Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 723 and Rule 1614, 48542-48545 [2017-22538]
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48542
Federal Register / Vol. 82, No. 200 / Wednesday, October 18, 2017 / Notices
States Postal Service to Add Priority
Mail Express Contract 51 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2018–10,
CP2018–17.
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2017–22585 Filed 10–17–17; 8:45 am]
BILLING CODE 7710–12–P
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
POSTAL SERVICE
Product Change—Priority Mail and
First-Class Package Service
Negotiated Service Agreement
[FR Doc. 2017–22584 Filed 10–17–17; 8:45 am]
BILLING CODE 7710–12–P
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 13,
2017, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 370 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2018–9,
CP2018–16.
SUPPLEMENTARY INFORMATION:
POSTAL SERVICE
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): October 18, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 13,
2017, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail & First-Class Package Service
Contract 59 to Competitive Product List.
Documents are available at
www.prc.gov, Docket Nos. MC2018–11,
CP2018–18.
SUMMARY:
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2017–22586 Filed 10–17–17; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—Priority Mail and
First-Class Package Service
Negotiated Service Agreement
Postal
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): October 18, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 13,
2017, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail & First-Class Package Service
Contract 60 to Competitive Product List.
Documents are available at
www.prc.gov, Docket Nos. MC2018–12,
CP2018–19.
SUMMARY:
[FR Doc. 2017–22587 Filed 10–17–17; 8:45 am]
BILLING CODE 7710–12–P
Postal ServiceTM.
ACTION: Notice.
AGENCY:
POSTAL SERVICE
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): October 18, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
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SUMMARY:
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17:50 Oct 17, 2017
Jkt 244001
Product Change—Priority Mail
Negotiated Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
SUMMARY:
PO 00000
Frm 00067
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2017–22583 Filed 10–17–17; 8:45 am]
BILLING CODE 7710–12–P
ServiceTM.
Elizabeth A. Reed,
Attorney, Corporate and Postal Business Law.
Product Change—Priority Mail
Negotiated Service Agreement
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of notice required under 39
U.S.C. 3642(d)(1): October 18, 2017.
FOR FURTHER INFORMATION CONTACT:
Elizabeth A. Reed, 202–268–3179.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 13,
2017, it filed with the Postal Regulatory
Commission a Request of the United
States Postal Service to Add Priority
Mail Contract 369 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2018–8,
CP2018–15.
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81863; File No. SR–ISE–
2017–86]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 723 and
Rule 1614
October 12, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
2, 2017, Nasdaq ISE, 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 723 (Price Improvement
Mechanism for Crossing Transactions)
and Rule 1614 (Imposition of Fines for
Minor Rule Violations) to remove
obsolete rule text.
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.
1 15
2 17
E:\FR\FM\18OCN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 82, No. 200 / Wednesday, October 18, 2017 / Notices
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 Exchange proposes to amend
Rule 723 (Price Improvement
Mechanism for Crossing Transactions)
and Rule 1614 (Imposition of Fines for
Minor Rule Violations) to remove
obsolete rule text.
Rule 723 sets forth the requirements
for the PIM, which was adopted in 2004
as a price-improvement mechanism on
the Exchange.3 Certain aspects of PIM
were adopted on a pilot basis (‘‘Pilot’’);
specifically, the termination of the
exposure period by unrelated orders,
and no minimum size requirement of
orders eligible for PIM. The Pilot
expired on January 18, 2017.
On December 12, 2016, the Exchange
filed with the Commission a proposed
rule change to make the Pilot
permanent, and also to change the
requirements for providing price
improvement for Agency Orders of less
than 50 option contracts (other than
auctions involving Complex Orders)
where the National Best Bid and Offer
(‘‘NBBO’’) is only $0.01 wide.4 The
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3 See
Securities Exchange Act Release No. 50819
(December 8, 2004), 69 FR 75093 (December 15,
2004) (SR–ISE–2003–06).
4 See Securities Exchange Act Release No. 79530
(December 12, 2016), 81 FR 91221 (December 16,
2017) (SR–ISE–2016–29). The Exchange notes that,
on April 3, 2017, International Securities Exchange,
LLC was re-named Nasdaq ISE, LLC to reflect its
new placement within the Nasdaq, Inc. corporate
structure in connection with the March 9, 2016
acquisition by Nasdaq of the capital stock of U.S.
Exchange Holdings, and the indirect acquisition all
of the interests of the International Securities
Exchange, LLC, ISE Gemini, LLC and ISE Mercury,
LLC. See Securities Exchange Act Release No.
80325 (March 29, 2017), 82 FR 16445 (April 4,
2017) (SR–ISE–2017–25). ISE Gemini, LLC and ISE
Mercury, LLC were also renamed Nasdaq GEMX,
LLC (‘‘GEMX’’) and Nasdaq MRX, LLC (‘‘MRX’’),
respectively. See Securities Exchange Act Release
No. 80248 (March 15, 2017), 82 FR 14547 (March
21, 2017) (SR–ISEGemini–2017–13); Securities
Exchange Act Release No. 80326 (March 29, 2017),
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Commission approved this proposal on
January 18, 2017.5
In modifying the requirements for
price improvement for Agency Orders of
less than 50 contracts, ISE proposed to
amend Rule 723(b) to require Electronic
Access Members to provide at least
$0.01 price improvement for an Agency
Order if that order is for less than 50
contracts and if the difference between
the NBBO is $0.01.
ISE adopted a member conduct
standard to implement this requirement
during the time pursuant to which ISE
symbols were migrating from the ISE
platform to the Nasdaq INET platform.
At the time it proposed the member
conduct standard, ISE anticipated that
the migration to the Nasdaq platform
would be complete on or before July 15,
2017. Accordingly, Rule 723(b) stated
that, for the period beginning January
19, 2017 until a date specified by the
Exchange in a Regulatory Information
Circular, which date shall be no later
than July 15, 2017, if the Agency Order
is for less than 50 option contracts, and
if the difference between the NBBO is
$0.01, an Electronic Access Member
shall not enter a Crossing Transaction
unless such Crossing Transaction is
entered at a price that is one minimum
price improvement increment better
than the NBBO on the opposite side of
the market from the Agency Order, and
better than any limit order on the limit
order book on the same side of the
market as the Agency Order. This
requirement applied regardless of
whether the Agency Order is for the
account of a public customer, or where
the Agency Order is for the account of
a broker dealer or any other person or
entity that is not a Public Customer.
To enforce this requirement, ISE also
amended Rule 1614 (Imposition of Fines
for Minor Rule Violations). Specifically,
ISE added Rule 1614(d)(4), which
provides that any Member who enters
an order into PIM for less than 50
contracts, while the National Best Bid or
Offer spread is $0.01, must provide
price improvement of at least one
minimum price improvement increment
better than the NBBO on the opposite
side of the market from the Agency
Order, which increment may not be
smaller than $0.01. Failure to provide
such price improvement will result in
members being subject to the following
fines: $500 for the second offense,
$1,000 for the third offense, and $2,500
for the fourth offense. Subsequent
82 FR 16460 (April 4, 2017) (SR–ISEMercury–2017–
05).
5 See Securities Exchange Act Release No. 79829
(January 18, 2017), 82 FR 8469 (January 25, 2017)
(SR–ISE–2016–29).
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48543
offenses will subject the member to
formal disciplinary action. The
Exchange will review violations on a
monthly cycle to assess these violations.
This provision was to be in effect for the
period beginning January 19, 2017 until
a date specified by the Exchange in a
Regulatory Information Circular, which
date shall be no later than until
September 15, 2017.6
In adopting the price improvement
requirement for Agency Orders of less
than 50 contracts, the Exchange also
proposed to amend Rule 723(b) to adopt
a systems-based mechanism to
implement this requirement, which
shall be effective following the
migration of a symbol to the Nasdaq
INET platform. Under this provision, if
the Agency Order is for less than 50
option contracts, and if the difference
between the NBBO is $0.01, the
Crossing Transaction must be entered at
one minimum price improvement
increment better than the NBBO on the
opposite side of the market from the
Agency Order and better than the limit
order or quote on the ISE order book on
the same side of the Agency Order.
Subsequent to the approval of the rule
change adopting the price improvement
requirement and the member conduct
standard, the Exchange determined that
the migration of symbols to the Nasdaq
INET platform would be complete on or
before July 31, 2017.7 This new
migration schedule was developed to
enable the Exchange to conduct
additional systems testing prior to
symbol migration. Given the updated
migration schedule, the Exchange
proposed to extend the effective period
of the member conduct standard
accordingly until a date specific by the
Exchange in a Regulatory Circular,
which would be no later than August
15, 2017.8
6 While ISE anticipated that the migration of ISE
symbols to the Nasdaq INET platform would be
complete by July 15, 2017, and its member conduct
standard could be eliminated accordingly by that
time, ISE Mercury, LLC (now Nasdaq MRX, LLC)
also filed a rule change that adopted a similar
member conduct standard for its price improvement
rule, and that referenced proposed ISE Rule
1614(d)(4) as the means for enforcing its member
conduct standard. See Securities Exchange Act
Release No. 79841 (January 18, 2017), 82 FR 8452
(January 25, 2017) (order approving SR–
ISEMercury–2016–25). The Nasdaq MRX replatforming was scheduled to occur after the ISE replatforming was complete. Accordingly, ISE
proposed that the date for eliminating Rule
1614(d)(4) shall be specified by the Exchange in a
Regulatory Information Circular, which date shall
be no later than until September 15, 2017.
7 See Data Technical News #2017–14 (May 25,
2017).
8 See Securities Exchange Act Release No. 81212
(July 26, 2017), 82 FR 35864 (August 1, 2017) (SR–
ISE–2017–75).
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Federal Register / Vol. 82, No. 200 / Wednesday, October 18, 2017 / Notices
By August 15, 2017, ISE had
completed the migration of symbols to
the Nasdaq INET platform, and adopted
the corresponding systems-based
mechanism for enforcing the price
improvement requirement where the
Agency Order is for less than 50 option
contracts, and if the difference between
the NBBO is $0.01.9 Accordingly, ISE
now proposes to delete the rule text in
Rule 723 that implements the member
conduct standard and the corresponding
provision in Rule 1614 that imposes
fines for violations of the member
conduct standard.
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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. The
Exchange believes this proposal is
consistent with the Act because it
removes language that implements the
member conduct standard where the
Agency Order is for less than 50 option
contracts, and if the difference between
the NBBO is $0.01, and the
corresponding provision in Rule 1614
that imposes fines for violations of this
member conduct standard. As noted
above, these provisions have become
obsolete, given the migration of all
symbols on ISE, GEMX and MRX to the
Nasdaq INET system and the
corresponding adoption of the systemsbased mechanism on each exchange for
enforcing this price improvement
requirement. The Exchange also notes
that the systems-based mechanism for
enforcing this price improvement
requirement was previously approved
by the Commission.12
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition not
necessary or appropriate in furtherance
of the purposes of the Act, as the rule
text to be removed has become obsolete
with the migration of all symbols to the
Nasdaq INET system and the
corresponding adoption of the systemsbased mechanism for enforcing the price
9 As of the date of filing, GEMX and MRX had
also completed the process of migrating their
symbols to the Nasdaq INET platform.
10 15 U.S.C. 78f(b).
11 15 U.S.C. 78f(b)(5).
12 See supra note 6.
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improvement requirement where the
Agency Order is for less than 50 option
contracts, and if the difference between
the NBBO is $0.01.
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 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) of the Act 13 and Rule 19b–
4(f)(6) thereunder.14
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 15 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 16
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative upon
filing. The Exchange states that waiver
of the operative delay will allow the
Exchange to remove the obsolete rule
text immediately, minimizing potential
investor confusion. The Commission
believes the waiver of the operative
delay is consistent with the protection
of investors and the public interest.
Accordingly, the Commission hereby
waives the operative delay and
designates the proposed rule change
operative upon filing.17
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
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). As required under Rule
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file
the proposed rule change, along with a brief
description and the text of 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.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
17 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
14 17
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action is necessary or appropriate in the
public interest, for the protection of
investors, or 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–2017–86 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–ISE–2017–86. 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 such
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–
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Federal Register / Vol. 82, No. 200 / Wednesday, October 18, 2017 / Notices
2017–86, and should be submitted on or
before November 8, 2017.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–22538 Filed 10–17–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–574, OMB Control No.
3235–0648]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE., Washington, DC
20549–2736
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Extension:
Rule 498
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (‘‘the
Commission’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for extension of the
previously approved collection of
information discussed below.
Rule 498 (17 CFR 230.498) under the
Securities Act of 1933 (15 U.S.C. 77a et
seq.) (‘‘Securities Act’’) permits openend management investment companies
(‘‘funds’’) to satisfy their prospectus
delivery obligations under the Securities
Act by sending or giving key
information directly to investors in the
form of a summary prospectus
(‘‘Summary Prospectus’’) and providing
the statutory prospectus on a Web site.
Upon an investor’s request, funds are
also required to send the statutory
prospectus to the investor. In addition,
under rule 498, a fund that relies on the
rule to meet its statutory prospectus
delivery obligations must make
available, free of charge, the fund’s
current Summary Prospectus, statutory
prospectus, statement of additional
information, and most recent annual
and semi-annual reports to shareholders
at the Web site address specified in the
required Summary Prospectus legend.1
A Summary Prospectus that complies
with rule 498 is deemed to be a
prospectus that is authorized under
Section 10(b) of the Securities Act and
Section 24(g) of the Investment
18 17
1 17
CFR 200.30–3(a)(12).
CFR 270.498(e)(1).
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Company Act of 1940 (15 U.S.C. 80a–1
et seq.).
The purpose of rule 498 is to enable
a fund to provide investors with a
Summary Prospectus containing key
information necessary to evaluate an
investment in the fund. Unlike many
other federal information collections,
which are primarily for the use and
benefit of the collecting agency, this
information collection is primarily for
the use and benefit of investors. The
information filed with the Commission
also permits the verification of
compliance with securities law
requirements and assures the public
availability and dissemination of the
information.
Based on an analysis of fund filings,
the Commission estimates that
approximately 10,532 portfolios are
using a Summary Prospectus. The
Commission estimates that the annual
hourly burden per portfolio associated
with the compilation of the information
required on the cover page or the
beginning of the Summary Prospectus is
0.5 hours, and estimates that the annual
hourly burden per portfolio to comply
with the Web site posting requirement
is approximately 1 hour, requiring a
total of 1.5 hours per portfolio per year.2
Thus the total annual hour burden
associated with these requirements of
the rule is approximately 15,798.3 The
Commission estimates that the annual
cost burden is approximately $15,900
per portfolio, for a total annual cost
burden of approximately $167,458,800.4
Estimates of the average burden hours
are made solely for the purposes of the
Paperwork Reduction Act and are not
derived from a comprehensive or even
a representative survey or study of the
costs of Commission rules and forms.
Under rule 498, use of the Summary
Prospectus is voluntary, but the rule’s
requirements regarding provision of the
statutory prospectus upon investor
request are mandatory for funds that
elect to send or give a Summary
Prospectus in reliance upon rule 498.
The information provided under rule
498 will not be kept confidential. An
agency may not conduct or sponsor, and
a person is not required to respond to,
a collection of information unless it
2 0.5 hours per portfolio + 1 hour per portfolio =
1.5 hours per portfolio. The Commission believes
that funds that have opted to use the Summary
Prospectus have already incurred the estimated
one-time hour burden to initially comply with rule
498, and therefore the estimated burden hours to
initially comply with rule 498 and the associated
costs are not included in these estimates.
3 1.5 hours per portfolio × 10,532 portfolios =
15,798 hours.
4 $15,900 per portfolio × 9,082 portfolios =
$144,403,800.
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48545
displays a currently valid OMB control
number.
The public may view the background
documentation for this information
collection at the following Web site,
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: Shagufta_
Ahmed@omb.eop.gov; and (ii) Pamela
Dyson, Director/Chief Information
Officer, Securities and Exchange
Commission, c/o Remi Pavlik-Simon,
100 F Street NE., Washington, DC 20549
or send an email to: PRA_Mailbox@
sec.gov. Comments must be submitted to
OMB within 30 days of this notice.
October 12, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–22542 Filed 10–17–17; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–81859; File No. SR–
BatsEDGA–2017–26]
Self-Regulatory Organizations; Bats
EDGA Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Amend
Certain Rules To Add New Optional
Functionality to Orders With a
Minimum Quantity Instruction
October 12, 2017.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
5, 2017, Bats EDGA Exchange, Inc.
(‘‘Exchange’’ or ‘‘EDGA’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6) thereunder,4
which renders it effective upon filing
with the Commission. 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).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(6).
2 17
E:\FR\FM\18OCN1.SGM
18OCN1
]]>Agencies
[Federal Register Volume 82, Number 200 (Wednesday, October 18, 2017)]
[Notices]
[Pages 48542-48545]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22538]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-81863; File No. SR-ISE-2017-86]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 723
and Rule 1614
October 12, 2017.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on October 2, 2017, Nasdaq ISE, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 723 (Price Improvement
Mechanism for Crossing Transactions) and Rule 1614 (Imposition of Fines
for Minor Rule Violations) to remove obsolete rule text.
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.
[[Page 48543]]
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 Exchange proposes to amend Rule 723 (Price Improvement
Mechanism for Crossing Transactions) and Rule 1614 (Imposition of Fines
for Minor Rule Violations) to remove obsolete rule text.
Rule 723 sets forth the requirements for the PIM, which was adopted
in 2004 as a price-improvement mechanism on the Exchange.\3\ Certain
aspects of PIM were adopted on a pilot basis (``Pilot''); specifically,
the termination of the exposure period by unrelated orders, and no
minimum size requirement of orders eligible for PIM. The Pilot expired
on January 18, 2017.
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\3\ See Securities Exchange Act Release No. 50819 (December 8,
2004), 69 FR 75093 (December 15, 2004) (SR-ISE-2003-06).
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On December 12, 2016, the Exchange filed with the Commission a
proposed rule change to make the Pilot permanent, and also to change
the requirements for providing price improvement for Agency Orders of
less than 50 option contracts (other than auctions involving Complex
Orders) where the National Best Bid and Offer (``NBBO'') is only $0.01
wide.\4\ The Commission approved this proposal on January 18, 2017.\5\
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\4\ See Securities Exchange Act Release No. 79530 (December 12,
2016), 81 FR 91221 (December 16, 2017) (SR-ISE-2016-29). The
Exchange notes that, on April 3, 2017, International Securities
Exchange, LLC was re-named Nasdaq ISE, LLC to reflect its new
placement within the Nasdaq, Inc. corporate structure in connection
with the March 9, 2016 acquisition by Nasdaq of the capital stock of
U.S. Exchange Holdings, and the indirect acquisition all of the
interests of the International Securities Exchange, LLC, ISE Gemini,
LLC and ISE Mercury, LLC. See Securities Exchange Act Release No.
80325 (March 29, 2017), 82 FR 16445 (April 4, 2017) (SR-ISE-2017-
25). ISE Gemini, LLC and ISE Mercury, LLC were also renamed Nasdaq
GEMX, LLC (``GEMX'') and Nasdaq MRX, LLC (``MRX''), respectively.
See Securities Exchange Act Release No. 80248 (March 15, 2017), 82
FR 14547 (March 21, 2017) (SR-ISEGemini-2017-13); Securities
Exchange Act Release No. 80326 (March 29, 2017), 82 FR 16460 (April
4, 2017) (SR-ISEMercury-2017-05).
\5\ See Securities Exchange Act Release No. 79829 (January 18,
2017), 82 FR 8469 (January 25, 2017) (SR-ISE-2016-29).
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In modifying the requirements for price improvement for Agency
Orders of less than 50 contracts, ISE proposed to amend Rule 723(b) to
require Electronic Access Members to provide at least $0.01 price
improvement for an Agency Order if that order is for less than 50
contracts and if the difference between the NBBO is $0.01.
ISE adopted a member conduct standard to implement this requirement
during the time pursuant to which ISE symbols were migrating from the
ISE platform to the Nasdaq INET platform. At the time it proposed the
member conduct standard, ISE anticipated that the migration to the
Nasdaq platform would be complete on or before July 15, 2017.
Accordingly, Rule 723(b) stated that, for the period beginning January
19, 2017 until a date specified by the Exchange in a Regulatory
Information Circular, which date shall be no later than July 15, 2017,
if the Agency Order is for less than 50 option contracts, and if the
difference between the NBBO is $0.01, an Electronic Access Member shall
not enter a Crossing Transaction unless such Crossing Transaction is
entered at a price that is one minimum price improvement increment
better than the NBBO on the opposite side of the market from the Agency
Order, and better than any limit order on the limit order book on the
same side of the market as the Agency Order. This requirement applied
regardless of whether the Agency Order is for the account of a public
customer, or where the Agency Order is for the account of a broker
dealer or any other person or entity that is not a Public Customer.
To enforce this requirement, ISE also amended Rule 1614 (Imposition
of Fines for Minor Rule Violations). Specifically, ISE added Rule
1614(d)(4), which provides that any Member who enters an order into PIM
for less than 50 contracts, while the National Best Bid or Offer spread
is $0.01, must provide price improvement of at least one minimum price
improvement increment better than the NBBO on the opposite side of the
market from the Agency Order, which increment may not be smaller than
$0.01. Failure to provide such price improvement will result in members
being subject to the following fines: $500 for the second offense,
$1,000 for the third offense, and $2,500 for the fourth offense.
Subsequent offenses will subject the member to formal disciplinary
action. The Exchange will review violations on a monthly cycle to
assess these violations. This provision was to be in effect for the
period beginning January 19, 2017 until a date specified by the
Exchange in a Regulatory Information Circular, which date shall be no
later than until September 15, 2017.\6\
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\6\ While ISE anticipated that the migration of ISE symbols to
the Nasdaq INET platform would be complete by July 15, 2017, and its
member conduct standard could be eliminated accordingly by that
time, ISE Mercury, LLC (now Nasdaq MRX, LLC) also filed a rule
change that adopted a similar member conduct standard for its price
improvement rule, and that referenced proposed ISE Rule 1614(d)(4)
as the means for enforcing its member conduct standard. See
Securities Exchange Act Release No. 79841 (January 18, 2017), 82 FR
8452 (January 25, 2017) (order approving SR-ISEMercury-2016-25). The
Nasdaq MRX re-platforming was scheduled to occur after the ISE re-
platforming was complete. Accordingly, ISE proposed that the date
for eliminating Rule 1614(d)(4) shall be specified by the Exchange
in a Regulatory Information Circular, which date shall be no later
than until September 15, 2017.
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In adopting the price improvement requirement for Agency Orders of
less than 50 contracts, the Exchange also proposed to amend Rule 723(b)
to adopt a systems-based mechanism to implement this requirement, which
shall be effective following the migration of a symbol to the Nasdaq
INET platform. Under this provision, if the Agency Order is for less
than 50 option contracts, and if the difference between the NBBO is
$0.01, the Crossing Transaction must be entered at one minimum price
improvement increment better than the NBBO on the opposite side of the
market from the Agency Order and better than the limit order or quote
on the ISE order book on the same side of the Agency Order.
Subsequent to the approval of the rule change adopting the price
improvement requirement and the member conduct standard, the Exchange
determined that the migration of symbols to the Nasdaq INET platform
would be complete on or before July 31, 2017.\7\ This new migration
schedule was developed to enable the Exchange to conduct additional
systems testing prior to symbol migration. Given the updated migration
schedule, the Exchange proposed to extend the effective period of the
member conduct standard accordingly until a date specific by the
Exchange in a Regulatory Circular, which would be no later than August
15, 2017.\8\
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\7\ See Data Technical News #2017-14 (May 25, 2017).
\8\ See Securities Exchange Act Release No. 81212 (July 26,
2017), 82 FR 35864 (August 1, 2017) (SR-ISE-2017-75).
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[[Page 48544]]
By August 15, 2017, ISE had completed the migration of symbols to
the Nasdaq INET platform, and adopted the corresponding systems-based
mechanism for enforcing the price improvement requirement where the
Agency Order is for less than 50 option contracts, and if the
difference between the NBBO is $0.01.\9\ Accordingly, ISE now proposes
to delete the rule text in Rule 723 that implements the member conduct
standard and the corresponding provision in Rule 1614 that imposes
fines for violations of the member conduct standard.
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\9\ As of the date of filing, GEMX and MRX had also completed
the process of migrating their symbols to the Nasdaq INET platform.
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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. The Exchange believes this proposal is consistent with the
Act because it removes language that implements the member conduct
standard where the Agency Order is for less than 50 option contracts,
and if the difference between the NBBO is $0.01, and the corresponding
provision in Rule 1614 that imposes fines for violations of this member
conduct standard. As noted above, these provisions have become
obsolete, given the migration of all symbols on ISE, GEMX and MRX to
the Nasdaq INET system and the corresponding adoption of the systems-
based mechanism on each exchange for enforcing this price improvement
requirement. The Exchange also notes that the systems-based mechanism
for enforcing this price improvement requirement was previously
approved by the Commission.\12\
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
\12\ See supra note 6.
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act, as the rule text to be removed
has become obsolete with the migration of all symbols to the Nasdaq
INET system and the corresponding adoption of the systems-based
mechanism for enforcing the price improvement requirement where the
Agency Order is for less than 50 option contracts, and if the
difference between the NBBO is $0.01.
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 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) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \15\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \16\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposed rule change may become operative upon filing. The Exchange
states that waiver of the operative delay will allow the Exchange to
remove the obsolete rule text immediately, minimizing potential
investor confusion. The Commission believes the waiver of the operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the operative delay
and designates the proposed rule change operative upon filing.\17\
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\15\ 17 CFR 240.19b-4(f)(6).
\16\ 17 CFR 240.19b-4(f)(6)(iii).
\17\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
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-2017-86 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-ISE-2017-86. 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 such 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-
[[Page 48545]]
2017-86, and should be submitted on or before November 8, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
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\18\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-22538 Filed 10-17-17; 8:45 am]
BILLING CODE 8011-01-P
