5602 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6). 

5See Securities Exchange Act Release No. 73999 

(January 6, 2015), 80 FR 1559 (January 12, 2015) 

(Order Granting Approval of Proposed Rule Change 

Regarding the Short Term Option Series Program) 

(SR–ISE–2014–52). 

6See Rule 5.5(d)(1). 

7See Rule 5.5(d). 

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 rulecomments@sec.gov. Please include File 

Number SR–Phlx–2015–09 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–Phlx–2015–09. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–Phlx– 

2015–09 and should be submitted on or 

before February 23, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–01863 Filed 1–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74144; File No. SR–CBOE– 

2015–009] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Regarding the Short 

Term Option Series Program 

January 27, 2015. 

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 January 

21, 2015, Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Exchange filed the 

proposal as a ‘‘non-controversial’’ 

proposed rule change pursuant to 

Section 19(b)(3)(A)(iii) of the Act 3 and 

Rule 19b–4(f)(6) thereunder.4 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 

CBOE proposes to amend Rule 5.5(d) 

(Short Term Option Series Program) to 

extend current $0.50 strike price 

intervals in non-index options to short 

term options with strike prices less than 

$100. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

(http://www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

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 proposes to amend its 

rules governing the Short Term Option 

Series Program to introduce finer strike 

price intervals for certain short term 

options. In particular, the Exchange 

proposes to amend Rule 5.5(d) to extend 

$0.50 strike price intervals in non-index 

options to short term options with strike 

prices less than $100 instead of the 

current $75. This proposed change is 

intended to eliminate gapped strikes 

between $75 and $100 that result from 

conflicting strike price parameters 

under the Short Term Option Series and 

$2.50 Strike Price Programs as described 

in more detail below. This is a 

competitive filing that is based on a 

recently approved filing by the 

International Securities Exchange, LLC 

(‘‘ISE’’).5

Under CBOE’s rules, the Exchange 

may list short term options in up to fifty 

option classes in addition to option 

classes that are selected by other 

securities exchanges that employ a 

similar program under their respective 

rules.6 On any Thursday or Friday that 

is a business day, the Exchange may list 

short term option series in designated 

option classes that expire at the close of 

business on each of the next five Fridays 

that are business days and are not 

Fridays in which monthly or quarterly 

options expire.7 These short term option 

series trade in $0.50, $1, or $2.50 strike 

price intervals depending on the strike 

price and whether the option trades in 

dollar increments in the related monthly 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5603 

8See Rule 5.5(d)(5). 

9See Rule 5.5.05(a) ($2.50 Strike Price Program). 

10See Rule 5.5.05(b). 

11 15 U.S.C. 78f(b). 

12 15 U.S.C. 78f(b)(5). 

13See Rule 5.5(d)(6). 

expiration.8 Specifically, short term 

options in non-index option classes 

admitted to the Short Term Options 

Series Program currently trade in: (1) 

$0.50 or greater strike price intervals 

where the strike price is less than $75, 

and $1 or greater where the strike price 

is between $75 and $150 for all classes 

that participate in the Short Term 

Option Series Program; (ii) $0.50 strike 

price intervals for classes that trade in 

one dollar increments in non-Short 

Term Options and that participate in the 

Short Term Option Series Program; or 

(iii) $2.50 or higher strike price intervals 

where the strike price is above $150. 

The Exchange also operates a $2.50 

Strike Price Program that permits the 

Exchange to select up to sixty options 

classes on individual stocks to trade in 

$2.50 strike price intervals, in addition 

to option classes selected by other 

securities exchanges that employ a 

similar program under their respective 

rules.9 Monthly expiration options in 

classes admitted to the $2.50 Strike 

Price Program trade in $2.50 intervals 

where the strike price is (1) greater than 

$25 but less than $50; or (2) between 

$50 and $100 if the strikes are no more 

than $10 from the closing price of the 

underlying stock in its primary market 

on the preceding day.10 These strike 

price parameters conflict with strike 

prices allowed for short term options as 

dollar strikes between $75 and $100 

otherwise allowed under the Short Term 

Option Series Program may be within 

$0.50 of strikes listed pursuant to the 

$2.50 Strike Price Program. In order to 

remedy this conflict, the Exchange 

proposes to extend the $0.50 strike price 

intervals currently allowed for short 

term options with strike prices less than 

$75 to short term options with strike 

prices less than $100. With this 

proposed change, short term options in 

non-index option classes will trade in: 

(1) $0.50 or greater strike price intervals 

where the strike price is less than $100, 

and $1 or greater where the strike price 

is between $100 and $150 for all classes 

that participate in the Short Term 

Option Series Program; (ii) $0.50 strike 

price intervals for classes that trade in 

one dollar increments in non-Short 

Term Options and that participate in the 

Short Term Option Series Program; or 

(iii) $2.50 or higher strike price intervals 

where the strike price is above $150. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.11 In particular, 

the proposal is consistent with Section 

6(b)(5) of the Act,12 because 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. 

During the month prior to expiration, 

the Exchange is permitted to list related 

monthly option contracts in the 

narrower strike price intervals available 

for short term option series.13 After 

transitioning to short term strike price 

intervals, however, monthly options 

that trade in $2.50 intervals between 

$50 and $100 under the $2.50 Strike 

Price Program, trade with dollar strikes 

between $75 and $150. Due to the 

overlap of $1 and $2.50 intervals, the 

Exchange cannot list certain dollar 

strikes between $75 and $100 that 

conflict with the prior $2.50 strikes. 

For example, if the Exchange initially 

listed monthly options on ABC with 

$75, $77.50, and $80 strikes, the 

Exchange could list the $76 and $79 

strikes when these transition to short 

term intervals. The Exchange would not 

be permitted to list the $77 and $78 

strikes, however, as these are $0.50 

away from the $77.50 strike already 

listed on the Exchange. This creates 

gapped strikes between $75 and $100, 

where investors are not able to trade 

otherwise allowable dollar strikes on the 

Exchange. Similarly, these conflicting 

strike price parameters create issues for 

investors who want to roll their 

positions from monthly to weekly 

expirations. 

In the example above, for instance, an 

investor that purchased a monthly ABC 

option with a $77.50 strike price would 

not be able to roll that position into a 

later short term expiration with the 

same strike price as that strike is 

unavailable under current Short Term 

Option Series Program rules. Permitting 

$0.50 intervals for short term options up 

to $100 would remedy both of these 

issues as strikes allowed under the 

$2.50 Strike Price Program would not 

conflict with the finer $0.50 strike price 

interval. 

The Short Term Option Series 

Program has been well-received by 

market participants and the Exchange 

believes that introducing finer strike 

price intervals for short term options 

with strike prices between $75 and 

$100, and thereby eliminating the 

gapped strikes described above, will 

benefit these market participants by 

giving them more flexibility to closely 

tailor their investment and hedging 

decisions. 

With regard to the impact of this 

proposal on system capacity, the 

Exchange has analyzed its capacity and 

represents that it and the Options Price 

Reporting Authority (‘‘OPRA’’) have the 

necessary systems capacity to handle 

any potential additional traffic 

associated with this proposed rule 

change. The Exchange believes that its 

members will not have a capacity issue 

as a result of this proposal. The 

Exchange also represents that it does not 

believe this expansion will cause 

fragmentation of liquidity. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE 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. As described 

above, the current rule change is being 

proposed as a competitive response to a 

recently approved ISE filing. Also, the 

Exchange believes that the proposed 

rule change will result in additional 

investment options and opportunities to 

achieve the investment objectives of 

market participants seeking efficient 

trading and hedging vehicles, to the 

benefit of investors, market participants, 

and the marketplace in general. Finally, 

the Exchange believes that the proposed 

rule change is necessary to permit fair 

competition among the options 

exchanges with respect to the Short 

Term Option Series Program. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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, the 

proposed rule change has become 

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

mstockstill on DSK4VPTVN1PROD with NOTICES

5604 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

14 15 U.S.C. 78s(b)(3)(A). 15 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 16For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

of the Act 14 and Rule 19b–4(f)(6) 

thereunder.15

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange stated that waiver 

of this requirement will allow the 

Exchange to compete with other 

exchanges with similar provisions 

without putting the Exchange at a 

competitive disadvantage. For this 

reason, the Commission believes that 

the proposed rule change allowing the 

Exchange to open additional series of 

individual stock and ETF options in 

$.50 strike price intervals up to $100 in 

the same manner as other exchanges 

presents no novel issues and that waiver 

of the 30-day operative delay is 

consistent with the protection of 

investors and the public interest; and 

will allow the Exchange to remain 

competitive with other exchanges. 

Therefore, the Commission designates 

the proposed rule change to be operative 

upon filing.16

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 rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2015–009 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–CBOE–2015–009. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–CBOE– 

2015–009 and should be submitted on 

or before February 23, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–01862 Filed 1–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74147; File No. SR–BX– 

2015–006] 

Self-Regulatory Organizations; 

NASDAQ OMX BX; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Regarding the Short 

Term Option Series Program 

January 27, 2015. 

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 January 

21, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’ 

or the ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is proposing changes to 

amend Chapter IV, Section 6 (Series of 

Options Contracts Open for Trading) to 

introduce finer $.50 strike price 

intervals in non-index Short Term 

Options with strike prices less than 

$100. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://

nasdaqomxbx.cchwallstreet.com, at the 

principal office of the Exchange, and at 

the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

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. 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. 

mstockstill on DSK4VPTVN1PROD with NOTICES