Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Delay the Implementation of Functionality Associated With Stock-Option Orders, 16084-16086 [2017-06334]
Download as PDF
<![CDATA[
16084
Federal Register / Vol. 82, No. 61 / Friday, March 31, 2017 / Notices
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–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.
sradovich on DSK3GMQ082PROD with NOTICES
All submissions should refer to File
Number SR–NYSE–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 (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–NYSE–
2017–12 and should be submitted on or
before April 21, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–06332 Filed 3–30–17; 8:45 am]
BILLING CODE 8011–01–P
7 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:31 Mar 30, 2017
Jkt 241001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–80316; File No. SR–ISE–
2017–28]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Delay the Implementation
of Functionality Associated With
Stock-Option Orders
March 27, 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 21,
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.
ISE filed the proposal pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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 delay the
implementation of functionality
associated with Stock-Option Orders 5
in connection with a system migration
to Nasdaq INET technology.
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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
5 A stock-option order is an order to buy or sell
a stated number of units of an underlying stock or
a security convertible into the underlying stock
(‘‘convertible security’’) coupled with the purchase
or sale of options contract(s) on the opposite side
of the market representing either (A) the same
number of units of the underlying stock or
convertible security, or (B) the number of units of
the underlying stock necessary to create a delta
neutral position, but in no case in a ratio greater
than eight-to-one (8.00), where the ratio represents
the total number of units of the underlying stock
or convertible security in the option leg to the total
number of units of the underlying stock or
convertible security in the stock leg. See ISE Rule
722(a)(2).
2 17
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
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
Today, ISE accepts complex orders,
including Stock-Option Orders that
contain a stock component. Today,
complex orders, including Stock-Option
Orders, are permitted to: (1) Leg into the
regular market where they may trade
against bids and offers for the individual
legs pursuant to Rule 722(b)(3)(ii) and
(iii) (‘‘legging’’); 6 or (2) execute against
another order within the complex order
book.
The Exchange proposes to delay the
implementation of legging functionality
for Stock-Option Orders in connection
with a migration to the INET platform.
INET is the proprietary core technology
utilized across Nasdaq’s global markets
and utilized on The NASDAQ Options
Market LLC (‘‘NOM’’), NASDAQ PHLX
LLC (‘‘Phlx’’) and NASDAQ BX, Inc.
(‘‘BX’’) (collectively, ‘‘Nasdaq
Exchanges’’). The migration of ISE to the
Nasdaq INET architecture would result
in higher performance, scalability, and
more robust architecture. With this
system migration, the Exchange intends
to adopt certain trading functionality
currently utilized at Nasdaq Exchanges.7
The Exchange desires to delay the
implementation of the legging
functionality for Stock-Option Orders
on INET at this time and rollout this
functionality within one year of the date
of the filing of this proposal. The
Exchange is staging the re-platform to
provide maximum benefit to its
Members while also ensuring a
successful rollout. This delay in
implementing the legging functionality
for Stock-Option Orders will provide
the Exchange additional time to test and
implement this functionality on the
INET platform.
6 Supplementary Material .02 to Rule 722 also
contains provisions relevant to the legging of StockOption Orders specifically.
7 See Securities Exchange Act Release No. 80075
(February 21, 2017), 82 FR 11975 (February 27,
2017) (SR–ISE–2017–02) (Notice of Filing of
Proposed Rule Change to Amend Various Rules in
Connection with a System Migration to Nasdaq
INET Technology).
E:\FR\FM\31MRN1.SGM
31MRN1
Federal Register / Vol. 82, No. 61 / Friday, March 31, 2017 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
The Exchange filed a proposal to
begin a system migration to Nasdaq
INET in Q2 of 2017.8 The migration will
be on a symbol by symbol basis as
specified by the Exchange in a notice to
Members.9 The Exchange is proposing
to implement this rule change on the
INET platform as the symbols migrate to
that platform. The legging functionality
for Stock-Option Orders will be
available until the symbol migrates to
the INET platform. Once the symbol
migrates to INET the legging
functionality for Stock-Option Orders
will not be available. However, StockOption Orders will continue to be
executed against other Stock-Option
Orders in the complex order book. The
Exchange will issue an Options Trader
Alert to all Members notifying them that
legging functionality for Stock-Option
Orders will no longer be available with
the symbol migration to INET. The
Exchange proposes to launch the legging
functionality on the INET platform
within one year from the date of filing
of this rule change to be announced in
an Options Trader Alert.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,10 in general, and furthers the
objectives of Section 6(b)(5) of the Act,11
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest
because the Exchange desires to rollout
the legging functionality for StockOption Orders at a later date to allow
additional time to rebuild this
technology on the new platform.
By delaying the implementation of
functionality with the symbol migration
to INET, the Exchange will have
additional time to test and implement
this functionality. The Exchange will
provide Members with ample notice of
the turn-off of this functionality and
note within that notice that StockOption Orders will continue to be
executed against other Stock-Option
Orders. The Exchange will continue to
provide notifications to Members to
ensure clarity about the availability of
this functionality with the symbol
migration. The Exchange will issue an
Options Trader Alert indicating when
8 Id.
This proposal is not approved.
Exchange will issue an Options Trader
Alert prior to the migration and will specify the
dates that symbols will migrate to the INET
platform.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
the legging functionality will become
available on the INET platform.
The Exchange does not anticipate any
significant impact with respect to
execution quality. The priority rules
will continue to apply with respect to
these Stock-Option Orders respecting
Priority Customer Orders.12 The
Exchange notes that Phlx does not offer
legging functionality for Stock-Option
Orders.13
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act. The
Exchange does not believe that the
proposed rule change will impact the
intense competition that exists in the
options market. Members will be able to
continue to execute complex orders on
ISE, except that Stock-Option Orders
will only be permitted to trade with
other Stock-Option Orders in the
complex order book as the symbol
migrates to INET. The Exchange does
not believe that the proposed rule
change will impose any burden on intramarket competition because all
Members uniformly will only be
permitted to trade with other StockOption Orders in the complex order
book as the symbol migrates to INET.
The Exchange proposes to launch the
legging functionality on the INET
platform within one year from the date
of filing of this rule change to be
announced in an Options Trader Alert.
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 14 and
subparagraph (f)(6) of Rule 19b–4
thereunder.15
9 The
VerDate Sep<11>2014
16:31 Mar 30, 2017
Jkt 241001
12 See
ISE Rule 722(b)(2).
Phlx Rule 1098.
14 15 U.S.C. 78s(b)(3)(A)(iii).
15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
13 See
PO 00000
Frm 00067
Fmt 4703
Sfmt 4703
16085
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–2017–28 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–2017–28. 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
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.
E:\FR\FM\31MRN1.SGM
31MRN1
16086
Federal Register / Vol. 82, No. 61 / Friday, March 31, 2017 / Notices
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–
2017–28 and should be submitted on or
before April 21, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–06334 Filed 3–30–17; 8:45 am]
submitted to SBA by lenders that are
applying for participation in SBA’s
Community Advantage Pilot Program.
SBA uses the information to evaluate
the lenders eligibility and qualifications
for participation in the pilot program.
Title: ‘‘Community Advantage Lender
Participation Application.’’
Description of Respondents: SBA
Lenders.
Form Number: 2,301.
Annual Responses: 25.
Annual Burden: 175.
Internal Revenue Service
BILLING CODE 8025–01–P
Proposed Collection; Comment
Request for Health Plan Administrator
(HPA) Return of Funds
Reporting and Recordkeeping
Requirements Under OMB Review
Notice of Determinations; Culturally
Significant Object Imported for
Exhibition Determinations: ‘‘The
Philosophy Chamber: Art and Science
in Harvard’s Teaching Cabinet, 1766–
1820’’ Exhibition
The Small Business
Administration (SBA) is publishing this
notice to comply with requirements of
the Paperwork Reduction Act (PRA) (44
U.S.C. Chapter 35), which requires
agencies to submit proposed reporting
and recordkeeping requirements to
OMB for review and approval, and to
publish a notice in the Federal Register
notifying the public that the agency has
made such a submission. This notice
also allows an additional 30 days for
public comments.
DATES: Submit comments on or before
May 1, 2017.
ADDRESSES: Comments should refer to
the information collection by name and/
or OMB Control Number and should be
sent to: Agency Clearance Officer, Curtis
Rich, Small Business Administration,
409 3rd Street SW., 5th Floor,
Washington, DC 20416; and SBA Desk
Officer, Office of Information and
Regulatory Affairs, Office of
Management and Budget, New
Executive Office Building, Washington,
DC 20503.
FOR FURTHER INFORMATION CONTACT:
Curtis Rich, Agency Clearance Officer,
(202) 205–7030 curtis.rich@sba.gov.
Copies: A copy of the Form OMB 83–
1, supporting statement, and other
documents submitted to OMB for
review may be obtained from the
Agency Clearance Officer.
SUPPLEMENTARY INFORMATION: This
revised information collection is
sradovich on DSK3GMQ082PROD with NOTICES
16 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:31 Mar 30, 2017
Jkt 241001
Notice is hereby given of the
following determinations: Pursuant to
the authority vested in me by the Act of
October 19, 1965 (79 Stat. 985; 22 U.S.C.
2459), E.O. 12047 of March 27, 1978, the
Foreign Affairs Reform and
Restructuring Act of 1998 (112 Stat.
2681, et seq.; 22 U.S.C. 6501 note, et
seq.), Delegation of Authority No. 234 of
October 1, 1999, Delegation of Authority
No. 236–3 of August 28, 2000 (and, as
appropriate, Delegation of Authority No.
257–1 of December 11, 2015), I hereby
determine that an object to be included
in the exhibition ‘‘The Philosophy
Chamber: Art and Science in Harvard’s
Teaching Cabinet, 1766–1820,’’
imported from abroad for temporary
exhibition within the United States, is
of cultural significance. The object is
imported pursuant to a loan agreement
with the foreign owner or custodian. I
also determine that the exhibition or
display of the exhibit object at the
Harvard Art Museums, Cambridge,
Massachusetts, from on or about May
19, 2017, until on or about December 31,
2017, and at possible additional
exhibitions or venues yet to be
determined, is in the national interest.
I have ordered that Public Notice of
these Determinations be published in
the Federal Register.
FOR FURTHER INFORMATION CONTACT: For
further information, including an object
list, contact the Office of Public
Diplomacy and Public Affairs in the
Office of the Legal Adviser, U.S.
SUMMARY:
PO 00000
Frm 00068
Fmt 4703
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
AGENCY:
[Public Notice 9931]
SUMMARY:
BILLING CODE 4710–05–P
[FR Doc. 2017–06358 Filed 3–30–17; 8:45 am]
SMALL BUSINESS ADMINISTRATION
Small Business Administration.
30-Day notice.
[FR Doc. 2017–06354 Filed 3–30–17; 8:45 am]
DEPARTMENT OF THE TREASURY
DEPARTMENT OF STATE
ACTION:
Alyson Grunder,
Deputy Assistant Secretary for Policy, Bureau
of Educational and Cultural Affairs,
Department of State.
Curtis B. Rich,
Management Analyst.
BILLING CODE 8011–01–P
AGENCY:
Department of State (telephone: 202–
632–6471; email: section2459@
state.gov). The mailing address is U.S.
Department of State, L/PD, SA–5, Suite
5H03, Washington, DC 20522–0505.
Sfmt 4703
The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995.
Currently, the IRS is soliciting
comments concerning Form 13560,
Health Plan Administrator (HPA) Return
of Funds.
DATES: Written comments should be
received on or before May 30, 2017 to
be assured of consideration.
ADDRESSES: Direct all written comments
to Laurie Brimmer, Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW., Washington, DC 20224.
Requests for additional information or
copies of the form should be directed to
Carolyn N. Brown, at Internal Revenue
Service, Room 6526, 1111 Constitution
Avenue NW., Washington, DC 20224, or
through the Internet, at
Carolyn.N.Brown@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Form 13560, Health Plan
Administrator (HPA) Return of Funds.
OMB Number: 1545–1891.
Form Number: Form 13560.
Abstract: Form 13560 is completed by
Health Plan Administrators (HPAs) and
accompanies a return of funds in order
to ensure proper handling. This form
serves as supporting documentation for
any funds returned by an HPA and
clarifies where the payment should be
applied and why it is being sent.
Current Actions: There is no change
in the paperwork burden previously
SUMMARY:
E:\FR\FM\31MRN1.SGM
31MRN1
]]>Agencies
[Federal Register Volume 82, Number 61 (Friday, March 31, 2017)]
[Notices]
[Pages 16084-16086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06334]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80316; File No. SR-ISE-2017-28]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Delay the Implementation of Functionality Associated With
Stock-Option Orders
March 27, 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 21, 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.
ISE filed the proposal pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to delay the implementation of functionality
associated with Stock-Option Orders \5\ in connection with a system
migration to Nasdaq INET technology.
---------------------------------------------------------------------------
\5\ A stock-option order is an order to buy or sell a stated
number of units of an underlying stock or a security convertible
into the underlying stock (``convertible security'') coupled with
the purchase or sale of options contract(s) on the opposite side of
the market representing either (A) the same number of units of the
underlying stock or convertible security, or (B) the number of units
of the underlying stock necessary to create a delta neutral
position, but in no case in a ratio greater than eight-to-one
(8.00), where the ratio represents the total number of units of the
underlying stock or convertible security in the option leg to the
total number of units of the underlying stock or convertible
security in the stock leg. See ISE Rule 722(a)(2).
---------------------------------------------------------------------------
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
Today, ISE accepts complex orders, including Stock-Option Orders
that contain a stock component. Today, complex orders, including Stock-
Option Orders, are permitted to: (1) Leg into the regular market where
they may trade against bids and offers for the individual legs pursuant
to Rule 722(b)(3)(ii) and (iii) (``legging''); \6\ or (2) execute
against another order within the complex order book.
---------------------------------------------------------------------------
\6\ Supplementary Material .02 to Rule 722 also contains
provisions relevant to the legging of Stock-Option Orders
specifically.
---------------------------------------------------------------------------
The Exchange proposes to delay the implementation of legging
functionality for Stock-Option Orders in connection with a migration to
the INET platform. INET is the proprietary core technology utilized
across Nasdaq's global markets and utilized on The NASDAQ Options
Market LLC (``NOM''), NASDAQ PHLX LLC (``Phlx'') and NASDAQ BX, Inc.
(``BX'') (collectively, ``Nasdaq Exchanges''). The migration of ISE to
the Nasdaq INET architecture would result in higher performance,
scalability, and more robust architecture. With this system migration,
the Exchange intends to adopt certain trading functionality currently
utilized at Nasdaq Exchanges.\7\
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 80075 (February 21,
2017), 82 FR 11975 (February 27, 2017) (SR-ISE-2017-02) (Notice of
Filing of Proposed Rule Change to Amend Various Rules in Connection
with a System Migration to Nasdaq INET Technology).
---------------------------------------------------------------------------
The Exchange desires to delay the implementation of the legging
functionality for Stock-Option Orders on INET at this time and rollout
this functionality within one year of the date of the filing of this
proposal. The Exchange is staging the re-platform to provide maximum
benefit to its Members while also ensuring a successful rollout. This
delay in implementing the legging functionality for Stock-Option Orders
will provide the Exchange additional time to test and implement this
functionality on the INET platform.
[[Page 16085]]
The Exchange filed a proposal to begin a system migration to Nasdaq
INET in Q2 of 2017.\8\ The migration will be on a symbol by symbol
basis as specified by the Exchange in a notice to Members.\9\ The
Exchange is proposing to implement this rule change on the INET
platform as the symbols migrate to that platform. The legging
functionality for Stock-Option Orders will be available until the
symbol migrates to the INET platform. Once the symbol migrates to INET
the legging functionality for Stock-Option Orders will not be
available. However, Stock-Option Orders will continue to be executed
against other Stock-Option Orders in the complex order book. The
Exchange will issue an Options Trader Alert to all Members notifying
them that legging functionality for Stock-Option Orders will no longer
be available with the symbol migration to INET. The Exchange proposes
to launch the legging functionality on the INET platform within one
year from the date of filing of this rule change to be announced in an
Options Trader Alert.
---------------------------------------------------------------------------
\8\ Id. This proposal is not approved.
\9\ The Exchange will issue an Options Trader Alert prior to the
migration and will specify the dates that symbols will migrate to
the INET platform.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\10\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\11\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest because the Exchange desires to rollout the legging
functionality for Stock-Option Orders at a later date to allow
additional time to rebuild this technology on the new platform.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
By delaying the implementation of functionality with the symbol
migration to INET, the Exchange will have additional time to test and
implement this functionality. The Exchange will provide Members with
ample notice of the turn-off of this functionality and note within that
notice that Stock-Option Orders will continue to be executed against
other Stock-Option Orders. The Exchange will continue to provide
notifications to Members to ensure clarity about the availability of
this functionality with the symbol migration. The Exchange will issue
an Options Trader Alert indicating when the legging functionality will
become available on the INET platform.
The Exchange does not anticipate any significant impact with
respect to execution quality. The priority rules will continue to apply
with respect to these Stock-Option Orders respecting Priority Customer
Orders.\12\ The Exchange notes that Phlx does not offer legging
functionality for Stock-Option Orders.\13\
---------------------------------------------------------------------------
\12\ See ISE Rule 722(b)(2).
\13\ See Phlx Rule 1098.
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impact the intense competition that
exists in the options market. Members will be able to continue to
execute complex orders on ISE, except that Stock-Option Orders will
only be permitted to trade with other Stock-Option Orders in the
complex order book as the symbol migrates to INET. The Exchange does
not believe that the proposed rule change will impose any burden on
intra-market competition because all Members uniformly will only be
permitted to trade with other Stock-Option Orders in the complex order
book as the symbol migrates to INET.
The Exchange proposes to launch the legging functionality on the
INET platform within one year from the date of filing of this rule
change to be announced in an Options Trader Alert.
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 \14\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\15\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(3)(A)(iii).
\15\ 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.
---------------------------------------------------------------------------
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-2017-28 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-2017-28. 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
[[Page 16086]]
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-2017-28 and should be submitted on or before April
21, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-06334 Filed 3-30-17; 8:45 am]
BILLING CODE 8011-01-P
