Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Non-Controversial Changes to ISE Rules, 79037-79038 [2013-30932]

Download as PDF Federal Register / Vol. 78, No. 249 / Friday, December 27, 2013 / Notices comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (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 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 filings will also be available for inspection and copying at the principal office of NSCC and on NSCC’s Web site at (http://dtcc.com/legal/rule_filings/ nscc/2013.php). 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 No. SR–NSCC–2013–14 and should be submitted on or before January 17, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–30934 Filed 12–26–13; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Non-Controversial Changes to ISE Rules tkelley on DSK3SPTVN1PROD with NOTICES 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 December 5, 2013, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. VerDate Mar<15>2010 23:48 Dec 26, 2013 Jkt 232001 The Exchange proposes to make a number of non-controversial changes and technical corrections to its rules. Examples of such corrections include updating ISE rule number citations and cross references, correcting typographical errors, deleting obsolete rule text, and updating the table of contents. The text of the proposed rule change is available on the Exchange’s Internet Web site at http://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. 1. Purpose December 20, 2013. 1 15 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [Release No. 34–71153; File No. SR–ISE– 2013–67] 8 17 Exchange Commission (‘‘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. The Exchange is proposing to make a number of non-controversial and technical changes to its rules. Examples of such corrections include updating ISE rule number citations and crossreferences, correcting typographical errors, and deleting obsolete rule text. Following is a narrative description of each of the corrections: D The Table of Contents to the ISE Rules is being amended to correct a typo in the title of Rule 311 and to reflect the adoption of ISE Rule 703A (Trading During Limit Up-Limit Down States in Underlying Securities), since this rule PO 00000 Frm 00228 Fmt 4703 Sfmt 4703 79037 was not added to the Table of Contents when this rule was initially adopted.3 D ISE Rule 413 (Exemptions from Position Limits) is being amended to update an incorrect rule cross-reference numbers in paragraphs (a), (a)(7)(A) and (a)(7)(F). The cross-references are incorrect due to amendments to the cross-referenced rules which changed the numbering and therefore made the cross-reference incorrect. D ISE Rule 701 (Trading Rotations) is being amended to make a nonsubstantive change to correct a typographical error in paragraph (b)(2) and to remove the first sentence in paragraph (c), which states that trading in options will close 2 minutes after the primary market on which the underlying stock trades closes for trading. This reference to a 4:02 p.m. closing should have been removed when the hours of trading on the Exchange were amended,4 but was inadvertently overlooked. D ISE Rule 705 (Limitation of Liability) is being amended to change a non-substantive word to update the sentence structure of paragraph (a). D ISE Rule 715 (Types of Orders) is being amended to delete the duplicate definition of ‘‘Minimum Quantity Orders’’ in paragraph (l) and replace it with the defined term of ‘‘Day Order.’’ Paragraph (r) is being added to define the term ‘‘Good-Till-Cancelled Order (GTC Order).’’ The addition of these two order types qualify for non-controversial treatment as there is nothing new or novel with respect to these types of orders because they already exist on other exchanges, for example, the Chicago Board Options Exchange has identical order types.5 D Supplementary Material .08 to ISE Rule 716 (Block Trades) is being amended to make a non-substantive change to delete the term ‘‘Indications’’ and replace it with the term ‘‘Responses’’ for consistency throughout the rule. D ISE Rule 802 (Appointment of Market Makers) is being amended to insert a non-substantive word to correct the sentence structure of paragraph (c)(3). D ISE Rules 803, 810 and 811 are being amended to remove crossreferences to Rule 803(c)(2) and replace them with the correct cross-references, where applicable. 3 See Securities Exchange Act Release No. 69148 (March 15, 2013), 78 FR 17462 (March 21, 2013) (SR–ISE–2013–20). 4 See Securities Exchange Act Release No. 53248 (February 7, 2006), 71 FR 8015 (February 15, 2006) (SR–ISE–2005–58). 5 See CBOE Rule 43.2(5) and (7). E:\FR\FM\27DEN1.SGM 27DEN1 79038 Federal Register / Vol. 78, No. 249 / Friday, December 27, 2013 / Notices These cross-references were inadvertently missed when paragraph 803(c)(2) was deleted from the rules.6 D ISE Rule 804(d)(3) is being deleted as this provision is obsolete and no longer applicable. tkelley on DSK3SPTVN1PROD with NOTICES 2. Statutory Basis The basis under the Act for this proposed rule change is the requirement under Section 6(b)(5) 7 that an exchange have rules that are designed to prevent fraudulent and manipulative acts and practices, 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 Exchange believes it is appropriate to make these technical corrections to its rules so that Exchange members and investors have a clear and accurate understanding of the meaning of the Exchange’s rules. By removing obsolete rule text, the Exchange is eliminating any potential for confusion about how its systems operate, particularly since the Exchange had operated two trading systems while it migrated from its prior system to Optimise, its new trading system. By updating cross-references in its rules, the Exchange is eliminating any inaccuracies. The addition of a Day Order and a GTC Order qualifies for non-controversial treatment as there is nothing new or novel with respect to these order types. Day Orders and GTC Orders merely address the time-in-force of an order and are standard, generic orders. In addition, CBOE has both of these order types in its rules.8 The Exchange further believes that the proposed rule change is not unfairly discriminatory because it treats all market participants equally and will not have an adverse impact on any market participant. B. Self-Regulatory Organization’s Statement on Burden on Competition Most of the proposed rule changes are non-substantive corrections to the Exchange’s rules and therefore do not implicate the competition analysis. The change proposing to adopt two new order types is non-controversial as they already exist on another exchange and merely address the time-in-force of an order, and will therefore not impact competition because these order types already exist. The proposed rule changes will serve to promote regulatory 6 See Securities Exchange Act Release No. 69396 (April 18, 2013), 78 FR 24273 (April 24, 2013) (SR– ISE–2013–18). 7 15 U.S.C. 78f(b)(5). 8 See note 5. VerDate Mar<15>2010 23:48 Dec 26, 2013 Jkt 232001 clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. 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 Because the foregoing proposed rule change does not significantly affect the protection of investors or the public interest, does not impose any significant burden on competition, and, by its terms, does not become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) 9 of the Act and Rule 19b– 4(f)(6) 10 thereunder. The Exchange provided the Commission with 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 the proposed rule change. 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. 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: 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–2013–67. 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 (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 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– 2013–67 and should be submitted on or before January 17, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2013–30932 Filed 12–26–13; 8:45 am] BILLING CODE 8011–01–P Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rulecomments@sec.gov. Please include File Number SR–ISE–2013–67 on the subject line. 9 15 U.S.C. 78s(b)(3)(A). CFR. 240.19b–4(f)(6). 10 17 PO 00000 Frm 00229 Fmt 4703 Sfmt 9990 11 17 E:\FR\FM\27DEN1.SGM CFR 200.30–3(a)(12). 27DEN1

Agencies

[Federal Register Volume 78, Number 249 (Friday, December 27, 2013)]
[Notices]
[Pages 79037-79038]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30932]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71153; File No. SR-ISE-2013-67]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change to Make Non-Controversial Changes to ISE Rules

December 20, 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 December 5, 2013, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission (``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 Exchange proposes to make a number of non-controversial changes 
and technical corrections to its rules. Examples of such corrections 
include updating ISE rule number citations and cross references, 
correcting typographical errors, deleting obsolete rule text, and 
updating the table of contents. The text of the proposed rule change is 
available on the Exchange's Internet Web site at http://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 is proposing to make a number of non-controversial and 
technical changes to its rules. Examples of such corrections include 
updating ISE rule number citations and cross-references, correcting 
typographical errors, and deleting obsolete rule text. Following is a 
narrative description of each of the corrections:
    [ssquf] The Table of Contents to the ISE Rules is being amended to 
correct a typo in the title of Rule 311 and to reflect the adoption of 
ISE Rule 703A (Trading During Limit Up-Limit Down States in Underlying 
Securities), since this rule was not added to the Table of Contents 
when this rule was initially adopted.\3\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 69148 (March 15, 
2013), 78 FR 17462 (March 21, 2013) (SR-ISE-2013-20).
---------------------------------------------------------------------------

    [ssquf] ISE Rule 413 (Exemptions from Position Limits) is being 
amended to update an incorrect rule cross-reference numbers in 
paragraphs (a), (a)(7)(A) and (a)(7)(F). The cross-references are 
incorrect due to amendments to the cross-referenced rules which changed 
the numbering and therefore made the cross-reference incorrect.
    [ssquf] ISE Rule 701 (Trading Rotations) is being amended to make a 
non-substantive change to correct a typographical error in paragraph 
(b)(2) and to remove the first sentence in paragraph (c), which states 
that trading in options will close 2 minutes after the primary market 
on which the underlying stock trades closes for trading. This reference 
to a 4:02 p.m. closing should have been removed when the hours of 
trading on the Exchange were amended,\4\ but was inadvertently 
overlooked.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 53248 (February 7, 
2006), 71 FR 8015 (February 15, 2006) (SR-ISE-2005-58).
---------------------------------------------------------------------------

    [ssquf] ISE Rule 705 (Limitation of Liability) is being amended to 
change a non-substantive word to update the sentence structure of 
paragraph (a).
    [ssquf] ISE Rule 715 (Types of Orders) is being amended to delete 
the duplicate definition of ``Minimum Quantity Orders'' in paragraph 
(l) and replace it with the defined term of ``Day Order.'' Paragraph 
(r) is being added to define the term ``Good-Till-Cancelled Order (GTC 
Order).'' The addition of these two order types qualify for non-
controversial treatment as there is nothing new or novel with respect 
to these types of orders because they already exist on other exchanges, 
for example, the Chicago Board Options Exchange has identical order 
types.\5\
---------------------------------------------------------------------------

    \5\ See CBOE Rule 43.2(5) and (7).
---------------------------------------------------------------------------

    [ssquf] Supplementary Material .08 to ISE Rule 716 (Block Trades) 
is being amended to make a non-substantive change to delete the term 
``Indications'' and replace it with the term ``Responses'' for 
consistency throughout the rule.
    [ssquf] ISE Rule 802 (Appointment of Market Makers) is being 
amended to insert a non-substantive word to correct the sentence 
structure of paragraph (c)(3).
    [ssquf] ISE Rules 803, 810 and 811 are being amended to remove 
cross-references to Rule 803(c)(2) and replace them with the correct 
cross-references, where applicable.

[[Page 79038]]

    These cross-references were inadvertently missed when paragraph 
803(c)(2) was deleted from the rules.\6\
---------------------------------------------------------------------------

    \6\ See Securities Exchange Act Release No. 69396 (April 18, 
2013), 78 FR 24273 (April 24, 2013) (SR-ISE-2013-18).
---------------------------------------------------------------------------

    [ssquf] ISE Rule 804(d)(3) is being deleted as this provision is 
obsolete and no longer applicable.
 2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \7\ that an exchange have rules that 
are designed to prevent fraudulent and manipulative acts and practices, 
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 Exchange believes it is appropriate to make these 
technical corrections to its rules so that Exchange members and 
investors have a clear and accurate understanding of the meaning of the 
Exchange's rules. By removing obsolete rule text, the Exchange is 
eliminating any potential for confusion about how its systems operate, 
particularly since the Exchange had operated two trading systems while 
it migrated from its prior system to Optimise, its new trading system. 
By updating cross-references in its rules, the Exchange is eliminating 
any inaccuracies. The addition of a Day Order and a GTC Order qualifies 
for non-controversial treatment as there is nothing new or novel with 
respect to these order types. Day Orders and GTC Orders merely address 
the time-in-force of an order and are standard, generic orders. In 
addition, CBOE has both of these order types in its rules.\8\ The 
Exchange further believes that the proposed rule change is not unfairly 
discriminatory because it treats all market participants equally and 
will not have an adverse impact on any market participant.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See note 5.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    Most of the proposed rule changes are non-substantive corrections 
to the Exchange's rules and therefore do not implicate the competition 
analysis. The change proposing to adopt two new order types is non-
controversial as they already exist on another exchange and merely 
address the time-in-force of an order, and will therefore not impact 
competition because these order types already exist. The proposed rule 
changes will serve to promote regulatory clarity and consistency, 
thereby reducing burdens on the marketplace and facilitating investor 
protection.

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

    Because the foregoing proposed rule change does not significantly 
affect the protection of investors or the public interest, does not 
impose any significant burden on competition, and, by its terms, does 
not become operative for 30 days from the date on which it was filed, 
or such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-
4(f)(6) \10\ thereunder. The Exchange provided the Commission with 
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 the proposed rule 
change.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR. 240.19b-4(f)(6).
---------------------------------------------------------------------------

    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.

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-ISE-2013-67 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-2013-67. 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 (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 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-2013-67 and should be 
submitted on or before January 17, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-30932 Filed 12-26-13; 8:45 am]
BILLING CODE 8011-01-P