Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees, 76339-76341 [2013-29960]
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Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Notices
Market Depth Tier 1
The Exchange believes that its
proposal amendments to the Market
Depth Tier would increase intermarket
competition because the increased
volume requirements would incentivize
Members to send higher volume to the
Exchange. The Exchange believes that
its proposal would neither increase nor
decrease intramarket competition
because the rate for the Market Depth
Tier would continue to be available all
Members equally and the ability of
Members to meet the tier would benefit
other Members by contributing to
increased price discovery and better
market quality at the Exchange.
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 9 and Rule 19b–4(f)(2) 10
thereunder. 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.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
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–
EDGX–2013–44 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
14:45 Dec 16, 2013
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–29902 Filed 12–16–13; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71053; File No. SR–ISE–
2013–63]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend the Schedule of
Fees
December 12, 2013.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that, on
November 27, 2013, the International
Securities Exchange, LLC (the
‘‘Exchange’’ or the ‘‘ISE’’) filed with the
Securities and Exchange Commission
the proposed rule change, as described
in Items I, II, and III below, which items
have been prepared by the selfregulatory 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
The ISE proposes to exclude from its
ADV calculations any trading day on
which the Exchange is closed early for
holiday observance. 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 Exchange proposes to exclude
from its average daily volume (‘‘ADV’’)
calculations any trading day on which
the Exchange is closed early for holiday
observance. The Exchange provides
volume-based tiered rebates for Priority
Customer complex orders when these
orders trade with non-Priority Customer
orders in the complex order book, or
trade with quotes and orders on the
regular order book. These complex order
rebates are provided to members in six
tiers in both Standard and Mini Options
based on the member’s ADV in Priority
Customer complex contracts. On
September 30, 2013 the Exchange filed
with the Commission an immediately
1 15
10 17
VerDate Mar<15>2010
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–EDGX–2013–44. 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 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;
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–EDGX–
2013–44 and should be submitted on or
before January 7, 2014.
11 17
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76339
2 17
E:\FR\FM\17DEN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
17DEN1
76340
Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Notices
wreier-aviles on DSK5TPTVN1PROD with NOTICES
effective rule filing that, among other
things, amended its Schedule of Fees to
permit the Exchange to exclude from its
ADV calculation, when determining
Priority Customer complex order tiers,
any day that the market is not open for
the entire trading day.3 On November 1,
2013 the Exchange further amended its
Schedule of Fees to increase its Market
Maker Plus rebate in Standard Options
and Mini Options for Market Makers
that meet the quoting requirements for
Market Maker Plus and are affiliated
with an Electronic Access Member that
executes a total affiliated Priority
Customer ADV of 200,000 contracts in
a calendar month.4 When introducing
this new Market Maker Plus rebate the
Exchange also included language
indicating that, for purposes of
determining total affiliated Priority
Customer ADV, any day that the market
is not open for the entire trading day
may be excluded from such calculation.
Currently, each of these provisions
allows the Exchange to exclude days
where the Exchange declares a trading
halt in all securities or honors a marketwide trading halt declared by another
market. In these filings, however, the
Exchange noted that, in contrast to the
NASDAQ OMX PHLX, LLC (‘‘PHLX’’)
and NASDAQ Options Market (‘‘NOM’’)
filings on which this language was
based,5 it would not exclude days on
which the Exchange is closed early for
holiday observance. The Exchange has
since determined that it would be more
equitable to exclude these days as well.
While members are aware in advance of
days subject to an early scheduled
close—for example, the Friday after
Thanksgiving—these are still low
volume days, and including these days
in the ADV calculation would have the
detrimental effect of lowering members’
daily and monthly ADV and thereby
qualifying members for lower rebates.
The Exchange believes that this effective
cost increase during months where the
Exchange has scheduled early market
closes is undesirable to the Exchange
and its members, and is therefore
proposing to interpret this provision in
the same manner as NOM and PHLX.6
The Exchange notes that it will not be
making any textual changes to its fees as
this proposed change brings its
3 See Securities Exchange Act Release No. 70657
(October 10, 2013), 78 FR 62899 (October 22, 2013)
(ISE–2013–51).
4 See Securities Exchange Act Release No. 70872
(November 14, 2013), 78 FR 69718 (November 20,
2013) (ISE–2013–57).
5 See Securities Exchange Act Release Nos. 70472
(September 23, 2013), 78 FR 59738 (September 27,
2013) (PHLX–2013–93); 70470 (September 23,
2013), 78 FR 59740 (September 27, 2013)
(NASDAQ–2013–117).
6 Id.
VerDate Mar<15>2010
14:45 Dec 16, 2013
Jkt 232001
interpretation in line with that of other
markets with substantially similar
language to that already included in the
Schedule Fees [sic].7
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,8
in general, and Section 6(b)(4) of the
Act,9 in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities. The Exchange
believes that it is equitable and
reasonable to eliminate days subject to
an early scheduled closed [sic] from its
ADV calculation because it preserves
the Exchange’s intent behind adopting
volume-based pricing, and conforms the
rules of the Exchange with those of
other markets. The Exchange further
believes that the proposed change is
non-discriminatory because it applies
equally to all members and to all
volume tiers.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,10 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes that the
proposed modification to its ADV
calculation is pro-competitive and will
result in lower total costs to end users,
a positive outcome of competitive
markets. Moreover, this proposed rule
change conforms the rules of the
Exchange with those of other markets
that have adopted substantially similar
rules for excluding certain days from
their ADV calculations. The Exchange
operates in a highly competitive market
in which market participants can
readily direct their order flow to
competing venues. In such an
environment, the Exchange must
continually review, and consider
adjusting, its fees and rebates to remain
competitive with other exchanges. For
the reasons described above, the
Exchange believes that the proposed fee
changes reflect this competitive
environment.
7 Id.
U.S.C. 78f.
U.S.C. 78f(b)(4).
10 15 U.S.C. 78f(b)(8).
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)(ii) of the Act 11 and
subparagraph (f)(2) of Rule 19b–4
thereunder,12 because it establishes a
due, fee, or other charge imposed by
ISE.
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
to determine whether the proposed rule
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 (https://www.sec.gov/
rules/sro.shtml ); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ISE–2013–63 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–ISE–2013–63. 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
8 15
9 15
PO 00000
Frm 00072
Fmt 4703
11 15
12 17
Sfmt 4703
E:\FR\FM\17DEN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
17DEN1
Federal Register / Vol. 78, No. 242 / Tuesday, December 17, 2013 / Notices
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 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;
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–ISE–
2013–63 and should be submitted on or
before January 7, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–29960 Filed 12–16–13; 8:45 am]
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to add a new
entrant to the Alternative Display
Facility (‘‘ADF’’).
The new ADF entrant, LavaFlow
(‘‘FLOW’’) has prepared a summary of
its policies and procedures regarding
access to its quotations in an NMS stock
displayed on the ADF, and a summary
of its proposed fees for such access,
which was filed as Exhibit 3.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA 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,
FINRA 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. FINRA 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
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71042; File No. SR–FINRA–
2013–052]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing of a
Proposed Rule Change Relating to
Alternative Display Facility New
Entrant
December 11, 2013.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
solicit comments on the proposed rule
change from interested persons.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (‘‘Act’’
or ‘‘SEA’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that,
on December 2, 2013, 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, II, and III below, which Items
have been prepared by FINRA. The
Commission is publishing this notice to
1. Purpose
The ADF is a quotation collection and
trade reporting facility that provides
ADF Market Participants (i.e., ADFregistered market makers or electronic
communications networks (‘‘ECNs’’)) 3
the ability to post quotations, display
orders and report transactions in NMS
stocks 4 for submission to the Securities
Information Processors for consolidation
and dissemination to vendors and other
market participants. In addition, the
ADF delivers real-time data to FINRA
for regulatory purposes, including
enforcement of requirements imposed
by SEC Regulation NMS.5
The ADF was initially approved by
the Commission on July 24, 2002, in
connection with the SEC’s approval of
SuperMontage and Nasdaq’s registration
as a national securities exchange.6 At
3 See
FINRA Rule 6220(a)(3).
17 CFR 242.600.
5 See 17 CFR 242.600.
6 See Securities Exchange Act Release No. 46249
(July 24, 2002), 67 FR 49822 (July 31, 2002) (Order
4 See
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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14:45 Dec 16, 2013
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76341
that time, the ADF was approved for
Nasdaq-listed securities for a ninemonth pilot period to provide FINRA
members with an alternative to the
Nasdaq systems for reporting quotations
and transactions in Nasdaq UTP Plan
securities.
In 2005, the Commission adopted
Regulation NMS, which included the
Order Protection Rule.7 With the
adoption of the Order Protection Rule,
Regulation NMS established tradethrough protection for all NMS stocks.8
Since the ADF is a display-only facility,
a market participant would have to
access the actual ADF participant that
posted the protected quotation on the
ADF in order to comply with the Order
Protection Rule.9 In the NMS Adopting
Release, the Commission noted that
market participants could potentially
access an ADF participant either
through direct access or through a
private network.10
Given that market participants could
be required to access multiple ADF
participants to comply with the Order
Protection Rule, the Commission
formulated Rule 610 under SEC
Regulation NMS to ensure that market
participants would be afforded ‘‘fair and
efficient access’’ to such trading
centers.11 Accordingly, Rule 610
requires that a trading center displaying
quotations in an NMS stock through an
SRO display-only facility (such as the
ADF) ‘‘provide a level and cost of access
to such quotations that is substantially
equivalent to the level and cost of access
to quotations displayed by SRO trading
facilities in that stock.’’ 12 Rule 610 also
requires that a trading center displaying
quotations in an NMS stock through an
SRO display-only facility not impose
unfairly discriminatory terms that
prevent or inhibit any person from
obtaining efficient access to such
quotations through a member,
subscriber, or customer of the trading
center.13
In articulating this standard, the
Commission noted that the level and
cost of access would ‘‘encompass both
Approving File No. SR–NASD–2002–97); see also
Notice to Members 02–45 (August 2002).
7 The Order Protection Rule provides that a
trading center ‘‘shall establish, maintain, and
enforce written policies and procedures that are
reasonably designed to prevent trade-throughs on
that trading center of protected quotations in NMS
stocks’’ that do not fall within one of the exceptions
set forth in the rule. See 17 CFR 242.611.
8 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37501 (June 29, 2005)
(‘‘NMS Adopting Release’’).
9 NMS Adopting Release, 70 FR at 37541.
10 NMS Adopting Release, 70 FR at 37543.
11 NMS Adopting Release, 70 FR at 37549.
12 17 CFR 242.610(b)(1).
13 17 CFR 242.610(b)(2).
E:\FR\FM\17DEN1.SGM
17DEN1
Agencies
[Federal Register Volume 78, Number 242 (Tuesday, December 17, 2013)]
[Notices]
[Pages 76339-76341]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-29960]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71053; File No. SR-ISE-2013-63]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend the Schedule of Fees
December 12, 2013.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on November 27, 2013, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission the proposed rule change, as described in Items I,
II, and III 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
The ISE proposes to exclude from its ADV calculations any trading
day on which the Exchange is closed early for holiday observance. 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 Exchange proposes to exclude from its average daily volume
(``ADV'') calculations any trading day on which the Exchange is closed
early for holiday observance. The Exchange provides volume-based tiered
rebates for Priority Customer complex orders when these orders trade
with non-Priority Customer orders in the complex order book, or trade
with quotes and orders on the regular order book. These complex order
rebates are provided to members in six tiers in both Standard and Mini
Options based on the member's ADV in Priority Customer complex
contracts. On September 30, 2013 the Exchange filed with the Commission
an immediately
[[Page 76340]]
effective rule filing that, among other things, amended its Schedule of
Fees to permit the Exchange to exclude from its ADV calculation, when
determining Priority Customer complex order tiers, any day that the
market is not open for the entire trading day.\3\ On November 1, 2013
the Exchange further amended its Schedule of Fees to increase its
Market Maker Plus rebate in Standard Options and Mini Options for
Market Makers that meet the quoting requirements for Market Maker Plus
and are affiliated with an Electronic Access Member that executes a
total affiliated Priority Customer ADV of 200,000 contracts in a
calendar month.\4\ When introducing this new Market Maker Plus rebate
the Exchange also included language indicating that, for purposes of
determining total affiliated Priority Customer ADV, any day that the
market is not open for the entire trading day may be excluded from such
calculation. Currently, each of these provisions allows the Exchange to
exclude days where the Exchange declares a trading halt in all
securities or honors a market-wide trading halt declared by another
market. In these filings, however, the Exchange noted that, in contrast
to the NASDAQ OMX PHLX, LLC (``PHLX'') and NASDAQ Options Market
(``NOM'') filings on which this language was based,\5\ it would not
exclude days on which the Exchange is closed early for holiday
observance. The Exchange has since determined that it would be more
equitable to exclude these days as well. While members are aware in
advance of days subject to an early scheduled close--for example, the
Friday after Thanksgiving--these are still low volume days, and
including these days in the ADV calculation would have the detrimental
effect of lowering members' daily and monthly ADV and thereby
qualifying members for lower rebates. The Exchange believes that this
effective cost increase during months where the Exchange has scheduled
early market closes is undesirable to the Exchange and its members, and
is therefore proposing to interpret this provision in the same manner
as NOM and PHLX.\6\ The Exchange notes that it will not be making any
textual changes to its fees as this proposed change brings its
interpretation in line with that of other markets with substantially
similar language to that already included in the Schedule Fees
[sic].\7\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 70657 (October 10,
2013), 78 FR 62899 (October 22, 2013) (ISE-2013-51).
\4\ See Securities Exchange Act Release No. 70872 (November 14,
2013), 78 FR 69718 (November 20, 2013) (ISE-2013-57).
\5\ See Securities Exchange Act Release Nos. 70472 (September
23, 2013), 78 FR 59738 (September 27, 2013) (PHLX-2013-93); 70470
(September 23, 2013), 78 FR 59740 (September 27, 2013) (NASDAQ-2013-
117).
\6\ Id.
\7\ Id.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\8\ in general, and Section
6(b)(4) of the Act,\9\ in particular, in that it is designed to provide
for the equitable allocation of reasonable dues, fees, and other
charges among its members and other persons using its facilities. The
Exchange believes that it is equitable and reasonable to eliminate days
subject to an early scheduled closed [sic] from its ADV calculation
because it preserves the Exchange's intent behind adopting volume-based
pricing, and conforms the rules of the Exchange with those of other
markets. The Exchange further believes that the proposed change is non-
discriminatory because it applies equally to all members and to all
volume tiers.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f.
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\10\ the Exchange
does not believe that the proposed rule change will impose any burden
on intermarket or intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. To the contrary,
the Exchange believes that the proposed modification to its ADV
calculation is pro-competitive and will result in lower total costs to
end users, a positive outcome of competitive markets. Moreover, this
proposed rule change conforms the rules of the Exchange with those of
other markets that have adopted substantially similar rules for
excluding certain days from their ADV calculations. The Exchange
operates in a highly competitive market in which market participants
can readily direct their order flow to competing venues. In such an
environment, the Exchange must continually review, and consider
adjusting, its fees and rebates to remain competitive with other
exchanges. For the reasons described above, the Exchange believes that
the proposed fee changes reflect this competitive environment.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
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)(ii) of the Act \11\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\12\ because it establishes a due, fee, or other charge
imposed by ISE.
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\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
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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 to
determine whether the proposed rule 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 (https://www.sec.gov/rules/sro.shtml ); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-ISE-2013-63 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2013-63. 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
[[Page 76341]]
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 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; 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-ISE-2013-63 and should be
submitted on or before January 7, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-29960 Filed 12-16-13; 8:45 am]
BILLING CODE 8011-01-P