Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Expiration Timeframe of Long-Term Index Options Series
| Published date | 19 August 2021 |
| Citation | 86 FR 46722 |
| Record Number | 2021-17758 |
| Section | Notices |
| Court | Securities And Exchange Commission |
46722
Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Notices
1
15 U.S.C. 78s(b)(1).
2
17 CFR 240.19b–4.
3
See Cboe Options Exchange, Inc. Rule 4.13(b).
See also Nasdaq Phlx LLC and Nasdaq ISE, LLC
Options 4A, Section 12(b).
TA–W No. Workers’ firm Location Investigation
start date
98003 ............................. Malteurop North America, Inc .............................. Milwaukee, WI ...................................................... 7/15/2021
98004 ............................. The Miller Company ............................................. Meriden, CT .......................................................... 7/15/2021
98005 ............................. Stant USA Corporation ......................................... Pine Bluff, AR ....................................................... 7/15/2021
98006 ............................. American International Group—AIG Tech-
nologies. Fort Worth, TX ...................................................... 7/19/2021
98007 ............................. Cubic Trafficware ................................................. Sugar Land, TX .................................................... 7/19/2021
98008 ............................. Fieldwood Energy LLC ......................................... Houston, TX ......................................................... 7/19/2021
98009 ............................. Core Composites Cincinnati, LLC ........................ Batavia, OH .......................................................... 7/20/2021
98010 ............................. Miken Sports ........................................................ Caledonia, MN ...................................................... 7/20/2021
98011 ............................. Terumo BCT, Inc .................................................. Lakewood, CO ...................................................... 7/21/2021
98012 ............................. Western Union ...................................................... Denver, CO .......................................................... 7/22/2021
98013 ............................. Customer Engagement Services, LLC (CES) ...... Phoenix, AZ .......................................................... 7/23/2021
98014 ............................. The Mosaic Company (Uncle Sam Plant) ........... Uncle Sam, LA ..................................................... 7/23/2021
98015 ............................. Ensono ................................................................. Conway, AR ......................................................... 7/26/2021
98016 ............................. Web Industries, Inc .............................................. Middlesex, VT ....................................................... 7/26/2021
98017 ............................. FujiFilm Manufacturing USA, Inc ......................... Greenwood, SC .................................................... 7/27/2021
98018 ............................. Prismview, LLC—A Samsung Electronics Com-
pany. Logan, UT ............................................................. 7/28/2021
98019 ............................. Betsy & Adam/Xscape Evenings ......................... New York, NY ....................................................... 7/28/2021
98020 ............................. GSI ....................................................................... Omaha, NE ........................................................... 7/29/2021
A record of these investigations and
petitions filed are available, subject to
redaction, on the Department’s website
https://www.dol.gov/agencies/eta/
tradeact under the searchable listing or
by calling the Office of Trade
Adjustment Assistance toll free at 888–
365–6822.
Signed at Washington, DC, this 10th day of
August 2021.
Hope D. Kinglock,
Certifying Officer, Office of Trade Adjustment
Assistance.
[FR Doc. 2021–17767 Filed 8–18–21; 8:45 am]
BILLING CODE 4510–FN–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92666; File No. SR–
NASDAQ–2021–062]
Self-Regulatory Organizations; The
Nasdaq Stock Market LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend the
Expiration Timeframe of Long-Term
Index Options Series
August 13, 2021.
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 August 9,
2021, The Nasdaq Stock Market LLC
(‘‘Nasdaq’’ or ‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend The
Nasdaq Options Market LLC (‘‘NOM’’)
Rules at Options 2, Section 5, Market
Maker Quotations and Options 4A,
Section 12, Terms of Index Option
Contracts.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/nasdaq/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
NOM Rules at Options 2, Section 5,
Market Maker Quotations and Options
4A, Section 12, Terms of Index Option
Contracts. Specifically, the Exchange
proposes to amend the expiration
timeframe of Long-Term Options Series
or ‘‘LEAPs.’’
Options 2, Section 5(d)(2)(A)
currently provides, ‘‘Bid/ask
differentials shall not apply to any
options series until the time to
expiration is less than nine (9) months
for index options.’’ Similarly, Options
4A, Section 12(b) currently states,
(1) Notwithstanding the provisions of
paragraph (a)(3), above, NOM may list long-
term index options series that expire from
nine (9) to sixty (60) months from the date
of issuance.
(A) Index long term options series may be
based on either the full or reduced value of
the underlying index. There may be up to ten
(10) expiration months, none further out than
sixty (60) months. Strike price interval and
continuity Rules shall not apply to such
options series until the time to expiration is
less than nine (9) months. Bid/ask
differentials for long-term options contracts
are specified within Options 2, Section
5(d)(2)(A).
The Exchange proposes to amend the
current text of Options 2, Section
5(d)(2)(A) and Options 4A, Section 12(b)
to amend the time to expiration term of
LEAPs on index options from nine to
sixty months to twelve to sixty months.
Likewise, the Exchange proposes to
amend the time to expiration for strike
price interval, continuity rules and bid/
ask differentials for LEAPS on index
options from less than nine to less than
twelve months.
Today, other options markets have
terms similar to those proposed herein.
3
The proposal would align NOM’s rules
with other options markets with respect
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Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Notices
4
See ISE, GEMX and MRX Options 2, Section
5(e)(1).
5
15 U.S.C. 78f(b).
6
15 U.S.C. 78f(b)(5).
7
See supra note 3.
8
See supra note 3.
9
See supra note 3.
10
See ISE, GEMX and MRX Options 2, Section
5(e)(1).
11
See ISE, GEMX and MRX Options 2, Section
5(e)(1).
12
15 U.S.C. 78s(b)(3)(A).
13
17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
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.
14
17 CFR 240.19b–4(f)(6).
15
17 CFR 240.19b–4(f)(6)(iii).
to the opening month for LEAPs on
index options and the time to expiration
for strike price interval, continuity rules
and bid/ask differentials for LEAPS on
index options by changing nine to
twelve months.
The Exchange also proposes to amend
Options 2, Section 5 concerning a
Market Maker’s obligation to make two-
sided markets in any option series with
an expiration of nine months or greater.
Today, Market Makers are not required
to make two-sided markets in Quarterly
Option Series, any Adjusted Option
Series, and any option series with an
expiration of nine months or greater in
equities, ETFs or indexes. With this
proposal, Market Makers are not
required to make two-sided markets in
Quarterly Option Series, any Adjusted
Option Series, and any option series
with an expiration of nine months or
greater in equities, and ETFs. With
respect to indexes, Market Makers
would not be required to make two-
sided markets in Quarterly Option
Series, any Adjusted Option Series, and
any option series with an expiration of
twelve months or greater. The Exchange
proposes to add rule text within Options
2, Section 5 to make clear a Market
Maker’s obligation, respectively, to
make two-sided markets with respect to
LEAPs. Today, Nasdaq ISE, LLC (‘‘ISE’’),
Nasdaq GEMX, LLC (‘‘GEMX’’) and
Nasdaq MRX, LLC (‘‘MRX’’) have
similar rules which describe the way
LEAPs on index options should be
quoted.
4
Implementation
The Exchange proposes to implement
this amendment on or before September
30, 2021. The Exchange will issue an
Options Trader Alert announcing the
date the amendment will be operative.
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 and to protect investors and the
public interest by amending its rules, in
part, to align NOM’s rules with other
options markets with respect to the
opening month of acceptable months for
LEAPs on index options and the time to
expiration for strike price interval,
continuity rules and bid/ask
differentials for LEAPS on index
options. Today, other options markets
have terms similar to those proposed
herein.
7
Amending Options 2, Section
5(d)(2)(A) and Options 4A, Section 12(b)
would harmonize NOM’s rules with
respect to LEAPs on index options to
permit NOM to list these options in the
same manner as other options markets
that have similar rules.
8
The Exchange
notes that this rule change will allow
NOM to list more non-LEAP expirations
as the front-months for LEAP
expirations would begin with month
twelve instead of month nine. The
Exchange believes that this proposal
would allow it to list more months
where there is greater customer demand
as this proposal would amend the
opening month for LEAPs on index
options from nine to twelve months.
Harmonizing NOM’s rules with respect
to LEAPs on index options will allow
NOM to list these options in the same
manner as other options markets that
have similar rules.
9
Amending Options 2, Section 5 to
specifically note that the opening month
for LEAPs on index options would be
twelve months by adding a separate
sentence to address LEAPs for index
options is consistent with the Act. The
proposal would align the Exchange with
the way other options markets require
market makers to quote LEAPs on index
options.
10
NOM Market Makers would
be required to provide two-sided
quotations in additional months with
this proposal as the opening month for
LEAPs on index options is changing
from nine to twelve months.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will not
impose any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. Specifically,
the Exchange does not believe the
proposal to amend Options 2, Section
5(d)(2)(A) and Options 4A, Section 12(b)
will impose any burden on intra-market
competition as all Participants will be
treated in the same manner with respect
to time to expiration for strike price
interval, continuity rules and bid/ask
differentials for LEAPs on index
options. Additionally, the Exchange
does not believe the proposal will
impose any burden on inter-market
competition as market participants are
welcome to become NOM Participants if
they determine that this proposed rule
change has made NOM more attractive
or favorable. Finally, all options
exchanges are free to compete by listing
and trading index options with similar
expirations.
Amending Options 2, Section 5 to
specifically note that the opening month
for LEAPs on index options would be
twelve months by adding a separate
sentence to address LEAPs on index
options does not impose an undue
burden on competition, rather the
proposal aligns the Exchange’s rule with
rules of other options markets with
respect to quoting LEAPs.
11
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 foregoing 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
12
and Rule 19b–
4(f)(6) thereunder.
13
A proposed rule change filed under
Rule 19b–4(f)(6)
14
normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),
15
the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange has requested
that the Commission waive the 30-day
operative delay. Waiver of the operative
delay would allow the Exchange to align
its rules with other options exchanges
with respect to the opening month for
LEAPs on index options and implement
its proposed rule change on or before
September 30, 2021. The Commission
believes that the proposed rule change
presents no novel issues and that waiver
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Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Notices
16
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).
17
17 CFR 200.30–3(a)(12).
1
15 U.S.C. 78s(b)(1).
2
17 CFR 240.19b–4.
of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
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
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–
NASDAQ–2021–062 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–NASDAQ–2021–062. 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–NASDAQ–2021–062, and
should be submitted on or before
September 9, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.
17
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–17758 Filed 8–18–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92664; File No. SR–BX–
2021–034]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Expiration
Timeframe of Long-Term Index
Options Series
August 13, 2021.
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 August
10, 2021, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend BX
Rules at Options 2, Section 4,
Obligations of Market Makers and Lead
Market Makers; Options 2, Section 5,
Market Maker Quotations; and Options
4A, Section 12, Terms of Index Option
Contracts.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/bx/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 BX
Options 2, Section 4, Obligations of
Market Makers and Lead Market
Makers; Options 2, Section 5, Market
Maker Quotations; and Options 4A,
Section 12, Terms of Index Option
Contracts. Specifically, the Exchange
proposes to amend the expiration
timeframe of Long-Term Options Series
or ‘‘LEAPs.’’
Options 2, Section 5(d)(2)(A)
currently provides, ‘‘Bid/ask
differentials shall not apply to any
options series until the time to
expiration is less than nine (9) months
for index options.’’ Similarly, Options
4A, Section 12(b) currently states,
(1) Notwithstanding the provisions of
paragraph (a)(3), above, BX Options may list
long-term index options series that expire
from nine (9) to sixty (60) months from the
date of issuance.
(i) Index long term options series may be
based on either the full or reduced value of
the underlying index. There may be up to ten
(10) expiration months, none further out than
sixty (60) months. Strike price interval and
continuity Rules shall not apply to such
options series until the time to expiration is
less than nine (9) months. Bid/ask
differentials for long-term options contracts
are specified within Options 2, Section
5(d)(2)(A).
The Exchange proposes to amend the
current text of Options 2, Section
5(d)(2)(A) and Options 4A, Section 12(b)
to amend the time to expiration term of
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