Document ID: SEC-2022-0931-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq ISE, LLC
Posted Date: 2022-07-15T04:00Z

[Federal Register Volume 87, Number 135 (Friday, July 15, 2022)]
[Notices]
[Pages 42515-42518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15121]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95238; File No. SR-ISE-2022-14]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Options 
4A, Section 12 and Options 7, Section 3

July 11, 2022.
    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 July 1, 2022, Nasdaq ISE, LLC (``ISE'' or

[[Page 42516]]

``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 amend certain rule text within Options 4A, 
Section 12, Terms of Index Options Contracts, and Options 7, Section 3, 
Regular Order Fees and Rebates.
    The text of the proposed rule change is available on the Exchange's 
website at https://listingcenter.nasdaq.com/rulebook/ise/rules, 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 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 certain rule text within Options 4A, 
Section 12, Terms of Index Options Contracts, related to the Short Term 
Option Series Program, and update the Pricing Schedule to replace 
references to the symbol ``FB'' with ``META'' within Options 7, Section 
3, Regular Order Fees and Rebates. Each change is described below.
Options 4A, Section 12
    In 2013, ISE amended the Short Term Option Series Program for 
equity options within Rule 504 (currently Options 4, Section 5) to 
change the number of currently listed option classes on which Short 
Term Option Series may be opened on any Short Term Option Opening Date 
from thirty to fifty options classes.\3\ At that time, the Exchange 
neglected to update the index options rules to make similar changes to 
the Short Term Option Series Program given that the amount of options 
classes that may participate in the Short Term Option Series Program is 
aggregated between equity options and index options and is not 
apportioned between equity and index options.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 71034 (December 11, 
2013), 78 FR 76363 (December 17, 2013) (SR-ISE-2013-69) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to the 
Short Term Option Series Program).
---------------------------------------------------------------------------

    Today, Supplementary Material .01(a) to Options 4A, Section 12 
provides,

Classes. The Exchange may select up to thirty (30) currently listed 
option classes on which Short Term Option Series may be opened on 
any Short Term Option Opening Date. In addition to the 30 option 
class restriction, the Exchange may also list Short Term Option 
Series on any option classes that are selected by other securities 
exchanges that employ a similar program under their respective 
rules. For each index option class eligible for participation in the 
Short Term Option Series Program, the Exchange may open up to 30 
Short Term Option Series on index options for each expiration date 
in that class. The Exchange may also open Short Term Option Series 
that are opened by other securities exchanges in option classes 
selected by such exchanges under their respective short term option 
rules.

    At this time, the Exchange proposes to amend Supplementary Material 
.01(a) to Options 4A, Section 12 to increase the number of currently 
listed options classes on which Short Term Option Series may be opened 
on any Short Term Option Opening Date from thirty to fifty options 
classes for index options. The Exchange also proposes to add the word 
``thirty'' before the number ``30'' and place the number 30 in 
parentheses. These amendments would align the limitations within 
Supplementary Material .01(a) to Options 4A, Section 12 regarding index 
options with those currently within Supplementary .03(a) to Options 4, 
Section 5 regarding equity options.
    As noted above, this amendment will not result in a greater number 
of listings in the Short Term Option Series Program because the amount 
of options classes that may participate in the Short Term Option Series 
Program is aggregated between equity options and index options and is 
not apportioned between equity and index options. Amending 
Supplementary Material .01(a) to Options 4A, Section 12 to conform to 
the limitations provided within Supplementary .03(a) to Options 4, 
Section 5 will avoid confusion by making clear the aggregate 
limitations within equity and index options for listing Short Term 
Option Series. Today, Nasdaq Phlx LLC (`Phlx'') and Cboe Exchange, Inc. 
(``Cboe'') have similar limitations within their equity and index Short 
Term Option Series Program.\4\
---------------------------------------------------------------------------

    \4\ See Phlx Options 4A, Section 12(b)(4) and Cboe Exchange, 
Inc. Rules 4.5 and 4.13. See also Securities Exchange Act Release 
No. 95077 (June 9, 2022), 87 FR 36188 (June 15, 2022) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Amend 
Options 4A, Section 12, Terms of Index Options Contracts).
---------------------------------------------------------------------------

Options 7, Section 3
    On June 9, 2022 Meta Platforms, Inc. began trading under its new 
stock symbol, ``META'', replacing its previous ticker symbol, ``FB''. 
At this time, the Exchange proposes to replace references to the symbol 
``FB'' with ``META'' within Options 7, Section 3, Regular Order Fees 
and Rebates.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\6\ 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f(b)
    \6\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Options 4A, Section 12
    In 2013, ISE amended the Short Term Option Series Program for 
equity options within Rule 504 (currently Options 4, Section 5) to 
change the number of currently listed option classes on which Short 
Term Option Series may be opened on any Short Term Option Opening Date 
from thirty to fifty options classes.\7\ At that time, the Exchange 
neglected to update the index options rules to make similar changes to 
the Short Term Option Series Program given that the amount of options 
classes that may participate in the Short Term Option Series Program is 
aggregated between equity options and index options and is not 
apportioned between equity and index options. Amending Supplementary 
Material .01(a) to Options 4A, Section 12 to conform to the limitations 
provided within Supplementary .03(a) to Options 4, Section 5 will avoid 
confusion by making clear the aggregate limitations within equity and 
index options for

[[Page 42517]]

listing Short Term Option Series. Also, aligning the limitations within 
Supplementary Material .01(a) to Options 4A, Section 12 with those 
currently within Supplementary .03(a) to Options 4, Section 5 will not 
result in a greater number of listings in the Short Term Option Series 
Program because the amount of options classes that may participate in 
the Short Term Option Series Program is aggregated between equity 
options and index options and is not apportioned between equity and 
index options. Today, Phlx and Cboe have similar limitations within 
their equity and index Short Term Option Series Program.\8\
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release Nos. 71034 (December 11, 
2013), 78 FR 76363 (December 17, 2013) (SR-ISE-2013-69) (Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to the 
Short Term Option Series Program).
    \8\ See note 4 above.
---------------------------------------------------------------------------

Options 7, Section 3
    The Exchange's proposal to update references to the symbol ``FB'' 
to ``META'' within the Pricing Schedule at Options 7, Section 3, 
Regular Order Fees and Rebates, is consistent with the Act. This 
amendment will make clear that the symbol ``META'' continues to be 
subject to the pricing noted with respect to the symbol ``FB'' within 
Options 7, Section 3.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act.
Options 4A, Section 12
    Amending Supplementary Material .01(a) to Options 4A, Section 12 to 
conform to the limitations provided within Supplementary .03(a) to 
Options 4, Section 5 does not impose an undue burden on competition 
because the same limitations apply today to other options exchanges. 
Today, Phlx and Cboe have similar limitations within their equity and 
index Short Term Option Series Program.\9\
---------------------------------------------------------------------------

    \9\ See note 4 above.
---------------------------------------------------------------------------

Options 7, Section 3
    The Exchange's proposal to update references to the symbol ``FB'' 
to ``META'' within the Pricing Schedule at Options 7, Section 3, 
Regular Order Fees and Rebates, does not impose an undue burden on 
competition as the proposal does not amend the current pricing.

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 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 \10\ and subparagraph (f)(6) of Rule 19b-4 
thereunder.\11\
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule19b-4(f)(6)(iii) 
requires a self-regulatory organization to give 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 requirement.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \12\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \13\ 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 asked the Commission to waive the 30-day operative delay so that it 
may immediately amend its Pricing Schedule to update references to the 
symbol ``FB'' to ``META'' within Options 7, Section 3, Regular Order 
Fees and Rebates, to avoid confusion as to the pricing of the symbol 
``META.'' The Commission believes that waiving the 30-day operative 
delay is consistent with the protection of investors and the public 
interest as the proposed rule change does not raise any new or novel 
issues. Accordingly, the Commission hereby waives the operative delay 
and designates the proposed rule change operative upon filing.\14\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.19b-4(f)(6).
    \13\ 17 CFR 240.19b-4(f)(6)(iii).
    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    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 protected]. Please include 
File Number SR-ISE-2022-14 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-ISE-2022-14. 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-ISE-2022-14, and should be submitted on 
or before August 5, 2022.

[[Page 42518]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
---------------------------------------------------------------------------

    \15\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-15121 Filed 7-14-22; 8:45 am]
BILLING CODE 8011-01-P