[Federal Register Volume 85, Number 81 (Monday, April 27, 2020)]
[Notices]
[Pages 23384-23388]
[FR Doc No: 2020-08812]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88714; File No. SR-NYSECHX-2020-11]

Self-Regulatory Organizations; NYSE Chicago, Inc.; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Temporarily Extend the Time Within Which Institutional Brokers Are
Required To Report Non-Tape, Clearing-Only Submissions Into the
Exchange's Systems

April 21, 2020.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on April 20, 2020, the NYSE Chicago, Inc. (``NYSE Chicago'' 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 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 that, for a temporary period that begins on
April 20, 2020, and ends on the earlier of the reopening of all the
options trading floors or after the end of the day on May 15, 2020, to
temporarily extend the time within which Institutional Brokers are
required to report non-tape, clearing-only submissions into the
Exchange's systems pursuant to Article 21, Rule 6(a)(3). The proposed
rule change is available on the Exchange's website 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 Exchange proposes that, for a temporary period that begins on
April 20, 2020, and ends on the earlier of the reopening of all the
options trading floors or after the end of the day on May 15, 2020, to
temporarily extend the time within which Institutional Brokers \4\ are
required to report non-tape, clearing-only submissions into the
Exchange's systems pursuant to Article 21, Rule 6(a)(3). The Exchange
is proposing this temporary relief due to changes in work flow in the
post-trade processing of transactions in the cash equity leg of stock-
option orders that are a consequence of the precautionary measures to
prevent the spread of COVID-19 taken by options exchanges and their
members and by Institutional Brokers.
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    \4\ The term ``Institutional Broker'' is defined in Article 1,
Rule 1(n) to mean a member of the Exchange who is registered as an
Institutional Broker pursuant to the provisions of Article 17 and
has satisfied all Exchange requirements to operate as an
Institutional Broker on the Exchange. There are currently five
Institutional Brokers on the Exchange.
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Role of Institutional Brokers in Equity Leg of Options With Stock
Trades
    Institutional Brokers are Exchange Participants that provide order
handling and execution services for other broker-dealers or
institutional clients, including options floor traders. Once an
Institutional Broker establishes a relationship with an options floor
trader, that options trader can use the Institutional Broker to either
execute and clear or only clear the stock leg of complex options
transactions with a stock component. This proposed rule change concerns
the post-trade processes associated with an options trader using an
Institutional Broker to clear the equity leg of an options with stock
transaction that the options floor broker reports directly to a FINRA
Trade Reporting Facility (``TRF'').
    Specifically, an Institutional Broker can authorize its options
floor trader clients that execute a stock trade in the over-the-counter
(``OTC'') market and use a non-exchange front-end order and execution
management system to report the transaction to a TRF to use the
Institutional Broker's MPID and for clearing use the Institutional
Broker's clearing firm.\5\ When such stock trade is reported to the
TRF, it is simultaneously also reported for clearing purposes to the
Deposit Trust Clearing Corporation (``DTCC'') with the Institutional
Broker's clearing account assigned to both sides of the trade.
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    \5\ Unlike some options floor brokers, Institutional Brokers are
members of FINRA and able to report the stock component of a stock-
option trade to a TRF.
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    The Institutional Broker then uses Brokerplex \6\ as a post-trade
tool to transfer the securities to the clearing accounts associated
with the actual counter-parties to the equity transaction. This process
is governed by Article 21, Rule 6, which concerns the submission of
clearing information for transactions executed off of the Exchange.
Article 21, Rule 6(a)(1) provides that an Institutional Broker may
enter clearing-only submissions into Brokerplex for trades already
reported that were executed on another exchange or in the OTC market.
As the Rule describes, the purpose of these clearing-only submissions
is to transfer securities from one Clearing Participant to another.\7\
This transfer of position from one Clearing Participant to another
occurs after the trade has been originally reported and sent to DTCC
for clearing. When an Institutional Broker uses Brokerplex to transfer
a position to another Clearing Participant, the Exchange submits that
position transfer to DTCC so that the correct ultimate counter-parties'
clearing accounts are identified.
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    \6\ Brokerplex is an order entry, management and recordation
system provided by the Exchange for use by Institutional Brokers.
See Article 17, Rule 5.
    \7\ Pursuant to Article 1, Rule 1, the term ``Clearing
Participant'' means a Participant that has been admitted to
membership in a Qualified Clearing Agency, i.e., DTCC, pursuant to
the Rules of the Qualified Clearing Agency.
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    On average, an Institutional Broker can perform anywhere between 30
and 40 transactions per day that would be subject to Article 21, Rule
6(a) where the Institutional Broker transfers positions from one
Clearing Participant to another.
    To enter clearing-only submissions to transfer positions into
Brokerplex, the Institutional Broker needs to obtain from the options
floor trader the information about the counter-parties to the equity
transaction. Once the Institutional Broker has the relevant
information, e.g., the names of each party and number of shares to
allocate to each party, the Institutional Broker enters this
information into Brokerplex and transfers the positions from its own
account (or the account of its clearing firm) to the accounts of the
ultimate beneficiaries of the trade. Until the Institutional Broker
receives this information from the options floor trader, the
Institutional Broker bears the risk of these transactions, which have
already been reported in its name. The Institutional Broker is
responsible for ensuring that the clearing information it receives from
its options floor trader customer is complete before fully submitting
the transaction into Brokerplex so that the final allocations are
accurate.
    Article 21, Rule 6(a)(3) requires an Institutional Broker to enter
all such non-tape, clearing-only submissions into the Exchange's
systems for a non-Exchange transaction (i.e., the equity legs that an
options floor trader reports directly to a TRF) within three (3) hours
of the execution of such transaction. If an Institutional Broker does
not meet this three-hour requirement, there is no risk that a trade
would not clear.\8\ Nevertheless, an Institutional Broker who does not
meet this three-hour requirement would be out of compliance with
Exchange rules.
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    \8\ Notwithstanding the current 3-hour reporting requirement in
Article 21, Rule 6(a)(3), such trades are reported to DTCC by the
time DTCC's systems close, which is 8:30 p.m. ET.
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    Under normal trading conditions, i.e., when the options trading
floors are open and Institutional Brokers are working in their offices,
the three-hour window provides sufficient time for the Institutional
Broker to identify which options floor trader was involved in the trade
and then obtain from that options trader the identity of the counter-
parties so that transfers of securities under Article 21, Rule 6(a)(1)
can be completed within three hours.
Disruptions From Social Distancing Measures
    On March 11, 2020, the World Health Organization characterized
COVID-19 as a pandemic.\9\ To slow the spread of the disease, federal
and state officials implemented social-distancing measures, placed
significant limitations on large gatherings, limited travel, and closed
non-essential businesses.
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    \9\ See WHO Director-General's Opening Remarks at the Media
Briefing on COVID-19 (March 11, 2020), available at https://www.who.int/dg/speeches/detail/who-director-general-s-opening-remarksat-the-media-briefing-on-covid-19-11-march-2020.
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    In response, since March 23, 2020, the four largest options trading
floors have been temporarily closed.\10\ To the extent

options floor traders continue trading and use Institutional Brokers to
transfer the clearing for the stock leg of options with stock
transactions, they are doing so in a work-from-home capacity and not
from the options trading floors, potentially making it more time
consuming to communicate the details of a trade and make adjustments
within the three hours permitted under Article 21, Rule 6(a)(3).
Specifically, in response to these workflow changes, Institutional
Brokers have authorized their options trading clients to use the
Institutional Broker MPID and clearing firm information on specified
non-exchange front-end order and execution management systems.\11\
Because the options floor traders have been authorized by the
Institutional Broker to report the equity leg directly to the TRF via
such electronic systems, the Institutional Broker may not be aware that
a trade has happened until it sees the trade appear in its clearing
account, and then may not know which options floor trader entered the
trade until the options floor trader that entered the trade contacts
the Institutional Broker.
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    \10\ See Press Release, dated March 18, 2020, announcing that
NYSE Arca and NYSE American options trading floors will temporarily
close beginning March 23, 2020, available here: https://ir.theice.com/press/news-details/2020/New-York-Stock-Exchange-to-Move-Temporarily-to-Fully-Electronic-Trading/default.aspx; Nasdaq
PHLX Options Trader Alert #2020-7, dated March 15, 2020, announcing
that NYSE PHLX will suspend open outcry trading beginning March 17,
2020, available here: https://www.nasdaqtrader.com/MicroNews.aspx?id=OTA2020-7; Press Release, dated March 12, 2020,
announcing that Cboe Options Exchange will temporarily close its
trading floor beginning March 16, 2020, available here: http://
ir.cboe.com/~/media/Files/C/CBOE-IR-V2/press-release/2020/press-
release-cboe-announces-trading-floor-closure.pdf.
    \11\ While Institutional Brokers can authorize such use at any
time, the Exchange understands that when the options trading floors
are open, Institutional Brokers do not authorize this workflow
process, and that once all of the options trading floors are open,
Institutional Brokers will remove such authorization.
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    With this temporary change in workflow, the current three-hour time
period specified in Article 21, Rule 6(a)(3) may not provide sufficient
time for an Institutional Broker to both obtain and then submit into
Brokerplex the clearing information needed to allocate such off-
Exchange transactions to the correct counterparties.
Proposed Rule Change
    Given the current changes to Institutional Broker workflow that
have resulted from the temporary closures of options trading floors,
the Exchange proposes that, for a temporary period that begins on April
20, 2020, and ends on the earlier of the reopening of all the options
trading floors or after the end of the day on May 15, 2020, to
temporarily extend the time that Institutional Brokers must enter non-
tape, clearing-only submissions into Brokerplex as required under
Article 21, Rule 6(a)(3).
    As noted above, Institutional Brokers that have authorized options
floor traders to enter equity transactions directly into a non-exchange
front-end order and execution management system may not be aware of an
equity transaction reported to a TRF in its name until the trade
appears on its clearing account. Once they become aware of such a
trade, Institutional Brokers proactively obtain information about such
trades to allocate them to the correct counterparties. When the options
trading floors are open, an options floor trader will communicate
directly with the Institutional Broker for the reporting and clearing
of the equity transaction. In this case, the Institutional Broker knows
as the trade occurs which options floor trader customer is responsible
for the transaction and knows who to subsequently contact to obtain the
necessary clearing information. With options trading floors temporarily
closed and options floor traders working from home, Institutional
Brokers must now reach out to individual traders to identify who
effected the transaction and the names of all counterparties. It may
then take several more telephone calls before the Institutional Broker
is able to obtain the complete allocation information for such
transaction. The Institutional Broker may not be able to obtain the
full scope of the information it needs to submit from the options floor
trader, e.g., names of parties to a trade and specific allocations to
each party, in order to transfer securities from one Clearing
Participant to another pursuant to Article 21, Rule 6(a)(1) and enter
it into Brokerplex within the current three-hour time requirement.
    As a result, three of the five Institutional Brokers, which
represent over 80% of the order flow on the Exchange, have sought
relief from the Exchange with respect to the time requirement in
Article 21, Rule 6(a)(3). The Exchange expects the relief sought by
this proposed rule change to impact, at most, 30 to 40 transactions per
day, which represents approximately 15% of all transactions conducted
by Institutional Brokers through Brokerplex. These trades are often
large in size and involve multiple counterparties and, therefore,
require more time to allocate among the various participants relative
to trades that involve a single counterparty.
    The Exchange notes the proposed rule change would have no impact on
trade reporting or clearing of trades, as all trades would have already
been reported to the Consolidated Tape in accordance with applicable
trade reporting rules of the TRF and submitted to DTCC for clearing.
Until such time that an Institutional Broker has information from the
options floor trader about the counterparties to the trade, it bears
the risk of the transaction. That risk is only transferred from the
Institutional Broker when the Institutional Broker allocates the trades
to the appropriate (and actual) parties to the trade based on the
information it receives from the options floor trader.
    Accordingly, the Exchange proposes that, for a temporary period
that begins on April 20, 2020, and ends on the earlier of the reopening
of all the options trading floors or after the end of the day on May
15, 2020, Institutional Brokers may enter non-tape, clearing-only
submissions into the Exchange's systems for non-Exchange transaction by
8:00 p.m. ET of the day of the trade, rather than within three hours as
required under the rule. The Exchange believes that extending the time
to enter clearing-only submissions until 8:00 p.m. ET during this
temporary period is appropriate because the Brokerplex system closes at
that time and thus, the proposed time would provide that all clearing-
only submissions would be entered on the same day that a trade has been
consummated. Because all such submissions would be required by 8:00
p.m., the Exchange would be able to report such submissions, i.e., the
Institutional Broker's transfer of positions from the Institutional
Broker's account to the appropriate counter-party to the trade, to the
clearing agency before DTCC's systems close.
    Given the unique circumstances of the precautionary measures to
prevent the spread of COVID-19, the Exchange believes that extending
the time to enter clearing-only submissions to 8:00 p.m. ET would be
appropriate. In practice, Institutional Brokers generally make these
submissions once they have complete information. Institutional Brokers
have a strong incentive to submit such submissions into Brokerplex
because they bear the risk for the transaction until it can be
allocated to the correct counterparties. Accordingly, even during this
temporary period, clearing-only submissions related to transactions
that occur earlier in the trading day will likely be entered into
Brokerplex as soon as the Institutional Broker receives the necessary
information, which would likely be well before 8:00 p.m. ET. However,
for complex transactions that take the Institutional Broker a longer
time to gather the information--even for transactions that occurred
earlier in the trading day--the temporary extension until 8:00 p.m. ET
would give them sufficient time to obtain the necessary information in
order to meet their obligation to ensure that the information is
complete before entering it into Brokerplex.

    Because the proposed rule change would not impact trading, the
timely reporting of transactions to the Consolidated Tape, or clearing,
the Exchange believes the proposed 8:00 p.m. ET cut-off strikes the
appropriate balance between continuing to require that Institutional
Brokers enter clearing-only submissions on the day that a trade is
consummated and providing them with additional time to enter such
submissions when their normal workflow is impeded as a result of
changes to workflow that are outside of their control. The Exchange
notes that the proposed rule change would not require any technology
changes.
    The Exchange proposes to effect this change by adding Commentary
.05 to Article 21, Rule 6 that sets forth the proposed rule text that
would replace Article 21, Rule 6(a)(3) during a temporary period that
begins on April 20, 2020, and ends on the earlier of the reopening of
all the options trading floors or after the end of the day on May 15,
2020. The Exchange believes that this temporary relief will permit
Institutional Brokers to comply with the reporting requirements in
Article 21, Rule 6(a) during a period when their staff and staff of
options floor traders are working from home and completing such tasks
within three hours is less straightforward and more complex.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\12\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\13\ 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. As a result of uncertainty related to the ongoing spread of
the COVID-19 virus, four major options trading floors have been
temporarily closed. In addition, social-distancing measures have been
implemented throughout the country to reduce the spread of COVID-19,
resulting in staff of options floor traders and Institutional Brokers
working from home.
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    \12\ 15 U.S.C. 78f(b).
    \13\ 15 U.S.C. 78f(b)(5).
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    The proposed rule change would allow the Exchange to temporarily
extend the time by which Institutional Brokers would be required to
report non-tape, clearing-only submissions into the Exchange's systems
for a given non-Exchange transaction to 8:00 p.m. ET of the day on
which the execution of such transaction occurred rather than within
three (3) hours of the execution of such transaction. The Exchange
believes that this temporary relief is necessary and appropriate in the
public interest, and is consistent with the protection of investors,
given the changes to workflow that increase the time it takes for
Institutional Brokers to obtain complete information about
counterparties for such trades during a period when options trading
floors are closed and both options floor traders and Institutional
Brokers are working from home as precautionary measures to protect the
health and safety of their employees and to prevent the spread of
COVID-19. In particular, this proposed rule change would have no impact
on trade reporting or clearing of trades, as all trades would be
reported to the Consolidated Tape in accordance with applicable trade
reporting rules of the TRF and submitted to DTCC for clearing in a
timely manner. This proposed rule change concerns only post-trade
allocations of the equity leg of an options with stock transaction that
has already been reported to the DTCC in the name of the Institutional
Broker's clearing firm. Until the Institutional Broker reports such
submission into Brokerplex with the correct counterparties, the
Institutional Broker bears the risk of the transaction. In addition,
this proposed rule change would have no impact on trading because
Article 21, Rule 6 concerns only the reporting of transactions that
have already been consummated and reported to another exchange or trade
reporting facility and disseminated to the Consolidated Tape.
    Given the unique circumstances of the precautionary measures to
prevent the spread of COVID-19, the Exchange believes that extending
the time to enter clearing-only submissions to 8:00 p.m. ET is
necessary and appropriate in the public interest. The Exchange believes
that the proposed rule change is consistent with the requirements of
Section 6(b) of the Act, in general, and Section 6(b)(5) of the Act, in
particular, and promotes just and equitable principles of trade, by
providing Institutional Brokers with additional time to enter clearing-
only submissions so that they may properly and accurately transfer
positions from their clearing account to the clearing account of the
actual participants on the trade, which submission will remove
impediments to and perfect the mechanism of a free and open market and
national market system, and in general, protect investors and the
public interest. In practice, Institutional Brokers generally make
these submissions once they have complete information because they have
a strong incentive to do so since they bear the risk for the
transaction until it can be allocated to the correct counterparties.
Accordingly, even during this temporary period, clearing-only
submissions related to transactions that occur earlier in the trading
day will likely be entered into Brokerplex as soon as the Institutional
Broker receives the necessary information, which would likely be well
before 8:00 p.m. ET. However, for complex transactions that take the
Institutional Broker a longer time to gather the information--even for
transactions that occurred earlier in the trading day--the temporary
extension until 8:00 p.m. ET would give them sufficient time to obtain
the necessary information in order to meet their obligation to ensure
that the information is complete before entering it into Brokerplex.
The proposed rule change would also ensure that Institutional Brokers
continue to enter clearing-only submissions on the day that a
transaction occurs and to do so no later than the time that Brokerplex
closes.
    Because the proposed rule change would not impact trading, the
timely reporting of transactions to the Consolidated Tape, or clearing,
the Exchange believes the proposed 8:00 p.m. ET cut-off strikes the
appropriate balance between continuing to require that Institutional
Brokers enter clearing-only submissions on the day that a trade is
consummated and providing them with additional time to enter such
submissions when their normal workflow is impeded as a result of
changes to workflow that are outside of their control.

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 proposed rule change is not
designed to address any competitive issues but rather to provide
temporary relief for Institutional Brokers that are required to comply
with Article 21, Rule 6(a)(3) during a temporary period when the
options trading floors are closed and staff of options floor traders
and Institutional Brokers are working from home.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \14\ and Rule 19b-4(f)(6) thereunder.\15\
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, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \16\ and Rule 19b-
4(f)(6) thereunder.\17\
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    \14\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's 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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    A proposed rule change filed under Rule 19b-4(f)(6) \18\ normally
does not become operative for 30 days after the date of the filing.
Pursuant to Rule 19b-4(f)(6)(iii),\19\ the Commission may 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 proposed
rule change may become operative immediately. The Exchange represents
that the filing is necessary given the changes to workflow that
increase the time it takes for Institutional Brokers to obtain complete
information about counterparties for such trades during a period when
options trading floors are closed and both options floor traders and
Institutional Brokers are working from home as precautionary measures
to protect the health and safety of their employees and to prevent the
spread of COVID-19. The Exchange represents that the proposed rule
change would have no impact on trade reporting or clearing of trades
because Article 21, Rule 6 concerns only the reporting of transactions
that have already been consummated and reported to another exchange or
trade reporting facility and disseminated to the Consolidated Tape. The
Commission believes that the proposed rule change would provide
additional time to institutional brokers to report these transactions
while the options trading floors are closed and market participants'
staff are working from home. The Commission notes that the proposal is
a temporary measure designed to respond to current, unprecedented
market conditions. For these reasons, the Commission believes that
waiver of the 30-day operative delay is consistent with the protection
of investors and the public interest. Accordingly, the Commission
hereby waives the 30-day operative delay and designates the proposal
operative upon filing.\20\
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    \18\ 17 CFR 240.19b-4(f)(6).
    \19\ 17 CFR 240.19b-4(f)(6)(iii).
    \20\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSECHX-2020-11 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-NYSECHX-2020-11. 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 (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 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-NYSECHX-2020-11, and should be submitted
on or before May 18, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12) and (59).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08812 Filed 4-24-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 32 (Wednesday, February 16, 2022)]
[Notices]
[Pages 8845-8846]
[FR Doc No: 2022-03257]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

Docket No. FDA-2018-N-3233]

Request for Nominations on the Technical Electronic Product
Radiation Safety Standards Committee

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA or Agency) is requesting
that any industry organizations interested in participating in the
selection of voting industry representatives to serve on the Technical
Electronic Product Radiation Safety Standards Committee in the Center
for Devices and Radiological Health notify FDA in writing. FDA is also
requesting nominations for voting industry representatives to serve on
the Technical Electronic Product Radiation Safety Standards Committee.
A nominee may either be self-nominated or nominated by an organization
to serve as a voting industry representative. Nominations will be
accepted for current vacancies effective with this notice.

DATES: Any industry organization interested in participating in the
selection of an appropriate voting member to represent industry
interests must send a letter stating that interest to FDA by March 18,
2022 (see sections I and II of this document for further details).
Concurrently, nomination materials for prospective candidates should be
sent to FDA by March 18, 2022.

ADDRESSES: All statements of interest from industry organizations
interested in participating in the selection process of voting industry
representative nominations should be sent to Margaret Ames (see FOR
FURTHER INFORMATION CONTACT). All nominations for voting industry
representatives should be submitted electronically by accessing the FDA
Advisory Committee Membership Nomination Portal: https://www.accessdata.fda.gov/scripts/FACTRSPortal/FACTRS/index.cfm or by mail
to Advisory Committee Oversight and Management Staff, Food and Drug
Administration, 10903 New Hampshire Ave., Bldg. 32, Rm. 5103, Silver
Spring, MD 20993-0002. Information about becoming a member of an FDA
advisory committee can also be obtained by visiting FDA's website at
https://www.fda.gov/AdvisoryCommittees/default.htm.

FOR FURTHER INFORMATION CONTACT: Margaret Ames, Division of Management
Services, Center for Devices and Radiological Health, Food and Drug
Administration, 10903 New Hampshire Ave., Bldg. 66, Rm. 5213, Silver
Spring, MD 20993,<PHONE_NUMBER>, email: [email protected].

SUPPLEMENTARY INFORMATION: The Agency is requesting nominations for
voting industry representatives on the Technical Electronic Product
Radiation Safety Standards Committee:

I. General Description of the Committee Duties

    This Committee provides advice and consultation to the Commissioner
of Food and Drugs (the Commissioner) on the technical feasibility,
reasonableness, and practicability of performance standards for
electronic products to control the emission of radiation from such
products and may recommend electronic product radiation safety
standards to the Commissioner for consideration.

II. Selection Procedure

    Any industry organization interested in participating in the
selection of an appropriate voting member to represent industry
interests should send a letter stating that interest to the FDA contact
(see FOR FURTHER INFORMATION CONTACT) within 30 days of publication of
this document (see DATES). Within the

subsequent 30 days, FDA will send a letter to each organization that
has expressed an interest, attaching a complete list of all such
organizations, and a list of all nominees along with their current
r[eacute]sum[eacute]s. The letter will also state that it is the
responsibility of the interested organizations to confer with one
another and to select a candidate, within 60 days after the receipt of
the FDA letter, to serve as the voting member to represent industry
interests for the committee. The interested organizations are not bound
by the list of nominees in selecting a candidate. However, if no
individual is selected within 60 days, the Commissioner will select the
voting member to represent industry interests.

III. Nomination Procedure

    Individuals may self-nominate and/or an organization may nominate
one or more individuals to serve as a voting industry representative.
Nominations must include a current, complete r[eacute]sum[eacute] or
curriculum vitae for each nominee including current business address
and telephone number, email address if available, and a signed copy of
the Acknowledgement and Consent form available at the FDA Advisory
Nomination Portal (see ADDRESSES). Nominations must also specify the
advisory committee for which the nominee is recommended. Nominations
must also acknowledge that the nominee is aware of the nomination
unless self-nominated. FDA will forward all nominations to the
organizations expressing interest in participating in the selection
process for the committee. (Persons who nominate themselves as voting
industry representatives will not participate in the selection
process.)
    FDA seeks to include the views of women and men, members of all
racial and ethnic groups, and individuals with and without disabilities
on its advisory committees and therefore encourages nominations of
appropriately qualified candidates from these groups.
    This notice is issued under the Federal Advisory Committee Act (5
U.S.C. app. 2) and 21 CFR part 14, relating to advisory committees.

    Dated: February 10, 2022.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2022-03257 Filed 2-15-22; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register Volume 77, Number 199 (Monday, October 15, 2012)]
[Notices]
[Pages 62556-62558]
[FR Doc No: 2012-25279]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68012; File No. SR-Phlx-2012-115]

Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Clarify
Further That the Provisions of the Rule 800 Series Are Not Effective To
Permit the Listing of Securities and Include a Reference on the Need To
Comply With Rule 10C-1 Under the Securities Exchange Act of 1934 Should
the Exchange List Equity Securities in the Future

October 9, 2012.
    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 September 25, 2012, 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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    Phlx is proposing to modify certain Exchange Rules to clarify
further that the provisions of the Rule 800 Series are not effective to
permit the listing of securities. The text of the proposed rule change
is available at http://nasdaqomxphlx.cchwallstreet.com/nasdaqomxphlx/phlx/, at Phlx's principal office, 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 Commission recently adopted rules that require any national
securities exchange that lists equity securities to have listing
standards relating to the independence of compensation committees and
their advisers.\3\
---------------------------------------------------------------------------

    \3\ See 17 CFR 240.10C-1 and Securities Exchange Act Release No.
67220 (June 20, 2012), 77 FR 38422 (June 27, 2012).
---------------------------------------------------------------------------

    The Exchange operates NASDAQ OMX PSX (``PSX''), a fully integrated
order display and execution system for all NMS stocks,\4\ as defined in
SEC Rule 600(b)(47) under Regulation NMS.\5\ PSX trades stocks listed
on other exchanges pursuant to unlisted trading privileges (``UTP'').
As provided by SEC Rule 12f-5, the Exchange may extend UTP to any
security for which the Exchange has in effect rules providing for
transactions in such class or type of security.\6\ Accordingly, Phlx's
rules include the Rule 800 Series to support UTP trading of all NMS
stocks on PSX. However, the Exchange does not list any securities
pursuant to the Rule 800 Series, and does not have any present intent
to list securities under this series in the future.\7\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 62877 (September 9,
2010), 75 FR 56633 (September 16, 2010) (SR-Phlx-2010-079).
    \5\ See 17 CFR 242.600(b)(47).
    \6\ See 17 CFR 240.12f-5.
    \7\ Pursuant to its Rule 1000, 1000A and 1000C Series, the
Exchange lists only standardized options, as defined in Rule 9b-1
under the Act, issued by a clearing agency that is registered
pursuant to Section 17A of the Act. As a result, the Exchange is not
proposing any clarifying changes to its Rule 1000, 1000A and 1000C
Series relating to Rule 10C-1 under the Act because Rule 10C-1
includes an exemption for listing of such standardized options. See
17 CFR 240.10C-1(b)(5)(iv). The Exchange's Rule 1000B Series is a
dormant set of rules applicable to trading of cash index
participations, and the Exchange has no present intent to trade or
list such securities. Should the Exchange ever propose to trade or
list any securities pursuant to its Rule 1000, 1000A, 1000B or 1000C
Series that are not entitled to an exemption under Rule 10C-1 under
the Act, the Exchange recognizes that it must file a proposed rule
change under Section 19(b)(2) under the Act to amend its rules to
make any changes needed to comply with Rule 10C-1 under the Act and
that such proposed rule change must be approved by the Commission.

---------------------------------------------------------------------------

    The Exchange proposes to modify Rules 800-803 and 867.5 to clarify
further that the provisions of the Rule 800 Series are not effective to
permit the listing of securities. Specifically, the Exchange proposes
to change the title of the Rule 800 Series from ``Listing of
Securities'' to ``Standards for Trading Securities Pursuant to Unlisted
Trading Privileges.'' Regarding Rule 801, the Exchange proposes to
delete references to listing and add clarifying language to state that
the Exchange lists only standardized options, as defined in Rule 9b-1
under the Act, issued by a clearing agency that is registered pursuant
to Section 17A of the Act, pursuant to the Rule 1000, 1000A and 1000C
Series. In addition, the Exchange will not list securities pursuant to
any other rule until the Exchange files a proposed rule change under
Section 19(b)(2) under the Act to amend its rules to make any changes
needed to comply with Rules 10A-3 and 10C-1 under the Act and to
incorporate additional qualitative and other listing criteria, and such
proposed rule change is approved by the Commission. The Exchange also
proposes to state explicitly in Rule 801, as well as Rule 803, which is
discussed further below, that the provisions of the Rule 800 Series are
not effective to permit the listing of securities.
    Regarding Rule 802, the Exchange proposes to move the statement
that ``[t]he Exchange does not rate or guarantee the quality of any
security dealt on the Exchange'' to Rule 801. The Exchange also
proposes to move the definition of the terms ``public shareholder'' and
``public holder'' to Rule 800, which includes definitions that apply to
the entire Rule 800 Series. The Exchange proposes to delete the
remainder of Rule 802, which relates to determinations concerning
listing or delisting, and is therefore irrelevant since the Exchange
does not list securities pursuant to the Rule 800 Series.
    The Exchange proposes to change the title of Rule 803 from
``Criteria for Listing--Tier I'' to ``Listing Standards for Unlisted
Trading Privileges.'' As discussed above, Rule 803(o) includes a
statement that the provisions of the Rule 800 Series that permit the
listing of securities will not be effective until the Exchange files a
proposed rule change under Section 19(b)(2) under the Act to amend its
rules to make any changes needed to comply with Rule 10A-3 under the
Act and to incorporate additional qualitative listing criteria, and
such proposed rule change is approved by the Commission. The Exchange
proposes to move this language to Rule 801, so that it is more
prominent at the beginning of this section of rules, and to revise the
existing language to state that the Exchange will not list securities
pursuant to any other rule until it complies with the aforementioned
conditions. The Exchange also proposes to add a reference to Rule 10C-1
under the Act, which requires securities exchanges that list equity
securities to adopt rules relating to the independence of compensation
committees and their advisers,\8\ and to expand the reference to
additional qualitative listing criteria to include other listing
criteria as well. As a result of this new language, the Exchange cannot
list securities pursuant to the Rule 800 Series until it files proposed
rules under Rule 10C-1, and such rules are approved by the Commission.
---------------------------------------------------------------------------

    \8\ See 17 CFR 240.10C-1.
---------------------------------------------------------------------------

    Finally, the Exchange proposes to add similar clarifying language
to Rule 867.5, which relates to compensation committees.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\10\ 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, and is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers. The rule change will promote
these goals by clarifying further the intent of the Exchange's Rule 800
Series, which exists to permit the Exchange to extend UTP to NMS stocks
that are listed on another national securities exchange. The proposed
amendments to the Rule 800 Series emphasize that the Exchange does not
list securities pursuant to that series and that it will not list
securities pursuant to that series until it proposes certain rule
changes and those changes are approved by the Commission. These
clarifications will serve to protect investors and the public interest
by preventing confusion about the intent of the Rule 800 Series.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

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.

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) of the Act \11\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\12\
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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.

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-2012-115 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-2012-115. 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 offices 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-2012-115, and should be submitted on or before
November 5, 2012.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-25279 Filed 10-12-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: October 24, 2008 (Volume 73, Number 207)]
[Notices]
[Page 63536-63540]
[DOCID:fr24oc08-137]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58800; File No. SR-NYSEArca-2008-109]

Self-Regulatory Organizations; Notice of Filing and Immediate
Effectiveness of Proposed Rule Change by NYSE Arca, Inc. To Adopt Rules
To Permit the Trading of Rate-Modified Foreign Currency Options

October 16, 2008.
    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 October 10, 2008, NYSE Arca, Inc. (``NYSE Arca'' or the
``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 adopt rules to permit the trading of Rate-
Modified Foreign Currency Options (``FCOs''). The text of the proposed
rule change is available at NYSE Arca, the Commission's Public
Reference Room, and www.nyse.com.

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
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is to adopt rules enabling
the Exchange to list and trade FCOs. The Exchange proposes to adopt
rules for the listing and trading of cash-settled FCOs on the following
currencies: the euro, the British pound, the Australian dollar, the New
Zealand dollar, the Japanese yen, the Canadian dollar, the Swiss franc,
the Chinese renminbi, the Mexican peso, the Swedish krona, the Russian
ruble, the South African rand, the Brazilian real, the Israeli shekel,
the Norwegian krone, the Polish zloty, the Hungarian forint, the Czech
koruna, and the Korean won (individually, a ``currency'' and
collectively, the ``Currencies'').\3\
---------------------------------------------------------------------------

    \3\ Except as noted herein, FCO's would, in all other respects,
be traded pursuant to the Exchange's existing trading rules and
procedures and be covered under the Exchange's existing surveillance
program.
---------------------------------------------------------------------------

    The Exchange notes that the Philadelphia Stock Exchange (``PHLX'')
currently has rules that permit the listing and trading of both
physically-settled FCOs and U.S. Dollar-settled FCOs on a number of
foreign currencies.\4\ FCOs listed and traded by the Exchange pursuant
to this proposed rule change will not be fungible with

those listed and traded by PHLX. The Exchange also notes that the
International Securities Exchange has rules that permit the listing and
trading of both physically-settled FCOs and U.S. Dollar-settled FCOs on
a number of foreign currencies.\5\ The Exchange intends, however, to
license the contract terms governing FCOs from the International
Securities Exchange (``ISE''), and any FCOs listed and traded on the
Exchange would be fungible with those listed and traded on ISE.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act release No. 54989 (December 21,
2006), 71 FR 78506 (December 29, 2006) (SR-PHLX-2006-34). See also
PHLX rules 1000-1093.
    \5\ See Securities Exchange Act Release No, 34-55575 (April 3,
2007), 72 FR 17963 (April 10, 2007) (SR-ISE-2006-59). See also ISE
rules 2200-2213.
---------------------------------------------------------------------------

    The Exchange proposes to list and trade cash-settled FCOs using the
Reuters Composite Currency Rate,\6\ an industry benchmark, and modify
that rate to create an underlying value that represents the prevailing
rate of a currency pair in an index-like format. NYSE Arca proposes to
use modifiers of 1, 10, or 100 depending on the exchange rate level of
the underlying foreign currency. For example, if one U.S. Dollar buys
.84177 euros, a modifier of 100 would be used so that the modified
exchange rate would become 84.18.\7\ Modified exchange rates are
rounded to two decimal places (i.e., to the nearest one one-hundredth).
Modified exchange rates are rounded up if they end in values greater
than or equal to five one-thousandths, and rounded down if less than
five one-thousandths. In the example above, if one U.S. Dollar buys
.84174 euros, the modified exchange rate, using the same 100 modifier,
would become 84.17. The Reuters data is based on an amalgamation of
midpoint dealer quotes on its foreign exchange dealing system.
---------------------------------------------------------------------------

    \6\ The Exchange notes that there are many major trading
platforms for spot market currencies including single bank portals
(Deutsche Bank, Citigroup, UBS, Barclays, etc.), multi-bank portals
(FXall, Currenex, FXConnect, etc.) broker-neutral portals (Reuters
Dealing and EBS), portal aggregators (Bloomberg. LavaFX, FlexTrade),
as well as many online broker portals. Additionally, several major
NYSE Arca members, including OptionsXpress and Interactive Brokers,
provide access to Chicago Mercantile Exchange futures products. NYSE
Arca therefore believes that sufficient market access is available
to both institutionals as well as retail investors. Foreign exchange
prices are also widely available via public Web sites, broker Web
sites, as well as in print publications. Additionally, Web sites
such as Bloomberg.com, Reuters.com, Yahoo! Finance, CNBC.com,
OANDA.com, Nasdaq.com, and many others provide free currency data.
Investors Business Daily, Wall Street Journal, and the New York
Times also provide currency data as part of their daily coverage.
Futhermore, the ISE presently disseminates real-time underlying data
on OPRA for all the currency rates NYSE Arca intends to list options
on.
    \7\ Modifiers used for creating underlying values will be
modeled on the modifiers developed by the ISE and will be posted on
the Exchange's web site no later than the first day on which FCOs
begin trading on the Exchange. Once a modifier has been assigned to
a currency pair by the ISE, it can only be changed upon a filing of
a proposed rule change by the ISE with the Securities and Exchange
Commission (``Commission''). If the Exchange determines that it will
no longer adopt modifiers assigned by the ISE, the Exchange will be
required to submit a proposed rule change to the Commission in order
to amend a modifier.
---------------------------------------------------------------------------

    Under the proposed rule change, FCOs listed by the Exchange will be
cleared by The Options Clearing Corporation (``OCC''), and will enable
holders of options contracts to receive U.S. Dollars representing the
difference between the modified exchange rate \8\ and the exercise
price of the option. Specifically, upon exercise of an in-the-money
cash-settled FCO call option, the holder will receive, from OCC, U.S.
Dollars representing the difference between the exercise strike price
and the closing settlement value of the cash-settled FCO contract
multiplied by 100. Upon exercise of an in-the-money cash-settled FCO
put option, the holder will receive, from OCC, U.S. Dollars
representing the excess of the exercise price over the closing
settlement value of the cash-settled FCO contract multiplied by 100.
Additionally, cash-settled FCOs that are in-the-money by any amount on
expiration date will be exercised automatically by OCC, while cash-
settled FCOs that are out-of-the-money on expiration date will expire
worthless.
---------------------------------------------------------------------------

    \8\ A ``modified exchange rate'' is defined in proposed NYSE
Arca Rule 5.71(6).
---------------------------------------------------------------------------

    The Exchange hereby proposes to adopt new rules and amend certain
existing rules in order to list and trade FCOs. The Exchange shall use
the same contract specifications used by the ISE, as noted in Exhibit 3
to this filing.\9\ The Exchange's proposed NYSE Arca Rule 5.71,
Definitions, defines terms applicable to FCOs. Proposed NYSE Arca Rule
5.72, Criteria for Foreign Currency Options, states that the Currencies
may be approved for trading on the Exchange and sets forth the cross
rate FCOs that may be traded on the Exchange. Proposed NYSE Arca Rule
5.72 also states that if any of the sovereign governments or the
European Economic Community's European Monetary System issuing one of
the Currencies replaces it with a new currency, that new currency,
subject to filing a proposed rule change with the Commission, shall
also be approved for listing and trading under these proposed rules.
Proposed NYSE Arca Rule 5.73, Foreign Currency Options Contracts To Be
Traded, states that the Exchange may open for trading put options and
call options on the Currencies and that only options contracts of a
series of options approved by the Exchange and currently open for
trading may be traded on the Exchange. Proposed NYSE Arca Rule 5.74,
Withdrawal of Approval of Foreign Currency Options, states that, in the
interest of a fair and orderly market and for the protection of
investors, the Exchange may withdraw approval of the trading of a
foreign currency option. For example, in the case of the European
Economic Community's European Monetary System, the Exchange will
withdraw approval of the trading of a foreign currency option if such
currency is eligible to and does in fact merge with the euro.
---------------------------------------------------------------------------

    \9\ See note 5, supra.
---------------------------------------------------------------------------

    Proposed NYSE Arca Rule 5.75, Series of Foreign Currency Options
Opened for Trading, states that after a class of options contracts on
any of the Currencies has been approved for listing and trading, the
Exchange may open for trading series of FCOs that expire in consecutive
monthly intervals, in three or ``cycle'' month intervals, or that have
up to 36 months to expiration.\10\ Under this proposed rule change, the
Exchange may list cash-settled FCOs with expirations that are the same
as the expirations permitted for index options pursuant to NYSE Arca
Rules 5.10 and 5.19, except that cash-settled FCOs shall have
expirations up to 36 months only. Though no long-term series will be
listed initially, this proposal would allow the Exchange to list long-
term series, i.e., up to 36 months. The expiration date for the
consecutive and cycle month options will be 8:59 p.m. Pacific time on
the Saturday immediately following the third Friday of the expiration
month. Under Proposed NYSE Arca Rule 5.75, as the modified exchange
rate moves, the Exchange may list additional series of FCOs in order to
maintain sufficient numbers of in-the-money and out-of-the-money
series. Further, the strike price of each series of FCOs opened for
trading by the Exchange shall be reasonably close to the modified
exchange rate.
---------------------------------------------------------------------------

    \10\ The Exchange notes that consecutive month and cycle month
expirations of a given series will never overlap.
---------------------------------------------------------------------------

    Proposed NYSE Arca Rule 5.76, Terms of Foreign Currency Options
Contracts, states that, among other things, all FCOs shall be quoted in
U.S. Dollars, shall be European-style, and that the interval between
strike prices of series of FCOs shall be no less than $0.10.
    Proposed NYSE Arca Rule 5.77, Position Limits for Foreign Currency
Options, sets the position limit for FCOs, on the same side of the
market, as follows: 1,200,000 contracts for the

euro; 600,000 contracts for the Australian dollar, the New Zealand
dollar, the British pound, the Canadian dollar, the Japanese yen, and
the Swiss franc; 300,000 contracts for the Brazilian real, the Chinese
renminbi, the Czech koruna, the Hungarian forint, the Israeli shekel,
the Korean won, the Mexican peso, the Norwegian krone, the Swedish
krona, the Polish zloty, the Russian ruble and the South African rand.
For the purpose of determining which positions are on the same side of
the market, under proposed NYSE Arca Rule 5.77, long call positions are
to be aggregated with short put positions and short call positions are
to be aggregated with long put positions. Position limits for each of
the proposed cross-rate FCOs are specified in proposed NYSE Arca Rule
5.77.
    Proposed NYSE Arca Rule 5.78, Exercise Limits for Foreign Currency
Options, generally states that exercise limits for FCOs and cross rate
FCOs shall be equivalent to the position limits prescribed to that FCO.
Thus, the exercise limit for FCOs over any five consecutive business
days shall be as follows: 1,200,000 contracts for the euro; 600,000
contracts for the Australian dollar, the New Zealand dollar, the
British pound, the Canadian dollar, the Japanese yen, and the Swiss
franc; 300,000 contracts for the Brazilian real, the Chinese renminbi,
the Czech koruna, the Swedish krona, the Hungarian forint, the Israeli
shekel, the Korean won, the Mexican peso, the Norwegian krone, the
Polish zloty, the Russian ruble and the South African rand. The
exercise limits for cross rate FCOs are set forth in Rule 5.78. Under
Proposed NYSE Arca Rule 5.78(a)(3), the Exchange may from time to time,
subject to Commission approval, establish exercise limits that are
different from the position limits established for FCOs on a Currency
or across all Currencies. Position limits for each of the proposed
cross-rate FCOs are specified in proposed NYSE Arca Rule 5.77.
    Proposed NYSE Arca Rule 5.79, Trading Sessions, provides that
transactions in FCOs may be effected on the Exchange between the hours
of 6:30 a.m. and 1:15 p.m. Pacific Time, except that on the last
trading day of the week during which a FCO is set to expire, trading
shall cease at 9 a.m. Pacific Time. Trading in cash-settled FCOs will
follow the holiday schedule of the U.S. equity markets. If Friday is an
Exchange holiday, the settlement value for cash-settled FCOs will be
determined on the preceding trading day, which will also be the last
trading day for the expiring option. The Exchange's Proposed Rules
5.79(b) and (c) make certain adjustments to current processes because
FCO openings, unlike openings of equity and index options, do not
depend on the opening of trading of the underlying market, because the
currency market does not have specified trading hours. Accordingly, the
opening auction for FCOs shall be held at or as soon as practicable
after the Exchange's market opens, unless a Trading Official determines
to delay the opening auction in the interest of maintaining a fair and
orderly market.
    Proposed NYSE Arca Rule 5.79 lists some of the factors a Trading
Official may consider in delaying the opening auction. Additionally, in
the interest of a fair and orderly market, an Exchange official may,
under certain circumstances, halt or suspend trading in a FCO until
such time that the circumstances that led to the halt or suspension no
longer exist. The proposed rule also provides that the Exchange shall
delay opening or halt trading if the ISE is unable to disseminate the
current modified exchange rate information at least every 15 seconds to
OPRA.
    Proposed NYSE Arca Rule 5.80, Reporting of Foreign Currency Options
Position, requires each OTP Holder of the Exchange to file a report
with respect to all accounts that have an aggregate position of 12,500
or more FCO contracts on the same side of the market in any underlying
foreign currency. Under this proposed rule, OTP Holders shall be
required to file all such reports within one business day following the
day that the reportable transactions occur.
    Proposed NYSE Arca Rule 5.81, Foreign Currency Options Closing
Settlement Value, states that the closing settlement value, which shall
be posted by the Exchange on its Web site, shall be the Noon Buying
Rate, as determined by the Federal Reserve Bank of New York, on the
last trading day during expiration week.\11\ If the Noon Buying Rate is
not announced by 2 p.m. Pacific Time, the closing settlement value will
be the most recently announced Noon Buying Rate, unless the Exchange
determines to apply an alternative closing settlement value as a result
of extraordinary circumstances.\12\
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    \11\ The closing settlement value, whether based on the Noon
Buying Rate or the WM/Reuters Closing Spot rate, will also be
modified using the applicable modifier, i.e., 1, 10 or 100, that is
used in calculating the respective modified exchange rate. Please
note, the Federal Reserve Bank of New York is discontinuing the
publication of the Noon Buying Rate on December 31, 2008.
    \12\ The Exchange may use the WM/Reuters Closing Spot rate if
the Noon Buying Rate is not available. The Exchange notes that the
Commission has recently approved listing standards for securities
issued by a trust that represent investors' discrete identifiable
and undivided beneficial ownership interests in non-U.S. currency
deposited into a trust that utilizes the Noon Buying Rate for the
calculation of the Net Asset Value of the trust. See Securities
Exchange Act Release No. 52843 (November 28, 2005), 70 FR 72486
(December 5, 2005) (order granting accelerated approval of SR-NYSE-
2005-65).
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    In the event the Noon Buying Rate is not published for an
underlying currency, the Exchange proposes to apply the WM/Reuters
Closing Spot rate to determine the closing settlement value of any
underlying currency.\13\ The WM/Reuters Closing Spot rate is determined
at 16 UK time, also known as the ``fix'' time (10 a.m. Pacific Time).
WM/Reuters typically publishes its closing rates 15 minutes after the
fix time. The Reuters System is the primary source of spot foreign
exchange rates used in the calculation of the WM/Reuters Closing Spot
rate. WM/Reuters, however, may use alternative sources such as a
country's Central Bank or rates from EBS, which is another major FX
venue and market data service provider for 156 currencies, including
all of the currencies underlying the products proposed by NYSE Arca
under this filing.
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    \13\ The Federal Reserve Bank of New York currently does not
publish a Noon Buying Rate for the Czech koruna, the Hungarian
forint, the Israeli shekel, the Korean won, the Polish zloty and the
Russian ruble. As a result, the Exchange proposes to use the WM/
Reuters Closing Spot rate for these 6 currencies to determine their
closing settlement value.
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    WM/Reuters has two main methods for calculating its Closing Spot
rate. The methodology used depends on whether a currency is determined
by WM/Reuters to be a ``trade currency'' or a ``non-trade currency.''
\14\ WM/Reuters applies a unique methodology for each category. Closing
Spot rates for ``non-trade currencies'' are determined primarily by
using data from Reuters. This methodology involves taking snapshots of
quoted bids and offers for each currency at 15-second intervals over a
two-minute period. The median is then calculated independently for each
currency's bid and offer. The midpoint of that median bid and offer
becomes the final value.
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    \14\ The Australian dollar, British pound, Canadian dollar,
Czech koruna, Danish krone, euro, Japanese yen, New Zealand dollar,
Norwegian krone, Singapore dollar, South African rand, Swedish
krona, and Swiss franc are all considered by WM/Reuters to be
``trade currencies,'' while all others are considered ``non-trade
currencies.'' The instant filing proposes to trade FCOs on all the
``trade currencies'' except the Danish krone and the Singapore
dollar.
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    Closing Spot rates for ``trade currencies'' are determined
primarily by using data from both Reuters and EBS.

This methodology involves taking snapshots of actual traded rates every
second for a period of 30 seconds before the fix to 30 seconds after
the fix. Trades are identified as a bid or offer and a spread is
applied to calculate the opposite bid or offer. The spread applied is
determined by the spread between buy and sell orders captured at the
same time. The median is then independently calculated for each
currency's bid and offer, resulting in a midpoint trade rate. The
midpoint of that median bid and offer becomes the final value. Proposed
NYSE Arca Rule 5.81 additionally disclaims the Exchange's (and that of
any agent of the Exchange's) liability and that of the Reporting
Authority due to force majeure.
    The Exchange is also proposing to amend its Rule 4.16 regarding
margin requirements by adopting a rule for FCOs that is substantially
similar to the ISE's margin rules for foreign currency options.
Accordingly, under proposed NYSE ARCA Rule 4.16(d), cash-settled FCOs
will have the same customer margin requirements as are provided in ISE
Rule 1202(d), ``Margin Requirements''.
    In addition, the Exchange proposes to modify Rule 6.72 to permit
FCOs to quote and trade in one cent increments.
    Chapter 9 of the Exchange's rules is designed to protect public
customer trading and shall apply to trading in FCOs. Specifically, NYSE
Arca Rules 9.18(a) and (b) prohibit OTP Firms and OTP Holders from
accepting a customer order to purchase or write an option, including on
a cash-settled FCO, unless such customer's account has been approved in
writing by a designated Registered Options Principal. Additionally,
NYSE Arca's Rule 9.18(c) regarding suitability is designed to ensure
that options, including cash-settled FCOs, are only sold to customers
capable of evaluating and bearing the risks associated with trading in
this instrument. Further, NYSE Arca Rule 9.18(e) permits OTP Firms or
OTP Holders to exercise discretionary power with respect to trading
options, including trading cash-settled FCOs, in a customer's account
only if the OTP Firm or OTP Holder has received prior written
authorization from the customer and the account had been accepted in
writing by a designated Registered Options Principal. NYSE Arca Rule
9.18(e) also requires designated Registered Options Principals or
Representatives of an OTP Firm or OTP Holder to approve and initial
each discretionary order, including discretionary orders for cash-
settled FCOs, on the day the discretionary order is entered. Finally,
NYSE Arca Rule 9.18(d), Supervision of Accounts, Rule 9.18(f),
Confirmation, and Rule 9.18(g), Delivery of Current Options Disclosure
Documents and Prospectus, will also apply to trading in FCOs.
    As previously noted, the Exchange represents that it has an
adequate surveillance program in place for FCOs, and intends to apply
the same program procedures that it applies to the Exchange's index
options. The Exchange is also a member of the Intermarket Surveillance
Group (``ISG''), and may obtain trading information via the ISG from
other exchanges who are members or affiliates of the ISG. The members
of the ISG include all of the U.S. registered stock and options
markets. The ISG members work together to coordinate surveillance and
investigative information sharing in the stock and options markets. In
addition, the major futures exchanges are affiliated members of the
ISG, which allows for the sharing of surveillance information for
potential intermarket trading abuses. Specifically, NYSE Arca can
obtain such information from the Chicago Mercantile Exchange (``CME'')
in connection with futures trading on that exchange.\15\
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    \15\ CME is an affiliate member of ISG.
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    Finally, the Exchange represents that it has the necessary systems
capacity to support new options series that will result from the
introduction of cash-settled FCOs.
2. Statutory Basis
    The proposed rule change is consistent with and furthers the
objectives of Section 6(b)(5) of the Act, in that it is designed to
promote just and equitable principles of trade, remove impediments to
and perfect the mechanisms of a free and open market and a national
market system and, in general, to protect investors and the public
interest.

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 that is not necessary or appropriate
in furtherance of the purposes of the Act.

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 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 after the date of this filing, or such shorter time as the
Commission may designate if consistent with the protection of investors
and the public interest, the proposed rule change has become effective
pursuant to Section 19(b)(3)(A) of the Act \16\ and Rule 19b-4(f)(6)
thereunder.\17\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
under the Act requires that a self-regulatory organization submit to
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 notice requirement.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act normally does not become operative for 30 days after the date of
filing.\18\ However, Rule 19b-4(f)(6)(iii) \19\ 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
requested that the Commission waive the 30-day operative delay. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Commission notes that it has approved substantially similar rules
for the listing and trading of FCOs on the ISE and NYSE Arca's proposal
raises no new regulatory issues.\20\ Accordingly, the Commission
designates that the proposed rule change become operative
immediately.\21\
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    \18\ 17 CFR 240.19b-4(f)(6)(iii).
    \19\ Id.
    \20\ See supra note 5.
    \21\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of such proposed rule
change the Commission may summarily abrogate 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.

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 e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2008-109 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 SR-NYSEArca-2008-109.
This file number should be included on the subject line if e-mail 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 inspection
and copying in the Commission's Public Reference Room, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the self-regulatory
organization. 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-
NYSEArca-2008-109 and should be submitted on or before November 14,
2008.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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    \22\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-25373 Filed 10-23-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 79 (Wednesday, April 24, 2013)]
[Notices]
[Page 24288]
[FR Doc No: 2013-09683]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

Applications for Certificates of Public Convenience and Necessity
and Foreign Air Carrier Permits

    Notice of Applications for Certificates of Public Convenience and
Necessity and Foreign Air Carrier Permits Filed Under Subpart B
(formerly Subpart Q) during the Week Ending April 13, 2013. The
following Applications for Certificates of Public Convenience and
Necessity and Foreign Air Carrier Permits were filed under Subpart B
(formerly Subpart Q) of the Department of Transportation's Procedural
Regulations (See 14 CFR 301.201 et seq.). The due date for Answers,
Conforming Applications, or Motions to Modify Scope are set forth below
for each application. Following the Answer period DOT may process the
application by expedited procedures. Such procedures may consist of the
adoption of a show-cause order, a tentative order, or in appropriate
cases a final order without further proceedings.
    Docket Number: DOT-OST-2013-0071.
    Date Filed: April 10, 2013.
    Due Date for Answers, Conforming Applications, or Motion to Modify
Scope: May 1, 2013.
    Description: Application of Hawaiian Airlines, Inc. requesting a
certificate of public convenience and necessity and an exemption to
provide scheduled combination service between the United States and
China and that Hawaiian be designated to the Government of China to
provide such service.
    Docket Number: DOT-OST-2013-0073.
    Date Filed: April 11, 2013.
    Due Date for Answers, Conforming Applications, or Motion to Modify
Scope: May 2, 2013.
    Description: Application of Aeronexus Corporate (PTY) Ltd
(``Aeronexus'') requesting a foreign air carrier permit to conduct
charter foreign air transportation of persons, property and mail: (1)
Between any point or points behind South Africa, via any point or
points in South Africa, and via intermediate points to any point or
points in the United States or beyond; (2) between any point or points
in the United States and any point or points in South Africa; (3) other
charters pursuant to the prior approval requirements; and (4)
transportation authorized by any additional charter rights that may be
made available to South African carriers in the future. Aeronexus also
requests an exemption to the extent necessary to enable it to provide
the service described above pending issuance of its foreign air carrier
permit and such other relief as the Department may deem necessary or
appropriate.

Barbara J. Hairston,
Acting Program Manager, Docket Operations, Federal Register Liaison.
[FR Doc. 2013-09683 Filed 4-23-13; 8:45 am]
BILLING CODE 4910-9X-P