[Federal Register Volume 78, Number 46 (Friday, March 8, 2013)]
[Notices]
[Pages 15073-15075]
[FR Doc No: 2013-05417]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69031; File No. SR-Phlx-2013-18]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
Long-Term Index Options

March 4, 2013.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\, and Rule 19b-4 \2\ thereunder, notice is hereby given
that on February 20, 2013, NASDAQ OMX PHLX LLC (``Phlx'' or
``Exchange'') filed with the Securities and Exchange Commission
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I, II, and III, below, which Items have been prepared by the
Exchange. 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\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange is filing with the Commission a proposal to amend
Exchange Rule 1101A (Terms of Option Contracts) to amend Exchange Rule
1101A (Terms of Option Contracts) to clarify that long-term index
options series (``long-term options series'') must have a term of not
less than nine months to expiration,\3\ and to reflect that certain
rules will not apply to such long-term options series until the time to
expiration is less than nine months.
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    \3\ In addition to a term of not less than nine months, long-
term options series may have up to 60 months to expiration. Rule
1101A.
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    The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\4\
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    \4\ 17 CFR 240.19b-4(f)(6)(iii).
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    The text of the proposed rule change is available on the Exchange's
Web site at http://nasdaqomxphlx.cchwallstreet.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 the
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 the
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to amend subsection (b)
of Rule 1101A to clarify that long-term options series must have a term
of not less than nine months to expiration, and to reflect that certain
rules will not apply to such long-term options series until the time to
expiration is less than nine months. These changes are proposed to the
limited extent needed to make subsection (b) regarding long-term
options series consistent with the established rule language of Chicago
Board Options Exchange, Inc. (``CBOE'') (e.g. CBOE Rule 24.9 regarding
LEAPS \5\), as well as with the established rule language of the
Exchange (e.g. Rule 1012 regarding long-term equity and exchange traded
fund (``ETF'') options).
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    \5\ CBOE refers to long-term options series as LEAPS, or Long-
Term Equity Anticipation Securities.
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    The Exchange believes that its proposal is proper, and indeed
desirable, in light of its objective to continue to harmonize the
listing rules for options products offered for trading on the Exchange,
particularly in light of the symbiotic hedging and trading relationship
between index options and other option classes on Phlx, such as stock
and ETF options, as well as with options classes on other options
exchanges.
    Rule 1101A has been developed to discuss, among other things, when
and how the Exchange may open months and series (including long-term
series) in classes of index options that have been approved for listing
and trading on the Exchange. The rule also discusses the price
intervals for index option products that include quarterly options,
short term options, and currency options. Rule 1101A(b) indicates how
the Exchange initially fixes expiration months and series in index
options.
    Rule 1101A(b) currently states that at the commencement of trading
on the Exchange of a particular class of stock index options, the
Exchange will open at least one expiration month and series for each
class of options open for trading on the Exchange.\6\ The proposal to
open at least one month and one series of index options was filed and
approved almost two years ago,\7\ in large part in the recognition that
trading and hedging strategies work most efficiently across various
types of option classes trading on the Exchange (e.g. equity options
and index options) when the rules for these classes are in sync. This
proposal is a continuation of the

Exchange's efforts to conform its options rules.
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    \6\ Rule 1101A(b) states, in relevant part: (b) After a
particular class of stock index options has been approved for
listing and trading on the Exchange, the Exchange shall from time to
time open for trading series of options therein. Within each
approved class of stock index options, the Exchange shall open for
trading a minimum of one expiration month and series for each class
of approved stock index options and/or series of options having up
to 60 months to expiration (``long-term options series'') as
provided in subparagraph (b)(iii). Prior to the opening of trading
in any series of stock index options, the Exchange shall fix the
expiration month and exercise price of option contracts included in
each such series.
    \7\ See Securities Exchange Act Release No. 64741 (June 24,
2011), 76 FR 38444 (June 30, 2011)(order approving SR-Phlx-2011-65).
To further conform its equity and index option rules, in the filing
the Exchange also deleted obsolete references to consecutive month
and cycle month series in Rule 1101A and added language to state
that it may open additional option series when the Exchange deems it
necessary to maintain an orderly market, to meet customer demand or
when the market price of the underlying stock moves more than five
strike prices from the initial exercise price or prices.
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    Rule 1101A(b)(iii) states that long-term options series have a
maximum term of up to 60 months to expiration. The Exchange proposes
language in subsection (b)(iii) to also establish a minimum term of not
less than nine months to expiration for long-term options series. The
Exchange incorporates the long-term options series definition provided
in (b)(iii) into subsection (b) to indicate the nine month floor and 60
month ceiling of long-term options series, just as it does in (b)(iii),
while deleting obsolete language. The Exchange believes that this is
proper and desirable. First, it conforms subsection (b) and (b)(iii)
where they refer to long-term options series. Second, it establishes a
floor for long-term options series, as is done in CBOE Rule 24.9.\8\
Third, it deletes language referring to expiration cycle that is not
needed in light of the definition of long-term options clarifying their
minimum and maximum term. The Exchange believes that, in addition to
conforming Rule 1101A internally as well as with CBOE Rule 24.9, the
proposed change negates potential confusion by clearly indicating what
a long-term options series is in regard to index options.
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    \8\ Consistently with their rule sets, CBOE establishes the
minimum floor at twelve months while Phlx establishes the floor at
nine months. See infra note 10.
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    In addition, the Exchange proposes new language in Rule
1101A(b)(iii) to indicate that strike price interval, bid/ask
differential and continuity rules shall not apply to options series
until the time to expiration is less than nine months (that is, until
such time that they are no longer long-term options). This is a concept
that is clearly established on the Exchange as well as on other options
exchanges. First, the proposed new language directly keys in to the
nine month floor for long-term options series that is established in
subparagraphs (b) and (b)(iii). Second, the proposed language regarding
non-applicability of intervals, differentials, and continuity rules
until expiration time is less than nine months is identical to the
language found in Rule 1012(a)(i)(D), which deals with long-term equity
and ETF options.\9\ Intervals, differentials, and continuity rules are
equally not germane to long-term index options as to long-term equity
and ETF options. That is, index options are no different from equity
and ETF options in respect of the non-applicability of these three
items until expiration time is less that nine months, and should,
therefore, have similar rules. And third, the proposed language is
similar to the language found in CBOE Rule 24.9(b)(1)(A).\10\
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    \9\ While Rule 1101A is the listing rule for regular and long-
term index options, Rule 1012 is the equivalent listing rule for
regular and long-term equity and ETF options. The Exchange notes
that NYSE Arca (``Arca'') Rule 6.4 establishes, like Phlx Rule 1012,
a nine month floor for long-term equity and ETF options (which Arca
refers to as LEAPS).
    \10\ While the minimum term for long-term index options is
stated in CBOE Rule 24.9(b)(1)(A) as twelve months and in Rule
1101A(b)(iii) as nine months, these times are internally consistent
within the respective CBOE and Phlx rule sets.
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    The Exchange believes that clarification of its rules to harmonize
them across various option classes on Phlx, and other options
exchanges, would allow more precise tailoring of hedging and trading
opportunities and would thereby be beneficial to the Exchange and its
traders, market participants, and public investors in general.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder, including the
requirements of Section 6(b) of the Act.\11\ In particular, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5)\12\ requirements that the rules of an exchange be
designed to promote just and equitable principles of trade, to prevent
fraudulent and manipulative acts, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and to perfect the mechanism for a
free and open market and a national market system, and, in general, to
protect investors and the public interest. The Exchange proposes to
clarify that it may list long-term options series that have not less
than nine months to expiration, and that strike price interval, bid/ask
differential and continuity rules shall not apply to such options
series until the time to expiration is less than nine months. This
would harmonize the Exchange's rules internally as well as with the
rules of another options exchange, namely CBOE. The Exchange believes
this would eliminate potential confusion about competitive long term-
index options listing opportunities on the Exchange, would allow better
hedging and trading opportunities and efficiency, and would be
beneficial to the Exchange and its traders, market participants, and
public investors in general.
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    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act. To the contrary, the Exchange believes the proposal is pro-
competitive. The rule change clarifies the Exchange's long-term index
options rules and thereby allows it to more effectively compete with
other exchanges in terms of long-term index options products.

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 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, it has become
effective pursuant to Section 19(b)(3)(A) \13\ of the Act and Rule 19b-
4(f)(6)(iii) thereunder.\14\
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent 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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    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
(iii) [sic] otherwise in furtherance of the purposes of the Act.

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-Phlx-2013-18 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-Phlx-2013-18. 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 on
official business days between the hours of 10:00 a.m. and 3:00 p.m.
Copies of such 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-Phlx-2013-18, and should be submitted on
or before March 29, 2013.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-05417 Filed 3-7-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 245 (Monday, December 22, 2014)]
[Notices]
[Page 76438]
[FR Doc No: 2014-29901]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Agency Information Collection Activities: Requests for Comments;
Clearance of Renewed Approval of Information Collection: Fatigue
Tolerance Evaluation of Metallic Structures

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FAA
invites public comments about our intention to request the Office of
Management and Budget (OMB) approval to renew an information
collection. To obtain type certification of a rotorcraft, an applicant
must show that the rotorcraft complies with specific certification
requirements. To show compliance, the applicant must submit
substantiating data.

DATES: Written comments should be submitted by February 20, 2015.

ADDRESSES: Send comments to the FAA at the following address: Ms. Kathy
DePaepe, Room 126B, Federal Aviation Administration, ASP-110, 6500 S.
MacArthur Blvd., Oklahoma City, OK 73169.
    Public Comments Invited: You are asked to comment on any aspect of
this information collection, including (a) Whether the proposed
collection of information is necessary for FAA's performance; (b) the
accuracy of the estimated burden; (c) ways for FAA to enhance the
quality, utility and clarity of the information collection; and (d)
ways that the burden could be minimized without reducing the quality of
the collected information. The agency will summarize and/or include
your comments in the request for OMB's clearance of this information
collection.

FOR FURTHER INFORMATION CONTACT: Kathy DePaepe at<PHONE_NUMBER>, or by
email at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:
    OMB Control Number: 2120-0752
    Title: Fatigue Tolerance Evaluation of Metallic Structures.
    Form Numbers: There are no FAA forms associated with this
collection.
    Type of Review: Renewal of an information collection.
    Background: To obtain type certification of a rotorcraft, 14 CFR
part 29 requires an applicant to show that the rotorcraft complies with
specific certification requirements. To show compliance, the applicant
must submit substantiating data. FAA engineers or designated engineer
representatives from industry will review the required data submittals
to determine if the rotorcraft complies with the applicable minimum
safety requirements for fatigue critical rotorcraft metallic structures
and that the rotorcraft has no unsafe features in the metallic
structures. The FAA is requiring an applicant to submit the compliance
methodology for the FAA to assure that the rotorcraft has no unsafe
fatigue characteristics.
    Respondents: 17 total applicants for type certification of
rotorcraft over a 27 year period.
    Frequency: Information is collected on occasion.
    Estimated Average Burden per Response: 320 hours.
    Estimated Total Annual Burden: 269 hours.

    Issued in Washington, DC on December 17, 2014.
Albert R. Spence,
FAA Assistant Information Collection Clearance Officer, IT Enterprises
Business Services Division, ASP-110.
[FR Doc. 2014-29901 Filed 12-19-14; 8:45 am]
BILLING CODE 4910-13-P