Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees, 13893-13895 [2017-05085]
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Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
a rule filing to list and trade a product,
all statements or representations
regarding the applicability of Exchange
listing rules (including, for example,
statements and representations related
to the dissemination of the intraday
indicative value and index value, as
applicable) specified in such rule filing
constitute continued listing
requirements; (iv) specified an
implementation date for the proposed
changes; and (v) made other technical,
clarifying, and conforming changes
throughout the Rule 5 and Rule 8 Series.
The Commission believes that
Amendment No. 2 furthers the goals of
the proposed rule change as discussed
above, enhances consistency between
the Exchange’s proposal and recently
approved proposals from other
exchanges,38 and provides clarity and
consistency within the Exchange’s rules.
Accordingly, the Commission finds
good cause, pursuant to Section 19(b)(2)
of the Act,39 to approve the proposed
rule change, as modified by Amendment
No. 2, on an accelerated basis.
V. Solicitation of Comments on
Amendment No. 2
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether Amendment No. 2 is
consistent with the Act. Comments may
be submitted by any of the following
methods:
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
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–
NYSEArca–2017–01 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–NYSEArca–2017–01. 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
38 See Securities Exchange Act Release Nos.
79784 (January 12, 2017), 82 FR 6664 (January 19,
2017) (SR–NASDAQ–2016–135) and 80169 (March
7, 2017) (SR–BatsBZX–2016–80).
39 15 U.S.C. 78s(b)(2).
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Jkt 241001
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–
NYSEArca–2017–01 and should be
submitted on or before April 5, 2017.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,40 that the
proposed rule change (SR–NYSEArca–
2017–01), as modified by Amendment
No. 2, be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.41
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05090 Filed 3–14–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80184; File No. SR–
ISEGemini–2017–09]
Self-Regulatory Organizations; ISE
Gemini, 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
27, 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
40 15
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
41 17
PO 00000
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13893
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 the
Schedule of Fees to (1) eliminate fees
and rebates for trades in Calpine
Corporation executed on February 27–
28, 2017, and (2) modify the Exchange’s
average daily volume calculation for
March 2017.
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
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 amend the Schedule of Fees
to (1) eliminate fees and rebates for
trades in Calpine Corporation (‘‘CPN’’)
executed on February 27–28, 2017, and
(2) modify the Exchange’s average daily
volume (‘‘ADV’’) calculation for March
2017. These changes are both being
made in connection with the migration
of the Exchange’s trading system to the
Nasdaq INET technology, which is
scheduled to begin on February 27,
2017.
The Exchange will launch its replatformed INET trading system
beginning with a single symbol—CPN—
on February 27, 2017. The Exchange
proposes to eliminate fees and rebates
for trades in options overlying Symbol
CPN executed on the INET trading
system during the last two trading days
of the month, i.e., February 27–28, 2017.
Because the Exchange is eliminating
fees and rebates for trades in this
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13894
Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
symbol, during this two day period
trades in options overlying Symbol CPN
will not be counted towards a member’s
tier for February activity. The proposed
change would allow the Exchange to bill
February fees solely based on activity
traded on the current T7 trading system,
and is an inducement for members to
trade the first symbol launched on the
INET trading system as there would be
no transaction fees for doing so.
In addition, the Exchange currently
provides volume-based maker rebates to
Market Maker 3 and Priority Customer 4
orders in four tiers based on a member’s
ADV in the following categories: (1)
Total Affiliated Member ADV,5 and (2)
Priority Customer Maker ADV,6 as
shown in the table below.7 In addition,
the Exchange charges volume based
taker fees to market participants based
on achieving these volume thresholds.
TABLE 1
Tier
Tier
Tier
Tier
Tier
1
2
3
4
Priority customer
maker ADV
Total affiliated member ADV
.....................................................................................
.....................................................................................
.....................................................................................
.....................................................................................
0–99,999 ..............................................................................
100,000–224,999 .................................................................
225,000–349,999 .................................................................
350,000 or more ...................................................................
0–19,999.
20,000–99,999.
100,000–149,999.
150,000 or more.
tier calculation for March 2017 is
reasonable and equitable as it will give
members the opportunity to trade on the
INET trading system while, if more
favorable to the member, keeping their
ADV tier based on the first portion of
the month where most trading occurred
on T7. The Exchange believes that this
change is appropriate given the pending
migration of the Exchange’s trading
system to INET. Come the first trading
day of April, i.e., April 3, 2017, the
Exchange intends to roll out the
remaining symbols on INET,11 and ADV
tiers will once again be based solely on
full month volume. The Exchange also
believes that this proposed change is not
unfairly discriminatory as the
alternative means of calculating ADV
tiers will be available to all members
that trade on the Exchange, and will
only be applied if it is better for the
member.
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,9
in general, and Section 6(b)(4) of the
Act,10 in particular, in that it is designed
to provide for the equitable allocation of
reasonable dues, fees, and other charges
among its members and other persons
using its facilities.
The Exchange believes that it is
reasonable and equitable to eliminate
fees and rebates for CPN during the first
two days of trading on the Exchange’s
re-platformed trading system.
Eliminating fees and rebates for CPN
during those two days will simplify the
Exchange’s billing and serve as an
inducement for members to trade the
first symbol migrated to the INET
trading system. Because the Exchange is
offering free executions in CPN, volume
executed in CPN on February 27–28,
2017 will not be counted towards any
volume based tiers. The Exchange
believes that these two changes will be
attractive to members that trade on the
new INET trading system. The Exchange
also believes that this proposed change
is not unfairly discriminatory as it will
apply to trades in CPN that are executed
by all members. As noted above, CPN
was selected for this treatment as it will
be the first symbol traded on the INET
trading system, and will be the only
symbol traded on INET during February.
In addition, the Exchange believes
that the proposed changes to the ADV
3 The term Market Maker refers to ‘‘Competitive
Market Makers’’ and ‘‘Primary Market Makers’’
collectively.
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).
5 The Total Affiliated Member ADV category
includes all volume in all symbols and order types,
including both maker and taker volume and volume
executed in the PIM, Facilitation, Solicitation, and
QCC mechanisms.
6 The Priority Customer Maker ADV category
includes all Priority Customer volume that adds
liquidity in all symbols.
7 All eligible volume from affiliated Members will
be aggregated in determining applicable tiers,
provided there is at least 75% common ownership
between the Members as reflected on each
Member’s Form BD, Schedule A.
The highest tier threshold attained above applies
retroactively in a given month to all eligible traded
contracts and applies to all eligible market
participants.
Any day that the market 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 the ADV calculation; provided
that the Exchange will only remove the day for
members that would have a lower ADV with the
day included.
8 The rollout scheduled for March 27, 2017
contains symbols that account for approximately
35% of the industry volume. Prior to that date, the
Exchange expects to be trading symbols that
account for between 2% and 3% of industry volume
on the INET trading system.
9 15 U.S.C. 78f.
10 15 U.S.C. 78f(b)(4).
11 The Exchange intends to roll out symbols
accounting for the remaining 62% to 63% of
industry volume on this date.
12 15 U.S.C. 78f(b)(8).
The Exchange proposes to provide
two alternatives for calculation of ADV
during the month of March, i.e., the first
month where members will be charged
for trading activity on the INET trading
system. In particular, for March 2017
only, all Qualifying Tier Threshold ADV
calculations will be based on the better
of (1) the member’s full month ADV for
the period of March 1–31, 2017, or (2)
the member’s ADV for the period of
March 1–24, 2017. March 1–24, 2017
represents a partial month where, due to
the Exchange’s rollout of symbols on the
INET trading system, the vast majority
of volume is expected to trade on the
current T7 trading system. On the
following trading day, i.e., March 27,
2017, the Exchange intends to ramp up
its symbol rollout, resulting in a large
volume of trading occurring on the INET
trading system.8 The Exchange believes
that the proposed approach to
calculating tiers will minimize the
impact to members that trade on the
Exchange during the symbol rollout as
members can achieve their tier either
based on the full month or on the part
of the month where trading primarily
occurred on the current T7 trading
system.
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
2. Statutory Basis
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B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,12 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed changes are intended to ease
members’ transition to the re-platformed
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Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices
INET trading system and is not designed
to have any significant competitive
impact. The Exchange operates in a
highly competitive market in which
market participants can readily direct
their order flow to competing venues. In
such an environment, the Exchange
must continually review, and consider
adjusting, its fees and rebates to remain
competitive with other exchanges. For
the reasons described above, the
Exchange believes that the proposed fee
changes reflect this competitive
environment.
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
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,13 and Rule
19b–4(f)(2) 14 thereunder. 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:
asabaliauskas on DSK3SPTVN1PROD with NOTICES2
• 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–2017–09 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.
14 17
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
18:19 Mar 14, 2017
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–05085 Filed 3–14–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80190; File No. SR–MIAX–
2017–11]
Electronic Comments
13 15
All submissions should refer to File
Number SR–ISEGemini–2017–09. 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–2017–09 and should be
submitted on or before April 5, 2017.
Self-Regulatory Organizations; Miami
International Securities Exchange LLC;
Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend Its Fee Schedule
Relating to the Professional Rebate
Program
March 9, 2017.
Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
15 17
1 15
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CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Frm 00108
Fmt 4703
Sfmt 4703
13895
thereunder,2 notice is hereby given that
on February 28, 2017, Miami
International Securities Exchange LLC
(‘‘MIAX Options’’ or ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) a
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 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 is filing a proposal to
amend the MIAX Options Fee Schedule
(the ‘‘Fee Schedule’’).
The text of the proposed rule change
is available on the Exchange’s Web site
at https://www.miaxoptions.com/rulefilings, at MIAX’s principal office, 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
The Exchange proposes to amend its
Fee Schedule to make adjustments to its
Professional Rebate Program (the
‘‘Program’’). Under the Program, which
is set forth in Section (1)(a)(iv) of the
Fee Schedule, the Exchange credits each
Member 3 a per contract amount
resulting from any contracts executed
from an order submitted by that Member
for the account of a: (i) Public
2 17
CFR 240.19b–4.
term ‘‘Member’’ means an individual or
organization approved to exercise the trading rights
associated with a Trading Permit. Members are
deemed ‘‘members’’ under the Exchange Act. See
Exchange Rule 100.
3 The
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]]>Agencies
[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)]
[Notices]
[Pages 13893-13895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05085]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80184; File No. SR-ISEGemini-2017-09]
Self-Regulatory Organizations; ISE Gemini, 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 27, 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 amend the Schedule of Fees to (1)
eliminate fees and rebates for trades in Calpine Corporation executed
on February 27-28, 2017, and (2) modify the Exchange's average daily
volume calculation for March 2017.
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 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 amend the Schedule of
Fees to (1) eliminate fees and rebates for trades in Calpine
Corporation (``CPN'') executed on February 27-28, 2017, and (2) modify
the Exchange's average daily volume (``ADV'') calculation for March
2017. These changes are both being made in connection with the
migration of the Exchange's trading system to the Nasdaq INET
technology, which is scheduled to begin on February 27, 2017.
The Exchange will launch its re-platformed INET trading system
beginning with a single symbol--CPN--on February 27, 2017. The Exchange
proposes to eliminate fees and rebates for trades in options overlying
Symbol CPN executed on the INET trading system during the last two
trading days of the month, i.e., February 27-28, 2017. Because the
Exchange is eliminating fees and rebates for trades in this
[[Page 13894]]
symbol, during this two day period trades in options overlying Symbol
CPN will not be counted towards a member's tier for February activity.
The proposed change would allow the Exchange to bill February fees
solely based on activity traded on the current T7 trading system, and
is an inducement for members to trade the first symbol launched on the
INET trading system as there would be no transaction fees for doing so.
In addition, the Exchange currently provides volume-based maker
rebates to Market Maker \3\ and Priority Customer \4\ orders in four
tiers based on a member's ADV in the following categories: (1) Total
Affiliated Member ADV,\5\ and (2) Priority Customer Maker ADV,\6\ as
shown in the table below.\7\ In addition, the Exchange charges volume
based taker fees to market participants based on achieving these volume
thresholds.
---------------------------------------------------------------------------
\3\ The term Market Maker refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively.
\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).
\5\ The Total Affiliated Member ADV category includes all volume
in all symbols and order types, including both maker and taker
volume and volume executed in the PIM, Facilitation, Solicitation,
and QCC mechanisms.
\6\ The Priority Customer Maker ADV category includes all
Priority Customer volume that adds liquidity in all symbols.
\7\ All eligible volume from affiliated Members will be
aggregated in determining applicable tiers, provided there is at
least 75% common ownership between the Members as reflected on each
Member's Form BD, Schedule A.
The highest tier threshold attained above applies retroactively
in a given month to all eligible traded contracts and applies to all
eligible market participants.
Any day that the market 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 the ADV calculation; provided
that the Exchange will only remove the day for members that would
have a lower ADV with the day included.
Table 1
----------------------------------------------------------------------------------------------------------------
Tier Total affiliated member ADV Priority customer maker ADV
----------------------------------------------------------------------------------------------------------------
Tier 1................................... 0-99,999.................... 0-19,999.
Tier 2................................... 100,000-224,999............. 20,000-99,999.
Tier 3................................... 225,000-349,999............. 100,000-149,999.
Tier 4................................... 350,000 or more............. 150,000 or more.
----------------------------------------------------------------------------------------------------------------
The Exchange proposes to provide two alternatives for calculation
of ADV during the month of March, i.e., the first month where members
will be charged for trading activity on the INET trading system. In
particular, for March 2017 only, all Qualifying Tier Threshold ADV
calculations will be based on the better of (1) the member's full month
ADV for the period of March 1-31, 2017, or (2) the member's ADV for the
period of March 1-24, 2017. March 1-24, 2017 represents a partial month
where, due to the Exchange's rollout of symbols on the INET trading
system, the vast majority of volume is expected to trade on the current
T7 trading system. On the following trading day, i.e., March 27, 2017,
the Exchange intends to ramp up its symbol rollout, resulting in a
large volume of trading occurring on the INET trading system.\8\ The
Exchange believes that the proposed approach to calculating tiers will
minimize the impact to members that trade on the Exchange during the
symbol rollout as members can achieve their tier either based on the
full month or on the part of the month where trading primarily occurred
on the current T7 trading system.
---------------------------------------------------------------------------
\8\ The rollout scheduled for March 27, 2017 contains symbols
that account for approximately 35% of the industry volume. Prior to
that date, the Exchange expects to be trading symbols that account
for between 2% and 3% of industry volume on the INET trading system.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\9\ in general, and Section
6(b)(4) of the Act,\10\ in particular, in that it is designed to
provide for the equitable allocation of reasonable dues, fees, and
other charges among its members and other persons using its facilities.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f.
\10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that it is reasonable and equitable to
eliminate fees and rebates for CPN during the first two days of trading
on the Exchange's re-platformed trading system. Eliminating fees and
rebates for CPN during those two days will simplify the Exchange's
billing and serve as an inducement for members to trade the first
symbol migrated to the INET trading system. Because the Exchange is
offering free executions in CPN, volume executed in CPN on February 27-
28, 2017 will not be counted towards any volume based tiers. The
Exchange believes that these two changes will be attractive to members
that trade on the new INET trading system. The Exchange also believes
that this proposed change is not unfairly discriminatory as it will
apply to trades in CPN that are executed by all members. As noted
above, CPN was selected for this treatment as it will be the first
symbol traded on the INET trading system, and will be the only symbol
traded on INET during February.
In addition, the Exchange believes that the proposed changes to the
ADV tier calculation for March 2017 is reasonable and equitable as it
will give members the opportunity to trade on the INET trading system
while, if more favorable to the member, keeping their ADV tier based on
the first portion of the month where most trading occurred on T7. The
Exchange believes that this change is appropriate given the pending
migration of the Exchange's trading system to INET. Come the first
trading day of April, i.e., April 3, 2017, the Exchange intends to roll
out the remaining symbols on INET,\11\ and ADV tiers will once again be
based solely on full month volume. The Exchange also believes that this
proposed change is not unfairly discriminatory as the alternative means
of calculating ADV tiers will be available to all members that trade on
the Exchange, and will only be applied if it is better for the member.
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\11\ The Exchange intends to roll out symbols accounting for the
remaining 62% to 63% of industry volume on this date.
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B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\12\ the Exchange
does not believe that the proposed rule change will impose any burden
on intermarket or intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
changes are intended to ease members' transition to the re-platformed
[[Page 13895]]
INET trading system and is not designed to have any significant
competitive impact. The Exchange operates in a highly competitive
market in which market participants can readily direct their order flow
to competing venues. In such an environment, the Exchange must
continually review, and consider adjusting, its fees and rebates to
remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed fee changes reflect this
competitive environment.
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\12\ 15 U.S.C. 78f(b)(8).
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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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\13\ and Rule 19b-4(f)(2) \14\ thereunder.
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.
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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-ISEGemini-2017-09 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-2017-09. 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-2017-09 and should
be submitted on or before April 5, 2017.
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\15\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05085 Filed 3-14-17; 8:45 am]
BILLING CODE 8011-01-P
