Notice2022-15121
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 4A, Section 12 and Options 7, Section 3
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 15, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 135 (Friday, July 15, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 135 (Friday, July 15, 2022)]
[Notices]
[Pages 42515-42518]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-15121]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95238; File No. SR-ISE-2022-14]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options
4A, Section 12 and Options 7, Section 3
July 11, 2022.
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 July 1, 2022, Nasdaq ISE, LLC (``ISE'' or
[[Page 42516]]
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend certain rule text within Options 4A,
Section 12, Terms of Index Options Contracts, and Options 7, Section 3,
Regular Order Fees and Rebates.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/ise/rules">https://listingcenter.nasdaq.com/rulebook/ise/rules</a>, 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
The Exchange proposes to amend certain rule text within Options 4A,
Section 12, Terms of Index Options Contracts, related to the Short Term
Option Series Program, and update the Pricing Schedule to replace
references to the symbol ``FB'' with ``META'' within Options 7, Section
3, Regular Order Fees and Rebates. Each change is described below.
Options 4A, Section 12
In 2013, ISE amended the Short Term Option Series Program for
equity options within Rule 504 (currently Options 4, Section 5) to
change the number of currently listed option classes on which Short
Term Option Series may be opened on any Short Term Option Opening Date
from thirty to fifty options classes.\3\ At that time, the Exchange
neglected to update the index options rules to make similar changes to
the Short Term Option Series Program given that the amount of options
classes that may participate in the Short Term Option Series Program is
aggregated between equity options and index options and is not
apportioned between equity and index options.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release Nos. 71034 (December 11,
2013), 78 FR 76363 (December 17, 2013) (SR-ISE-2013-69) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to the
Short Term Option Series Program).
---------------------------------------------------------------------------
Today, Supplementary Material .01(a) to Options 4A, Section 12
provides,
Classes. The Exchange may select up to thirty (30) currently listed
option classes on which Short Term Option Series may be opened on
any Short Term Option Opening Date. In addition to the 30 option
class restriction, the Exchange may also list Short Term Option
Series on any option classes that are selected by other securities
exchanges that employ a similar program under their respective
rules. For each index option class eligible for participation in the
Short Term Option Series Program, the Exchange may open up to 30
Short Term Option Series on index options for each expiration date
in that class. The Exchange may also open Short Term Option Series
that are opened by other securities exchanges in option classes
selected by such exchanges under their respective short term option
rules.
At this time, the Exchange proposes to amend Supplementary Material
.01(a) to Options 4A, Section 12 to increase the number of currently
listed options classes on which Short Term Option Series may be opened
on any Short Term Option Opening Date from thirty to fifty options
classes for index options. The Exchange also proposes to add the word
``thirty'' before the number ``30'' and place the number 30 in
parentheses. These amendments would align the limitations within
Supplementary Material .01(a) to Options 4A, Section 12 regarding index
options with those currently within Supplementary .03(a) to Options 4,
Section 5 regarding equity options.
As noted above, this amendment will not result in a greater number
of listings in the Short Term Option Series Program because the amount
of options classes that may participate in the Short Term Option Series
Program is aggregated between equity options and index options and is
not apportioned between equity and index options. Amending
Supplementary Material .01(a) to Options 4A, Section 12 to conform to
the limitations provided within Supplementary .03(a) to Options 4,
Section 5 will avoid confusion by making clear the aggregate
limitations within equity and index options for listing Short Term
Option Series. Today, Nasdaq Phlx LLC (`Phlx'') and Cboe Exchange, Inc.
(``Cboe'') have similar limitations within their equity and index Short
Term Option Series Program.\4\
---------------------------------------------------------------------------
\4\ See Phlx Options 4A, Section 12(b)(4) and Cboe Exchange,
Inc. Rules 4.5 and 4.13. See also Securities Exchange Act Release
No. 95077 (June 9, 2022), 87 FR 36188 (June 15, 2022) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Options 4A, Section 12, Terms of Index Options Contracts).
---------------------------------------------------------------------------
Options 7, Section 3
On June 9, 2022 Meta Platforms, Inc. began trading under its new
stock symbol, ``META'', replacing its previous ticker symbol, ``FB''.
At this time, the Exchange proposes to replace references to the symbol
``FB'' with ``META'' within Options 7, Section 3, Regular Order Fees
and Rebates.
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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b)
\6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
Options 4A, Section 12
In 2013, ISE amended the Short Term Option Series Program for
equity options within Rule 504 (currently Options 4, Section 5) to
change the number of currently listed option classes on which Short
Term Option Series may be opened on any Short Term Option Opening Date
from thirty to fifty options classes.\7\ At that time, the Exchange
neglected to update the index options rules to make similar changes to
the Short Term Option Series Program given that the amount of options
classes that may participate in the Short Term Option Series Program is
aggregated between equity options and index options and is not
apportioned between equity and index options. Amending Supplementary
Material .01(a) to Options 4A, Section 12 to conform to the limitations
provided within Supplementary .03(a) to Options 4, Section 5 will avoid
confusion by making clear the aggregate limitations within equity and
index options for
[[Page 42517]]
listing Short Term Option Series. Also, aligning the limitations within
Supplementary Material .01(a) to Options 4A, Section 12 with those
currently within Supplementary .03(a) to Options 4, Section 5 will not
result in a greater number of listings in the Short Term Option Series
Program because the amount of options classes that may participate in
the Short Term Option Series Program is aggregated between equity
options and index options and is not apportioned between equity and
index options. Today, Phlx and Cboe have similar limitations within
their equity and index Short Term Option Series Program.\8\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release Nos. 71034 (December 11,
2013), 78 FR 76363 (December 17, 2013) (SR-ISE-2013-69) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change to the
Short Term Option Series Program).
\8\ See note 4 above.
---------------------------------------------------------------------------
Options 7, Section 3
The Exchange's proposal to update references to the symbol ``FB''
to ``META'' within the Pricing Schedule at Options 7, Section 3,
Regular Order Fees and Rebates, is consistent with the Act. This
amendment will make clear that the symbol ``META'' continues to be
subject to the pricing noted with respect to the symbol ``FB'' within
Options 7, Section 3.
B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
Options 4A, Section 12
Amending Supplementary Material .01(a) to Options 4A, Section 12 to
conform to the limitations provided within Supplementary .03(a) to
Options 4, Section 5 does not impose an undue burden on competition
because the same limitations apply today to other options exchanges.
Today, Phlx and Cboe have similar limitations within their equity and
index Short Term Option Series Program.\9\
---------------------------------------------------------------------------
\9\ See note 4 above.
---------------------------------------------------------------------------
Options 7, Section 3
The Exchange's proposal to update references to the symbol ``FB''
to ``META'' within the Pricing Schedule at Options 7, Section 3,
Regular Order Fees and Rebates, does not impose an undue burden on
competition as the proposal does not amend the current pricing.
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 \10\ and subparagraph (f)(6) of Rule 19b-4
thereunder.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \12\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \13\ 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 it
may immediately amend its Pricing Schedule to update references to the
symbol ``FB'' to ``META'' within Options 7, Section 3, Regular Order
Fees and Rebates, to avoid confusion as to the pricing of the symbol
``META.'' The Commission believes that waiving the 30-day operative
delay is consistent with the protection of investors and the public
interest as the proposed rule change does not raise any new or novel
issues. Accordingly, the Commission hereby waives the operative delay
and designates the proposed rule change operative upon filing.\14\
---------------------------------------------------------------------------
\12\ 17 CFR 240.19b-4(f)(6).
\13\ 17 CFR 240.19b-4(f)(6)(iii).
\14\ 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).
---------------------------------------------------------------------------
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
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#f381869f96de909c9e9e969d8780b3809690dd949c85"><span class="__cf_email__" data-cfemail="2e5c5b424b034d4143434b405a5d6e5d4b4d00494158">[email protected]</span></a>. Please include
File Number SR-ISE-2022-14 on the subject line.
Paper Comments
<bullet> 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-2022-14. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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-2022-14, and should be submitted on
or before August 5, 2022.
[[Page 42518]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
---------------------------------------------------------------------------
\15\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-15121 Filed 7-14-22; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on July 15, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.