Rule 12h-1(f) 60 Day Federal Register Notice

Federal Register / Vol. 84, No. 240 / Friday, December 13, 2019 / Notices
system ‘‘has been remarkably successful
in promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 33
As noted above, the Exchange
recognizes that removing the LCN 10 Gb
connection from its Fee Schedule would
eliminate a connectivity option
previously available to Users. Indeed,
the proposed change may negatively
impact the Exchange’s revenues, since
Current Users may opt to re-tailor their
systems to reduce the number of
connections, move to 10 Gb IP network
connections, re-tailor become Hosted
Customers, or cross-connect to another
User. Such choices, any of which would
reduce revenue, may be more attractive
to Users as a consequence of the change.
Nonetheless, the Exchange believes
that the change is necessary and
appropriate because, as a consequence
of the manufacturer’s declaration of the
First Switch’s EOL, if the Exchange did
not eliminate the LCN 10 Gb
connections, the Exchange’s ability to
provide support or supplies to Users
that have such connections would be
compromised. Not being able to resolve
connectivity issues related to First
Switches or even replace them would
make the Exchange’s compliance with
Regulation SCI suboptimal. When the
inevitable hardware or software issues
involving the First Switch arose, the
Exchange would not have the
manufacturer resources available to
solve connectivity issues or replace
switches. Users’ connections to the
Exchange could be compromised or
wholly cut off. At the same time, if a
User requested a new or replacement
LCN 10 Gb connection, the Exchange
would not be able to obtain one. It
would be contrary to the protection of
investors and the public interest if the
Exchange were to continue to offer a
connectivity option that it could not
support, or if Users were compromised
or wholly unable to use their
connectivity to connect to the Exchange.
For the reasons described above, the
Exchange believes that the proposed
rule change reflects this competitive
environment.

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C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others

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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–
NYSECHX–2019–23 on the subject line.

Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSECHX–2019–23. 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–NYSECHX–2019–23 and
should be submitted on or before
January 3, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.38
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–26836 Filed 12–12–19; 8:45 am]
BILLING CODE 8011–01–P

Paper Comments

SECURITIES AND EXCHANGE
COMMISSION

• Send paper comments in triplicate
to Secretary, Securities and Exchange

Proposed Collection; Comment
Request

U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
36 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires the Exchange 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.
37 15 U.S.C. 78s(b)(2)(B).
35 17

33 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).

17:42 Dec 12, 2019

The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 34 and Rule
19b–4(f)(6) thereunder.35 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
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.36
At any time within 60 days of the
filing of such 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
under Section 19(b)(2)(B) 37 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.

34 15

No written comments were solicited
or received with respect to the proposed
rule change.

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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action

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Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Rule 12h–1(f), SEC File No. 270–570, OMB
Control No. 3235–0632.
38 17

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CFR 200.30–3(a)(12).

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68264

Federal Register / Vol. 84, No. 240 / Friday, December 13, 2019 / Notices

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
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Rule 12h–1(f) (17 CFR 240.12h–1(f))
under the Securities Exchange Act of
1934 (‘‘Exchange Act’’) provides an
exemption from the Exchange Act
Section 12(g) registration requirements
for compensatory employee stock
options of issuers that are not required
to file periodic reports under the
Exchange Act. The information required
under Exchange Act Rule 12h–1 is not
filed with the Commission. Exchange
Act Rule 12h–1(f) permits issuers to
provide the required information to the
option holders either by: (i) Physical or
electronic delivery of the information;
or (ii) written notice to the option
holders of the availability of the
information on a password-protected
internet site. We estimate that it takes
approximately 2 burden hours per
response to prepare and provide the
information required under Rule 12h–
1(f) and that the information is prepared
and provided by approximately 40
respondents. We estimate that 25% of
the 2 hours per response (0.5 hours) is
prepared by the company for a total
annual reporting burden of 20 hours (0.5
hours per response × 40 responses).
Written comments are invited on: (a)
Whether this proposed collection of
information is necessary for the
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by 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.
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
control number.
Please direct your written comment to
Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,

VerDate Sep<11>2014

17:42 Dec 12, 2019

Jkt 250001

DC 20549 or send an email to: PRA_
[email protected].
Dated: December 9, 2019.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019–26870 Filed 12–12–19; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87693; File No. SR–MIAX–
2019–48]

Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule
1400, Definitions
December 9, 2019.

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 December
3, 2019, Miami International Securities
Exchange, LLC (‘‘MIAX Options’’ or
‘‘Exchange’’) filed with the Securities
and Exchange 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 515, Execution of
Orders and Quotes; Exchange Rule 516,
Order Types Defined; Exchange Rule
517, Quote Types Defined; Exchange
Rule 518, Complex Orders; Exchange
Rule 521, Nullification and Adjustment
of Options Transactions Including
Obvious Errors; and Exchange Rule
1400, Definitions.
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
1 15
2 17

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U.S.C. 78s(b)(1).
CFR 240.19b–4.

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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 1400, Definitions, to
adopt a definition for a Complex Trade,
which will mean, ‘‘(i) the execution of
an order in an option series in
conjunction with the execution of one
or more related order(s) in different
option series in the same underlying
security occurring at or near the same
time in a ratio that is equal to or greater
than one-to-three (.333) and less than or
equal to three-to-one (3.0) and for the
purpose of executing a particular
investment strategy; or (ii) the execution
of a stock-option order to buy or sell a
stated number of units of an underlying
stock or a security convertible into the
underlying stock (‘‘convertible
security’’) coupled with the purchase or
sale of option contract(s) on the
opposite side of the market representing
either (A) the same number of units of
the underlying stock or convertible
security, or (B) the number of units of
the underlying stock or convertible
security necessary to create a delta
neutral position, but in no case in a ratio
greater than eight (8) option contracts
per unit of trading of the underlying
stock or convertible security established
for that series by The Options Clearing
Corporation.’’
The Exchange is a Participant 3 in the
Options Order Protection and Locked/
Crossed Market Plan (‘‘Plan’’), along
with all other option exchanges.4 All
3 The term ‘‘Participant’’ is defined as an Eligible
Exchange whose participation in the Plan has
become effective pursuant to Section 3(c) of the
Plan.
4 On July 30, 2009, the Commission approved the
Plan, which was proposed by Chicago Board
Options Exchange, Incorporated (‘‘CBOE’’),
International Securities Exchange, LLC (‘‘ISE’’), The
NASDAQ Stock Market LLC (‘‘Nasdaq’’), NASDAQ
OMX BX, Inc. (‘‘BX’’), NASDAQ OMX PHLX, Inc.
(‘‘Phlx’’), NYSE Amex, LLC (‘‘NYSE Amex’’), and
NYSE Arca, Inc. (‘‘NYSE Arca’’). See Securities
Exchange Act Release No. 60405 (July 30, 2009), 74
FR 39362 (August 6, 2009). See also Securities
Exchange Act Release No. 61546 (February 19,
2010), 75 FR 8762 (February 25, 2010) (adding
BATS Exchange, Inc. (‘‘BATS’’) as a Participant);
63119 (October 15, 2010), 75 FR 65536 (October 25,
2010)(adding C2 Options Exchange, Incorporated
(‘‘C2’’) as a Participant); 66969 (May 11, 2012), 77
FR 29396 (May 17, 2012) (adding BOX Options

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