thursday,
April 29, 2021.
PLACE: The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matter of the closed
meeting will consist of the following
topics:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations
and enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
TIME AND DATE:
14 Id.
15 15
16 17
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U.S.C. 78s(b)(2).
CFR 200.300–3(a)(12).
26APN1
]]>Agencies
[Federal Register Volume 86, Number 78 (Monday, April 26, 2021)]
[Notices]
[Pages 22082-22083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08565]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91614; File No. SR-Phlx-2021-10]
Self-Regulatory Organizations; Nasdaq PHLX LLC; Order Approving a
Proposed Rule Change To Permit Monday and Wednesday Expirations for
Options Listed Pursuant to the Short Term Options Program on the
Invesco QQQ Trust\SM\ Series ETF Trust
April 20, 2021.
I. Introduction
On February 22, 2021, Nasdaq PHLX LLC (``Phlx'' or ``Exchange'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to
amend Phlx Options 4, Section 5 at Commentary .11 to allow Monday and
Wednesday expirations for options listed pursuant to the Exchange's
short term option series program (``Short Term Option Series Program'')
on the Invesco QQQ Trust\SM\ Series (``QQQ'') ETF Trust. The proposed
rule change was published for comment in the Federal Register on March
8, 2021.\3\ The Commission received no comments on the proposal. This
order approves the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 91238 (March 2,
2021), 86 FR 13404 (``Notice'').
---------------------------------------------------------------------------
II. Description of the Proposal
Under the terms of the current Short Term Option Series Program,
after an option class has been approved for listing and trading on the
Exchange, the Exchange may open for trading on any Thursday or Friday
that is a business day series of options on that class that expire on
each of the next five consecutive Fridays that are business days,\4\
provided that such Friday does not occur in the same week in which
monthly options series on the same class expire or is not a Friday on
which Quarterly Options Series on the same class expire.\5\ If the
Exchange is not open for business on the Friday of the following
business week, the series will expire on the first business day
immediately prior to that Friday.\6\ In addition, the Exchange may open
for
[[Page 22083]]
trading on any Friday or Monday that is a business day series of
options on the SPDR S&P 500 ETF Trust (``SPY'') to expire on any Monday
of the month that is a business day and is not a Monday in which
Quarterly Options Series expire, provided that expirations that are
listed on a Friday must be listed at least one business week and one
business day prior to the expiration.\7\ The Exchange also may open for
trading on any Tuesday or Wednesday that is a business day series of
options on SPY to expire on any Wednesday of the month that is a
business day and is not a Wednesday in which Quarterly Options Series
expire.\8\
---------------------------------------------------------------------------
\4\ See Commentary .11 to Phlx Options 4, Section 5.
\5\ See Commentary .11(b) to Phlx Options 4, Section 5.
\6\ See Commentary .11 to Phlx Options 4, Section 5.
\7\ See id.
\8\ See id.
---------------------------------------------------------------------------
The Exchange proposes to expand the Short Term Option Series
Program to permit Phlx to open for trading, on any Monday or Friday
that is a business day, series of options on QQQ that expire on any
Monday of the month that is a business day and is not a Monday in which
Quarterly Options Series on the same class expire (``Monday QQQ
Expirations''). In the case of a series that is listed on a Friday and
expires on a Monday, it must be listed at least one business week and
one business day prior to that Monday expiration. If the Monday QQQ
Expiration falls on a Monday that is not a business day, the series
shall expire on the first business day immediately following that
Monday.
Similarly, the Exchange also proposes to expand the Short Term
Option Series Program to permit Phlx to open for trading, on any
Tuesday or Wednesday that is a business day, series of options on QQQ
to expire on any Wednesday of the month that is a business day and is
not a Wednesday in which Quarterly Options Series on the same class
expire (``Wednesday QQQ Expirations''). If the Wednesday QQQ Expiration
falls on a Wednesday that is not a business day, the series shall
expire on the first business day immediately prior to that Wednesday.
In addition, the Exchange proposes to amend Commentary .11 to
Options 4, Section 5, to state that it may list up to five consecutive
Monday QQQ Expirations at one time and up to five consecutive Wednesday
QQQ Expirations at one time, and that there may be no more than a total
of five Monday QQQ Expirations and no more than a total of five
Wednesday QQQ Expirations. The Exchange also proposes to amend
Commentary .11(b) to Options 4, Section 5 to permit Monday QQQ
Expirations and Wednesday QQQ Expirations to expire in the same week in
which monthly options series on the same class expire. Otherwise,
Monday QQQ Expirations and Wednesday QQQ Expirations will be subject to
the same rules as standard Short Term Option Series.\9\
---------------------------------------------------------------------------
\9\ For example, the Monday QQQ Expirations and Wednesday QQQ
Expirations would be subject to the same series limitations and
strike interval rules as standard Short Term Option Series. See
Notice, supra note 3, at 13404-5.
---------------------------------------------------------------------------
III. Discussion and Commission's Findings
The Commission has carefully reviewed the proposed rule change and
finds that it is consistent with the requirements of the Act and the
rules and regulations thereunder applicable to a national securities
exchange and, in particular, the requirements of Section 6(b) of the
Act.\10\ Specifically, the Commission finds that the proposal is
consistent with the requirements of Sections 6(b)(5) of the Act,\11\
which requires, among other things, that a national securities exchange
have rules designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, 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 Commission believes that the proposed rule change may provide the
investing public and other market participants more flexibility to
closely tailor their investment and hedging decisions in QQQ options,
thus allowing them to better manage their risk exposure. In addition,
the Commission notes that the Exchange has similar rules permitting the
listing and trading of Monday and Wednesday expirations on SPY.\12\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f. In approving this proposed rule change, the
Commission has considered the proposed rule change's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
\11\ 15 U.S.C. 78f(b)(5).
\12\ See Commentary .11 to Phlx Options 4, Section 5.
---------------------------------------------------------------------------
In approving the proposal, the Commission notes that the Exchange
has represented that it has an adequate surveillance program in place
to detect manipulative trading in Monday QQQ Expirations and Wednesday
QQQ Expirations.\13\ The Exchange further states that it has the
necessary systems capacity to support the new options series.\14\
---------------------------------------------------------------------------
\13\ See Notice, supra note 3, at 13406.
\14\ Id.
---------------------------------------------------------------------------
IV. Conclusion
It is therefore ordered that pursuant to Section 19(b)(2) of the
Act \15\ that the proposed rule change (SR-Phlx-2021-10) be, and hereby
is, approved.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.300-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-08565 Filed 4-23-21; 8:45 am]
BILLING CODE 8011-01-P
