Self-Regulatory Organizations; ISE Gemini Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change on Sweep Orders, 52096-52097 [2014-20701]

Download as PDF 52096 Federal Register / Vol. 79, No. 169 / Tuesday, September 2, 2014 / Notices • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSE–2014–44 on the subject line. SECURITIES AND EXCHANGE COMMISSION Paper Comments [Release No. 34–72919; File No. SR–ISE Gemini-2014–22] • 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–NYSE–2014–44. 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 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–NYSE– 2014–44 and should be submitted on or before September 23, 2014 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–20698 Filed 8–29–14; 8:45 am] mstockstill on DSK4VPTVN1PROD with NOTICES BILLING CODE 8011–01–P Self-Regulatory Organizations; ISE Gemini Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change on Sweep Orders August 26, 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 August 19, 2014, ISE Gemini, LLC (the ‘‘Exchange’’ or ‘‘ISE Gemini’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which Items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change ISE Gemini proposes to amend its rules to adopt a definition of ‘‘Sweep Order,’’ an order type that will be introduced in rules incorporated by reference to rules of the Exchange’s affiliate, International Securities Exchange, LLC (‘‘ISE’’), and to allow market makers to enter Sweep Orders in their appointed options classes. The text of the proposed rule change is available on the Exchange’s Internet Web site at 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 Exchange 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 15 20 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:57 Aug 29, 2014 2 17 Jkt 232001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00154 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On July 31, 2014, the ISE filed a proposed rule change that introduced a new order type: The ‘‘Sweep Order.’’ 3 Pursuant to the rules adopted in the ISE filing, which will become effective on September 1, 2014, a ‘‘Sweep Order’’ is a limit order that is executed against any available interest in the order book at the NBBO or better and immediately sent to the Linkage Handler for away market routing, without being exposed to members first under Supplementary Material .02 to ISE Rule 1901. Furthermore, a Sweep Order that is not marketable when it is submitted is cancelled, as is any portion of a marketable Sweep Order that is not immediately executed by an eligible exchange. New Supplementary Material .05 to ISE Rule 1901, which describes order handling for Sweep Orders, is incorporated by reference into Chapter 19 of ISE Gemini rules. The purpose of this proposed rule change is to amend ISE Gemini Rule 715 to include a definition of ‘‘Sweep Order,’’ as described above. In conjunction with this change, the Exchange also proposes to amend ISE Gemini Rule 805(a) to allow market makers to submit Sweep Orders in their appointed options classes,4 consistent with treatment on the ISE. 2. Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act,5 and the rules and regulations thereunder that are applicable to a national securities exchange, including the requirements of Section 6(b) of the Act.6 In particular, the proposal is consistent with Section 6(b)(5) of the Act,7 because it 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. 3 See Securities Exchange Act Release No. 72816 (August 12, 2014), 79 FR 48811 (August 18, 2014) (SR–ISE–2014–37). 4 Market makers are currently permitted to submit the following order types in their appointed options classes: Opening only orders, immediate-or-cancel (‘‘IOC’’) orders, market orders, fill-or-kill orders, and certain block orders and non-displayed penny orders. See ISE Gemini Rule 805(a). 5 15 U.S.C. 78f. 6 15 U.S.C. 78f(b). 7 15 U.S.C. 78f(b)(5). E:\FR\FM\02SEN1.SGM 02SEN1 Federal Register / Vol. 79, No. 169 / Tuesday, September 2, 2014 / Notices ISE Gemini’s affiliated exchange, ISE, recently adopted Sweep Orders in a filing that will become effective on September 1, 2014, and order handling for this order type is provided for in rules that will be incorporated by reference into ISE Gemini rules. The introduction of Sweep Orders on ISE Gemini will facilitate the routing of Public Customer and Non-Customer Orders, and will allow Members to quickly access available liquidity on ISE Gemini and away markets. The proposed rule change removes impediments to and perfects the mechanism of a free and open market and a national market system because it clarifies ISE Gemini rules, which as stated above will incorporate order handing for Sweep Orders, by adopting a definition for this order type. Furthermore, ISE Gemini believes that it is in the public interest to allow market makers to enter Sweep Orders in their appointed options classes so that they can use this order type to access liquidity on ISE Gemini and other options exchanges. Under ISE Gemini Rules, Market Makers are permitted to provide resting liquidity in their appointed classes through the use of quotes entered in compliance with Rule 804. In order to access liquidity provided by other firms, however, Market Makers use IOC and other order types that do not rest on the regular order book.8 Because any portion of a Sweep Order that is not executed is cancelled, the proposed addition of Sweep Orders to the list of order types that market makers may use in their appointed classes is generally consistent with Rule 805(a), which was intended to prevent market makers from having both standing limit orders and quotes in the same options class. mstockstill on DSK4VPTVN1PROD with NOTICES B. Self-Regulatory Organization’s Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act as it merely defines an order type that will be available on the Exchange, and allows market makers to enter this order type, consistent with treatment on the ISE. With the introduction of Sweep Orders, both Public Customer and NonCustomer Orders will be able to use this order type to quickly access betterpriced liquidity on ISE Gemini and other competing markets. 8 See supra note 4. VerDate Mar<15>2010 16:57 Aug 29, 2014 Jkt 232001 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: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) 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)(ii) of the Act 9 and subparagraph (f)(6) of Rule 19b–4 thereunder.10 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. 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 rulecomments@sec.gov. Please include File Number SR–ISEGemini–2014–22 on the subject line. 9 15 U.S.C. 78s(b)(3)(A)(ii). 10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires the Exchange to give the Commission written notice of the Exchange’s intent to file the proposed rule change along with a brief description and text of the proposed rule change, at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. PO 00000 Frm 00155 Fmt 4703 Sfmt 4703 52097 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–2014–22. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– ISEGemini-2014–22 and should be submitted on or before September 23, 2014. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2014–20701 Filed 8–29–14; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] In the Matter of QSGI Inc.; Order of Suspension of Trading August 28, 2014. It appears to the Securities and Exchange Commission (‘‘Commission’’) that there is a lack of current and accurate information concerning the 11 17 E:\FR\FM\02SEN1.SGM CFR 200.30–3(a)(12). 02SEN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 79, Number 169 (Tuesday, September 2, 2014)]
[Notices]
[Pages 52096-52097]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-20701]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72919; File No. SR-ISE Gemini-2014-22]

Self-Regulatory Organizations; ISE Gemini Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change on Sweep
Orders

August 26, 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 August 19, 2014, ISE Gemini, LLC (the ``Exchange'' or ``ISE
Gemini'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

ISE Gemini proposes to amend its rules to adopt a definition of
``Sweep Order,'' an order type that will be introduced in rules
incorporated by reference to rules of the Exchange's affiliate,
International Securities Exchange, LLC (``ISE''), and to allow market
makers to enter Sweep Orders in their appointed options classes. The
text of the proposed rule change is available on the Exchange's
Internet Web site at 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 Exchange 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
On July 31, 2014, the ISE filed a proposed rule change that
introduced a new order type: The ``Sweep Order.'' \3\ Pursuant to the
rules adopted in the ISE filing, which will become effective on
September 1, 2014, a ``Sweep Order'' is a limit order that is executed
against any available interest in the order book at the NBBO or better
and immediately sent to the Linkage Handler for away market routing,
without being exposed to members first under Supplementary Material .02
to ISE Rule 1901. Furthermore, a Sweep Order that is not marketable
when it is submitted is cancelled, as is any portion of a marketable
Sweep Order that is not immediately executed by an eligible exchange.
New Supplementary Material .05 to ISE Rule 1901, which describes order
handling for Sweep Orders, is incorporated by reference into Chapter 19
of ISE Gemini rules. The purpose of this proposed rule change is to
amend ISE Gemini Rule 715 to include a definition of ``Sweep Order,''
as described above. In conjunction with this change, the Exchange also
proposes to amend ISE Gemini Rule 805(a) to allow market makers to
submit Sweep Orders in their appointed options classes,\4\ consistent
with treatment on the ISE.
---------------------------------------------------------------------------

\3\ See Securities Exchange Act Release No. 72816 (August 12,
2014), 79 FR 48811 (August 18, 2014) (SR-ISE-2014-37).
\4\ Market makers are currently permitted to submit the
following order types in their appointed options classes: Opening
only orders, immediate-or-cancel (``IOC'') orders, market orders,
fill-or-kill orders, and certain block orders and non-displayed
penny orders. See ISE Gemini Rule 805(a).
---------------------------------------------------------------------------

2. Basis
The Exchange believes that the proposed rule change is consistent
with the requirements of the Act,\5\ and the rules and regulations
thereunder that are applicable to a national securities exchange,
including the requirements of Section 6(b) of the Act.\6\ In
particular, the proposal is consistent with Section 6(b)(5) of the
Act,\7\ because it 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.
---------------------------------------------------------------------------

\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).

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[[Page 52097]]

ISE Gemini's affiliated exchange, ISE, recently adopted Sweep
Orders in a filing that will become effective on September 1, 2014, and
order handling for this order type is provided for in rules that will
be incorporated by reference into ISE Gemini rules. The introduction of
Sweep Orders on ISE Gemini will facilitate the routing of Public
Customer and Non-Customer Orders, and will allow Members to quickly
access available liquidity on ISE Gemini and away markets. The proposed
rule change removes impediments to and perfects the mechanism of a free
and open market and a national market system because it clarifies ISE
Gemini rules, which as stated above will incorporate order handing for
Sweep Orders, by adopting a definition for this order type.
Furthermore, ISE Gemini believes that it is in the public interest to
allow market makers to enter Sweep Orders in their appointed options
classes so that they can use this order type to access liquidity on ISE
Gemini and other options exchanges. Under ISE Gemini Rules, Market
Makers are permitted to provide resting liquidity in their appointed
classes through the use of quotes entered in compliance with Rule 804.
In order to access liquidity provided by other firms, however, Market
Makers use IOC and other order types that do not rest on the regular
order book.\8\ Because any portion of a Sweep Order that is not
executed is cancelled, the proposed addition of Sweep Orders to the
list of order types that market makers may use in their appointed
classes is generally consistent with Rule 805(a), which was intended to
prevent market makers from having both standing limit orders and quotes
in the same options class.
---------------------------------------------------------------------------

\8\ See supra note 4.
---------------------------------------------------------------------------

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 as it merely defines an order
type that will be available on the Exchange, and allows market makers
to enter this order type, consistent with treatment on the ISE. With
the introduction of Sweep Orders, both Public Customer and Non-Customer
Orders will be able to use this order type to quickly access better-
priced liquidity on ISE Gemini and other competing markets.

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: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
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)(ii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
---------------------------------------------------------------------------

\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------

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. 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-ISEGemini-2014-22 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-2014-22. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISEGemini-2014-22 and should
be submitted on or before September 23, 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. 2014-20701 Filed 8-29-14; 8:45 am]
BILLING CODE 8011-01-P

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