Self-Regulatory Organizations; ISE Gemini Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 723 To Add a New PIM ISO Order Type, 61911-61913 [2014-24418]
Download as PDF
<![CDATA[
Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices
Act and the rules and regulations
promulgated thereunder, or (ii) a Series
temporarily delays or ceases the sale of
its Units because it is unable to invest
amounts effectively in accordance with
applicable investment objectives,
policies and restrictions.
2. An investor who purchases Units
under the Exchange Option or Rollover
Option will pay a lower sales charge
than that which would be paid for the
Units by a new investor.
3. The prospectus of each Series
offering exchanges or rollovers and any
sales literature or advertising that
mentions the existence of the Exchange
Option or Rollover Option will disclose
that the Exchange Option and the
Rollover Option are subject to
modification, termination or suspension
without notice, except in certain limited
cases.
4. Any DSC imposed on a Series’
Units will comply with the
requirements of subparagraphs (1), (2)
and (3) of rule 6c–10(a) under the Act.
5. Each Series offering Units subject to
a DSC will include in its prospectus the
disclosure required by Form N–1A
relating to deferred sales charges
(modified as appropriate to reflect the
differences between UITs and open-end
management investment companies)
and a schedule setting forth the number
and date of each Installment Payment.
B. Net Worth Requirement
Applicants will comply in all respects
with the requirements of rule 14a–3
under the Act, except that the Equity
Series will not restrict their portfolio
investments to ‘‘eligible trust
securities.’’
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24423 Filed 10–14–14; 8:45 am]
tkelley on DSK3SPTVN1PROD with NOTICES
BILLING CODE 8011–01–P
VerDate Sep<11>2014
18:00 Oct 14, 2014
Jkt 235001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73320; File No. SR–
NYSEArca–2014–30]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on Proceedings To Determine Whether
To Approve or Disapprove a Proposed
Rule Change To List and Trade Shares
of Hull Tactical US ETF Under NYSE
Arca Equities Rule 8.600
October 8, 2014.
On March 24, 2014, NYSE Arca, Inc.
(‘‘NYSE Arca’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
list and trade shares (‘‘Shares’’) of Hull
Tactical US ETF under NYSE Arca
Equities Rule 8.600. The proposed rule
change was published for comment in
the Federal Register on April 11, 2014.3
On May 21, 2014, pursuant to Section
19(b)(2) of the Act,4 the Commission
designated a longer period within which
to either approve the proposed rule
change, disapprove the proposed rule
change, or institute proceedings to
determine whether to disapprove the
proposed rule change.5 On July 9, 2014,
the Commission instituted proceedings
to determine whether to approve or
disapprove the proposed rule change.6
The Commission received one comment
letter.7
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 71894
(Apr. 7, 2014), 79 FR 20273 (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
5 Securities Exchange Act Release No. 72214 (May
21, 2014), 79 FR 30672 (May 28, 2014). The
Commission determined that it was appropriate to
designate a longer period within which to take
action on the proposed rule change so that it would
have sufficient time to consider the proposed rule
change. Accordingly, the Commission designated
July 10, 2014 as the date by which it should
approve, disapprove, or institute proceedings to
determine whether to disapprove the proposed rule
change.
6 Securities Exchange Act Release No. 72571 (July
9, 2014), 79 FR 41330 (July 15, 2014). The
Commission instituted proceedings to allow for
additional analysis of the proposed rule change’s
consistency with Section 6(b)(5) of the Act, which
requires, among other things, that the rules of a
national securities exchange be ‘‘designed to
prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles
of trade,’’ and ‘‘to protect investors and the public
interest.’’ See id.
7 See Letter from Christopher S. Jones, Associate
Professor, University of Southern California to
Elizabeth M. Murphy, Secretary, Commission (Sept.
16, 2014).
2 17
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
61911
Section 19(b)(2) of the Act 8 provides
that, after initiating disapproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes the reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on
April 11, 2014.9 The 180th day after
publication of the notice of the filing of
the proposed rule change in the Federal
Register is October 8, 2014, and the
240th day after publication of the notice
of the filing of the proposed rule change
in the Federal Register is December 5,
2014.
The Commission finds it appropriate
to designate a longer period within
which to issue an order approving or
disapproving the proposed rule change
so that it has sufficient time to consider
the proposed rule change and the
comment letter received.
Accordingly, the Commission
pursuant to 19(b)(2) of the Act 10
designates December 5, 2014 as the date
by which the Commission shall either
approve or disapprove the proposed
rule change (File No. SR–NYSEArca–
2014–30).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24421 Filed 10–14–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73317; File No. SR–
ISEGemini–2014–26]
Self-Regulatory Organizations; ISE
Gemini Exchange, LLC; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
Rule 723 To Add a New PIM ISO Order
Type
October 8, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
8 15
U.S.C. 78s(b)(2).
supra note 3 and accompanying text.
10 15 U.S.C. 78s(b)(2).
11 17 CFR 200.30–3(a)(12).
9 See
E:\FR\FM\15OCN1.SGM
15OCN1
61912
Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
3, 2014 the ISE Gemini Exchange, LLC
‘‘Exchange’’ or ‘‘ISE Gemini’’) 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 self-regulatory
organization. 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
ISE Gemini proposes to amend its
rules to add a new PIM ISO order type.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.ise.com), 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
self-regulatory organization 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 self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
tkelley on DSK3SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend the Exchange’s rules
to add a new PIM ISO order type.
The Price Improvement Mechanism
(‘‘PIM’’) is a process that allows
Electronic Access Members (‘‘EAM’’) to
provide price improvement
opportunities for a transaction wherein
the Member seeks to execute an agency
order as principal or execute an agency
order against a solicited order (a
‘‘Crossing Transaction’’). A Crossing
Transaction is comprised of the order
the EAM represents as agent (the
‘‘Agency Order’’) and a counter-side
order for the full size of the Agency
Order (the ‘‘Counter-Side Order’’). The
Counter-Side Order may represent
interest for the Member’s own account,
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
18:00 Oct 14, 2014
Jkt 235001
or interest the Member has solicited
from one or more other parties, or a
combination of both. A Crossing
Transaction must be entered only at a
price that is equal to or better than the
national best bid or offer (‘‘NBBO’’) and
better than the limit order or quote on
the ISE Gemini orderbook on the same
side of the Agency Order.
An intermarket sweep order (‘‘ISO’’)
is defined in Rule 1900(h) as a limit
order that is designated as an ISO in the
manner prescribed by the Exchange and
is executed within the system by
Members at multiple price levels
without respect to Protected Quotations
of other Eligible Exchanges as defined in
Rule 1900.3 ISOs are immediately
executable within the Exchange’s
options trading system or cancelled, and
shall not be eligible for routing as set
out in Rule 1900. Simultaneously with
the routing of an ISO to the Exchange’s
options trading system, one or more
additional limit orders, as necessary, are
routed by the entering party to execute
against the full displayed size of any
Protected Bid or Protected Offer in the
case of a limit order to sell or buy with
a price that is superior to the limit price
of the limit order identified as an ISO.
These additional routed orders must be
identified as ISOs.
The Exchange proposes to implement
a PIM ISO order type (‘‘PIM ISO’’) that
will allow the submission of an ISO into
the PIM. Specifically, a PIM ISO is the
transmission of two orders for crossing
pursuant to Rule 723 without regard for
better priced Protected Bids or Protected
Offers because the Member transmitting
the PIM ISO to the Exchange has,
simultaneously with the routing of the
PIM ISO, routed one or more ISOs, as
necessary, to execute against the full
3 Under Rule 1900, a ‘‘Protected Quotation’’
includes a Protected Bid or Protected Offer. A
‘‘Protected Bid’’ or ‘‘Protected Offer’’ means a Bid
or Offer in an options series, respectively, that: (i)
Is disseminated pursuant to the OPRA Plan; and (ii)
is the Best Bid or Best Offer, respectively, displayed
by an Eligible Exchange. ‘‘Bid’’ or ‘‘Offer’’ means
the bid price or the offer price communicated by a
member of an Eligible Exchange to any broker or
dealer, or to any customer, at which it is willing to
buy or sell, as either principal or agent, but shall
not include indications of interest. The ‘‘OPRA
Plan’’ means the plan filed with the SEC pursuant
to Section 11Aa(1)(C)(iii) of the Act, approved by
the SEC and declared effective as of January 22,
1976, as from time to time amended. ‘‘Best Bid’’ and
‘‘Best Offer’’ mean the highest priced Bid and the
lowest priced Offer. Finally, ‘‘Eligible Exchange’’
means a national securities exchange registered
with the SEC in accordance with Section 6(a) of the
Act that: (i) Is a Participant Exchange in The
Options Clearing Corporation (‘‘OCC’’) (as that term
is defined in Section VII of the OCC by-laws); (ii)
is a party to the OPRA Plan; and (iii) if the national
securities exchange is not a party to the OPRA Plan,
is a participant in another plan approved by the
Commission providing for comparable tradethrough and locked and crossed market protection.
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
displayed size of any Protected Bid or
Protected Offer that is superior to the
starting PIM auction price and has
swept all interest in the Exchange’s
book priced better than the proposed
auction starting price. Any execution(s)
resulting from such sweeps shall accrue
to the PIM order, meaning that any
execution(s) obtained from the away
side will be given to the agency side of
the order.
The Exchange will accept a PIM ISO
provided the order adheres to the
current PIM order acceptance
requirements outlined above, but
without regard to the NBBO. The
Exchange will execute the PIM ISO in
the same manner that it currently
executes PIM orders, except that it will
not protect prices away. Instead, order
flow providers will bear the
responsibility to clear all better priced
interest away simultaneously with
submitting the PIM ISO order. There is
no other impact to PIM functionality.
Specifically, liquidity present at the end
of the PIM auction will continue to be
included in the PIM auction as it is with
PIM orders not marked as ISOs.
The Exchange will announce the
implementation of this order type in an
information circular.
2. Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934
(the ‘‘Act’’) 4 in general, and furthers the
objectives of Section 6(b)(5) of the Act 5
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism for a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. The
proposed rule change promotes just and
equitable principles or trade and
removes impediments to a free and open
market in that it promotes competition,
as described below. Specifically, the
proposal allows the Exchange to offer its
members an order type that is already
offered by another exchange.6 In
addition, the proposal benefits traders
and investors because it adds a new
order type for seeking price
improvement through the PIM. Finally,
the proposal does not unfairly
discriminate among members because
all Members are eligible to submit a PIM
ISO order.
4 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
6 See NASDAQ OMX PHLX LLC (‘‘PHLX’’) Rule
1080, Commentary .09.
5 15
E:\FR\FM\15OCN1.SGM
15OCN1
Federal Register / Vol. 79, No. 199 / Wednesday, October 15, 2014 / Notices
B. Self-Regulatory Organization’s
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. The
Exchange’s proposal to adopt a PIM ISO
order type is pro-competitive because it
will enable the Exchange to provide
market participants with an additional
method of seeking price improvement
through the PIM. The proposed rule
change will also allow the Exchange to
compete with other markets that already
allow an ISO order type in their price
improvement mechanisms.7
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
The Exchange has not solicited, and
does not intend to solicit, comments on
this proposed rule change. The
Exchange has not received any
unsolicited written comments from
members or other interested parties.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 8 and Rule 19b–4(f)(6) 9
thereunder because the proposal does
not: (i) Significantly affect the
protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) by its
terms, become operative for 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.10
A proposed rule change filed under
Rule 19b–4(f)(6) normally may not
become operative prior to 30 days after
the date of filing. However, Rule 19b–
4(f)(6)(iii) 11 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest.
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
7 Id.
tkelley on DSK3SPTVN1PROD with NOTICES
8 15
U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(6).
10 In addition, Rule 19b–4(f)(6)(iii) requires the
Exchange to give the Commission written notice of
the Exchange’s 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.
11 17 CFR 240.19b–4(f)(6)(iii).
VerDate Sep<11>2014
18:00 Oct 14, 2014
Jkt 235001
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.12
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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ISEGemini–2014–26 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–ISEGemini-2014–26. 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 Web site (https://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 Web site 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 such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
ISEGemini-2014–26 and should be
12 15
PO 00000
U.S.C. 78s(b)(3)(C).
Frm 00068
Fmt 4703
Sfmt 4703
61913
submitted on or before November 5,
2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24418 Filed 10–14–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73316; File No. SR–FINRA–
2014–040]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Revise the Operative
Date for Deletion of Rule 7740
Pursuant to SR–FINRA–2014–032
October 7, 2014.
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
September 25, 2014, Financial Industry
Regulatory Authority, Inc. (‘‘FINRA’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’)
the proposed rule change as described
in Items I and II below, which Items
have been prepared by FINRA. FINRA
has designated the proposed rule change
as constituting a ‘‘non-controversial’’
rule change under paragraph (f)(6) of
Rule 19b–4 under the Act,3 which
renders the proposal effective upon
receipt of this filing by the Commission.
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
FINRA is proposing to revise the
operative date for the deletion of Rule
7740 (Historical Research and
Administrative Reports) pursuant to
SR–FINRA–2014–032. The proposed
rule change would not make any
changes to the text of FINRA rules.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6).
1 15
E:\FR\FM\15OCN1.SGM
15OCN1
]]>Agencies
[Federal Register Volume 79, Number 199 (Wednesday, October 15, 2014)]
[Notices]
[Pages 61911-61913]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24418]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73317; File No. SR-ISEGemini-2014-26]
Self-Regulatory Organizations; ISE Gemini Exchange, LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To
Amend Rule 723 To Add a New PIM ISO Order Type
October 8, 2014.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 61912]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 3, 2014 the ISE Gemini Exchange, LLC ``Exchange'' or ``ISE
Gemini'') 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 self-regulatory
organization. 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
ISE Gemini proposes to amend its rules to add a new PIM ISO order
type. The text of the proposed rule change is available on the
Exchange's Web site (https://www.ise.com), 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 self-regulatory organization
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 self-regulatory organization
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 purpose of this proposed rule change is to amend the Exchange's
rules to add a new PIM ISO order type.
The Price Improvement Mechanism (``PIM'') is a process that allows
Electronic Access Members (``EAM'') to provide price improvement
opportunities for a transaction wherein the Member seeks to execute an
agency order as principal or execute an agency order against a
solicited order (a ``Crossing Transaction''). A Crossing Transaction is
comprised of the order the EAM represents as agent (the ``Agency
Order'') and a counter-side order for the full size of the Agency Order
(the ``Counter-Side Order''). The Counter-Side Order may represent
interest for the Member's own account, or interest the Member has
solicited from one or more other parties, or a combination of both. A
Crossing Transaction must be entered only at a price that is equal to
or better than the national best bid or offer (``NBBO'') and better
than the limit order or quote on the ISE Gemini orderbook on the same
side of the Agency Order.
An intermarket sweep order (``ISO'') is defined in Rule 1900(h) as
a limit order that is designated as an ISO in the manner prescribed by
the Exchange and is executed within the system by Members at multiple
price levels without respect to Protected Quotations of other Eligible
Exchanges as defined in Rule 1900.\3\ ISOs are immediately executable
within the Exchange's options trading system or cancelled, and shall
not be eligible for routing as set out in Rule 1900. Simultaneously
with the routing of an ISO to the Exchange's options trading system,
one or more additional limit orders, as necessary, are routed by the
entering party to execute against the full displayed size of any
Protected Bid or Protected Offer in the case of a limit order to sell
or buy with a price that is superior to the limit price of the limit
order identified as an ISO. These additional routed orders must be
identified as ISOs.
---------------------------------------------------------------------------
\3\ Under Rule 1900, a ``Protected Quotation'' includes a
Protected Bid or Protected Offer. A ``Protected Bid'' or ``Protected
Offer'' means a Bid or Offer in an options series, respectively,
that: (i) Is disseminated pursuant to the OPRA Plan; and (ii) is the
Best Bid or Best Offer, respectively, displayed by an Eligible
Exchange. ``Bid'' or ``Offer'' means the bid price or the offer
price communicated by a member of an Eligible Exchange to any broker
or dealer, or to any customer, at which it is willing to buy or
sell, as either principal or agent, but shall not include
indications of interest. The ``OPRA Plan'' means the plan filed with
the SEC pursuant to Section 11Aa(1)(C)(iii) of the Act, approved by
the SEC and declared effective as of January 22, 1976, as from time
to time amended. ``Best Bid'' and ``Best Offer'' mean the highest
priced Bid and the lowest priced Offer. Finally, ``Eligible
Exchange'' means a national securities exchange registered with the
SEC in accordance with Section 6(a) of the Act that: (i) Is a
Participant Exchange in The Options Clearing Corporation (``OCC'')
(as that term is defined in Section VII of the OCC by-laws); (ii) is
a party to the OPRA Plan; and (iii) if the national securities
exchange is not a party to the OPRA Plan, is a participant in
another plan approved by the Commission providing for comparable
trade-through and locked and crossed market protection.
---------------------------------------------------------------------------
The Exchange proposes to implement a PIM ISO order type (``PIM
ISO'') that will allow the submission of an ISO into the PIM.
Specifically, a PIM ISO is the transmission of two orders for crossing
pursuant to Rule 723 without regard for better priced Protected Bids or
Protected Offers because the Member transmitting the PIM ISO to the
Exchange has, simultaneously with the routing of the PIM ISO, routed
one or more ISOs, as necessary, to execute against the full displayed
size of any Protected Bid or Protected Offer that is superior to the
starting PIM auction price and has swept all interest in the Exchange's
book priced better than the proposed auction starting price. Any
execution(s) resulting from such sweeps shall accrue to the PIM order,
meaning that any execution(s) obtained from the away side will be given
to the agency side of the order.
The Exchange will accept a PIM ISO provided the order adheres to
the current PIM order acceptance requirements outlined above, but
without regard to the NBBO. The Exchange will execute the PIM ISO in
the same manner that it currently executes PIM orders, except that it
will not protect prices away. Instead, order flow providers will bear
the responsibility to clear all better priced interest away
simultaneously with submitting the PIM ISO order. There is no other
impact to PIM functionality. Specifically, liquidity present at the end
of the PIM auction will continue to be included in the PIM auction as
it is with PIM orders not marked as ISOs.
The Exchange will announce the implementation of this order type in
an information circular.
2. Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act'') \4\ in
general, and furthers the objectives of Section 6(b)(5) of the Act \5\
in particular, in that it is designed to promote just and equitable
principles of trade, to remove impediments to and perfect the mechanism
for a free and open market and a national market system, and, in
general, to protect investors and the public interest. The proposed
rule change promotes just and equitable principles or trade and removes
impediments to a free and open market in that it promotes competition,
as described below. Specifically, the proposal allows the Exchange to
offer its members an order type that is already offered by another
exchange.\6\ In addition, the proposal benefits traders and investors
because it adds a new order type for seeking price improvement through
the PIM. Finally, the proposal does not unfairly discriminate among
members because all Members are eligible to submit a PIM ISO order.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
\6\ See NASDAQ OMX PHLX LLC (``PHLX'') Rule 1080, Commentary
.09.
---------------------------------------------------------------------------
[[Page 61913]]
B. Self-Regulatory Organization's 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. The Exchange's proposal to
adopt a PIM ISO order type is pro-competitive because it will enable
the Exchange to provide market participants with an additional method
of seeking price improvement through the PIM. The proposed rule change
will also allow the Exchange to compete with other markets that already
allow an ISO order type in their price improvement mechanisms.\7\
---------------------------------------------------------------------------
\7\ Id.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and Rule 19b-4(f)(6) \9\ thereunder because
the proposal does not: (i) Significantly affect the protection of
investors or the public interest; (ii) impose any significant burden on
competition; and (iii) by its terms, become operative for 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.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(6).
\10\ In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to
give the Commission written notice of the Exchange's 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 under Rule 19b-4(f)(6) normally may
not become operative prior to 30 days after the date of filing.
However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest.
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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.\12\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-ISEGemini-2014-26 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-ISEGemini-2014-26. 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 Web site (https://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 Web site 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 such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISEGemini-2014-26 and should
be submitted on or before November 5, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-24418 Filed 10-14-14; 8:45 am]
BILLING CODE 8011-01-P
