Self-Regulatory Organizations; ISE Mercury; Notice of Filing of Proposed Rule Change To Limit Mandatory Participation in Scheduled Functional and Performance Testing Under Regulation SCI to Only Those Primary Market Makers That Meet Specified Criteria, 21933-21935 [2016-08428]
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Federal Register / Vol. 81, No. 71 / Wednesday, April 13, 2016 / Notices
concerning the securities of each of the
issuers detailed below because
questions have arisen as to their
operating status, if any. Each of the
issuers below is quoted on OTC Link
operated by OTC Markets Group, Inc.
OTC Markets Group, Inc., however, has
been unable to contact each of these
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addition, the staff of the Securities and
Exchange Commission has
independently endeavored to determine
whether any of the issuers below are
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companies, failed to respond to the
Commission’s inquiry about their
operating status, did not have an
operational address, or failed to provide
21933
their registered agent with an
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below has filed any information with
OTC Markets Group, Inc. or the
Securities and Exchange Commission
for the past year.
Issuer
Ticker
Information
regarding
operating status *
1. Business Marketing Services, Inc .............................................................................................................................
2. Diversified Corporate Resources, Inc .......................................................................................................................
3. Great Lakes Recreation Co ......................................................................................................................................
4. Green Nature USA, Inc .............................................................................................................................................
5. Green St. Energy, Inc ...............................................................................................................................................
6. International Total Services, Inc ...............................................................................................................................
7. J.P. Cabot Realty, Inc ...............................................................................................................................................
8. Multicom Publishing ..................................................................................................................................................
9. Pan American Resources, Inc ..................................................................................................................................
10. Printron, Inc .............................................................................................................................................................
11. Seaboard Associates, Inc .......................................................................................................................................
12. Sona Mobile Holdings Group, Ltd ...........................................................................................................................
13. Standard Holdings Group, Ltd ................................................................................................................................
14. TraceGuard Technologies, Inc ................................................................................................................................
15. Tradings.net, Inc .....................................................................................................................................................
16. US-Worldlink.com, Inc .............................................................................................................................................
17. Versadial, Inc ..........................................................................................................................................................
18. Voxcorp, Inc ............................................................................................................................................................
19. W3OTC, Inc ............................................................................................................................................................
BMSV
HIRD
GLRC
GRTU
GSTY
ITSW
JPCB
MNET
PNAR
PRNI
SAOA
SNMBQ
SNDH
TCGD
TDNC
USWL
VSDL
VOXR
WOTC
1
1
1
1
1
2
1
1
1
1
1
1
2
1
1
1
1
1
1
* Below are explanations for each of the codes used in the above table:
1=The Securities and Exchange Commission attempted to contact the issuer and either the Commission did not receive a response to its letter, the letters were returned as undeliverable, or the registered agent responded that they had no forwarding address for the issuer.
2=The Securities and Exchange Commission was able to contact the issuer, which informed the Commission that either the issuer was no
longer operating or was now a private company.
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 above-listed companies
is suspended for the period from 9:30
a.m. EDT on April 11, 2016, through
11:59 p.m. EDT on April 22, 2016.
By the Commission.
Jill M. Peterson,
Assistant Secretary.
[Release No. 34–77556; File No. SR–ISE
Mercury–2016–08]
Self-Regulatory Organizations; ISE
Mercury; Notice of Filing of Proposed
Rule Change To Limit Mandatory
Participation in Scheduled Functional
and Performance Testing Under
Regulation SCI to Only Those Primary
Market Makers That Meet Specified
Criteria
April 7, 2016.
[FR Doc. 2016–08611 Filed 4–11–16; 4:15 pm]
BILLING CODE 8011–01–P
asabaliauskas on DSK3SPTVN1PROD with NOTICES
SECURITIES AND EXCHANGE
COMMISSION
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 March 31,
2016, ISE Mercury, LLC (the
‘‘Exchange’’ or ‘‘ISE Mercury’’) 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
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
17:41 Apr 12, 2016
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Fmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 803, Obligations of Market Makers,
to limit mandatory participation in
scheduled functional and performance
testing, under Regulation Systems
Compliance and Integrity (‘‘Regulation
SCI’’),3 to those Primary Market Makers
(‘‘PMMs’’) that contribute a meaningful
percentage of the Exchange’s overall
volume, measured on a quarterly or
monthly basis. The Exchange proposes
to also consider other factors in
determining the PMMs that will be
required to participate in scheduled
functional and performance testing of
the Exchange’s business continuity and
disaster recovery plans (collectively
‘‘DR Plans’’), including average daily
volume traded on the Exchange
measured on a quarterly or monthly
basis, or PMMs that collectively account
3 See Securities Exchange Act Release No. 73639
(November 19, 2014), 79 FR 72252 (December 5,
2014) (‘‘SCI Adopting Release’’).
1 15
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solicit comments on the proposed rule
change from interested persons.
Sfmt 4703
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21934
Federal Register / Vol. 81, No. 71 / Wednesday, April 13, 2016 / Notices
for a certain percentage of market share
on the Exchange or within a specific
product. In addition, the Exchange
proposes to publish the criteria to be
used by the Exchange to determine
which PMMs will be required to
participate in such testing, and notify
those PMMs that are required to
participate based on such criteria. The
text of the proposed rule change is
available on the Exchange’s Web site at
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 Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.
asabaliauskas on DSK3SPTVN1PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On November 19, 2014, the Securities
and Exchange Commission
unanimously voted to adopt Regulation
SCI, which is a set of rules designed to
strengthen the technology infrastructure
of the U.S. securities markets.4
Specifically, the rules are designed to
reduce the occurrence of systems issues,
improve resiliency when systems
problems do occur, and enhance the
Commission’s oversight and
enforcement of securities market
technology infrastructure.5
Regulation SCI applies to ‘‘SCI
entities,’’ a term which includes SROs
such as ISE Mercury. Regulation SCI
requires SCI entities to, among other
things, (1) establish written policies and
procedures reasonably designed to
ensure that their systems have levels of
capacity, integrity, resiliency,
availability, and security adequate to
maintain their operational capability; (2)
mandate participation by designated
members in scheduled testing of the
operation of their business continuity
4 Id.
5 Division
of Trading and Markets, Responses to
Frequently Asked Questions Concerning Regulation
SCI at https://www.sec.gov/divisions/marketreg/
regulation-sci-faq.shtml.
VerDate Sep<11>2014
17:41 Apr 12, 2016
Jkt 238001
and disaster recovery plans, including
backup systems, and to coordinate such
testing on an industry- or sector-wide
basis with other SCI entities; (3) take
corrective action with respect to ‘‘SCI
events’’ (such as systems disruptions,
systems compliance issues, and systems
intrusions), and to notify the
Commission of such events; (4)
disseminate information about certain
SCI events to affected members and, for
certain ‘‘major’’ SCI events, to all
members; and (5) review their systems
by objective, qualified personnel at least
annually, to submit quarterly reports
regarding completed, ongoing, and
planned material changes to their SCI
systems to the Commission, and to
maintain certain books and records.6
In accordance with Rule 1004 of
Regulation SCI, the Exchange adopted
Rules 803 and 1903 to designate all
PMMs 7 and Linkage Handlers,8 as the
minimum necessary for the
maintenance of a fair and orderly
market should the Exchange’s DR Plans
be activated.9 The Exchange also
mandated participation by designated
members in scheduled functional and
performance testing of the operation of
such DR Plans.10
The Exchange has reevaluated its
designation of all PMMs as the
minimum necessary for the
maintenance of a fair and orderly
market should the Exchange’s DR Plans
be activated and now believes that
designating all PMMs is more than the
minimum necessary to maintain a fair
and orderly market should its DR Plans
be activated. The Exchange proposes to
revise Rule 803 and limit mandatory
6 Id.
7 A PMM posts two-sided continuous quotations
in all of the options classes to which it is appointed
and undertakes special responsibilities for
maintaining fair and orderly markets. PMM
memberships are represented by PMM Trading
Rights. The options classes trading on ISE Mercury
are divided into groups or ‘‘bins’’, each with one
PMM. One PMM member may, however, represent
more than one bin.
8 A Linkage Handler is a broker that is unaffiliated
with the Exchange with which the Exchange has
contracted with to provide routing services, by
routing certain orders, to other exchanges as agent
in connection with the Options Order Protection
and Locked/Crossed Market Plan. See .03 to
Supplementary Material to Rule 1901.
9 On January 8, 2016, ISE Mercury submitted
Amendment No. 2 to the Form 1 Application,
which included an amended Rule 803 to comply
with the requirements of Regulation SCI. ISE
Mercury’s amended Rule 803 followed the rule
filings by ISE Mercury’s affiliated exchanges,
International Securities Exchange, LLC and ISE
Gemini, LLC, which amended Rule 803 to comply
with the requirements of Regulation SCI. See
Exchange Act Release No. 76334 (November 3,
2015) 80 FR 69258 (November 9, 2015) (SR–ISE–
2015–35) and Exchange Act Release No. 76332
(November 3, 2015), 80 FR 69266 (November 9,
2015) (SR–ISE Gemini–2015–23).
10 Id.
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
participation in scheduled functional
and performance testing, under
Regulation SCI and ISE Mercury Rule
803, to those PMMs that contribute a
meaningful percentage of the
Exchange’s overall volume, measured
on a quarterly or monthly basis. The
Exchange proposes to consider other
factors in determining which PMMs will
be required to participate in scheduled
functional and performance testing,
including average daily volume traded
on the Exchange measured on a
quarterly or monthly basis, or PMMs
that collectively account for a certain
percentage of market share on the
Exchange or within a specific product.
The Exchange represents that it will
publish the criteria 11 to be used by the
Exchange to determine which PMMs
will be required to participate in such
testing, and notify those PMMs that are
required to participate based on such
criteria.
The Exchange notes that it encourages
all PMMs to connect to the Exchange’s
backup systems and to participate in
testing of such systems. However, in
revising the requirements in proposed
Rule 803, the rule will subject only
those PMMs to mandatory testing that
the Exchange believes are, taken as a
whole, the minimum necessary to
maintain fair and orderly markets. The
Exchange believes that designating
PMMs to participate in mandatory
testing because they, for example,
account for a significant portion of the
Exchange’s overall volume or
collectively account for a certain
percentage of market share on the
Exchange is a reasonable means to
ensure the maintenance of a fair and
orderly market on the Exchange should
its DR Plans be activated.
2. Statutory 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.12 In particular, the proposal is
consistent with section 6(b)(5) of the
Act,13 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.
11 This criteria will be published by the Exchange,
in a regulatory information circular, no later than
the effective date of this rule filing.
12 15 U.S.C. 78f(b).
13 15 U.S.C. 78f(b)(5).
E:\FR\FM\13APN1.SGM
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Federal Register / Vol. 81, No. 71 / Wednesday, April 13, 2016 / Notices
The Exchange believes the proposed
rule revision is consistent with the
Exchange Act because it complies with
Regulation SCI’s requirements. ISE
Mercury’s proposed rule designates only
those PMMs it determines are necessary
for the maintenance of a fair and orderly
market if the Exchange’s DR Plans are
activated. Additionally, the proposal
will ensure that the PMMs necessary to
ensure the maintenance of a fair and
orderly market are properly designated
consistent with Rule 1004 of Regulation
SCI. Specifically, as proposed, the
Exchange will adopt clear and objective
criteria with respect to the designation
of PMMs that are required to participate
in the testing of the Exchange’s DR
Plans, as well as appropriate
notification regarding such designation.
As set forth in the SCI Adopting
Release, ‘‘SROs have the authority, and
legal responsibility, under section 6 of
the Exchange Act, to adopt and enforce
rules (including rules to comply with
Regulation SCI’s requirements relating
to [business continuity and disaster
recovery] testing) applicable to their
members or participants that are
designed to, among other things, foster
cooperation and coordination with
persons engaged in regulating, clearing,
settling, processing information with
respect to, and facilitating transactions
in securities, 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.’’ 14
The Exchange believes that this
proposal is consistent with such
authority and legal responsibility.
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 15 and Rule 19b–
4(f)(6) thereunder.16 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.
21935
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
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 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–ISE Mercury–2016–08 and
should be submitted by May 4, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Robert W. Errett,
Deputy Secretary.
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 Mercury is
implementing the requirements of
Regulation SCI.
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
Mercury–2016–08 on the subject line.
Self-Regulatory Organizations;
NASDAQ PHLX LLC; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
PIXL
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
asabaliauskas on DSK3SPTVN1PROD with NOTICES
[FR Doc. 2016–08428 Filed 4–12–16; 8:45 am]
B. Self-Regulatory Organization’s
Statement on Burden on Competition
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE Mercury–2016–08. 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
The Exchange has neither solicited
nor received written comments on this
proposed rule change. The Exchange
has not received any written comments
from members or other interested
parties.
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–77557; File No. SR–Phlx–
2016–40]
April 7, 2016.
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 March 24,
2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) 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 Exchange. The Commission is
publishing this notice to solicit
17 17
14 See
SCI Adopting Release, supra note 4 at
72350.
VerDate Sep<11>2014
17:41 Apr 12, 2016
Jkt 238001
15 15
U.S.C. 78s(b)(3)(A).
16 17 CFR 240.19b–4(f)(6).
PO 00000
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Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 81, Number 71 (Wednesday, April 13, 2016)]
[Notices]
[Pages 21933-21935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08428]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77556; File No. SR-ISE Mercury-2016-08]
Self-Regulatory Organizations; ISE Mercury; Notice of Filing of
Proposed Rule Change To Limit Mandatory Participation in Scheduled
Functional and Performance Testing Under Regulation SCI to Only Those
Primary Market Makers That Meet Specified Criteria
April 7, 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 March 31, 2016, ISE Mercury, LLC (the ``Exchange'' or ``ISE
Mercury'') 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 Exchange proposes to amend Rule 803, Obligations of Market
Makers, to limit mandatory participation in scheduled functional and
performance testing, under Regulation Systems Compliance and Integrity
(``Regulation SCI''),\3\ to those Primary Market Makers (``PMMs'') that
contribute a meaningful percentage of the Exchange's overall volume,
measured on a quarterly or monthly basis. The Exchange proposes to also
consider other factors in determining the PMMs that will be required to
participate in scheduled functional and performance testing of the
Exchange's business continuity and disaster recovery plans
(collectively ``DR Plans''), including average daily volume traded on
the Exchange measured on a quarterly or monthly basis, or PMMs that
collectively account
[[Page 21934]]
for a certain percentage of market share on the Exchange or within a
specific product. In addition, the Exchange proposes to publish the
criteria to be used by the Exchange to determine which PMMs will be
required to participate in such testing, and notify those PMMs that are
required to participate based on such criteria. The text of the
proposed rule change is available on the Exchange's Web site at
www.ise.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 73639 (November 19,
2014), 79 FR 72252 (December 5, 2014) (``SCI Adopting Release'').
---------------------------------------------------------------------------
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 Exchange 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 November 19, 2014, the Securities and Exchange Commission
unanimously voted to adopt Regulation SCI, which is a set of rules
designed to strengthen the technology infrastructure of the U.S.
securities markets.\4\ Specifically, the rules are designed to reduce
the occurrence of systems issues, improve resiliency when systems
problems do occur, and enhance the Commission's oversight and
enforcement of securities market technology infrastructure.\5\
---------------------------------------------------------------------------
\4\ Id.
\5\ Division of Trading and Markets, Responses to Frequently
Asked Questions Concerning Regulation SCI at https://www.sec.gov/divisions/marketreg/regulation-sci-faq.shtml.
---------------------------------------------------------------------------
Regulation SCI applies to ``SCI entities,'' a term which includes
SROs such as ISE Mercury. Regulation SCI requires SCI entities to,
among other things, (1) establish written policies and procedures
reasonably designed to ensure that their systems have levels of
capacity, integrity, resiliency, availability, and security adequate to
maintain their operational capability; (2) mandate participation by
designated members in scheduled testing of the operation of their
business continuity and disaster recovery plans, including backup
systems, and to coordinate such testing on an industry- or sector-wide
basis with other SCI entities; (3) take corrective action with respect
to ``SCI events'' (such as systems disruptions, systems compliance
issues, and systems intrusions), and to notify the Commission of such
events; (4) disseminate information about certain SCI events to
affected members and, for certain ``major'' SCI events, to all members;
and (5) review their systems by objective, qualified personnel at least
annually, to submit quarterly reports regarding completed, ongoing, and
planned material changes to their SCI systems to the Commission, and to
maintain certain books and records.\6\
---------------------------------------------------------------------------
\6\ Id.
---------------------------------------------------------------------------
In accordance with Rule 1004 of Regulation SCI, the Exchange
adopted Rules 803 and 1903 to designate all PMMs \7\ and Linkage
Handlers,\8\ as the minimum necessary for the maintenance of a fair and
orderly market should the Exchange's DR Plans be activated.\9\ The
Exchange also mandated participation by designated members in scheduled
functional and performance testing of the operation of such DR
Plans.\10\
---------------------------------------------------------------------------
\7\ A PMM posts two-sided continuous quotations in all of the
options classes to which it is appointed and undertakes special
responsibilities for maintaining fair and orderly markets. PMM
memberships are represented by PMM Trading Rights. The options
classes trading on ISE Mercury are divided into groups or ``bins'',
each with one PMM. One PMM member may, however, represent more than
one bin.
\8\ A Linkage Handler is a broker that is unaffiliated with the
Exchange with which the Exchange has contracted with to provide
routing services, by routing certain orders, to other exchanges as
agent in connection with the Options Order Protection and Locked/
Crossed Market Plan. See .03 to Supplementary Material to Rule 1901.
\9\ On January 8, 2016, ISE Mercury submitted Amendment No. 2 to
the Form 1 Application, which included an amended Rule 803 to comply
with the requirements of Regulation SCI. ISE Mercury's amended Rule
803 followed the rule filings by ISE Mercury's affiliated exchanges,
International Securities Exchange, LLC and ISE Gemini, LLC, which
amended Rule 803 to comply with the requirements of Regulation SCI.
See Exchange Act Release No. 76334 (November 3, 2015) 80 FR 69258
(November 9, 2015) (SR-ISE-2015-35) and Exchange Act Release No.
76332 (November 3, 2015), 80 FR 69266 (November 9, 2015) (SR-ISE
Gemini-2015-23).
\10\ Id.
---------------------------------------------------------------------------
The Exchange has reevaluated its designation of all PMMs as the
minimum necessary for the maintenance of a fair and orderly market
should the Exchange's DR Plans be activated and now believes that
designating all PMMs is more than the minimum necessary to maintain a
fair and orderly market should its DR Plans be activated. The Exchange
proposes to revise Rule 803 and limit mandatory participation in
scheduled functional and performance testing, under Regulation SCI and
ISE Mercury Rule 803, to those PMMs that contribute a meaningful
percentage of the Exchange's overall volume, measured on a quarterly or
monthly basis. The Exchange proposes to consider other factors in
determining which PMMs will be required to participate in scheduled
functional and performance testing, including average daily volume
traded on the Exchange measured on a quarterly or monthly basis, or
PMMs that collectively account for a certain percentage of market share
on the Exchange or within a specific product. The Exchange represents
that it will publish the criteria \11\ to be used by the Exchange to
determine which PMMs will be required to participate in such testing,
and notify those PMMs that are required to participate based on such
criteria.
---------------------------------------------------------------------------
\11\ This criteria will be published by the Exchange, in a
regulatory information circular, no later than the effective date of
this rule filing.
---------------------------------------------------------------------------
The Exchange notes that it encourages all PMMs to connect to the
Exchange's backup systems and to participate in testing of such
systems. However, in revising the requirements in proposed Rule 803,
the rule will subject only those PMMs to mandatory testing that the
Exchange believes are, taken as a whole, the minimum necessary to
maintain fair and orderly markets. The Exchange believes that
designating PMMs to participate in mandatory testing because they, for
example, account for a significant portion of the Exchange's overall
volume or collectively account for a certain percentage of market share
on the Exchange is a reasonable means to ensure the maintenance of a
fair and orderly market on the Exchange should its DR Plans be
activated.
2. Statutory 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.\12\ In
particular, the proposal is consistent with section 6(b)(5) of the
Act,\13\ 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.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
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[[Page 21935]]
The Exchange believes the proposed rule revision is consistent with
the Exchange Act because it complies with Regulation SCI's
requirements. ISE Mercury's proposed rule designates only those PMMs it
determines are necessary for the maintenance of a fair and orderly
market if the Exchange's DR Plans are activated. Additionally, the
proposal will ensure that the PMMs necessary to ensure the maintenance
of a fair and orderly market are properly designated consistent with
Rule 1004 of Regulation SCI. Specifically, as proposed, the Exchange
will adopt clear and objective criteria with respect to the designation
of PMMs that are required to participate in the testing of the
Exchange's DR Plans, as well as appropriate notification regarding such
designation. As set forth in the SCI Adopting Release, ``SROs have the
authority, and legal responsibility, under section 6 of the Exchange
Act, to adopt and enforce rules (including rules to comply with
Regulation SCI's requirements relating to [business continuity and
disaster recovery] testing) applicable to their members or participants
that are designed to, among other things, foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, 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.'' \14\ The Exchange believes
that this proposal is consistent with such authority and legal
responsibility.
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\14\ See SCI Adopting Release, supra note 4 at 72350.
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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 Mercury is implementing the requirements
of Regulation SCI.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
this proposed rule change. The Exchange has not received any 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 \15\ and Rule 19b-
4(f)(6) thereunder.\16\ 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).
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\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6).
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At any time within 60 days of the filing of such proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form https://www.sec.gov/rules/sro.shtml); or
Send an Email to rule-comments@sec.gov. Please include
File No. SR-ISE Mercury-2016-08 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE Mercury-2016-08.
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 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 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-ISE Mercury-2016-08 and
should be submitted by May 4, 2016.
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\17\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-08428 Filed 4-12-16; 8:45 am]
BILLING CODE 8011-01-P
