67390 Federal Register / Vol. 83, No. 248 / Friday, December 28, 2018 / Notices 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

78 15 U.S.C. 78s(b)(2)(B). 

79 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 84594 

(Nov. 14, 2018), 83 FR 58642. 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C.78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b-4. 

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) 78 of the Act 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 rule-comments@

sec.gov. Please include File Number SR– 

CHX–2018–07 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–CHX–2018–07. 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–CHX–2018–07 and should 

be submitted on or before January 18, 

2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.79

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28193 Filed 12–27–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84888; File No. SR–MIAX– 

2018–34] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Designation of Longer Period 

for Commission Action on Proposed 

Rule Change To Amend Exchange 

Rule 519, MIAX Order Monitor; 

Exchange Rule 519A, Risk Protection 

Monitor; and Rule 517, Quote Types 

Defined 

December 20, 2018. 

On November 9, 2018, Miami 

International Securities Exchange, LLC 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Exchange Rules 519 (MIAX 

Order Monitor), 519A (Risk Protection 

Monitor), and 517 (Quote Types 

Defined). The proposed rule change was 

published for comment in the Federal 

Register on November 20, 2018.3 The 

Commission has received no comments 

on the proposal. 

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is January 4, 2019. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change so that it has sufficient time 

to consider the proposed rule change. 

Accordingly, pursuant to Section 

19(b)(2) of the Act 5 and for the reasons 

stated above, the Commission 

designates February 18, 2019, as the 

date by which the Commission shall 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove, the proposed 

rule change (File No. SR–MIAX–2018– 

34). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28185 Filed 12–27–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84882; File No. SR– 

NYSENAT–2018–27] 

Self-Regulatory Organizations; NYSE 

National, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Change To Make Non-Substantive 

Changes to Its Certificate of 

Incorporation 

December 20, 2018. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b-4 thereunder,3

notice is hereby given that, on December 

18, 2018, NYSE National, Inc. (the 

‘‘Exchange’’ or ‘‘NYSE National’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 248 / Friday, December 28, 2018 / Notices 67391 

4See Exchange Act Release No. 84644 (November 

21, 2018), 83 FR 61177 (November 28, 2018) (SR– 

NYSENAT–2018–24) (‘‘November Amendment’’) 

(notice of filing and immediate effectiveness of 

proposed rule change to amend Exchange 

Certificate and bylaws). 

5 Id. at 61182. 

6 Id. at 61178. The Exchange inadvertently stated 

in the November Amendment that the legal name 

of the Exchange is not entirely in capital letters. Id. 

This previous statement, and current correction, 

have no effect on the operations of the Exchange. 

7See Del. Code tit. 8, § 242. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(1). 

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

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b-4(f)(3). 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to make nonsubstantive changes to its certificate of 

incorporation. The proposed 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 to make two 

non-substantive changes to its Amended 

and Restated Certificate of Incorporation 

of the Exchange (‘‘Exchange 

Certificate’’). 

The Exchange recently filed to amend 

the Exchange Certificate (as amended, 

the ‘‘Amended Certificate’’) to (1) 

harmonize certain provisions 

thereunder with similar provisions in 

the governing documents of the 

Exchange’s national securities exchange 

affiliates and parent companies; and (2) 

make clarifying and updating changes.4

Such changes will become operative 

upon the Amended Certificate becoming 

effective pursuant to its filing with the 

Secretary of State of the State of 

Delaware, which will not be prior to 30 

days from the date on which the 

November Amendment was filed.5

The Exchange proposes to make two 

non-substantive changes to the 

Amended Certificate prior to its being 

filed with the Secretary of State of the 

State of Delaware. Specifically, in the 

first sentence of the introductory 

paragraph and the signature line, the 

Exchange’s name is written in capital 

and lower case letters, as ‘‘NYSE 

National, Inc.’’ The Exchange proposes 

to amend the name so that it is in all 

capital letters, as ‘‘NYSE NATIONAL, 

INC.’’ 6

Such changes would become 

operative upon the Amended Certificate 

becoming effective pursuant to its filing 

with the Secretary of State of the State 

of Delaware. 

The Exchange is proposing to make 

the described changes because currently 

the exact name of the Exchange on the 

records of the Secretary of State of the 

State of Delaware is ‘‘NYSE NATIONAL, 

INC.’’ The previously filed changes to 

Article FIRST, which uses the name 

‘‘NYSE National, Inc.’’, will update the 

name of the Exchange on such records 

of the Secretary of State of the State of 

Delaware from ‘‘NYSE NATIONAL, 

INC.’’ to ‘‘NYSE National, Inc.’’ 7

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Exchange Act,8 in 

general, and furthers the objectives of 

Section 6(b)(1)9 in particular, in that it 

enables the Exchange to be so organized 

as to have the capacity to be able to 

carry out the purposes of the Exchange 

Act and to comply, and to enforce 

compliance by its exchange members 

and persons associated with its 

exchange members, with the provisions 

of the Exchange Act, the rules and 

regulations thereunder, and the rules of 

the Exchange. The Exchange also 

believes that the proposed rule change 

is consistent with Section 6(b)(5) of the 

Exchange Act,10 in that it is designed to 

prevent fraudulent and manipulative 

acts and practices, to promote just and 

equitable principles of trade, to foster 

cooperation and coordination with 

persons engaged in facilitating 

transactions in securities, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. 

The proposed non-substantive 

changes would conform the Amended 

Certificate with the records of the 

Secretary of State of Delaware, which 

would further enable the Exchange to be 

so organized as to have the capacity to 

be able to carry out the purposes of the 

Exchange Act and to comply, and to 

enforce compliance by its exchange 

members and persons associated with 

its exchange members, with the 

provisions of the Exchange Act, the 

rules and regulations thereunder, and 

the rules of the Exchange. Such 

amendments would also remove 

impediments to and perfect the 

mechanism of a free and open market by 

removing any confusion that may result 

from any inconsistency between the 

Amended Certificate and the records of 

the Secretary of State of Delaware. The 

Exchange further believes that the 

proposed amendments would not be 

inconsistent with the public interest and 

the protection of investors because 

investors will not be harmed and in fact 

would benefit from increased 

transparency and clarity, thereby 

reducing potential confusion. The 

proposed changes would have no effect 

on the operations of the Exchange. 

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 Exchange Act. 

The proposed rule change is not 

intended to address competitive issues 

but rather is non-substantive and 

concerned solely with the corporate 

governance and administration of the 

Exchange. 

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 proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 11 and Rule 19b–4(f)(3) 12

thereunder in that the proposed rule 

change is concerned solely with the 

administration of the Exchange. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 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, 


amozie on DSK3GDR082PROD with NOTICES1
67392 Federal Register / Vol. 83, No. 248 / Friday, December 28, 2018 / Notices 

13 15 U.S.C. 78s(b)(2)(B). 

14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Notice of Filing infra note 5, at 83 FR 55918. 

4 In Partial Amendment No. 1, OCC corrected an 

error in Exhibit 5 without changing the substance 

of the Proposed Rule Change. References to the 

Proposed Rule Change from this point forward refer 

to the Proposed Rule Change, as amended by Partial 

Amendment No. 1. 

5Securities Exchange Act Release No. 84524 

(Nov. 2, 2018), 83 FR 55918 (Nov. 8, 2018) (SR– 

OCC–2018–014) (‘‘Notice of Filing’’). OCC also filed 

a related advance notice (SR–OCC–2018–804) 

(‘‘Advance Notice’’) with the Commission pursuant 

to Section 806(e)(1) of Title VIII of the Dodd-Frank 

Wall Street Reform and Consumer Protection Act, 

entitled the Payment, Clearing, and Settlement 

Supervision Act of 2010 and Rule 19b–4(n)(1)(i) 

under the Act. 12 U.S.C. 5465(e)(1). 15 U.S.C. 

78s(b)(1) and 17 CFR 240.19b–4, respectively. The 

Advance Notice was published in the Federal 

Register on November 26, 2018. Securities 

Exchange Act Release No. 84626 (Nov. 19, 2018), 

83 FR 60541 (Nov. 26, 2018) (SR–OCC–2018–804). 

6 In December 2015, the Commission approved a 

proposed rule change and issued a Notice of No 

Objection to an advance notice filing by OCC to its 

modify margin methodology by more broadly 

incorporating variations in implied volatility within 

STANS. See Securities Exchange Act Release No. 

76781 (Dec. 28, 2015), 81 FR 135 (Jan. 4, 2016) (SR– 

OCC–2015–016) and Securities Exchange Act 

Release No. 76548 (Dec. 3, 2015), 80 FR 76602 (Dec. 

9, 2015) (SR–OCC–2015–804). 

7Using the Black-Scholes options pricing model, 

the implied volatility is the standard deviation of 

the underlying asset price necessary to arrive at the 

market price of an option of a given strike, time to 

maturity, underlying asset price and the current 

risk-free rate. 

8OCC’s Implied Volatility Model excludes: (i) 

Binary options, (ii) options on commodity futures, 

(iii) options on U.S. Treasury securities, and (iv) 

Asians and Cliquets. These products were relatively 

new products at the time that OCC completed its 

last implied volatility margin methodology changes, 

and OCC had de minimus open interest in those 

options. OCC uses its Implied Volatility Model 

specifically for options that have a residual tenor 

of less than three years (‘‘Shorter Tenor Options’’). 

or otherwise in furtherance of the 

purposes of the Act. If the Commission 

takes such action, the Commission shall 

institute proceedings under Section 

19(b)(2)(B) 13 of the Act 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 rule-comments@

sec.gov. Please include File Number SR– 

NYSENAT–2018–27 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–NYSENAT–2018–27. 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–NYSENAT–2018–27, and 

should be submitted on or before 

January 18, 2019. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–28183 Filed 12–27–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84879; File No. SR–OCC– 

2018–014] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Approving Proposed Rule Change, as 

Modified by Partial Amendment No. 1, 

Related to The Options Clearing 

Corporation’s Margin Methodology for 

Incorporating Variations in Implied 

Volatility 

December 20, 2018. 

I. Introduction 

On October 22, 2018, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change SR–OCC–2018– 

014 (‘‘Proposed Rule Change’’) pursuant 

to Section 19(b) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 and Rule 19b–4 2 thereunder to 

propose changes to OCC’s model for 

incorporating variations in implied 

volatility within OCC’s margin 

methodology, the System for Theoretical 

Analysis and Numerical Simulations.3

On October 30, 2018, OCC filed a 

partial amendment (‘‘Partial 

Amendment No. 1’’) to the Proposed 

Rule Change.4 The Proposed Rule 

Change, as modified by Partial 

Amendment No. 1, was published for 

public comment in the Federal Register 

on November 8, 2018,5 and the 

Commission received no comments 

regarding the Proposed Rule Change. 

This order approves the Proposed Rule 

Change. 

II. Background 

The System for Theoretical Analysis 

and Numerical Simulations (‘‘STANS’’) 

is OCC’s methodology for calculating 

margin. STANS includes econometric 

models that incorporate a number of 

risk factors. OCC defines a risk factor in 

STANS as a product or attribute whose 

historical data is used to estimate and 

simulate the risk for an associated 

product. The majority of risk factors 

utilized in STANS are the returns on 

individual equity securities; however, a 

number of other risk factors may be 

considered, including, among other 

things, returns on implied volatility risk 

factors.6

As a general matter, the implied 

volatility of an option is a measure of 

the expected future volatility of the 

option’s underlying security at 

expiration, which is reflected in the 

price of the option.7 Changes in implied 

volatility, therefore, result in changes to 

an option’s value. In effect, the implied 

volatility is responsible for that portion 

of the premium that cannot be attributed 

to the then-current intrinsic value of the 

option (i.e., the difference between the 

price of the underlying and the exercise 

price of the option), discounted to 

reflect its time value. 

STANS includes a model that 

simulates variations in implied 

volatility for most of the option 

contracts that OCC clears (‘‘Implied 

Volatility Model’’).8 The purpose of 


amozie on DSK3GDR082PROD with NOTICES1