Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 30791 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. On December 18, 2018, the 

Clearing Agencies each filed these proposals as 

advance notices (SR–DTC–2017–804, SR–FICC– 

2017–806, SR–NSCC–2017–806) with the 

Commission pursuant to Section 806(e)(1) of the 

Payment, Clearing, and Settlement Supervision Act 

of 2010 (‘‘Clearing Supervision Act’’) and Rule 19b– 

4(n)(1)(i) of the Act (‘‘Advance Notices’’). On 

January 30, 2018, the Commission published in the 

Federal Register notices of filing of the Advance 

Notices. These notices also extended the review 

periods for the Advance Notices pursuant to 

Section 806(e)(1)(H) of the Clearing Supervision 

Act. (12 U.S.C. 5465(e)(1)(H).) See Securities 

Exchange Act Release Nos. 82582 (January 24, 

2018), 83 FR 4297 (January 30, 2018) (SR–DTC– 

2017–804); 82583 (January 24, 2018), 83 FR 4358 

(January 30, 2018) (SR–FICC–2017–806); 82584 

(January 24, 2018), 83 FR 4377 (January 30, 2018) 

(SR–NSCC–2017–806). On April 10, 2018, the 

Commission required further information for 

consideration of the Advance Notices, pursuant to 

Section 806(e)(1)(D) of the Clearing Supervision 

Act, which provided the Commission with a 

renewed 60-day review period beginning on the 

date that the information requested is received by 

the Commission. (12 U.S.C. 5465(e)(1)(D).) As of the 

date of this release, the Commission has not yet 

received the requested information. 

3Securities Exchange Act Release Nos. 82426 

(January 2, 2018), 83 FR 913 (January 8, 2018) (SR– 

DTC–2017–022); 82427 (January 2, 2018), 83 FR 854 

(January 8, 2018) (SR–FICC–2017–022); 82428 

(January 2, 2018), 83 FR 897 (January 8, 2018) (SR– 

NSCC–2017–018). 

4Securities Exchange Act Release No. 82670 

(February 8, 2018), 83 FR 6626 (February 14, 2018) 

(SR–DTC–2017–022; SR–FICC–2017–022; SR– 

NSCC–2017–018). 

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

6Securities Exchange Act Release Nos. 82914 

(March 20, 2018), 83 FR 12978 (March 26, 2018) 

(SR–DTC–2017–022); 82909 (March 20, 2018), 83 

FR 12990 (March 26, 2018) (SR–FICC–2017–022); 

82910 (March 20, 2018), 83 FR 12968 (March 26, 

2018) (SR–NSCC–2017–018). 

7 15 U.S.C. 78s(b)(2). 

8 15 U.S.C. 78s(b)(2)(B)(ii)(II). 

9See supra note 2. 

10 15 U.S.C. 78s(b)(2)(B)(ii)(II). 

All submissions should refer to File 

Number SR–CBOE–2018–046. 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–CBOE–2018–046 and 

should be submitted on or before July 

20, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13978 Filed 6–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83510; File Nos. SR–DTC– 

2017–022; SR–FICC–2017–022; SR–NSCC– 

2017–018] 

Self-Regulatory Organizations; The 

Depository Trust Company; Fixed 

Income Clearing Corporation; National 

Securities Clearing Corporation; 

Notice of Designation of Longer Period 

for Commission Action on 

Proceedings To Determine Whether To 

Approve or Disapprove Proposed Rule 

Changes To Amend the Loss 

Allocation Rules and Make Other 

Changes 

June 25, 2018. 

On December 18, 2017, The 

Depository Trust Company (‘‘DTC’’), 

Fixed Income Clearing Corporation 

(‘‘FICC’’), and National Securities 

Clearing Corporation (‘‘NSCC’’) 

(collectively, ‘‘Clearing Agencies’’), each 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change to amend the loss 

allocation rules and make other changes 

(SR–DTC–2017–022, SR–FICC–2017– 

022, and SR–NSCC–2017–018), 

respectively (‘‘Proposed Rule Changes’’), 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder.2

The Proposed Rule Changes were 

published for comment in the Federal 

Register on January 8, 2018.3 On 

February 8, 2018, the Commission 

designated a longer period within which 

to approve, disapprove, or institute 

proceedings to determine whether to 

approve or disapprove the Proposed 

Rule Changes.4 On March 20, 2018, the 

Commission instituted proceedings 

pursuant to Section 19(b)(2)(B) of the 

Act 5 to determine whether to approve 

or disapprove the Proposed Rule 

Changes.6 The Commission did not 

receive any comments on the Proposed 

Rule Changes. 

Section 19(b)(2) of the Act 7 provides 

that proceedings to determine whether 

to approve or disapprove a proposed 

rule change must be concluded within 

180 days of the date of publication of 

notice of filing of the proposed rule 

change. The time for conclusion of the 

proceedings may be extended for up to 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes the reasons for such 

determination.8 The 180th day for the 

Proposed Rule Changes is July 7, 2018. 

The Commission is extending the 

period for Commission action on the 

Proposed Rule Changes. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the Proposed 

Rule Changes so that the Commission 

has sufficient time to consider the issues 

raised by the Proposed Rule Changes 

and to take action on the Proposed Rule 

Changes. The proposal shall not take 

effect until all regulatory actions 

required with respect to the proposal are 

completed.9

Accordingly, pursuant to Section 

19(b)(2)(B)(ii)(II) of the Act 10 and for the 

reasons stated above, the Commission 

designates September 5, 2018, as the 

date by which the Commission should 

either approve or disapprove proposed 

rule changes SR–DTC–2017–022, SR– 

FICC–2017–022, and SR–NSCC–2017– 

018. 


sradovich on DSK3GMQ082PROD with NOTICES
30792 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 

11 17 CFR 200.30–3(a)(57). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release Nos. 55154 

(January 23, 2007), 72 FR 4743 (February 1, 2007) 

(SR–CBOE–2006–92); 55161 (January 24, 2007), 72 

FR 4754 (February 1, 2007) (SR–ISE–2006–62); 

54886 (December 6, 2006), 71 FR 74979 (December 

13, 2006) (SR–Phlx–2006–74); 54590 (October 12, 

2006), 71 FR 61525 (October 18, 2006) (SR– 

NYSEArca–2006–73); and 54741 (November 9, 

2006), 71 FR 67176 (November 20, 2006) (SR– 

Amex–2006–106). 

4See Securities Exchange Act Release No. 82391 

(December 22, 2017), 82 FR 61622 (December 28, 

2017) (SR–PEARL–2017–39) (extending the Penny 

Pilot Program from December 31, 2017 to June 30, 

2018). 

5The month immediately preceding a 

replacement class’s addition to the Pilot Program 

(i.e., June) is not used for purposes of the six-month 

analysis. For example, a replacement added on the 

second trading day following July 1, 2018, will be 

identified based on trading activity from December 

1, 2017, through May 31, 2018. 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(5). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13975 Filed 6–28–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83517; File No. SR– 

PEARL–2018–14] 

Self-Regulatory Organizations; MIAX 

PEARL, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Exchange 

Rule 510 To Extend the Penny Pilot 

Program 

June 25, 2018. 

Pursuant to the provisions of 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 June 18, 2018, MIAX PEARL, LLC 

(‘‘MIAX PEARL’’ or ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) a 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Rule 510, Interpretations and 

Policies .01, to extend the pilot program 

for the quoting and trading of certain 

options in pennies. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/pearl, at MIAX PEARL’s 

principal office, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is a participant in an 

industry-wide pilot program that 

provides for the quoting and trading of 

certain option classes in penny 

increments (the ‘‘Penny Pilot Program’’ 

or ‘‘Program’’). The Penny Pilot Program 

allows the quoting and trading of certain 

option classes in minimum increments 

of $0.01 for all series in such option 

classes with a price of less than $3.00; 

and in minimum increments of $0.05 for 

all series in such option classes with a 

price of $3.00 or higher. Options 

overlying the PowerShares QQQTM

(‘‘QQQ’’), SPDR® S&P 500® ETF 

(‘‘SPY’’), and iShares® Russell 2000 

ETF (‘‘IWM’’), however, are quoted and 

traded in minimum increments of $0.01 

for all series regardless of the price. The 

Penny Pilot Program was initiated at the 

then existing option exchanges in 

January 2007 3 and currently includes 

more than 300 of the most active option 

classes. The Penny Pilot Program is 

currently scheduled to expire on June 

30, 2018.4 The purpose of the proposed 

rule change is to extend the Penny Pilot 

Program in its current format through 

December 31, 2018. 

In addition to the extension of the 

Penny Pilot Program through December 

31, 2018, the Exchange proposes to 

extend one other date in the Rule. 

Currently, Interpretations and Policies 

.01 states that the Exchange will replace 

any Penny Pilot issues that have been 

delisted with the next most actively 

traded multiply listed option classes 

that are not yet included in the Penny 

Pilot Program, and that the replacement 

issues will be selected based on trading 

activity in the previous six months. 

Such option classes will be added to the 

Penny Pilot Program on the second 

trading day following January 1, 2018.5

Because this date has expired and the 

Exchange intends to continue this 

practice for the duration of the Penny 

Pilot Program, the Exchange is 

proposing to amend the Rule to reflect 

that such option classes will be added 

to the Penny Pilot Program on the 

second trading day following July 1, 

2018. 

The purpose of this provision is to 

reflect the new date on which 

replacement issues may be added to the 

Penny Pilot Program. 

2. Statutory Basis 

The Exchange believes that its 

proposed rule change is consistent with 

Section 6(b) of the Act 6 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act 7 in particular, in that it is 

designed to prevent fraudulent and 

manipulative acts and practices, to 

promote just and equitable principles of 

trade, to foster cooperation and 

coordination with persons engaged in 

facilitating transactions in securities, to 

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. 

In particular, the proposed rule 

change, which extends the Penny Pilot 

Program for six months, allows the 

Exchange to continue to participate in a 

program that has been viewed as 

beneficial to traders, investors and 

public customers and viewed as 

successful by the other options 

exchanges participating in it. 

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. Specifically, 

the Exchange believes that, by extending 

the expiration of the Pilot Program, the 

proposed rule change will allow for 

further analysis of the Penny Pilot 

Program and a determination of how the 

Program should be structured in the 

future. In doing so, the proposed rule 

change will also serve to promote 

regulatory clarity and consistency, 

thereby reducing burdens on the 

marketplace, facilitating investor 


sradovich on DSK3GMQ082PROD with NOTICES