60 day notice

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Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices

its proposed expansion of the use of
Snapshot will make the functionality
simpler, more consistent, and more
useful in a greater number of
circumstances than it is currently.10 To
effectuate these changes, the Exchange
proposes several modifications to Phlx
Rules 1000, 1064, and 1069.11
The Exchange represents that it does
not anticipate that the use of Snapshot
to provisionally execute all orders,
rather than just multi-leg or simple
orders in options on ETFs that are
included in the Options Penny Pilot,
will materially increase the risk that
Snapshot will be overused or abused
relative to its current use.12 Therefore,
the Exchange proposes to utilize the
same methods it currently uses to
surveil its members’ use of the Snapshot
functionality and represents that if
Surveillance detects a significant uptick
in improper usage, the Exchange will
evaluate whether additional controls are
necessary.13
Finally, the Exchange notes that it
expects to make Snapshot available for
all orders before the end of the fourth
quarter of 2018 and represents that it
will notify its members via an Options
Trader Alert, to be posted on the
Exchange’s website, at least seven
calendar days prior to the date when
Snapshot will be available for expanded
use.14

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III. Discussion and Commission
Findings
After careful review, the Commission
finds that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to a national
securities exchange.15 In particular, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act,16 which requires,
among other things, that the rules of a
national securities exchange be
designed to promote just and equitable
principles of trade, to foster cooperation
and coordination with persons engaged
in regulating, clearing, settling,
processing information with respect to,
and facilitating transactions in securities
and, in general, to protect investors and
the public interest, and not be designed
use of Snapshot are currently set forth in Phlx Rule
1069 and will continue to apply.
10 See Notice, supra note 3, at 49597.
11 A more detailed description of the proposal
appears in the Notice.
12 See Notice, supra note 3, at 49597.
13 See id.
14 See id.
15 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
16 15 U.S.C. 78f(b)(5).

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to permit unfair discrimination between
customers, issuers, brokers, or dealers.
The Commission notes that use of the
Snapshot functionality for certain orders
is one of the current exceptions set forth
in Phlx Rule 1000(f), and allows Floor
Brokers, ROTS, and Specialists to
provisionally execute, in the options
trading crowd (as opposed to through
FBMS), multi-leg orders and simple
orders in options on ETFs that are
included in the Options Penny Pilot.17
According to the Exchange, Snapshot
promotes just and equitable principles
of trade and serves the interests of
investors and the public by increasing
the likelihood that investors will be able
to execute their orders and do so in line
with their expectations.18 The Exchange
further represents that Snapshot is
designed to mitigate the risk that the
Trading System will reject a trade due
to a change in market conditions that
occurs between the time when the
parties to a trade negotiate a valid trade
on the trading floor and the time when
the Trading System receives the trade.
The Exchange believes that expanding
the availability of Snapshot to all orders
will broaden the scope of these
protections to the benefit of investors
and will make the exchange’s trading
floor more competitive with other
trading venues because it will make the
trading floor operate more efficiently.19
Further, the Exchange represents that
the proposal is consistent with Rule 611
of Regulation NMS, which requires the
Exchange to establish policies and
procedures that are reasonably designed
to prevent trade-throughs of protected
quotations. The Exchange notes that
although the proposal will change the
time of execution of a trade for purposes
of verifying compliance with tradethough and priority rules, the current
automated compliance verification
process will continue to apply and will
systematically prevent any violation of
the trade-though and priority rules.20
Finally, as noted above, the Exchange
does not believe that the proposal will
increase the risk that Snapshot will be
used improperly and believes that its
existing design controls are sufficient to
continue to closely monitor Snapshot
usage by its members.21
The Commission notes that, at the
time Snapshot was adopted, the
Exchange adopted several measures to
help ensure that Snapshot operates, and
is used by members, in a manner that
is consistent with the Act and Phlx’s
Phlx Rule 1000(f)(iii)(E).
Notice, supra note 3, at 49597.
19 See id. at 49597–98.
20 See id. at 49598.
21 See id. at 49597.

rules.22 The Commission notes that
these measures will continue to apply to
the expanded application of Snapshot to
all orders and should continue to ensure
that the Snapshot functionality will be
used in a manner that is consistent with
the Act and Phlx’s Rules. For example,
Phlx Rule 1069(a)(i)(B) will continue to
prohibit all members from triggering the
Snapshot feature for the purpose of
obtaining favorable, or avoiding
unfavorable, priority or trade-through
conditions. In addition, the Exchange
represents that its surveillance staff will
monitor the expanded use of Snapshot
and will evaluate whether additional
controls are needed if the Exchange
detects a significant uptick in improper
usage.23
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with Section
6(b)(5) of the Act 24 and the rules and
regulations thereunder applicable to
national securities exchanges.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,25 that the
proposed rule change (SR–Phlx–2018–
59) be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–25467 Filed 11–21–18; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–172, OMB Control No.
3235–0169]

Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Form N–5.

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission

17 See

22 See

18 See

23 See

PO 00000

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Snapshot Approval, supra note 5, at 51316.
Notice, supra note 3, at 49597.
24 15 U.S.C. 78f(b)(5).
25 15 U.S.C. 78s(b)(2).
26 17 CFR 200.30–3(a)(12).

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amozie on DSK3GDR082PROD with NOTICES1

Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Form N–5 (17 CFR 239.24 and 274.5)
is the form used by small business
investment companies (‘‘SBICs’’) to
register their securities under the
Securities Act of 1933 (15 U.S.C. 77a et
seq.) (‘‘Securities Act’’) and the
Investment Company Act of 1940 (15
U.S.C. 80a–1 et seq.) (‘‘Investment
Company Act’’). Form N–5 is the
registration statement form adopted by
the Commission for use by an SBIC that
has been licensed as such under the
Small Business Investment Act of 1958
or which has received the preliminary
approval of the Small Business
Administration (‘‘SBA’’) and has been
notified by the SBA that the company
may submit a license application Form
N–5 is an integrated registration form
and may be used as the registration
statement under both the Securities Act
and the Investment Company Act. The
purpose of Form N–5 is to meet the
filing and disclosure requirements of
both the Securities Act and Investment
Company Act, and to provide investors
with information sufficient to evaluate
an investment in an SBIC. The
information that is required to be filed
with the Commission permits
verification of compliance with
securities law requirements and assures
the public availability and
dissemination of the information.
The Commission did not receive any
filings on Form N–5 in the last three
years (and in the three years before that,
received only one Form N–5 filing).
Nevertheless, for purposes of this PRA,
we conservatively estimate that at least
one Form N–5 will be filed in the next
three years, which translates to about
0.333 filings on Form N–5 per year. The
currently approved internal burden of
Form N–5 is 352 hours per response. We
continue to believe this estimate for
Form N–5’s internal hour burden is
appropriate. Therefore, the number of
currently approved aggregate burden
hours, when calculated using the
current estimate for number of filings, is
about 117 internal hours per year. The
currently approved external cost burden
of Form N–5 is $30,000 per filing. We
continue to believe this estimate for
Form N–5’s cost burden is appropriate.
Therefore, we estimate that the
aggregate cost burden, when calculated
using the Commission’s estimate of
0.333 filings per year, is about $10,000
in external costs per year.
Estimates of average burden hours
and costs are made solely for the
purposes of the Paperwork Reduction
Act, and are not derived from a

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comprehensive or even representative
survey or study of the costs of
Commission rules and forms.
Compliance with the collection of
information requirements of Form N–5
is mandatory. Responses to the
collection of information will not be
kept confidential. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
Written comments are invited on: (a)
Whether the collection of information is
necessary for the proper performance of
the functions of the Commission,
including whether the information has
practical utility; (b) the accuracy of the
Commission’s estimate of the burden of
the collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Candace
Kenner, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
[email protected].
Dated: November 16, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–25442 Filed 11–21–18; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84613; File No. SR–MIAX–
2018–36]

Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing of a Proposed
Rule Change To Amend Exchange
Rule 518, Complex Orders
November 16, 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 November 9, 2018, Miami
International Securities Exchange, LLC
(‘‘MIAX Options’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
1 15
2 17

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U.S.C. 78s(b)(1).
CFR 240.19b–4.

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59435

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 Exchange Rule 518, Complex
Orders [sic]
The text of the proposed rule change
is available on the Exchange’s website at
http://www.miaxoptions.com/rulefilings/ at MIAX Options’ 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 proposes to amend
Exchange Rule 518, Complex Orders, to
(i) adopt a new Simple Market Auction
or Timer (‘‘SMAT’’) Event (defined
below); (ii) amend the Response Time
Interval and Defined Time Period for
Complex Auctions (each defined
below); (iii) adopt a new Complex
Liquidity Exposure Process (‘‘cLEP’’);
(iv) make minor changes to the Complex
MIAX Options Price Collar Protection;
and (v) clarify that the Calendar Spread
Variance (‘‘CSV’’) price protection
applies only to strategies in Americanstyle option 3 classes.
Specifically, the Exchange proposes to
amend subsection (a)(16), to adopt a
new Simple Market Auction or Timer
(SMAT) Event. A SMAT Event is
3 The term ‘‘American-style option’’ means an
option contract that, subject to the provisions of
Rule 700 (relating to the cutoff time for exercise
instructions) and to the Rules of the Clearing
Corporation, can be exercised on any business day
prior to its expiration date and on its expiration
date. See Exchange Rule 100.

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