6566 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Securities Exchange Act Release No. 56251 

(August 14, 2007), 72 FR 46523 (August 20, 2007) 

(SR–Amex–2004–27) (Order approving listing of 

Fixed Return Options (‘‘FROs’’)); see also Securities 

Exchange Act Release No. 71957 (April 16, 2014), 

79 FR 22563 (April 22, 2014) (SR–NYSEMKT– 

2014–06) (Order approving name change from FROs 

to Binary Return Derivatives (ByRDs) and re-launch 

of these products, with certain modification, and 

amending Obvious Errors rules to include ByRDs). 

ByRDs are European-style option contracts on 

individual stocks, exchange-traded funds (‘‘ETFs’’) 

and Index-Linked Securities that have a fixed return 

in cash based on a set strike price; satisfy specified 

listing criteria; and may only be exercised at 

expiration pursuant to the Rules of the Options 

Clearing Corporation (the ‘‘OCC’’). 

5See proposed Rule 953ByRDs (Trading Halts 

and Suspensions of Binary Return Derivatives). 

6See Rule 903ByRDs(b). 

7See proposed Rule 903ByRDs (b) (‘‘Consecutive 

Week Expiration Series: The Exchange will list 

Binary Return Derivatives having five (5) 

consecutive weekly expiration series available at 

one time. Each expiration series will expire at the 

end of the week, normally a Friday, with 

consecutive week expirations covering the next five 

(5) calendar weeks. New expiration week series will 

be added for trading on Thursday each week, unless 

Thursday or Friday is an Exchange holiday in 

which case new expiration series would be added 

for trading on Wednesday’’). 

8See proposed Rule 975NY(d)(3)(A). 

9See Rule 975NY(c)(6). 

10See proposed Rule 975NY(d)(1). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–77014; File No. SR– 

NYSEMKT–2016–16] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Amending Certain of Its 

Rules Related to Binary Return 

Derivatives Contracts 

February 2, 2016. 

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 January 

27, 2016, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

certain of its rules related to Binary 

Return Derivatives contracts. The 

proposed rule change is available on the 

Exchange’s Web site 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to amend 

certain of its rules related to Binary 

Return Derivatives contracts (‘‘ByRDs’’), 

which the Exchange introduced in 

2007.4

First, the Exchange proposes to add 

Rule 953ByRDs to make clear that the 

Exchange would halt or suspend trading 

for a ByRDs contract to the same extent 

that it halts or suspends trading under 

Rule 953NY in an option contract on the 

same underlying security.5 The current 

ByRDs rules are silent regarding the 

treatment of ByRDs during trading halts 

and suspensions of options contracts. 

The Exchange therefore believes that the 

proposed change would add clarity and 

transparency to Exchange rules and 

would ensure consistent treatment of 

ByRDs contracts in the event of a halt 

or suspension of trading in options 

contracts on the same underlying 

security. 

Next, the Exchange proposes to 

modify Rule 903ByRDs(b) (Series of 

ByRDs Open for Trading), which 

currently provides that ‘‘[n]ew 

expiration week series will be added for 

trading on Thursday each week, unless 

Friday is an Exchange holiday in which 

case new expiration series would be 

added for trading on Wednesday.’’ 6 The 

Exchange proposes to revise this rule to 

include instances when an Exchange 

holiday falls on a Thursday. 

Specifically, as revised, new series 

would be added for trading ‘‘on 

Thursday each week, unless Thursday 

or Friday is an Exchange holiday in 

which case new expiration series would 

be added for trading on Wednesday.’’ 7

The Exchange notes that this proposed 

change would allow the Exchange to 

add new series during Thanksgiving 

week or anytime Christmas or New 

Year’s falls on a Thursday, which 

increased flexibility would benefit 

market participants. 

The Exchange also proposes to amend 

Rule 975NY (Nullification and 

Adjustment of Options Transactions 

including Obvious Errors) regarding the 

treatment of ByRDs in the event of a 

catastrophic error. Current Rule 

975NY(d)(3)(A) provides that ‘‘[u]pon 

proper notification as described in 

section (d)(2) of this Rule, any 

transaction in ByRDs, qualifying as a 

Catastrophic Error will automatically be 

adjusted by the Exchange to $1.02 per 

contract unless both parties mutually 

agree to nullify the transaction or both 

parties mutually agree to a different 

adjustment price. However, the 

Exchange proposes to modify this rule 

to clarify that any transactions in ByRDs 

qualifying as a Catastrophic Error ‘‘that 

is higher or lower than the Theoretical 

Price by $.50 or more shall be deemed 

a Catastrophic Error, subject to the 

adjustment procedures of paragraph 

(d)(3) unless such adjustment would 

result in a price higher than $1.02, in 

which case the adjustment price shall be 

$1.02.’’ 8 Thus, as proposed, the 

transaction would only be adjusted to 

$1.02 if the adjustment would result in 

a price greater than $1.02. As ByRDs 

will either pay $0 or $100 at expiration, 

a single ByRDs contract should not have 

a value greater than $1.00, therefore the 

Exchange believes that any adjustment 

under the provisions of the Catastrophic 

Error rule should be capped at a price 

no higher than $1.02. Capping the 

adjustment price at $1.02 for 

Catastrophic Errors involving ByRDs 

options is consistent with the 

adjustment process for obvious errors 

involving ByRDs option, which are also 

capped at $1.02.9 Similarly, to ensure 

consistency in Exchange rules, the 

Exchange propose to strike from the 

definition of Catastrophic Error rules, 

the clause that states ‘‘except for Binary 

Return Derivatives where any 

transaction occurring at a price greater 

than $1.02 shall qualify as a 

Catastrophic Error.’’ 10 The change to 

paragraph (d)(1) of the Rule would 

allow transactions in ByRDs to be 

subject to standard Catastrophic Error 

rules (i.e., transactions that are higher or 

lower than the Theoretical Price by $.50 

or more shall be deemed a Catastrophic 

Error). The Exchange notes that, to date, 

no ByRDs transactions have been 

deemed Catastrophic Errors and the 

Exchange did not adjust any ByRDs 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 6567 

11The Exchange notes that ByRDs contracts were 

outside of the scope of the industry wide effort to 

harmonize Obvious and Catastrophic Error rules, 

and the proposed change therefore does not impact 

the harmonization effort. See Securities Exchange 

Act Release No. 74920 (May 8, 2015), 80 FR 27816, 

27822 (May 14, 2015) (SR–NYSEMKT–2015–39). 

12See proposed Rule 462(d)(10)(A) (striking the 

extraneous words ‘‘is or a customer’’). 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(5). 

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

16 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. 

transaction per current Rule 

975NY(d)(3)(A). The proposed change 

would ensure that ByRDs trades that are 

deemed Catastrophic Errors are 

appropriately adjusted.11

Finally, the Exchange proposes to 

delete extraneous text from Rule 

462(d)(10)(A), regarding margin 

accounts, such that the revised text 

would provide that ‘‘[e]xcept as 

provided below, no ByRDs option 

carried long in a customer’s account 

shall be considered of any value for the 

purpose of computing the margin 

required in the account of such 

customer.’’ 12 The Exchange believes the 

proposed change would correct an 

existing typographical error in Exchange 

rules. 

Implementation 

The Exchange proposes to announce 

the implementation of the proposed rule 

change via Trader Update. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) 13 of the Securities Exchange Act of 

1934 (the ‘‘Act’’), in general, and 

furthers the objectives of Section 

6(b)(5),14 in particular, in that it is 

designed to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in facilitating transactions in securities, 

and to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system. 

Specifically, the proposed change to 

Rule 903ByRDs(b) to cover instances 

when an Exchange holiday falls on a 

Thursday would allow the Exchange to 

add new series during Thanksgiving 

week or anytime Christmas or New 

Year’s falls on a Thursday, which 

increased flexibility would remove 

impediments to, and perfect the 

mechanism of, a free and open market 

and a national market system to the 

benefit of market participants. 

In addition, the Exchange believes 

that the proposed rule to make clear that 

ByRDs would be treated the same as 

other options contracts, in the event of 

a trading halt or suspension, would 

remove impediments to, and perfect the 

mechanisms of, a free and open market 

because it would add clarity and 

transparency to Exchange rules. 

Moreover, this proposed change would 

ensure consistent treatment of ByRDs 

contracts in the event of a halt or 

suspension of trading in options 

contracts on the same underlying 

security. 

The proposed change to Rule 

975NY(d)(3)(A), regarding the treatment 

ByRDs transactions deemed 

Catastrophic Errors is designed to 

promote just and equitable principles of 

trade, and to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, as the proposed change would 

ensure that ByRDs trades that are 

deemed Catastrophic Errors are 

appropriately adjusted. 

Finally, the proposed change to 

remove incorrect and extraneous rule 

text from Rule 462(d)(10)(A) adds clarity 

and transparency to Exchange rules and 

reduces potential investor confusion, 

which would remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system. 

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. The 

proposed change is not designed to 

address any competitive issue but rather 

to add clarity and transparency to 

Exchange rules, thereby reducing 

confusion and making the Exchange’s 

rules easier to understand and navigate. 

The Exchange believes that the 

proposed rule change will serve to 

promote regulatory clarity and 

consistency, thereby reducing burdens 

on the marketplace and facilitating 

investor protection. 

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 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 15 and Rule 19b– 

4(f)(6) thereunder.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 

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 rulecomments@sec.gov. Please include File 

Number SR–NYSEMKT–2016–16 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NYSEMKT–2016–16. 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 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
6568 Federal Register / Vol. 81, No. 25 / Monday, February 8, 2016 / Notices 

17 17 CFR 200.30–3(a)(12). 

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 such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR– 

NYSEMKT–2016–16, and should be 

submitted on or before February 29, 

2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–02330 Filed 2–5–16; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No: SSA–2016–0002] 

Agency Information Collection 

Activities: Proposed Request and 

Comment Request 

The Social Security Administration 

(SSA) publishes a list of information 

collection packages requiring clearance 

by the Office of Management and 

Budget (OMB) in compliance with 

Public Law 104–13, the Paperwork 

Reduction Act of 1995, effective October 

1, 1995. This notice includes revisions 

of OMB-approved information 

collections. 

SSA is soliciting comments on the 

accuracy of the agency’s burden 

estimate; the need for the information; 

its practical utility; ways to enhance its 

quality, utility, and clarity; and ways to 

minimize burden on respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. Mail, email, or 

fax your comments and 

recommendations on the information 

collection(s) to the OMB Desk Officer 

and SSA Reports Clearance Officer at 

the following addresses or fax numbers. 

(OMB) Office of Management and 

Budget, Attn: Desk Officer for SSA, Fax: 

202–395–6974, Email address: OIRA_

Submission@omb.eop.gov. 

(SSA) Social Security Administration, 

OLCA, Attn: Reports Clearance Director, 

3100 West High Rise, 6401 Security 

Blvd., Baltimore, MD 21235, Fax: 410– 

966–2830, Email address: 

OR.Reports.Clearance@ssa.gov. 

Or you may submit your comments 

online through www.regulations.gov, 

referencing Docket ID Number [SSA– 

2016–0002]. 

I. The information collections below 

are pending at SSA. SSA will submit 

them to OMB within 60 days from the 

date of this notice. To be sure we 

consider your comments, we must 

receive them no later than April 8, 2016. 

Individuals can obtain copies of the 

collection instruments by writing to the 

above email address. 

1. Statement for Determining 

Continuing Eligibility, Supplemental 

Security Income Payment(s)—20 CFR 

416.204—0960–0416. SSA conducts 

disability redeterminatons to determine 

if Supplemental Security Income (SSI) 

recipients (1) met and continue to meet 

all statutory and regulatory 

requirements for SSI eligibility and (2) 

are receiving the correct SSI payment 

amount. SSA makes these 

redeterminations through periodic use 

of Form SSA–8203BK. SSA conducts 

this legally mandated information 

collection in field offices via personal 

contact (face-to-face or telephone 

interview) using the automated 

Modernized SSI Claim System 

(MSSICS). The respondents are SSI 

recipients or their representative payees. 

Type of Request: Revision of an OMBapproved information collection. 

Modality of completion Number of 

responses 

Frequency of 

response 

Average 

burden per 

response 

(minutes) 

Estimated total 

annual burden 

(hours) 

MSSICS ........................................................................................................... 801,789 1 20 267,263 

MSSICS/Signature Proxy ................................................................................ 666,431 1 19 211,036 

Paper ............................................................................................................... 135,357 1 20 45,119 

Totals ........................................................................................................ 1,603,577 ........................ ........................ 523,418 

2. Information About Joint Checking/ 

Savings Account—20 CFR 416.1201 and 

416.1208—0960–0461. SSA considers a 

person’s resources when evaluating 

eligibility for SSI. Generally, we 

consider funds in checking and savings 

accounts as resources owned by the 

individuals whose names appear on the 

account. However, individuals applying 

for SSI may rebut this assumption of 

ownership in a joint account by 

submitting certain evidence to establish 

the funds do not belong to them. SSA 

uses Form SSA–2574 to collect 

information from SSI applicants and 

recipients who object to the assumption 

that they own all or part of the funds in 

a joint checking or savings account 

bearing their names. SSA collects 

information about the account from both 

the SSI applicant or recipient and the 

other account holder(s). After receiving 

the completed form, SSA determines if 

we should consider the account to be a 

resource for the SSI applicant and 

recipient. The respondents are 

applicants and recipients of SSI, and 

individuals who list themselves as joint 

owners of financial accounts with SSI 

applicants or recipients. 

Type of Request: Revision of an OMBapproved information collection. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES