Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Back-Up Primary Market Makers, 4347-4349 [2016-01392]

Download as PDF mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Notices No. 1025707), a permanently revoked Nevada corporation located in Boulder, Colorado with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–Q for the period ended September 30, 2008.On April 28, 2015, Corporation Finance sent a delinquency letter to ICNSQ requesting compliance with its periodic filing requirements but ICNSQ did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common stock of ICNSQ was quoted on OTC Link, had six market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2– 11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of Maxray Optical Technology Co. Ltd. (‘‘MXOP’’) (CIK No. 1395695), a void Delaware corporation located in Mississauga, Ontario, Canada with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–Q for the period ended December 31, 2010. On April 28, 2015, Corporation Finance sent a delinquency letter to MXOP requesting compliance with its periodic filing requirements but MXOP did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common stock of MXOP was quoted on OTC Link, had four market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2–11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of Peer Review Mediation & Arbitration, Inc. (‘‘PRVW’’) (CIK No. 1311627), a dissolved Florida corporation located in Pompano Beach, Florida with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–Q for the period ended September 30, 2012. On February 19, 2015, VerDate Sep<11>2014 21:57 Jan 25, 2016 Jkt 238001 Corporation Finance sent a delinquency letter to PRVW requesting compliance with its periodic filing requirements but PRVW did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common stock of PRVW was quoted on OTC Link, had five market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2– 11(f)(3). The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed companies. Therefore, it is ordered, pursuant to Section 12(k) of the Securities Exchange Act of 1934, that trading in the securities of the abovelisted companies is suspended for the period from 9:30 a.m. EST on January 22, 2016, through 11:59 p.m. EST on February 4, 2016. By the Commission. Jill M. Peterson, Assistant Secretary. [FR Doc. 2016–01612 Filed 1–22–16; 11:15 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76936; File No. SR–ISE– 2016–02] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Back-Up Primary Market Makers January 20, 2016. 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 January 6, 2016, 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. U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. Frm 00103 Fmt 4703 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The ISE proposes to correct, and clarify, .03 of Supplementary Material to Rule 803, Obligations of Market Makers, which describes the responsibilities and privileges of a Back-Up Primary Market Maker (‘‘Back-Up PMM’’) that takes the place of a Primary Market Maker (‘‘PMM’’) when that PMM fails to have a quote in the system. This amendment will specify the PMM responsibilities and privileges that do not apply to BackUp PMMs. The text of the proposed rule change is available on the Exchange’s Web site (https://www.ise.com), at the principal office of the Exchange, and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the self-regulatory organization included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The self-regulatory organization has prepared summaries, set forth in sections A, B and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to make corrections to, and clarify, .03 of Supplementary Material to Rule 803, Obligations of Market Makers, which describes the responsibilities and privileges of a Back-Up PMM that takes the place of a PMM when that PMM fails to have a quote in the system. This amendment will specify the PMM responsibilities and privileges that do not apply to Back-Up PMMs. In 2006, ISE adopted a rule change that permits Competitive Market Makers (‘‘CMMs’’) that are also PMMs on the Exchange to voluntarily act as Back-Up PMMs when the appointed PMM has technical difficulties that interrupt its participation in the market.3 Then, in 2015, the Exchange amended the process by which a Back-Up PMM is 3 Securities Exchange Act Release No. 34–53419 (March 6, 2006), 71 FR 12758 (March 13, 2006) (SR– ISE–2005–50). 1 15 PO 00000 4347 Sfmt 4703 E:\FR\FM\26JAN1.SGM 26JAN1 4348 Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Notices chosen to replace a PMM that fails to have a quote in the System.4 In these situations, a Back-Up PMM assumes the responsibilities and privileges of a PMM under ISE rules with respect to any class in which the appointed PMM fails to have a quote in the ISE System, except that a CMM does not become subject to the PMM’s requirement in ISE Rule 804(e)(1) to enter continuous quotations in all of the series of all of the options classes to which it is appointed. Instead, under ISE Rule 804(e)(2), the CMM (or BackUp PMM) is required to maintain continuous quotations in that class or series for 60% of the time the options class is open for trading on the Exchange, provided, however, that a CMM (or Back-Up PMM) is required to maintain continuous quotations for 90% of the time the class is open for trading on the Exchange in any options class in which it receives preferenced orders.5 Additionally, while PMMs are required to quote LEAPS and adjusted series, a CMM that has been appointed as the Back-Up PMM is not subject to these requirements due to their initial status as a CMM.6 Currently, .03 to Supplementary Material to Rule 803 states that, when a PMM fails to have a quote in the System, a Back-Up PMM ‘‘assumes all of the responsibilities and privileges of a’’ PMM. Unlike the wording of this rule text, however, ISE’s practice has always been to hold CMMs that are appointed as Back-Up PMMs to the above standards/exceptions. ISE now proposes to amend .03 to Supplementary Material to Rule 803 to reflect ISE’s longstanding standards/exceptions applicable to a CMM that has been appointed as the Back-Up PMM in a particular class. mstockstill on DSK4VPTVN1PROD with NOTICES 2. Statutory Basis The Exchange believes that its proposal is consistent with section 6(b) of the Act 7 in general, and furthers the objectives of section 6(b)(5) 8 in particular, in that it is 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 of a free and open market 4 Securities Exchange Act Release No. 34–76508 (November 30, 2015), 80 FR 74826 (November 30, 2015) (SR–ISE–2015–42). 5 See Rule 804(e)(2)(iii). 6 See .02 of Supplementary Material to Rule 804 (The CMM quoting obligation ‘‘does not include adjusted option series, nor series with a time to expiration of nine (9) months or greater for options on equities and exchange-traded funds or with a time to expiration of twelve (12) months or greater for index options.’’) 7 15 U.S.C. 78f(b). 8 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 21:57 Jan 25, 2016 Jkt 238001 and a national market system, and, in general, to protect investors and the public interest. The Exchange believes that the proposed rule change is consistent with the protection of investors and the public interest, and would remove impediments to and perfect the mechanism of a free and open market, because it makes a correction and clarifies ISE’s rule text to more accurately reflect the responsibilities and privileges of a Back-Up PMM. This will provide members with a better understanding of their responsibilities and privileges when acting as a Back-Up PMM in situations where a PMM fails to have a quote in the System. Additionally, Back-Up PMMs that are CMMs are not held to the heightened standards of PMMs for continuous quoting, LEAPS, and adjusted series due to the difficulty associated with meeting the standards for each on a short-term basis. For example, for continuous quoting, when a Back-Up PMM assumes responsibility for quoting a series or class, a Back-Up PMM could have problems meeting the continuous quoting requirement during such a short period of time. Similarly, a CMM that is a Back-Up PMM is not required to quote LEAPS because of the difficulty in pricing these options due their 9 month or greater time to expiration. Also, for adjusted series, the effect corporate actions have on certain underlying equity prices makes pricing these options challenging. B. Self-Regulatory Organization’s Statement on Burden on Competition This proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Exchange Act because ISE is correcting and clarifying its rule text to accurately reflect the responsibilities and privileges of a Back-Up PMM when a PMM fails to have a quote in the System. 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 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 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) of the Act 9 and Rule 19b– 4(f)(6) thereunder.10 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, or such shorter time as designated by the Commission, as required by Rule 19b–4(f)(6). 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 No. SR–ISE– 2016–02 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–2016–02. 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 Commissions Internet Web site (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent 9 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). 10 17 E:\FR\FM\26JAN1.SGM 26JAN1 Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Notices 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 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– 2016–02 and should be submitted by February 16, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.11 Brent J. Fields, Secretary. [FR Doc. 2016–01392 Filed 1–25–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [File No. 500–1] OldWeb sites.com, Inc., RPHL Acquisition Corp. (a/k/a Rockport Healthcare Group, Inc.), The Brainy Brands Company, Inc., TheraBiogen, Inc., U.S. Helicopter Corporation, and Vicor Technologies, Inc.; Order of Suspension of Trading mstockstill on DSK4VPTVN1PROD with NOTICES January 22, 2016. It appears to the Securities and Exchange Commission (‘‘Commission’’) that there is a lack of current and accurate information concerning the securities of OldWeb sites.com, Inc. (‘‘OLDW 1’’) (CIK No. 1391570), an expired Utah corporation located in Salt Lake City, Utah with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–Q for the period ended September 30, 2011. On February 19, 11 17 CFR 200.30–3(a)(12). short form of each issuer’s name is also its stock symbol. 1 The VerDate Sep<11>2014 21:57 Jan 25, 2016 Jkt 238001 2015, the Commission’s Division of Corporation Finance (‘‘Corporation Finance’’) sent a delinquency letter to OLDW requesting compliance with its periodic filing requirements but OLDW did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common shares of OLDW were quoted on OTC Link operated by OTC Markets Group Inc. (formerly ‘‘Pink Sheets’’) (‘‘OTC Link’’), had four market makers, and were eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2–11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of RPHL Acquisition Corp. (a/k/a Rockport Healthcare Group, Inc.) (‘‘RPHL’’) (CIK No. 919606), a void Delaware corporation located in Houston, Texas with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–KSB for the period ended March 31, 2008. On April 22, 2015, Corporation Finance sent a delinquency letter to RPHL requesting compliance with its periodic filing requirements but RPHL did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common stock of RPHL was quoted on OTC Link, had five market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2–11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of The Brainy Brands Company, Inc. (‘‘TBBC’’) (CIK No. 1478838), a forfeited Delaware corporation located in Suwanee, Georgia with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–Q for the period ended September 30, 2011. On February 19, 2015, Corporation Finance sent a delinquency letter to TBBC requesting compliance with its periodic filing requirements but TBBC did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 4349 rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common stock of TBBC was quoted on OTC Link, had five market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2– 11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of TheraBiogen, Inc. (‘‘TRAB’’) (CIK No. 1405286), a revoked Nevada corporation located in Manalapan, New Jersey with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–Q for the period ended May 31, 2012. On April 28, 2015, Corporation Finance sent a delinquency letter to TRAB requesting compliance with its periodic filing requirements but TRAB did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common stock of TRAB was quoted on OTC Link, had seven market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2–11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of U.S. Helicopter Corporation (‘‘USHP’’) (CIK No. 1309140), a void Delaware corporation located in New York, New York with a class of securities registered with the Commission pursuant to Exchange Act Section 12(g) because it is delinquent in its periodic filings with the Commission, having not filed any periodic reports since it filed a Form 10–Q for the period ended September 30, 2008. On February 19, 2015, Corporation Finance sent a delinquency letter to USHP requesting compliance with its periodic filing requirements but USHP did not receive the delinquency letter due to its failure to maintain a valid address on file with the Commission as required by Commission rules (Rule 301 of Regulation S–T, 17 CFR 232.301 and Section 5.4 of EDGAR Filer Manual). As of January 13, 2016, the common stock of USHP was quoted on OTC Link, had five market makers, and was eligible for the ‘‘piggyback’’ exception of Exchange Act Rule 15c2– 11(f)(3). It appears to the Commission that there is a lack of current and accurate information concerning the securities of Vicor Technologies, Inc. (‘‘VCRTQ’’) E:\FR\FM\26JAN1.SGM 26JAN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 81, Number 16 (Tuesday, January 26, 2016)]
[Notices]
[Pages 4347-4349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01392]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76936; File No. SR-ISE-2016-02]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Back-Up Primary Market Makers

January 20, 2016.
    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 January 6, 2016, 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 correct, and clarify, .03 of Supplementary 
Material to Rule 803, Obligations of Market Makers, which describes the 
responsibilities and privileges of a Back-Up Primary Market Maker 
(``Back-Up PMM'') that takes the place of a Primary Market Maker 
(``PMM'') when that PMM fails to have a quote in the system. This 
amendment will specify the PMM responsibilities and privileges that do 
not apply to Back-Up PMMs. The text of the proposed rule change is 
available on the Exchange's Web site (https://www.ise.com), at the 
principal office of the Exchange, and at the Commission's Public 
Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in sections A, B and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to make corrections to, 
and clarify, .03 of Supplementary Material to Rule 803, Obligations of 
Market Makers, which describes the responsibilities and privileges of a 
Back-Up PMM that takes the place of a PMM when that PMM fails to have a 
quote in the system. This amendment will specify the PMM 
responsibilities and privileges that do not apply to Back-Up PMMs.
    In 2006, ISE adopted a rule change that permits Competitive Market 
Makers (``CMMs'') that are also PMMs on the Exchange to voluntarily act 
as Back-Up PMMs when the appointed PMM has technical difficulties that 
interrupt its participation in the market.\3\ Then, in 2015, the 
Exchange amended the process by which a Back-Up PMM is

[[Page 4348]]

chosen to replace a PMM that fails to have a quote in the System.\4\
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 34-53419 (March 6, 
2006), 71 FR 12758 (March 13, 2006) (SR-ISE-2005-50).
    \4\ Securities Exchange Act Release No. 34-76508 (November 30, 
2015), 80 FR 74826 (November 30, 2015) (SR-ISE-2015-42).
---------------------------------------------------------------------------

    In these situations, a Back-Up PMM assumes the responsibilities and 
privileges of a PMM under ISE rules with respect to any class in which 
the appointed PMM fails to have a quote in the ISE System, except that 
a CMM does not become subject to the PMM's requirement in ISE Rule 
804(e)(1) to enter continuous quotations in all of the series of all of 
the options classes to which it is appointed. Instead, under ISE Rule 
804(e)(2), the CMM (or Back-Up PMM) is required to maintain continuous 
quotations in that class or series for 60% of the time the options 
class is open for trading on the Exchange, provided, however, that a 
CMM (or Back-Up PMM) is required to maintain continuous quotations for 
90% of the time the class is open for trading on the Exchange in any 
options class in which it receives preferenced orders.\5\ Additionally, 
while PMMs are required to quote LEAPS and adjusted series, a CMM that 
has been appointed as the Back-Up PMM is not subject to these 
requirements due to their initial status as a CMM.\6\
---------------------------------------------------------------------------

    \5\ See Rule 804(e)(2)(iii).
    \6\ See .02 of Supplementary Material to Rule 804 (The CMM 
quoting obligation ``does not include adjusted option series, nor 
series with a time to expiration of nine (9) months or greater for 
options on equities and exchange-traded funds or with a time to 
expiration of twelve (12) months or greater for index options.'')
---------------------------------------------------------------------------

    Currently, .03 to Supplementary Material to Rule 803 states that, 
when a PMM fails to have a quote in the System, a Back-Up PMM ``assumes 
all of the responsibilities and privileges of a'' PMM. Unlike the 
wording of this rule text, however, ISE's practice has always been to 
hold CMMs that are appointed as Back-Up PMMs to the above standards/
exceptions. ISE now proposes to amend .03 to Supplementary Material to 
Rule 803 to reflect ISE's longstanding standards/exceptions applicable 
to a CMM that has been appointed as the Back-Up PMM in a particular 
class.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with section 
6(b) of the Act \7\ in general, and furthers the objectives of section 
6(b)(5) \8\ in particular, in that it is 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 
of a free and open market and a national market system, and, in 
general, to protect investors and the public interest.
---------------------------------------------------------------------------

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

    The Exchange believes that the proposed rule change is consistent 
with the protection of investors and the public interest, and would 
remove impediments to and perfect the mechanism of a free and open 
market, because it makes a correction and clarifies ISE's rule text to 
more accurately reflect the responsibilities and privileges of a Back-
Up PMM. This will provide members with a better understanding of their 
responsibilities and privileges when acting as a Back-Up PMM in 
situations where a PMM fails to have a quote in the System. 
Additionally, Back-Up PMMs that are CMMs are not held to the heightened 
standards of PMMs for continuous quoting, LEAPS, and adjusted series 
due to the difficulty associated with meeting the standards for each on 
a short-term basis. For example, for continuous quoting, when a Back-Up 
PMM assumes responsibility for quoting a series or class, a Back-Up PMM 
could have problems meeting the continuous quoting requirement during 
such a short period of time. Similarly, a CMM that is a Back-Up PMM is 
not required to quote LEAPS because of the difficulty in pricing these 
options due their 9 month or greater time to expiration. Also, for 
adjusted series, the effect corporate actions have on certain 
underlying equity prices makes pricing these options challenging.

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

    This proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Exchange Act because ISE is correcting and clarifying its rule text 
to accurately reflect the responsibilities and privileges of a Back-Up 
PMM when a PMM fails to have a quote in the System.

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) of the Act \9\ and Rule 19b-
4(f)(6) thereunder.\10\ 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, or such shorter time as designated by the Commission, as 
required by Rule 19b-4(f)(6).
---------------------------------------------------------------------------

    \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 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 No. SR-ISE-2016-02 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-2016-02. 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 Commissions Internet Web site (https://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent

[[Page 4349]]

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 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-2016-02 and should be submitted by February 16, 
2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2016-01392 Filed 1-25-16; 8:45 am]
BILLING CODE 8011-01-P

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