Voglio sapere a riguardo di…

Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Notices a put option at a price more than $0.25
below parity places yet another obligation on ISE Market Makers that is not required on Cboe or other Nasdaq markets. The Exchange believes that this additional obligation is not necessary to maintain fair and orderly markets and notes the Exchange has waived this obligation and the removal of this provision would remove an impediment to and perfect the mechanism of a free and open market and a national market system.

khammond on DSKJM1Z7X2PROD with NOTICES

Bid/Ask Differentials The Exchanges proposal to amend Options 2, Section 4b4 and Options 4A, Section 12bi to relocate text concerning bid/ask differentials for long-term option series is consistent with the Act. The Exchanges proposal will centralize the bid/ask differentials within new Options 2, Section 4b4iii and add a sentence to both Options 4, Section 8a and Options 4A, Section 12bi that cites to Options 2, Section 4b4iii for information on bid/ask differentials for the various products. The Exchange is not amending the bid/ask differentials; the rule text is simply being relocated. The Exchange believes that this relocation will provide Primary Market Makers and Competitive Market Makers with centralized information regarding their bid/ask differential requirements.
Business Continuity and Disaster Recovery Plan The Exchanges proposal to relocate Supplementary Material .02 to Options 2, Section 4, concerning business continuity and disaster recovery plans, to General 2, Section 12, which is currently reserved, is consistent with the Act. This rule text will harmonize ISEs rules with that of Phlx, Nasdaq BX, Inc. and The Nasdaq Stock Market LLC which all have business continuity and disaster recovery plans located within General 2, Section 12 of their respective rulebooks.28 Harmonizing the rule locations of the rules of the Nasdaq affiliated markets will make it easier for market participants to review and compare the rules of each Nasdaq market. The Exchange also proposes to reserve Sections 710 and 1322 within General 2. These changes are nonsubstantive as the rule text is not being amended.
Options 4, Section 3
The Exchanges proposal to remove the following products from Options 4, Section 3h: The ETFS Silver Trust, the ETFS Palladium Trust, the ETFS
28 See
supra note 13.

VerDate Sep<11>2014

17:39 Jun 25, 2021

Jkt 253001

Platinum Trust or the Sprott Physical Gold Trust is consistent with the Act because the Exchange no longer lists these products and proposes to remove them the products from its listing rules.
The Exchange will file a proposal with the Commission if it determines to list these products in the future.
The Exchanges proposal to amend Options 4, Section 3h by removing the rule text at the end of the paragraph which provides, all of the following conditions are met, and creating separate paragraphs for Options 4, Section 3h1 and 2 is consistent with the Act. These amendments will de-link these subparagraphs so they are read independently. Today, Options 4, Section 3h1 applies to all ExchangeTraded Fund Shares. The Exchanges proposal to clarify that Options 4, Section 3h2 applies to only international or global indexes or portfolios that include non-U.S.
securities will bring greater clarity to the qualification standards for listing options on Exchange-Traded Fund Shares. Phlx Options 4, Section 3h currently has similar rule text.29
Proposed Options 4, Sections 3h generally concerns securities deemed appropriate for options trading. The proposed new rule text adds language stating that subparagraph h2 of Options 4, Section 3 applies to the extent the Exchange-Traded Fund Share is based on international or global indexes or portfolios that include nonU.S. securities. This language is intended to serve as a guidepost and clarify that 1 subparagraph h2 does not apply to an Exchange-Traded Fund Shares based on a U.S. domestic index or portfolio, and 2 subparagraph h2
includes Exchange-Traded Fund Shares that track a portfolio and do not track an index.
The Exchanges proposal to amend Options 4, Section 3h2A to remove the phrase for series of portfolio depositary receipts and index fund shares based on international or global indexes, is consistent with the Act.
Today, Options 4, Section 3h, subparagraphs h1 30 and hv 31
permit the Exchange to list options on Exchange-Traded Fund Shares based on generic listing standards for portfolio depositary receipts and index fund shares without applying component based requirements in subparagraphs h2BD. By removing the proposed rule text, the Exchange would make clear that subparagraph h2A applies 29 Phlx will also file to conform its rule text to the proposed text within Options 4, Section 3h2.
30 See supra note 16.
31 See supra note 17.

PO 00000

Frm 00133

Fmt 4703

Sfmt 4703

34099

to Exchange-Traded Fund Shares based on international or global indexes, or portfolios that include non-U.S.
securities, that are listed pursuant to generic listing standards and comply with Options 4, Section 3h and subparagraph h1.
The Exchanges proposal to amend the term comprehensive surveillance agreement within Options 4, Section 3h2 AD to instead provide comprehensive surveillance sharing agreement is consistent with the Act as the amendment will bring greater clarity to the term.
The Exchanges proposal to add the phrase if not available or applicable, the Exchange-Traded Funds to Options 4, Section 3h2B, C, and D is consistent with the Act as it will clarify that when component securities are not available, the portfolio of securities upon which the ExchangeTraded Fund Share is based can be used instead. This rule text currently exists within Phlx Options 4, Section 3h.
The Exchanges proposal to amend and relocate the rule text within Options 4, Section 3h2B, C, and D will bring greater clarity to the current rule text by explicitly providing that the index being referenced is the one on which the Exchange-Traded Fund Shares is based. Also, adding or portfolio to Options 4, Section 3h2C, and D will bring greater clarity to the rule text by conforming the rule text of C and D to the language within B.
Technical Amendments The Exchanges proposal to make certain non-substantive technical amendment to Options 4, Section 3C2Aii, Options 4, Section 3g2
and Options 4, Section 3h1 are consistent with the Act. Also, adding Options 4C and reserving it within the rules is a non-substantive amendment which will harmonize ISEs Rulebook structure to Phlxs Rulebook Structure.32
B. Self-Regulatory Organizations Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
Options 2, Section 4a The Exchanges proposal to remove certain rule text from Options 2, Section 4a that refrains Market Makers from purchasing a call option or a put option at a price more than $0.25 below parity 32 See
E:FRFM28JNN1.SGM

supra note 18.

28JNN1