[Federal Register Volume 81, Number 177 (Tuesday, September 13, 2016)]
[Notices]
[Pages 62939-62942]
[FR Doc No: 2016-21912]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78780; File No. SR-NYSEMKT-2016-87]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change To Amend Rule 903 and
Rule 900.2NY(50)

September 7, 2016.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on September 6, 2016, NYSE MKT LLC (the ``Exchange'' or
``NYSE MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to amend Rule 903 and Rule 900.2NY(50). The
proposed rule change is available on the Exchange's Web site at
www.nyse.com, 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 self-regulatory organization
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 those 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 parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the filing is to amend Rule 903 and Rule
900.2NY(50), so as to allow the listing and trading of options with
Wednesday expirations.
    Currently, under the Short Term Option Series Program, 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
Fridays, provided that such Friday is not a Friday in which monthly
options series or Quarterly Options Series expire (``Short Term Option
Series''). The Exchange is now proposing to amend its rule to permit
the listing of options expiring on Wednesdays. Specifically, the
Exchange is proposing that it may open for trading on any Tuesday or
Wednesday that is a business day, series of options on the SPDR S&P 500
ETF Trust (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 (``Wednesday SPY Expirations''). The proposed Wednesday SPY
Expiration series will be similar to the current Short Term Option
Series, with certain exceptions, as explained in greater detail below.
The Exchange notes that having Wednesday expirations is not a novel
proposal. Specifically, the Chicago Board Options Exchange,
Incorporated (``CBOE'') recently received approval to list Wednesday
expirations for broad-based indexes.\4\ The Commission also recently
approved a proposal by the BOX Options Exchange LLC (``BOX'') to list
Wednesday expirations for SPY Options.\5\
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    \4\ See Securities Exchange Act Release No. 76909 (January 14,
2016), 81 FR 3512 (January 21, 2016) (Order Approving SR-CBOE-2015-
106).
    \5\ See Securities Exchange Act Release No. 78668 (August 24,
2016), 81 FR 59696 (August 30, 2016) (Order Approving SR-BOX-2016-
28).
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    In regards to Wednesday SPY Expirations, the Exchange is proposing
to remove the current restriction preventing the Exchange from listing
Short Term Option Series that expire in the same week in which monthly
option series in the same class expire. Specifically, the Exchange will
be allowed to list Wednesday SPY Expirations in the same week in which
monthly option series in SPY expire. The current restriction to
prohibit the expiration of monthly and Short Term Option Series from
expiring on the same trading day is reasonable to avoid investor
confusion. This confusion will not apply with Wednesday SPY Expirations
and standard monthly options because they will not expire on the same
trading day, as standard monthly options do not expire on Wednesdays.
Additionally, it would lead to investor confusion if Wednesday SPY
Expirations were not listed for one week every month because there was
a monthly SPY expiration on the Friday of that week.
    Under the proposed Wednesday SPY Expirations, the Exchange may list
up to five consecutive Wednesday SPY Expirations at one time. The
Exchange may have no more than a total of five Wednesday SPY
Expirations listed. This is the same listing procedure as Short Term
Option Series that expire on Fridays. The Exchange is also proposing to
clarify that the five expiration limit in the current Short Term Option
Series Program Rule will not include any Wednesday SPY Expirations.
This means, under the proposal, the Exchange would be allowed to list
five Short Term Option Series expirations for SPY expiring on Friday
under the current rule and five Wednesday SPY Expirations. The interval
between strike prices for the proposed Wednesday SPY Expirations will
be the same as those for the current Short Term Option Series.
Specifically, the Wednesday SPY Expirations will have $0.50 strike
intervals.
    Currently, for each Short Term Option Expiration Date,\6\ the
Exchange is limited to opening thirty (30) series for each expiration
date for the specific class. The thirty (30) series restriction does
not include series that are open by other securities exchanges under
their respective short term option rules; NYSE Amex may list these
additional series that are listed by other exchanges. The thirty (30)
series restriction shall apply to Wednesday SPY Expiration series as
well. In addition, the Exchange will be able to list series that are
listed by other exchanges, assuming they file similar rules with the
Commission to list SPY options expiring on Wednesdays.
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    \6\ 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 Fridays that are business days and are not
Fridays in which monthly options series or Quarterly Options Series
expire (``Short Term Option Expiration Dates''). See Rule 903(h).
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    As is the case with current Short Term Option Series, the Wednesday
SPY Expiration series will be P.M.-settled. The Exchange does not
believe that any market disruptions will be encountered with the
introduction of P.M.-settled Wednesday SPY Expirations. The Exchange
currently trades P.M.-settled Short Term Option Series that expire
almost every Friday, which provide market participants a tool to hedge
special events and to reduce the premium cost of buying protection. The
Exchange seeks to introduce Wednesday SPY Expirations to, among other
things, expand hedging tools available to market participants and to
continue the reduction of the premium cost of buying protection. The
Exchange believes that Wednesday expirations, similar to Friday
expirations, would allow market participants to purchase an option
based on their timing as needed and allow them to tailor their
investment and hedging needs more effectively.
    The Exchange is also amending the definition of Short Term Option
Series to make clear that it includes Wednesday expirations.
Specifically, the Exchange is amending the definition to expand Short
Term Option Series to those listed on any Tuesday or Wednesday and that
expire on the Wednesday of the next business week. If a Tuesday or
Wednesday is not a business day, the series may be opened (or shall
expire) on the first business day immediately prior to that Tuesday or
Wednesday. The Exchange is also revising portions of the definition
that have not been updated to reflect changes in the Short Term Options
rules. Specifically, the Exchange proposes to rename One Week options
as Short Term options so that reference to the product is consistent
across Rule 900.2NY(50). The Exchange also proposes to amend Rule
900.2NY(50) to clarify that Short Term Options may be opened and may
expire on a Tuesday, Wednesday and Thursday, in addition to Friday
which was already a part of the rule. The proposed changes are non-
substantive and are intended to add clarity to Exchange rules.

    The Exchange believes that the introduction of Wednesday SPY
Expirations will provide investors with a flexible and valuable tool to
manage risk exposure, minimize capital outlays, and be more responsive
to the timing of events affecting the industry.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) \7\ of the
Securities Exchange Act of 1934 (the ``Act''), in general, and furthers
the objectives of Section 6(b)(5),\8\ in particular, in that it is
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 facilitating transactions in
securities, and to remove impediments to and perfect the mechanisms of
a free and open market and a national market system.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(5).
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    In particular, the Exchange believes the Short Term Option Series
Program has been successful to date and that Wednesday SPY Expirations
simply expand the ability of investors to hedge risk against market
movements stemming from economic releases or market events that occur
throughout the month in the same way that the Short Term Option Series
Program has expanded the landscape of hedging. Similarly, the Exchange
believes Wednesday SPY Expirations should create greater trading and
hedging opportunities and flexibility, and provide customers with the
ability to more closely tailor their investment objectives. The
Exchange believes that allowing Wednesday SPY Expirations and monthly
SPY expirations in the same week will benefit investors and minimize
investor confusion by providing Wednesday SPY Expirations in a
continuous and uniform manner.
    The Exchange believes that the proposed non-substantive changes to
Rule 900.2NY(50) would remove impediments to and perfect the mechanism
of a free and open market and national market system by providing
greater clarity to the rule text regarding the listing and trading of
Short Term Options on the Exchange.
    Finally, the Exchange represents that it has an adequate
surveillance program in place to detect manipulative trading in
Wednesday SPY Expirations in the same way it monitors trading in the
current Short Term Option Series. The Exchange also represents that it
has the necessary systems capacity to support the new options series.

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. The Exchange notes that having
Wednesday expirations is not a novel proposal.\9\ The Exchange does not
believe the proposal will impose any burden on intramarket competition,
as all market participants will be treated in the same manner.
Additionally, the Exchange does not believe the proposal will impose
any burden on intermarket competition, as nothing prevents the other
options exchanges from proposing similar rules to those that the
Exchange is currently proposing.
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    \9\ See supra, notes 4 and 5.
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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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, the proposed rule
change has become effective pursuant to Section 19(b)(3)(A) of the Act
\10\ and Rule 19b-4(f)(6) thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intention to file 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 under Rule 19b-4(f)(6) normally does
not become operative for 30 days from the date of filing. However, Rule
19b-4(f)(6)(iii) \12\ 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 the proposal may become operative
immediately upon filing. The Commission notes that it recently approved
BOX's substantially similar proposal to list and trade Wednesday SPY
Expirations.\13\ The Exchange has stated that waiver of the operative
delay will allow the Exchange to list and trade Wednesday SPY
Expirations as soon as possible, and therefore, promote competition
among the option exchanges. For these reasons, the Commission believes
that the proposed rule change presents no novel issues and that waiver
of the 30-day operative delay is consistent with the protection of
investors and the public interest, and will allow the Exchange to
remain competitive with other exchanges. Therefore, the Commission
hereby waives the 30-day operative delay and designates the proposal
effective upon filing.\14\ 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 should be
approved or disapproved.
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    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ See supra note 5.
    \14\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEMKT-2016-87 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-NYSEMKT-2016-87. 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 Web site (http://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 Web site
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; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
NYSEMKT-2016-87 and should be submitted on or before October 4, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-21912 Filed 9-12-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 52 (Friday, March 17, 2023)]
[Notices]
[Page 16433]
[FR Doc No: 2023-05421]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER23-1275-000]

Aron Energy Prepay 21 LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Aron Energy Prepay 21 LLC's application for market-based rate
authority, with an accompanying rate tariff, noting that such
application includes a request for blanket authorization, under 18 CFR
part 34, of future issuances of securities and assumptions of
liability.
    Any person desiring to intervene or to protest should file with the
Federal Energy Regulatory Commission, 888 First Street NE, Washington,
DC 20426, in accordance with Rules 211 and 214 of the Commission's
Rules of Practice and Procedure (18 CFR 385.211 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.
    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is March 30, 2023.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically may mail similar pleadings to
the Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426. Hand delivered submissions in docketed
proceedings should be delivered to Health and Human Services, 12225
Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (http://www.ferc.gov) using
the ``eLibrary'' link. Enter the docket number excluding the last three
digits in the docket number field to access the document. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at [email protected] or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.

    Dated: March 10, 2023.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2023-05421 Filed 3-16-23; 8:45 am]
BILLING CODE 6717-01-P