Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Correct a Typographical Error in Section 413 of the Exchange's Rules, 13908-13910 [2017-05083]
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Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
aggregate global market capitalization of
publicly-held shares falls below $40
million.30 As noted above, current rules
set these dollar limits at $125 million
and $100 million, respectively. The
proposal would further lower the
threshold for Exchange notification of
the SPAC if aggregate global market
capitalization falls below $75 million, as
opposed to $150 million under the
current rule, and aggregate global
market capitalization attributable to
publicly-held shares falls below $60
million, as opposed to $125 million
under the current rule. The Commission
notes that, despite the fact that the
proposed reduction to SPAC listing and
continued listing standards are
significant on a percentage basis, the
proposed requirements remain higher
than comparable listing standards on
other markets that list and trade SPACs
and should be sufficient to promote fair
and orderly markets.31
Lastly, the Exchange proposes to add
additional continued listing standards
after the consummation of a business
combination in connection with the
lowering of the initial listing standards
for a SPAC. These new standards, as
noted above, will be in addition to the
existing continued listing standards that
currently apply to the post-business
combination company.32 The
Commission notes that the additional
requirements should strengthen the
continued listing standards applicable
to the post-business combination
company by requiring, in order to
remain listed on the Exchange, such
company to meet at least a price per
share of $4 and the initial listing
distribution standards set forth in
Section 102.01A of the Manual 33 as
well as have sufficient market
capitalization and market value of
publicly-held shares to ensure adequate
depth and liquidity.34 The proposed
standards would also require a SPAC
that is planning to consummate a
business combination to submit an
original listing application that must be
approved by the Exchange prior to the
listing of the post-business combination
company. The Commission believes the
additional requirement for the SPAC to
submit, and receive Exchange approval
of its, listing application to continue to
list on the Exchange as a post-business
combination company should allow the
Exchange to reevaluate whether the
newly formed operating company is
suitable for continued listing and will
have sufficient market depth and
liquidity for continued trading.35 The
new requirements also make the
continued listing process for a postbusiness combination company more
similar to the process for any new
listing applicant, which is consistent
with the unique characteristics of a
SPAC that lists with the intention to
find a business combination with an
operating company.
Based on the foregoing, the
Commission finds that the proposed
changes to listing standards are
consistent with the requirements of the
Exchange Act.
30 The Commission notes that the current
distribution standards and other continued listing
standards applicable to pre-business combination
SPAC will remain unchanged. See NYSE Listed
Company Manual Section 801 and 802.
31 For example, initial listing standards on
Nasdaq’s Global Market and NYSE MKT require,
among other things, a market value of listed
securities of $75 million and a market value of
publicly-held shares of at least $20 million. See
Nasdaq Rule 5405 and Section 101(d) of NYSE MKT
Company Guide. The continued listing standards
for Nasdaq Global Market and NYSE MKT require,
among other things, at least $50 million in market
value and $15 million market value in publiclyheld shares. See Nasdaq Rule 5450 and Section
1003(a) of NYSE MKT Company Guide. The
Exchange’s other quantitative standards for SPACs
to list, and continue to be listed, such as, for
example, the holder requirements, will also
continue to be comparable to Nasdaq Global Market
standards with the changes being approved in this
order.
32 See note 20, supra and accompanying text.
33 The distribution standards of Section 102.01A
of the Manual set forth minimum standards for the
number of round lot shareholders and number of
publicly-held shares required for initial listing. See
NYSE Listed Company Manual Section 102.01A.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.37
Eduardo A. Aleman,
Assistant Secretary.
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IV. Conclusion
It is therefore ordered that pursuant to
Section 19(b)(2) of the Exchange Act 36
that the proposed rule change (SR–
NYSE–2016–72) be, and hereby is,
approved.
[FR Doc. 2017–05137 Filed 3–14–17; 8:45 am]
BILLING CODE 8011–01–P
34 The Exchange proposes to require at a
minimum $150 million of global market
capitalization and $40 million of aggregate market
value of publicly-held shares. See proposed NYSE
Listed Company Manual Section 802.01B.
35 The continued application of the back-door
listing provisions should also help ensure that a
company not otherwise qualified for original listing
could get listed on the Exchange through a business
combination with a SPAC. See NYSE Listed
Company Manual Section 802.01B of the Manual.
See also note 27, supra and accompanying text.
36 15 U.S.C. 78s(b)(2).
37 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80194; File No. SR–ISE–
2017–20]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Correct a Typographical
Error in Section 413 of the Exchange’s
Rules
March 9, 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
28, 2017, the International Securities
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the 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 amend
Rule 413 of the Exchange’s Rules, as
described in further detail below.
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.ise.com, at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
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 purpose of the proposed rule
change is to correct a typographical
error. Rule 413(a) of the Rules of the
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
Exchange (the ‘‘Rules’’), which provides
for exemptions from position limits,
presently states that ‘‘hedge transactions
and positions established pursuant to
paragraphs eight (8) and nine (9)’’
thereunder are ‘‘subject to a position
limit equal to five (5) times the standard
limit established under Rule 412(d).’’
The reference in this text to paragraphs
(8) and (9) is incorrect. The Rule text
should properly reference paragraphs
(6) and (8).
Paragraph (6) of Rule 413(a) provides
for a position limit exemption for a long
call position accompanied by a short
put position with the same strike price
and a short call position accompanied
by a long put position with a different
strike price (a ‘‘box spread’’). Paragraph
(8) provides for a position limit
exemption for a listed option position
hedged on a one-for-one basis with an
over-the-counter (‘‘OTC’’) option
position on the same underlying
security. Meanwhile, paragraph (9)
merely states that for strategies
described under paragraphs (2)–(5) of
subsection (a) of the Rule, one
component of the option strategy can be
an OTC option contract guaranteed or
endorsed by the firm maintaining the
proprietary position or carrying the
customer account.
The Exchange notes that the position
limit exemptions set forth in the rules
of other options exchanges, including
ISE’s sister exchange, Phlx, as well as
CBOE, provide for position limit
exemptions for OTC and box spread
hedges of up to five times the standard
limits.3
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,4 in general, and furthers the
objectives of Section 6(b)(5) of the Act,5
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
mechanisms of a free and open market
and a national market system and, in
general, to protect investors and the
public interest. The Exchange asserts
that the proposed correction will serve
3 See PHLX Rule 1001(l) (providing that ‘‘[h]edge
transactions and positions established pursuant to
paragraphs (6) [OTC options hedges] and (7) [box
spread hedges] below are subject to a position limit
equal to five (5) times the standard limit . . .’’);
CBOE Rule 4.11, Interpretation .04(a) (providing
that [h]edge transactions and positions established
pursuant to paragraphs six (6) [box spread hedges]
and seven (7) [OTC options hedges] are subject to
a position limit equal to five (5) times the standard
limit . . .’’).
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(5).
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the Act’s goals by ensuring that the
Exchange’s Rules are accurate.
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 as it is
designed to correct a typographical
error.
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 6 and
subparagraph (f)(6) of Rule 19b–4
thereunder.7
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 8 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 9
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
because it will allow the Exchange to
correct a typographical error
immediately and therefore reduce
confusion in the application of the
Exchange’s rules. Accordingly, the
Commission hereby waives the
6 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.
8 17 CFR 240.19b–4(f)(6).
9 17 CFR 240.19b–4(f)(6)(iii).
7 17
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13909
operative delay and designates the
proposal operative upon filing.10
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is: (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–
ISE–2017–20 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–2017–20. 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 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).
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Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
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–ISE–
2017–20 and should be submitted on or
before April 5, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05083 Filed 3–14–17; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–80188; File No. SR–ISE–
2017–16]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend the Schedule of
Fees
March 9, 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, the International Securities
Exchange, LLC (‘‘ISE’’ 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.
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s Schedule of Fees, as
described in further detail below.
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.
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
1 15
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adding liquidity in those symbols.
These Market Maker Plus rebates are
provided on a per symbol basis in three
tiers based on the time the Market
Maker is quoting at the national best bid
or offer (‘‘NBBO’’).8 Currently, the
rebate is $0.10 per contract for Tier 1,
$0.18 per contract for Tier 2, and $0.22
per contract for Tier 3.9 The Exchange
now proposes to increase the rebate for
Tier 1 to $0.15 per contract. The rebates
for Tier 2 and Tier 3, including the
special rebates for Market Makers that
achieve Market Maker Plus in SPY or
QQQ, will remain at the same amounts
as described herein.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Priority Customer Taker Fees
The Exchange charges a taker fee for
regular orders in Select Symbols. This
fee is $0.44 per contract for Market
Maker orders, and $0.45 per contract for
Non-ISE Market Maker,10 Firm
Proprietary 11/Broker-Dealer,12 and
Professional Customer 13 orders. For
Priority Customer orders this fee is
$0.31 per contract, or $0.26 per contract
for members with a total affiliated
Priority Customer average daily volume
(‘‘ADV’’) that equals or exceeds 200,000
contracts.14 The Exchange now
1. Purpose
The purpose of the proposed rule
change is to amend the Exchange’s
Schedule of Fees to make changes to (1)
the Market Maker Plus 3 program, (2)
Priority Customer 4 regular order taker
fees in Select Symbols,5 (3) Priority
Customer complex order rebates in
Select Symbols and Non-Select
Symbols,6 and (4) the threshold of net
zero complex contracts. Each of these
changes is described below.
SECURITIES AND EXCHANGE
COMMISSION
11 17
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.
Market Maker Plus
In order to promote and encourage
liquidity in Select Symbols, the
Exchange offers Market Makers 7 that
meet the quoting requirements for
Market Maker Plus enhanced rebates for
3 A ‘‘Market Maker Plus’’ is a Market Maker who
is on the National Best Bid or National Best Offer
a specified percentage of the time for series trading
between $0.03 and $3.00 (for options whose
underlying stock’s previous trading day’s last sale
price was less than or equal to $100) and between
$0.10 and $3.00 (for options whose underlying
stock’s previous trading day’s last sale price was
greater than $100) in premium in each of the front
two expiration months. The specified percentage is
at least 80% but lower than 85% of the time for Tier
1, at least 85% but lower than 95% of the time for
Tier 2, and at least 95% of the time for Tier 3. A
Market Maker’s single best and single worst quoting
days each month based on the front two expiration
months, on a per symbol basis, will be excluded in
calculating whether a Market Maker qualifies for
this rebate, if doing so will qualify a Market Maker
for the rebate.
4 A ‘‘Priority Customer’’ is a person or entity that
is not a broker/dealer in securities, and does not
place more than 390 orders in listed options per day
on average during a calendar month for its own
beneficial account(s), as defined in ISE Rule
100(a)(37A).
5 ‘‘Select Symbols’’ are options overlying all
symbols listed on the ISE that are in the Penny Pilot
Program.
6 ‘‘Non-Select Symbols’’ are options overlying all
symbols, excluding Select Symbols.
7 The term ‘‘Market Makers’’ refers to
‘‘Competitive Market Makers’’ and ‘‘Primary Market
Makers’’ collectively. See ISE Rule 100(a)(25).
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8 For all Market Maker Plus tiers, a $0.30 per
contract fee applies when trading against Priority
Customer complex orders that leg into the regular
order book. No fee is charged or rebate provided
when trading against non-Priority Customer
complex orders that leg into the regular order book).
9 In addition, the Exchange also offers lower
rebates for Market Makers that achieve Market
Maker Plus in SPY or QQQ. Specifically, Market
Makers that achieve Tier 2 or Tier 3 of Market
Maker Plus in either SPY or QQQ will receive the
SPY or QQQ rebate based on the highest Market
Maker tier achieved in either product. For example,
a Market Maker that achieves Tier 1 Market Maker
Plus in QQQ but Tier 3 Market Maker Plus in SPY
will receive a Tier 3 rebate in both SPY and QQQ.
Instead of the Tier 2 and Tier 3 rebates described
above, however, Market Maker Plus orders in SPY
or QQQ are entitled to a rebate of $0.16 per contract
for Tier 2, and $0.20 per contract for Tier 3.
10 A ‘‘Non-ISE Market Maker’’ is a market maker
as defined in Section 3(a)(38) of the Securities
Exchange Act of 1934, as amended, registered in the
same options class on another options exchange.
11 A ‘‘Firm Proprietary’’ order is an order
submitted by a member for its own proprietary
account.
12 A ‘‘Broker-Dealer’’ order is an order submitted
by a member for a broker-dealer account that is not
its own proprietary account.
13 A ‘‘Professional Customer’’ is a person or entity
that is not a broker/dealer and is not a Priority
Customer.
14 Priority Customer ADV includes all volume in
all symbols and order types. All eligible volume
from affiliated members will be aggregated in
determining total affiliated Priority Customer ADV,
provided there is at least 75% common ownership
between the members as reflected on each
member’s Form BD, Schedule A. For purposes of
determining Priority Customer ADV, any day that
the regular order book is not open for the entire
trading day or the Exchange instructs members in
writing to route their orders to other markets may
be excluded from such calculation; provided that
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]]>Agencies
[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)]
[Notices]
[Pages 13908-13910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05083]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80194; File No. SR-ISE-2017-20]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Correct a Typographical Error in Section 413 of the
Exchange's Rules
March 9, 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 28, 2017, the International Securities Exchange, LLC
(``ISE'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by the 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 amend Rule 413 of the Exchange's Rules, as
described in further detail below.
The text of the proposed rule change is available on the Exchange's
Web site at https://www.ise.com, at the principal office of the
Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The 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 purpose of the proposed rule change is to correct a
typographical error. Rule 413(a) of the Rules of the
[[Page 13909]]
Exchange (the ``Rules''), which provides for exemptions from position
limits, presently states that ``hedge transactions and positions
established pursuant to paragraphs eight (8) and nine (9)'' thereunder
are ``subject to a position limit equal to five (5) times the standard
limit established under Rule 412(d).'' The reference in this text to
paragraphs (8) and (9) is incorrect. The Rule text should properly
reference paragraphs (6) and (8).
Paragraph (6) of Rule 413(a) provides for a position limit
exemption for a long call position accompanied by a short put position
with the same strike price and a short call position accompanied by a
long put position with a different strike price (a ``box spread'').
Paragraph (8) provides for a position limit exemption for a listed
option position hedged on a one-for-one basis with an over-the-counter
(``OTC'') option position on the same underlying security. Meanwhile,
paragraph (9) merely states that for strategies described under
paragraphs (2)-(5) of subsection (a) of the Rule, one component of the
option strategy can be an OTC option contract guaranteed or endorsed by
the firm maintaining the proprietary position or carrying the customer
account.
The Exchange notes that the position limit exemptions set forth in
the rules of other options exchanges, including ISE's sister exchange,
Phlx, as well as CBOE, provide for position limit exemptions for OTC
and box spread hedges of up to five times the standard limits.\3\
---------------------------------------------------------------------------
\3\ See PHLX Rule 1001(l) (providing that ``[h]edge transactions
and positions established pursuant to paragraphs (6) [OTC options
hedges] and (7) [box spread hedges] below are subject to a position
limit equal to five (5) times the standard limit . . .''); CBOE Rule
4.11, Interpretation .04(a) (providing that [h]edge transactions and
positions established pursuant to paragraphs six (6) [box spread
hedges] and seven (7) [OTC options hedges] are subject to a position
limit equal to five (5) times the standard limit . . .'').
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\5\ 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
mechanisms of a free and open market and a national market system and,
in general, to protect investors and the public interest. The Exchange
asserts that the proposed correction will serve the Act's goals by
ensuring that the Exchange's Rules are accurate.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
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 as it is designed to correct a
typographical error.
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 \6\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
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\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 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 Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \8\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \9\ 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
because it will allow the Exchange to correct a typographical error
immediately and therefore reduce confusion in the application of the
Exchange's rules. Accordingly, the Commission hereby waives the
operative delay and designates the proposal operative upon filing.\10\
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\8\ 17 CFR 240.19b-4(f)(6).
\9\ 17 CFR 240.19b-4(f)(6)(iii).
\10\ 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).
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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-ISE-2017-20 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-2017-20. 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
[[Page 13910]]
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-ISE-2017-20 and should be
submitted on or before April 5, 2017.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05083 Filed 3-14-17; 8:45 am]
BILLING CODE 8011-01-P
