Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing of a Proposed Rule Change on Bid/Offer Differentials for In-The-Money Option Series, 35397-35399 [2014-14443]
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Federal Register / Vol. 79, No. 119 / Friday, June 20, 2014 / Notices
is designed to promote just and
equitable principles of trade, remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
This change is designed to benefit
investors, who will be able to trade at
better prices due to narrower spreads in
in-the-money option series covered by
the proposed rule change. The Exchange
believes that market makers should
maintain quotes that are no wider than
the spread between the NBBO in the
underlying security, as they can hedge
their positions by trading in the
underlying security at the NBBO, which
may be narrower than the quotation on
the primary market. As explained above,
the Exchange believes that measuring
the permissible width of a market
maker’s quote against the NBBO more
accurately reflects the current trading
environment where multiple trading
venues contribute to the prevailing
market price of a security underlying an
options series traded on the ISE.
(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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is intended to
encourage tighter markets in in-themoney option series and is not designed
to have any competitive impact. While
market makers may be required to
narrow their quotes in these series, the
proposed rule change still affords
sufficient flexibility to allow market
makers to do so while managing their
risk by hedging in the underlying
security at the NBBO.
mstockstill on DSK4VPTVN1PROD with NOTICES
(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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
VerDate Mar<15>2010
22:31 Jun 19, 2014
Jkt 232001
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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–2014–31 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–ISE–2014–31. 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 ISE. 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–
2014–31 and should be submitted on or
before July 11, 2014.
PO 00000
Frm 00088
Fmt 4703
Sfmt 4703
35397
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–14444 Filed 6–19–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72398; File No. SR–
ISEGemini–2014–15]
Self-Regulatory Organizations; ISE
Gemini, LLC; Notice of Filing of a
Proposed Rule Change on Bid/Offer
Differentials for In-The-Money Option
Series
June 16, 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 June 5,
2014, ISE Gemini, LLC (‘‘Exchange’’ or
‘‘ISE Gemini’’) 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 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 require that market makers
quoting certain in-the-money options
series maintain quotes that are no wider
than the spread between the NBBO in
the underlying security. 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
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\20JNN1.SGM
20JNN1
35398
Federal Register / Vol. 79, No. 119 / Friday, June 20, 2014 / Notices
sections A, B and C below, of the most
significant aspects of such statements.
mstockstill on DSK4VPTVN1PROD 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 the proposed rule
change is to amend Rule 803(b)(4)(i) to
require that market makers quoting
certain in-the-money options series
maintain quotes that are no wider than
the spread between the national best bid
and offer (‘‘NBBO’’) in the underlying
security. The Exchange believes that
requiring that market makers post
tighter quotes in these option series will
improve market quality to the benefit of
investors that trade on ISE Gemini.
In the course of maintaining fair and
orderly markets in appointed options
classes, market makers are generally
required to price options contracts fairly
by, among other things, bidding and
offering so as to create differences of no
more than $5 between the bid and offer
following the opening rotation in an
options contract.3 In addition, Rule
803(b)(4)(i) presently permits market
makers to submit quotes with wider bid/
offer differentials for in-the-money
options series where the market for the
underlying security is wider than the
market maker’s regular quotation
requirements. In particular, a market
maker quoting an in-the-money options
series may submit quotes that are as
wide as the quotation on the primary
market of the underlying security. For
example, if the primary market for ABC
has a quote of $65 (bid)–$73 (offer), ISE
Gemini market makers may quote inthe-money option series on that security
with a bid/offer differential of $8. The
wider bid/offer differentials allowed in
these circumstances are intended to give
market makers more flexibility with
respect to their quoting obligations as
options are priced relative to the price
of the underlying security.
The Exchange proposes to change this
obligation to instead require that market
makers quoting these in-the-money
options series maintain quotes that are
no wider than the spread between the
NBBO in the underlying security. A
market maker quoting an in-the-money
options series can hedge its position by
trading in the underlying security at the
NBBO, which may be narrower than the
quotation on the primary market. For
3 See Rule 803(b). Unless ISE Gemini establishes
wider differentials for specific option classes, bid/
offer differentials prior to the opening rotation must
be no more than $0.25, $0.40, $0.50, $0.80, or $1,
with the larger bid/offer differentials permitted for
option contracts with higher priced bids. Id.
VerDate Mar<15>2010
22:31 Jun 19, 2014
Jkt 232001
instance, in the example above, other
exchanges that trade ABC may
collectively have a higher bid of $66 and
a lower offer of $72. Under the proposed
rule, ISE Gemini market makers would
be required to quote in-the-money
option series on ABC with a bid/offer
differential of no more than $6. The
Exchange believes that measuring the
permissible width of a market maker’s
quote against the NBBO more accurately
reflects the current trading environment
where multiple trading venues
contribute to the prevailing market price
of a security underlying an options
series traded on ISE Gemini.
2. Basis
The Exchange believes that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder that
are applicable to a national securities
exchange, and, in particular, with the
requirements of Section 6(b) of the Act.4
In particular, the proposal is consistent
with Section 6(b)(5) of the Act,5 because
is designed to promote just and
equitable principles of trade, remove
impediments to and perfect the
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest.
This change is designed to benefit
investors, who will be able to trade at
better prices due to narrower spreads in
in-the-money option series covered by
the proposed rule change. The Exchange
believes that market makers should
maintain quotes that are no wider than
the spread between the NBBO in the
underlying security, as they can hedge
their positions by trading in the
underlying security at the NBBO, which
may be narrower than the quotation on
the primary market. As explained above,
the Exchange believes that measuring
the permissible width of a market
maker’s quote against the NBBO more
accurately reflects the current trading
environment where multiple trading
venues contribute to the prevailing
market price of a security underlying an
options series traded on ISE Gemini.
(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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is intended to
encourage tighter markets in in-themoney option series and is not designed
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00089
Fmt 4703
Sfmt 4703
to have any competitive impact. While
market makers may be required to
narrow their quotes in these series, the
proposed rule change still affords
sufficient flexibility to allow market
makers to do so while managing their
risk by hedging in the underlying
security at the NBBO.
(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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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–
ISEGemini–2014–15 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–2014–15. 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/
E:\FR\FM\20JNN1.SGM
20JNN1
Federal Register / Vol. 79, No. 119 / Friday, June 20, 2014 / Notices
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–2014–15 and should be
submitted on or before July 11, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–14443 Filed 6–19–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72397; File No. SR–ICC–
2014–05]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change To Update
ICC’s Policy Regarding Valuation of
Maturing U.S. Treasury Securities and
Update ICC’s Collateral Asset Haircut
Methodology
June 16, 2014.
mstockstill on DSK4VPTVN1PROD with NOTICES
I. Introduction
On April 22, 2014, ICE Clear Credit
LLC (‘‘ICC’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change SR–ICC–2014–05 pursuant to
Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder.2 The proposed rule
change was published for comment in
6 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
22:31 Jun 19, 2014
II. Description
ICC is proposing to update (1) its
policy regarding valuation of maturing
U.S. Treasury securities, and (2) its
collateral asset haircut methodology.
Under the proposed change, ICC will
reduce the collateral valuation of
maturing securities to $0 two business
days prior to maturity. Clearing
Participants will receive notice the week
prior to any collateral maturity dates
and will be encouraged to replace
maturing securities with other
acceptable collateral. If collateral
matures while on deposit with ICC,
proceeds will be credited to the margin
or guaranty fund account, as
appropriate, when received by ICC on
the maturity day.
ICC has stated that it and other
IntercontinentalExchange, Inc. clearing
houses have applied this methodology
when nearing the U.S. debt ceiling, so
that this proposed rule change will
provide consistent collateral valuation
certainty at all times, as well as
consistent implementation of this policy
across other IntercontinentalExchange,
Inc. clearing houses. ICC has also stated
that revaluing the maturing securities
two business days prior to maturity will
allow for collection of additional margin
or guaranty fund, if required, prior to
maturity. ICC’s Treasury Operations
Policies and Procedures will be updated
to reflect this change, and ICC plans to
notify Clearing Participants of the
change via circular, upon approval by
the Commission.
Furthermore, in order to provide
consistency in the calculation of
collateral asset haircuts among the
IntercontinentalExchange, Inc. clearing
houses, ICC is updating its Risk
Management Framework pursuant to the
proposed change. Currently at ICC,
haircuts for relevant assets (e.g. U.S.
Treasury securities and currencies) are
calculated using a five-day liquidation
period and a 99% confidence interval
expected shortfall calculation. Under
the proposed rule change, the
IntercontinentalExchange, Inc. clearing
houses will calculate haircuts for
relevant assets using the greater (which
may be rounded to the nearest 1%) of:
(i) The haircut determined using a fiveday liquidation period and a 99%
3 Securities Exchange Act Release No. 34–72083
(May 2, 2014), 79 FR 26490 (May 8, 2014) (SR–ICC–
2014–05).
1 15
VerDate Mar<15>2010
the Federal Register on May 8, 2014.3
The Commission received no comment
letters regarding the proposed change.
For the reasons discussed below, the
Commission is granting approval of the
proposed rule change.
Jkt 232001
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
35399
confidence interval expected shortfall
calculation (currently used at ICC), and
(ii) the haircut determined using a two
day holding period and 99.9%
confidence interval Value-at-Risk
calculation. ICC has stated that because
the haircut currently used by ICC, that
is, the haircut determined by using the
five-day liquidation period and a 99%
confidence interval expected shortfall
calculation, is usually greater than the
haircut determined using the two day
holding period and a 99.9% confidence
interval Value-at-Risk calculation, the
haircut currently used at ICC will
continue to be the driver of haircuts and
thus, this proposed rule change will
have little practical impact on ICC’s
current haircut values. Furthermore, ICC
has stated that as applied to currencies,
should ICC choose to use one haircut for
a given foreign exchange pair (e.g. USD
v. Euro, Euro v. USD), ICC will apply
the more conservative haircut. ICC has
also stated that the changes to the
methodology for calculation of collateral
asset haircuts do not require any
operational changes.
III. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act 4 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if the Commission finds
that such proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to such selfregulatory organization. Section
17A(b)(3)(F) of the Act 5 requires, among
other things, that the rules of a clearing
agency are designed to promote the
prompt and accurate clearance and
settlement of securities transactions
and, to the extent applicable, derivative
agreements, contracts, and transactions,
to assure the safeguarding of securities
and funds which are in the custody or
control of the clearing agency or for
which it is responsible and, in general,
to protect investors and the public
interest.
The Commission finds that the
proposed rule change is consistent with
the requirements of Section 17A of the
Act.6 The proposed change to ICC’s
valuation of maturing securities will
ensure ICC maintains adequate liquidity
and the proposed change to ICC’s
haircut methodology will provide
appropriate collateral valuation in a
manner consistent or more conservative
than existing policy. The proposed
changes, therefore, are each consistent
4 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
6 15 U.S.C. 78q–1.
5 15
E:\FR\FM\20JNN1.SGM
20JNN1
Agencies
[Federal Register Volume 79, Number 119 (Friday, June 20, 2014)]
[Notices]
[Pages 35397-35399]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14443]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72398; File No. SR-ISEGemini-2014-15]
Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing
of a Proposed Rule Change on Bid/Offer Differentials for In-The-Money
Option Series
June 16, 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 June 5, 2014, ISE Gemini, LLC (``Exchange'' or ``ISE Gemini'') 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 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 require that market
makers quoting certain in-the-money options series maintain quotes that
are no wider than the spread between the NBBO in the underlying
security. 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
[[Page 35398]]
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 the proposed rule change is to amend Rule
803(b)(4)(i) to require that market makers quoting certain in-the-money
options series maintain quotes that are no wider than the spread
between the national best bid and offer (``NBBO'') in the underlying
security. The Exchange believes that requiring that market makers post
tighter quotes in these option series will improve market quality to
the benefit of investors that trade on ISE Gemini.
In the course of maintaining fair and orderly markets in appointed
options classes, market makers are generally required to price options
contracts fairly by, among other things, bidding and offering so as to
create differences of no more than $5 between the bid and offer
following the opening rotation in an options contract.\3\ In addition,
Rule 803(b)(4)(i) presently permits market makers to submit quotes with
wider bid/offer differentials for in-the-money options series where the
market for the underlying security is wider than the market maker's
regular quotation requirements. In particular, a market maker quoting
an in-the-money options series may submit quotes that are as wide as
the quotation on the primary market of the underlying security. For
example, if the primary market for ABC has a quote of $65 (bid)-$73
(offer), ISE Gemini market makers may quote in-the-money option series
on that security with a bid/offer differential of $8. The wider bid/
offer differentials allowed in these circumstances are intended to give
market makers more flexibility with respect to their quoting
obligations as options are priced relative to the price of the
underlying security.
---------------------------------------------------------------------------
\3\ See Rule 803(b). Unless ISE Gemini establishes wider
differentials for specific option classes, bid/offer differentials
prior to the opening rotation must be no more than $0.25, $0.40,
$0.50, $0.80, or $1, with the larger bid/offer differentials
permitted for option contracts with higher priced bids. Id.
---------------------------------------------------------------------------
The Exchange proposes to change this obligation to instead require
that market makers quoting these in-the-money options series maintain
quotes that are no wider than the spread between the NBBO in the
underlying security. A market maker quoting an in-the-money options
series can hedge its position by trading in the underlying security at
the NBBO, which may be narrower than the quotation on the primary
market. For instance, in the example above, other exchanges that trade
ABC may collectively have a higher bid of $66 and a lower offer of $72.
Under the proposed rule, ISE Gemini market makers would be required to
quote in-the-money option series on ABC with a bid/offer differential
of no more than $6. The Exchange believes that measuring the
permissible width of a market maker's quote against the NBBO more
accurately reflects the current trading environment where multiple
trading venues contribute to the prevailing market price of a security
underlying an options series traded on ISE Gemini.
2. Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder that are applicable to a national securities exchange, and,
in particular, with the requirements of Section 6(b) of the Act.\4\ In
particular, the proposal is consistent with Section 6(b)(5) of the
Act,\5\ because is designed to promote just and equitable principles of
trade, remove impediments to and perfect the mechanisms of a free and
open market and a national market system and, in general, to protect
investors and the public interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
This change is designed to benefit investors, who will be able to
trade at better prices due to narrower spreads in in-the-money option
series covered by the proposed rule change. The Exchange believes that
market makers should maintain quotes that are no wider than the spread
between the NBBO in the underlying security, as they can hedge their
positions by trading in the underlying security at the NBBO, which may
be narrower than the quotation on the primary market. As explained
above, the Exchange believes that measuring the permissible width of a
market maker's quote against the NBBO more accurately reflects the
current trading environment where multiple trading venues contribute to
the prevailing market price of a security underlying an options series
traded on ISE Gemini.
(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 that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule change is
intended to encourage tighter markets in in-the-money option series and
is not designed to have any competitive impact. While market makers may
be required to narrow their quotes in these series, the proposed rule
change still affords sufficient flexibility to allow market makers to
do so while managing their risk by hedging in the underlying security
at the NBBO.
(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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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-ISEGemini-2014-15 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-2014-15. 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/
[[Page 35399]]
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-2014-15 and should be submitted on or before July 11, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-14443 Filed 6-19-14; 8:45 am]
BILLING CODE 8011-01-P