Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Qualified Contingent Cross and Solicitation Rebate Tiers, 13899-13901 [2017-05086]

Download as PDF Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices C. Self-Regulatory Organization’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from Members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 17 and paragraph (f) of Rule 19b–4 thereunder.18 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 necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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 Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File No. SR– BatsEDGX–2017–12 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 No. SR–BatsEDGX–2017–12. 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 (http://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 No. SR–BatsEDGX– 2017–12, and should be submitted on or before April 5, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–05087 Filed 3–14–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–80185; File No. SR–ISE– 2017–17] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Qualified Contingent Cross and Solicitation Rebate Tiers 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, 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. 19 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 17 15 U.S.C. 78s(b)(3)(A). 18 17 CFR 240.19b–4(f). VerDate Sep<11>2014 18:19 Mar 14, 2017 Jkt 241001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 13899 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes a rule change to amend the Schedule of Fees to modify the Qualified Contingent Cross and Solicitation rebate tiers. 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 Currently, members using QCC and/or other solicited crossing orders, including solicited orders executed in the Solicitation, Facilitation or Price Improvement Mechanisms, receive rebates for each originating contract side in all symbols traded on the Exchange. Once a member reaches a certain volume threshold in QCC orders and/or solicited crossing orders during a month, the Exchange provides rebates to that Member for all of its QCC and solicited crossing order traded contracts for that month. The applicable rebates are applied on QCC and solicited crossing order traded contracts once the volume threshold is met. Members receive the Non-‘‘Customer to Customer’’ rebate for all QCC and/or other solicited crossing orders except for QCC and solicited orders between two Priority Customers. QCC and solicited orders between two Priority Customers receive the ‘‘Customer to Customer’’ rebate or ‘‘Customer to Customer’’ Rebate PLUS, respectively.3 Non‘‘Customer to Customer’’ and ‘‘Customer to Customer’’ volume is aggregated in determining the applicable volume tier. 3 The PLUS rebate is for Members with total monthly unsolicited originating Facilitation contract side volume of 175,000 or more. E:\FR\FM\15MRN1.SGM 15MRN1 13900 Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices The current volume threshold and corresponding rebates are as follows: Non-‘‘Customer to Customer’’rebate Originating contract sides ‘‘Customer to Customer’’ rebate ‘‘Customer to Customer’’ rebate PLUS $0.00 (0.05) (0.07) (0.08) (0.09) (0.11) $0.00 (0.01) (0.01) (0.03) (0.03) (0.03) $0.00 (0.05) (0.05) (0.05) (0.05) (0.05) 0 to 99,999 ................................................................................................................. 100,000 to 199,999 .................................................................................................... 200,000 to 499,999 .................................................................................................... 500,000 to 699,999 .................................................................................................... 700,000 to 999,999 .................................................................................................... 1,000,000+ ................................................................................................................. The Exchange now proposes to make two changes to the QCC and Solicitation rebate. First, the Exchange proposes to aggregate volume from affiliates in determining the Member’s tier for purposes of the QCC and Solicitation rebate. As proposed, all eligible volume from affiliated Members will be aggregated in determining QCC and Solicitation volume totals, provided there is at least 75% common ownership between the Members as reflected on each Member’s Form BD, Schedule A. The Exchange believes that aggregating volume across Members that share at least 75% common ownership will allow Members to continue to execute trades on the Exchange through separate broker-dealer entities for different types of volume, while receiving rebates based on the aggregate volume being executed across such entities. The Exchange currently aggregates volume from affiliated Members in determining applicable fees and rebates, including, for example, the Crossing Fee Cap,4 and believes that it is appropriate to now extend this treatment to the QCC and Solicitation rebate. In addition, the Exchange proposes to eliminate the current tier 4—i.e., from 500,000 to 699,999 originating contract sides—and merge this tier into current tier 5. With this proposed change, Non-‘‘Customer to Customer’’ rebate Originating contract sides ‘‘Customer to Customer’’ rebate ‘‘Customer to Customer’’ rebate PLUS $0.00 (0.05) (0.07) (0.09) (0.11) $0.00 (0.01) (0.01) (0.03) (0.03) $0.00 (0.05) (0.05) (0.05) (0.05) 0 to 99,999 ................................................................................................................. 100,000 to 199,999 .................................................................................................... 200,000 to 499,999 .................................................................................................... 500,000 to 999,999 .................................................................................................... 1,000,000+ ................................................................................................................. asabaliauskas on DSK3SPTVN1PROD with NOTICES2 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,5 in general, and Section 6(b)(4) of the Act,6 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, equitable, and not unfairly discriminatory to aggregate volume amongst corporate affiliates for purposes of the QCC and Solicitation rebate as this change is intended to avoid disparate treatment of firms that have divided their various business activities between separate corporate entities as compared to firms that operate those business activities within a single 4 See Securities Exchange Act Release No. 70873 (November 14, 2013), 78 FR 69714 (November 20, 2013) (SR–ISE–2013–56). VerDate Sep<11>2014 18:19 Mar 14, 2017 Jkt 241001 corporate entity. By way of example, many firms that are Members of the Exchange operate several different business lines within the same corporate entity. In contrast, other firms may be part of a corporate structure that separates those business lines into different corporate affiliates, either for business, compliance or historical reasons. Those corporate affiliates, in turn, are required to maintain separate memberships with the Exchange in order to access the Exchange. The Exchange currently aggregates volume executed by affiliates for other fees and rebates,7 and now proposes to similarly aggregate volume executed by affiliates for purposes of the QCC and Solicitation rebate. The proposed definition of ‘‘affiliate’’ to be used to aggregate volume for the QCC and Solicitation 5 15 6 15 PO 00000 Members that execute between 500,000 and 999,999 originating contract sides of eligible volume will earn the current tier 5 rebates—i.e., a Non-‘‘Customer to Customer’’ rebate of $0.09 per originating contract side, a ‘‘Customerto-Customer’’ rebate of $0.03 per originating contract side and a ‘‘Customer-to-Customer’’ rebate PLUS of $0.05 per originating contract side. The Exchange believes that this change will incentivize members to execute more QCC and/or other solicited crossing orders on the Exchange in order to qualify for enhanced rebates. The new tier schedule and rebates are shown in the following table: U.S.C. 78f. U.S.C. 78f(b)(4). Frm 00113 Fmt 4703 rebate is consistent with definitions used by the Exchange in other contexts.8 In addition, the Exchange believes that the proposed changes to the QCC and Solicitation rebate tier schedule are reasonable and equitable as the proposed changes simplify the Exchange’s tier structure, and provide more favorable rebates to members due to the reduced volume thresholds for achieving current tier 5 rebates. As explained above, the Exchange is eliminating the current tier 4 and merging it into current tier 5, thereby giving members a higher rebate for the same volume. The Exchange believes that this change will incentivize members to bring additional QCC and/ or other solicited crossing order volume to the Exchange in order to benefit from the enhanced rebates. The Exchange also believes that the proposed changes 7 See e.g., supra note 4. 8 Id. Sfmt 4703 E:\FR\FM\15MRN1.SGM 15MRN1 Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices to the tier schedule are not unfairly discriminatory as all members will be able to attain higher rebates by executing the required volume of QCC and/or other solicited crossing orders on the Exchange. B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,9 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 rule change merely allows for the aggregation of volume from affiliates for purposes of the QCC and Solicitation rebate, consistent with treatment of volume for other purposes in the Schedule of Fees, and with volume aggregation on other options markets. 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. asabaliauskas on DSK3SPTVN1PROD with NOTICES2 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,10 and Rule 19b–4(f)(2) 11 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. U.S.C. 78f(b)(8). U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 240.19b–4(f)(2). 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 (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– ISE–2017–17 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–2017–17. 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 (http://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–ISE– 2017–17 and should be submitted on or before April 5, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–05086 Filed 3–14–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–80193; File No. SR–FINRA– 2017–006] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing of a Proposed Rule Change To Amend Rule 6191 To Implement an Anonymous, Grouped Masking Methodology for Over-the-Counter Activity in Connection With Web Site Data Publication of Appendix B Data Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program 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 March 3, 2017, Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) 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 FINRA. 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 FINRA is proposing to amend Rule 6191 to implement an anonymous, grouped masking methodology for overthe-counter (‘‘OTC’’) activity in connection with Web site data publication of Appendix B data pursuant to the Regulation NMS Plan to Implement a Tick Size Pilot Program (‘‘Plan’’). The text of the proposed rule change is available on FINRA’s Web site at http://www.finra.org, at the principal office of FINRA and at the Commission’s Public Reference Room. 9 15 1 15 10 15 VerDate Sep<11>2014 18:19 Mar 14, 2017 12 17 Jkt 241001 PO 00000 CFR 200.30–3(a)(12). Frm 00114 Fmt 4703 Sfmt 4703 13901 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. E:\FR\FM\15MRN1.SGM 15MRN1

Agencies

[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)]
[Notices]
[Pages 13899-13901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05086]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80185; File No. SR-ISE-2017-17]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Modify the Qualified Contingent Cross and Solicitation Rebate 
Tiers

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, 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.
---------------------------------------------------------------------------

    \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 a rule change to amend the Schedule of Fees 
to modify the Qualified Contingent Cross and Solicitation rebate tiers.
    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
    Currently, members using QCC and/or other solicited crossing 
orders, including solicited orders executed in the Solicitation, 
Facilitation or Price Improvement Mechanisms, receive rebates for each 
originating contract side in all symbols traded on the Exchange. Once a 
member reaches a certain volume threshold in QCC orders and/or 
solicited crossing orders during a month, the Exchange provides rebates 
to that Member for all of its QCC and solicited crossing order traded 
contracts for that month. The applicable rebates are applied on QCC and 
solicited crossing order traded contracts once the volume threshold is 
met. Members receive the Non-``Customer to Customer'' rebate for all 
QCC and/or other solicited crossing orders except for QCC and solicited 
orders between two Priority Customers. QCC and solicited orders between 
two Priority Customers receive the ``Customer to Customer'' rebate or 
``Customer to Customer'' Rebate PLUS, respectively.\3\ Non-``Customer 
to Customer'' and ``Customer to Customer'' volume is aggregated in 
determining the applicable volume tier.

[[Page 13900]]

The current volume threshold and corresponding rebates are as follows:
---------------------------------------------------------------------------

    \3\ The PLUS rebate is for Members with total monthly 
unsolicited originating Facilitation contract side volume of 175,000 
or more.

----------------------------------------------------------------------------------------------------------------
                                                                                                 ``Customer to
               Originating contract sides                Non-``Customer to    ``Customer to    Customer'' rebate
                                                          Customer''rebate  Customer'' rebate         PLUS
----------------------------------------------------------------------------------------------------------------
0 to 99,999............................................              $0.00              $0.00              $0.00
100,000 to 199,999.....................................             (0.05)             (0.01)             (0.05)
200,000 to 499,999.....................................             (0.07)             (0.01)             (0.05)
500,000 to 699,999.....................................             (0.08)             (0.03)             (0.05)
700,000 to 999,999.....................................             (0.09)             (0.03)             (0.05)
1,000,000+.............................................             (0.11)             (0.03)             (0.05)
----------------------------------------------------------------------------------------------------------------

    The Exchange now proposes to make two changes to the QCC and 
Solicitation rebate. First, the Exchange proposes to aggregate volume 
from affiliates in determining the Member's tier for purposes of the 
QCC and Solicitation rebate. As proposed, all eligible volume from 
affiliated Members will be aggregated in determining QCC and 
Solicitation volume totals, provided there is at least 75% common 
ownership between the Members as reflected on each Member's Form BD, 
Schedule A. The Exchange believes that aggregating volume across 
Members that share at least 75% common ownership will allow Members to 
continue to execute trades on the Exchange through separate broker-
dealer entities for different types of volume, while receiving rebates 
based on the aggregate volume being executed across such entities. The 
Exchange currently aggregates volume from affiliated Members in 
determining applicable fees and rebates, including, for example, the 
Crossing Fee Cap,\4\ and believes that it is appropriate to now extend 
this treatment to the QCC and Solicitation rebate.
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 70873 (November 14, 
2013), 78 FR 69714 (November 20, 2013) (SR-ISE-2013-56).
---------------------------------------------------------------------------

    In addition, the Exchange proposes to eliminate the current tier 
4--i.e., from 500,000 to 699,999 originating contract sides--and merge 
this tier into current tier 5. With this proposed change, Members that 
execute between 500,000 and 999,999 originating contract sides of 
eligible volume will earn the current tier 5 rebates--i.e., a Non-
``Customer to Customer'' rebate of $0.09 per originating contract side, 
a ``Customer-to-Customer'' rebate of $0.03 per originating contract 
side and a ``Customer-to-Customer'' rebate PLUS of $0.05 per 
originating contract side. The Exchange believes that this change will 
incentivize members to execute more QCC and/or other solicited crossing 
orders on the Exchange in order to qualify for enhanced rebates. The 
new tier schedule and rebates are shown in the following table:

----------------------------------------------------------------------------------------------------------------
                                                         Non-``Customer to                       ``Customer to
               Originating contract sides                    Customer''       ``Customer to    Customer'' rebate
                                                               rebate       Customer'' rebate         PLUS
----------------------------------------------------------------------------------------------------------------
0 to 99,999............................................              $0.00              $0.00              $0.00
100,000 to 199,999.....................................             (0.05)             (0.01)             (0.05)
200,000 to 499,999.....................................             (0.07)             (0.01)             (0.05)
500,000 to 999,999.....................................             (0.09)             (0.03)             (0.05)
1,000,000+.............................................             (0.11)             (0.03)             (0.05)
----------------------------------------------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\5\ in general, and Section 
6(b)(4) of the Act,\6\ 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that it is reasonable, equitable, and not 
unfairly discriminatory to aggregate volume amongst corporate 
affiliates for purposes of the QCC and Solicitation rebate as this 
change is intended to avoid disparate treatment of firms that have 
divided their various business activities between separate corporate 
entities as compared to firms that operate those business activities 
within a single corporate entity. By way of example, many firms that 
are Members of the Exchange operate several different business lines 
within the same corporate entity. In contrast, other firms may be part 
of a corporate structure that separates those business lines into 
different corporate affiliates, either for business, compliance or 
historical reasons. Those corporate affiliates, in turn, are required 
to maintain separate memberships with the Exchange in order to access 
the Exchange. The Exchange currently aggregates volume executed by 
affiliates for other fees and rebates,\7\ and now proposes to similarly 
aggregate volume executed by affiliates for purposes of the QCC and 
Solicitation rebate. The proposed definition of ``affiliate'' to be 
used to aggregate volume for the QCC and Solicitation rebate is 
consistent with definitions used by the Exchange in other contexts.\8\
---------------------------------------------------------------------------

    \7\ See e.g., supra note 4.
    \8\ Id.
---------------------------------------------------------------------------

    In addition, the Exchange believes that the proposed changes to the 
QCC and Solicitation rebate tier schedule are reasonable and equitable 
as the proposed changes simplify the Exchange's tier structure, and 
provide more favorable rebates to members due to the reduced volume 
thresholds for achieving current tier 5 rebates. As explained above, 
the Exchange is eliminating the current tier 4 and merging it into 
current tier 5, thereby giving members a higher rebate for the same 
volume. The Exchange believes that this change will incentivize members 
to bring additional QCC and/or other solicited crossing order volume to 
the Exchange in order to benefit from the enhanced rebates. The 
Exchange also believes that the proposed changes

[[Page 13901]]

to the tier schedule are not unfairly discriminatory as all members 
will be able to attain higher rebates by executing the required volume 
of QCC and/or other solicited crossing orders on the Exchange.

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

    In accordance with Section 6(b)(8) of the Act,\9\ 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 
rule change merely allows for the aggregation of volume from affiliates 
for purposes of the QCC and Solicitation rebate, consistent with 
treatment of volume for other purposes in the Schedule of Fees, and 
with volume aggregation on other options markets. 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------

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,\10\ and Rule 19b-4(f)(2) \11\ 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-ISE-2017-17 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-2017-17. 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 (http://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-ISE-2017-17 and should be 
submitted on or before April 5, 2017.
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05086 Filed 3-14-17; 8:45 am]
BILLING CODE 8011-01-P