Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to All-or-None Orders, 12381-12383 [2017-04031]
Download as PDF
<![CDATA[
Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 8 and
subparagraph (f)(6) of Rule 19b–4
thereunder.9
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 10 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Exchange represents that waiver of the
operative delay would provide the
Exchange additional time to implement
the Block Order Mechanism
functionality and ensure that it is
properly functioning prior to
implementation on INET. The
Commission notes that the Exchange
represents that there will be no impact
to market participants as a result of the
proposed delay in implementation
because no participants currently utilize
the Block Order Mechanism on the
Exchange. Accordingly, the Commission
hereby waives the operative delay and
designates the proposal operative upon
filing.12
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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.
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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.
10 17 CFR 240.19b–4(f)(6).
11 17 CFR 240.19b–4(f)(6)(iii).
12 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
sradovich on DSK3GMQ082PROD with NOTICES
9 17
VerDate Sep<11>2014
16:13 Mar 01, 2017
Jkt 241001
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017–04030 Filed 3–1–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
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–2017–05 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–2017–05. 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 the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
ISEGemini–2017–05 and should be
submitted on or before March 23, 2017.
PO 00000
[Release No. 34–80102; File No. SR–
ISEGemini–2017–08]
Self-Regulatory Organizations; ISE
Gemini, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Related to All-or-None
Orders
February 24, 2017.
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 February
24, 2017, ISE Gemini, LLC (‘‘ISE
Gemini’’ 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 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
The Exchange proposes to provide
that All-Or-None Orders may only be
entered into the trading system with a
time-in-force designation of ImmediateOr-Cancel.
The Exchange requests that the
Commission waive the 30-day operative
delay period contained in Exchange Act
Rule 19b–4(f)(6)(iii).3
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
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
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 17 CFR 240.19b–4(f)(6)(iii).
1 15
Frm 00047
Fmt 4703
12381
Sfmt 4703
E:\FR\FM\02MRN1.SGM
02MRN1
12382
Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices
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
The Exchange proposes to amend
Rule 715(c) to provide that an All-OrNone Order may only be entered into
the trading system with a time-in-force
designation of Immediate-Or-Cancel
order in connection with the Exchange’s
technology migration to INET.
An All-Or-None Order is a limit or
market order that is to be executed in its
entirety or not at all. Today, an All-OrNone Order may be designated as a
market or limit order with any time-inforce designation. The Exchange
proposes to limit All-Or-None Orders to
only be accepted with a time-in-force
designation of Immediate-Or-Cancel. An
Immediate-Or-Cancel Order is a limit
order that is to be executed in whole or
in part upon receipt. Any portion not so
executed is to be treated as cancelled.
The Exchange also proposes to amend
Supplementary Material .02 to Rule 713
to make clear that All-Or-None Orders
will only be accepted with a time-inforce designation of Immediate-OrCancel and, therefore, would not persist
in the Order Book. The Exchange also
proposes to amend Supplementary
Material .03 to Rule 717 to reserve this
section as All-Or-None Orders would
not be subject to exposure because they
would be cancelled if not executed in
their entirety.4
sradovich on DSK3GMQ082PROD with NOTICES
Implementation
The Exchange will begin a system
migration to Nasdaq INET in Q1 of
2017.5 The migration will be on a
symbol by symbol basis as specified by
the Exchange in a notice to Members.
The Exchange is proposing to
implement this rule change on the INET
platform as the symbols migrate to that
platform. Members could continue to
submit orders with any time-in-force
designation until the symbol migrates to
4 The Exchange notes that Rule 716(e), Solicited
Order Mechanism, is not being amended because
only All-Or-None Orders are accepted into this
mechanism. The proposed rule change does not
impact the manner in which the Solicited Order
Mechanism operates.
5 See Securities Exchange Act Release No. 80011
(February 10, 2017), 82 FR 10927 (SR–ISEGemini–
2016–17) (Order Approving Proposed Rule Change,
as Modified by Amendment Nos. 1 and 2, To
Amend Various Rules in Connection With a System
Migration to Nasdaq INET Technology).
VerDate Sep<11>2014
16:13 Mar 01, 2017
Jkt 241001
the INET platform. Once the symbol
migrates to INET an All-Or-None Order
could only be submitted with a time-inforce designation of Immediate-OrCancel.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,6 in general, and furthers the
objectives of Section 6(b)(5) of the Act,7
in particular, in that it is designed 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 by
mitigating risks to market participants.
The Exchange believes that the proposal
is appropriate and reasonable, because
the time-in-force designation of
Immediate-Or-Cancel will offer
Members certainty with respect to their
order handling. With this proposal, an
All-Or-None Order will either execute
immediately or be cancelled back to the
Member. All-Or-None Orders are
contingency orders that have no priority
on the Order Book. These orders would
receive an execution after all other
trading interest at the same price has
been exhausted. This proposal would
remove uncertainty with respect to the
manner in which these orders would be
handled in the Order Book by cancelling
back an All-Or-None Order if it cannot
be immediately executed in its entirety.
Today, the NASDAQ Options Market,
LLC (‘‘NOM’’) only permits All-Or-None
Orders to be submitted with a time-inforce designation of Immediate-OrCancel.8
The Exchange notes that Members are
aware of the Exchange’s efforts to
replatform to the INET technology.
Members have been involved in testing
the system and providing feedback to
the Exchange throughout this migration
process. Members were provided notice
of this proposed change to the trading
system on February 23, 2017. The
Exchange intends to make clear the
implementation of this functionality
within its Rulebook.
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 not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impact the
6 15
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
8 See NOM Rules, Chapter VI, Section 1(g)(2).
7 15
PO 00000
Frm 00048
Fmt 4703
Sfmt 4703
intense competition that exists in the
options market. No market participant
would be able to submit an All-Or-None
Order on the INET system without a
time-in-force designation of ImmediateOr-Cancel. The Exchange believes the
All-Or-None Order type, as proposed,
will continue to offer Members a
competitive alternative on ISE Gemini
for submitting orders for execution.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
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)(iii) of the Act 9 and
subparagraph (f)(6) of Rule 19b–4
thereunder.10
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 11 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 12
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Commission believes that
waiving the 30-day operative delay is
consistent with the protection of
investors and the public interest. The
Exchange represents that waiver of the
operative delay would allow the
Exchange to launch its transition to the
INET technology on the schedule
previously announced to Members. The
Exchange states that it provided notice
of the proposed rule change to Members
on February 23, 2017. The Exchange
also represents that the Exchange has
directly contacted the Members
9 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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 Commission has waived the fiveday prefiling requirement in this case.
11 17 CFR 240.19b–4(f)(6).
12 17 CFR 240.19b–4(f)(6)(iii).
10 17
E:\FR\FM\02MRN1.SGM
02MRN1
Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices
responsible for over 99 percent of AllOr-None Orders on an average trading
date on the Exchange and confirmed
that the proposed rule change would
have little impact on the Members’
operations on the Exchange. The
Exchange also represents that the
primary impact of the proposal will not
occur until later in the INET transition
process. According to the Exchange, AllOr-None Orders are typically utilized
for more liquid symbols, which will not
begin to migrate to INET until the third
week of the transition schedule and
thereafter. Accordingly, the Commission
hereby waives the operative delay and
designates the proposal operative upon
filing.13
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: (i) Necessary or appropriate in
the public interest; (ii) for the protection
of investors; or (iii) 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:
sradovich on DSK3GMQ082PROD with NOTICES
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–
ISEGemin–2017–08 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–2017–08. 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 Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
13 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
16:13 Mar 01, 2017
Jkt 241001
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
ISEGemini–2017–08 and should be
submitted on or before March 23, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017–04031 Filed 3–1–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80109; File No. SR–Phlx–
2017–16]
Self-Regulatory Organizations;
NASDAQ PHLX LLC; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change To Amend Rule
1014 of the Options Rules Relating to
Market Maker Quotations
February 24, 2017.
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 February
14, 2017, 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, II, and
III, below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
14 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00049
Fmt 4703
Sfmt 4703
12383
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
The Exchange proposes to amend
Rule 1014 of the Options Rules relating
to Market Maker Quotations.
The text of the proposed rule change
is available on the Exchange’s Web
site at https://
nasdaqphlx.cchwallstreet.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
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 the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Phlx is proposing to amend Rule
1014(c)(i)(A)(1) of the Options Rules
relating to Market Maker Quotations to
amend the quote spread parameters for
in-the-money series where the market
for the underlying security is wider than
the differentials set forth in the Rule.
Currently, Rule 1014(c)(i)(A)(1)(a)
provides the following bid/ask
differentials for options on equities and
index options: No more than $.25
between the bid and the offer for each
option contract for which the prevailing
bid is less than $2; no more than $.40
where the prevailing bid is $2 or more
but less than $5; no more than $.50
where the prevailing bid is $5 or more
but less than $10; no more than $.80
where the prevailing bid is $10 or more
but less than $20; and no more than $1
where the prevailing bid is $20 or more,
provided that, in the case of equity
options, the bid/ask differentials stated
above shall not apply to in-the-money
series where the market for the
underlying security is wider than the
differentials set forth above. For such
series, the bid/ask differentials may be
as wide as the quotation for the
E:\FR\FM\02MRN1.SGM
02MRN1
]]>Agencies
[Federal Register Volume 82, Number 40 (Thursday, March 2, 2017)]
[Notices]
[Pages 12381-12383]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04031]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80102; File No. SR-ISEGemini-2017-08]
Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Related to All-or-
None Orders
February 24, 2017.
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 February 24, 2017, ISE Gemini, LLC (``ISE Gemini'' 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 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 provide that All-Or-None Orders may only
be entered into the trading system with a time-in-force designation of
Immediate-Or-Cancel.
The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\3\
---------------------------------------------------------------------------
\3\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------
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 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
[[Page 12382]]
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
The Exchange proposes to amend Rule 715(c) to provide that an All-
Or-None Order may only be entered into the trading system with a time-
in-force designation of Immediate-Or-Cancel order in connection with
the Exchange's technology migration to INET.
An All-Or-None Order is a limit or market order that is to be
executed in its entirety or not at all. Today, an All-Or-None Order may
be designated as a market or limit order with any time-in-force
designation. The Exchange proposes to limit All-Or-None Orders to only
be accepted with a time-in-force designation of Immediate-Or-Cancel. An
Immediate-Or-Cancel Order is a limit order that is to be executed in
whole or in part upon receipt. Any portion not so executed is to be
treated as cancelled.
The Exchange also proposes to amend Supplementary Material .02 to
Rule 713 to make clear that All-Or-None Orders will only be accepted
with a time-in-force designation of Immediate-Or-Cancel and, therefore,
would not persist in the Order Book. The Exchange also proposes to
amend Supplementary Material .03 to Rule 717 to reserve this section as
All-Or-None Orders would not be subject to exposure because they would
be cancelled if not executed in their entirety.\4\
---------------------------------------------------------------------------
\4\ The Exchange notes that Rule 716(e), Solicited Order
Mechanism, is not being amended because only All-Or-None Orders are
accepted into this mechanism. The proposed rule change does not
impact the manner in which the Solicited Order Mechanism operates.
---------------------------------------------------------------------------
Implementation
The Exchange will begin a system migration to Nasdaq INET in Q1 of
2017.\5\ The migration will be on a symbol by symbol basis as specified
by the Exchange in a notice to Members. The Exchange is proposing to
implement this rule change on the INET platform as the symbols migrate
to that platform. Members could continue to submit orders with any
time-in-force designation until the symbol migrates to the INET
platform. Once the symbol migrates to INET an All-Or-None Order could
only be submitted with a time-in-force designation of Immediate-Or-
Cancel.
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 80011 (February 10,
2017), 82 FR 10927 (SR-ISEGemini-2016-17) (Order Approving Proposed
Rule Change, as Modified by Amendment Nos. 1 and 2, To Amend Various
Rules in Connection With a System Migration to Nasdaq INET
Technology).
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that it is designed 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 by
mitigating risks to market participants. The Exchange believes that the
proposal is appropriate and reasonable, because the time-in-force
designation of Immediate-Or-Cancel will offer Members certainty with
respect to their order handling. With this proposal, an All-Or-None
Order will either execute immediately or be cancelled back to the
Member. All-Or-None Orders are contingency orders that have no priority
on the Order Book. These orders would receive an execution after all
other trading interest at the same price has been exhausted. This
proposal would remove uncertainty with respect to the manner in which
these orders would be handled in the Order Book by cancelling back an
All-Or-None Order if it cannot be immediately executed in its entirety.
Today, the NASDAQ Options Market, LLC (``NOM'') only permits All-Or-
None Orders to be submitted with a time-in-force designation of
Immediate-Or-Cancel.\8\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
\8\ See NOM Rules, Chapter VI, Section 1(g)(2).
---------------------------------------------------------------------------
The Exchange notes that Members are aware of the Exchange's efforts
to replatform to the INET technology. Members have been involved in
testing the system and providing feedback to the Exchange throughout
this migration process. Members were provided notice of this proposed
change to the trading system on February 23, 2017. The Exchange intends
to make clear the implementation of this functionality within its
Rulebook.
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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impact the intense competition that
exists in the options market. No market participant would be able to
submit an All-Or-None Order on the INET system without a time-in-force
designation of Immediate-Or-Cancel. The Exchange believes the All-Or-
None Order type, as proposed, will continue to offer Members a
competitive alternative on ISE Gemini for submitting orders for
execution.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
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)(iii) of the Act \9\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A)(iii).
\10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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 Commission has waived the five-day prefiling requirement in this
case.
---------------------------------------------------------------------------
A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. The
Commission believes that waiving the 30-day operative delay is
consistent with the protection of investors and the public interest.
The Exchange represents that waiver of the operative delay would allow
the Exchange to launch its transition to the INET technology on the
schedule previously announced to Members. The Exchange states that it
provided notice of the proposed rule change to Members on February 23,
2017. The Exchange also represents that the Exchange has directly
contacted the Members
[[Page 12383]]
responsible for over 99 percent of All-Or-None Orders on an average
trading date on the Exchange and confirmed that the proposed rule
change would have little impact on the Members' operations on the
Exchange. The Exchange also represents that the primary impact of the
proposal will not occur until later in the INET transition process.
According to the Exchange, All-Or-None Orders are typically utilized
for more liquid symbols, which will not begin to migrate to INET until
the third week of the transition schedule and thereafter. Accordingly,
the Commission hereby waives the operative delay and designates the
proposal operative upon filing.\13\
---------------------------------------------------------------------------
\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) 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-ISEGemin-2017-08 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-2017-08. 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 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 the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ISEGemini-2017-08 and should
be submitted on or before March 23, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------
\14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-04031 Filed 3-1-17; 8:45 am]
BILLING CODE 8011-01-P
