Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Delay for Re-Introduction of Legging Functionality for Stock-Option Orders on INET by an Additional Year, 14302-14304 [2018-06692]
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amozie on DSK30RV082PROD with NOTICES
14302
Federal Register / Vol. 83, No. 64 / Tuesday, April 3, 2018 / Notices
securities transactions and, to the extent
applicable, derivative agreements,
contracts and transactions, and to assure
the safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible.24 As discussed above, the
proposed rule change would enhance
ICC’s end-of-day price discovery process
for SN instruments in a number of ways,
including but not limited to
incorporating a price-based floor which
would be applied to a wider range of
instruments, adopting a new dynamic
BOW component, and taking into
consideration the dispersion of pricespace mid-levels received from Clearing
Participants, all while continuing to
apply scaling tenor, coupon, and
variability scaling factors.
Taken as a whole, the Commission
believes the proposed changes should
enhance ICC’s ability to determine the
end-of-day BOW for SN instruments.
First, the proposed changes should
permit ICC to determine BOWs
consistently across SN instruments on
all reference entities, including those for
which only sparse intraday data is
available.25 In addition, by extending
the application of the price-based BOW
floor component to the entire set of
benchmark tenors from the 0 month to
10 years instead of solely the 0⁄3 month,
6 month, and 1-year benchmark tenors,
the Commission believes that ICC will
be able to more consistently compute
the end-of-day BOW for a wider range
of SN instruments.
Consequently, the Commission
believes that the proposed changes will
improve ICC’s end-of-day pricing
process as a whole as additional
relevant information will be taken into
consideration and a wider range of
instruments will be considered in the
pricing process. Based on these
improvements, the Commission believes
that ICC’s risk management processes
related to the end-of-day pricing
process, including the calculation and
collection of certain margin
requirements, will also be improved,
resulting in an improved ability to
safeguard the positions that ICC
maintains from the default of a Clearing
Participant. As a result, the Commission
believes that the proposed changes will
promote the prompt and accurate
clearance and settlement of the products
cleared by ICC, and will enhance ICC’s
ability to assure the safeguarding of
securities and funds which are in the
custody or control of ICC or for which
it is responsible. Therefore, the
Commission finds that the proposed
rule change is consistent with the
requirements of Section 17A(b)(3)(F) of
the Act.26
B. Consistency With Rule 17Ad–22(b)(2)
Rule 17Ad–22(b)(2) requires, in
relevant part, a registered clearing
agency that performs central
counterparty services to establish
implement, maintain, and enforce
written policies and procedures
reasonably designed to use margin
requirements to limit its credit
exposures to participants under normal
market conditions. As noted above, ICC
uses the end-of-day BOWs as part of its
mark-to-market and risk management
purposes, including the computation of
certain margin requirements.27
The Commission believes that by
improving the end-of-day pricing
process, as described above, ICC will
also improve its ability to calculate
margin requirements that use the endof-day BOWs as an input. Consequently,
an improved margin calculation should
lead to the collection of margin levels
that enhance ICC’s ability to limit its
credit exposures to participants under
normal market conditions. As a result,
the Commission finds that the proposed
rule change is consistent with the
requirements of Rule 17Ad–22(b)(2).28
C. Consistency With Rule 17Ad–22(d)(8)
Rule 17Ad–22(d)(8) requires, in
relevant part, that a registered clearing
agency that is not a covered clearing
agency to establish, implement,
maintain, and enforce written policies
and procedures reasonably designed to,
as applicable, have governance
arrangements that promote the
effectiveness of the clearing agency’s
risk management procedures.29 ICC
proposed to amend the Governance
section of its Pricing policy to clarify the
responsibilities of the ICC Risk
Management Department and the
Trading Advisory Committee with
respect to the determination of pricebased floors, relative BOWs, and scaling
factors. By updating the Governance
section of the Pricing Policy to delineate
the roles of the ICC Risk Management
Department and the Trading Advisory
Committee, the Commission believes
that ICC will improve the governance
structure surrounding the end-of-day
pricing process.
Because the output of the end-of-day
pricing process is used for mark-tomarket and risk management purposes,
the Commission believes that
26 Id.
27 17
24 15
U.S.C. 78q–1(b)(3)(F).
25 Notice, 83 FR at 6078.
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CFR 240.17Ad–22(b)(2).
28 Id.
29 17
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CFR 240.17Ad–22(d)(8).
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improvements to the governance
structure of the end-of-day pricing
process will have the effect of
promoting greater effectiveness of ICC’s
risk management procedures overall.
Therefore, the Commission finds that
the proposed rule change is consistent
with the requirements of Rule 17Ad–
22(d)(8).30
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act, and in
particular with the requirements of
Section 17A of the Act 31 and Rules
17Ad–22(b)(2) and (d)(8) 32 thereunder.
It is therefore ordered pursuant to
Section 19(b)(2) of the Act 33 that the
proposed rule change (SR–ICC–2018–
002) be, and hereby is, approved.34
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.35
Jill Peterson,
Assistant Secretary.
[FR Doc. 2018–06691 Filed 4–2–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release 34–82961; File No. SR–ISE–2018–
21]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Delay for
Re-Introduction of Legging
Functionality for Stock-Option Orders
on INET by an Additional Year
March 28, 2018.
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 16,
2018, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II,
below, which Items have been prepared
30 Id.
31 15
U.S.C. 78q–1.
CFR 240.17Ad–22(b)(2) and (d)(8).
33 15 U.S.C. 78s(b)(2).
34 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
35 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
32 17
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Federal Register / Vol. 83, No. 64 / Tuesday, April 3, 2018 / Notices
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 extend the
delay for re-introduction of legging
functionality for Stock-Option Orders
on INET by an additional year.
The text of the proposed rule change
is available on the Exchange’s website at
https://ise.cchwallstreet.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.
amozie on DSK30RV082PROD with NOTICES
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to extend the delay for reintroduction of legging functionality for
Stock-Option Orders on INET by an
additional year. With the recent replatform of the Exchange’s trading
system to INET, the Exchange delayed
the re-introduction of legging
functionality for Stock-Option Orders.3
As such, Stock-Option Orders entered
on the Exchange today are not
automatically executed against bids and
offers on the Exchange for the
individual legs pursuant to Rule
722(b)(3)(ii)–(iii) and Supplementary
Material .02 to Rule 722. The Exchange
proposes to extend the delay of
implementation of legging functionality
for Stock-Option Orders by an
additional year. Stock-Option Orders
will continue to execute against other
Stock-Option Orders in the complex
order book, thereby providing an
opportunity for Members to have their
3 See Securities Exchange Act Release No. 80316
(March 27, 2017) 82 FR 16084 (March 31, 2017)
(SR–ISE–2017–28).
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Stock-Option Orders executed on the
Exchange.
When the Exchange initially delayed
legging functionality for Stock-Option
Orders, the Exchange noted that it
would re-introduce legging for StockOption Orders within one year from the
date of that filing. The Exchange filed
the initial rule change on March 21,
2017, and the additional one year delay
would therefore extend the
implementation timeline for this
functionality to March 21, 2019. The
extended delay would provide the
Exchange additional time to develop
and test this functionality on INET. The
Exchange will issue an Options Trader
Alert notifying Members when this
functionality will be available.
Furthermore, in connection with this
change, the Exchange also proposes to
amend Rule 722 to remove language
about the migration of symbols to INET
as this migration has been completed
and all symbols listed by the Exchange
are currently trading on the INET
platform.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,5 in particular, in that it is
designed to 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. In particular, the
Exchange believes that the proposed
rule change is consistent with the
protection of investors and the public
interest as it would provide additional
time to develop and test legging
functionality for Stock-Option Orders
on INET. Although the Exchange is now
fully operating on the INET platform,
additional time is necessary to reimplement this functionality to ensure a
quality experience for Members.
Members are already aware that this
functionality has been delayed, and the
Exchange will provide Members notice
of the date when the functionality will
be available. While the Exchange is
proposing to extend the delay of legging
functionality for these Stock-Option
Orders, Members can continue to
submit these orders to the Exchange
where they can be executed against
other Stock-Option Orders on the
complex order book. No Members have
notified the Exchange of significant
impact on execution quality as a result
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00066
Fmt 4703
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14303
of the delayed implementation of
legging functionality for Stock-Option
Orders, and therefore the Exchange does
not believe that extending the delay will
have a significant impact on market
participants. This functionality will be
available on or before March 21, 2019.
Furthermore, the other proposed
changes merely update this rule to
reflect the fact that all symbols listed by
ISE are currently traded on the INET
platform.
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. Specifically,
the Exchange does not believe that the
proposed one year delay will impose
any significant burden on intra-market
competition because legging for StockOption Orders will be uniformly
delayed for all Members. Similarly, the
Exchange does not believe that the
proposed delay will impose any
significant burden on inter-market
competition as it does not impact the
ability of other markets to offer or not
offer competing functionality. The
Exchange believes that providing an
additional year to develop and test this
functionality will be beneficial to
members.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A)(iii) of the Act 6 and
subparagraph (f)(6) of Rule 19b–4
thereunder.7
A proposed rule change filed under
Rule 19b–4(f)(6) normally does not
6 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Exchange has satisfied this
requirement.
7 17
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Federal Register / Vol. 83, No. 64 / Tuesday, April 3, 2018 / Notices
become operative for 30 days after the
date of the filing. However, Rule 19b–
4(f)(6)(iii) 8 permits the Commission to
designate a shorter time if such action
is consistent with the protection of
investors and the public interest. In its
filing, ISE requests that the Commission
waive the 30-day operative delay to
allow the proposed one-year extension
of the time for re-introducing the legging
functionality for Stock-Option Orders to
begin at the conclusion of the current
delay period, which was scheduled to
end on March 21, 2018. As noted above,
ISE states that extending the delay for
re-introducing the legging functionality
for Stock-Option Orders will provide
ISE with additional time to develop and
test the legging functionality on INET.
ISE further states that no Members have
notified ISE of a significant impact on
execution quality as a result of the
delayed implementation of the legging
functionality for Stock-Option Orders
and, accordingly, the Exchange does not
believe that extending the delay will
have a significant impact on market
participants. The Commission believes
that waiving the operative delay is
consistent with the protection of
investors and the public interest
because it will provide ISE with
additional time to develop and test the
legging functionality for Stock-Option
Orders. Accordingly, the Commission
waives the 30-day operative delay and
designates the proposed rule change
operative upon filing.9
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.
amozie on DSK30RV082PROD with NOTICES
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:
8 17
CFR 240.19b–4(f)(6)(iii).
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).
9 For
VerDate Sep<11>2014
16:47 Apr 02, 2018
Jkt 244001
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–2018–21 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–2018–21. 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 website (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 website 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.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–ISE–2018–21, and should
be submitted on or before April 24,
2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Jill Peterson,
Assistant Secretary.
[FR Doc. 2018–06692 Filed 4–2–18; 8:45 am]
BILLING CODE 8011–01–P
10 17
PO 00000
CFR 200.30–3(a)(12) and (59).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82959; File No. SR–BOX–
2018–06]
Self-Regulatory Organizations; BOX
Options Exchange LLC; Order
Approving a Proposed Rule Change To
Adopt IM–8040–3 To Exchange Rule
8040 to Permit Directed Orders To Be
Submitted With an Auction Only
Designation
March 28, 2018.
I. Introduction
On February 5, 2018, BOX Options
Exchange LLC (‘‘BOX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to adopt IM–8040–3 to Exchange
Rule 8040 to permit Directed Orders 3 to
be submitted with an Auction Only
designation. The proposed rule change
was published for comment in the
Federal Register on February 16, 2018.4
The Commission received no comment
letters on the proposed rule change.
This order approves the proposed rule
change.
II. Description of the Proposed Rule
Change
The Exchange proposes to adopt IM–
8040–3 to Exchange Rule 8040 to allow
Options Participants 5 to apply a new
optional Auction Only designation to
Directed Orders. A Directed Order with
an Auction Only designation will be
cancelled if it is not entered into the
Price Improvement Period (‘‘PIP’’) 6 by
the Executing Participant (‘‘EP’’).7
Market Makers 8 may receive and
handle Directed Orders on an agency
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 The term ‘‘Directed Order’’ means any Customer
Order to buy or sell contracts on a single option
series that has been directed to a particular market
maker by an Order Flow Provider (‘‘OFP’’). See
Exchange Rule 100(a)(19).
4 See Securities Exchange Act Release No. 82690
(February 12, 2018), 83 FR 7084 (‘‘Notice’’).
5 The term ‘‘Options Participant’’ or ‘‘Participant’’
means a firm, or organization that is registered with
the Exchange pursuant to the BOX Rule 2000 Series
for purposes of participating in options trading on
BOX as an OFP or Market Maker. See Exchange
Rule 100(a)(41).
6 See Exchange Rule 7150.
7 An Executing Participant (‘‘EP’’) is a market
maker that desires to accept Directed Orders. See
Notice, supra note 4, at 7085 n.4.
8 The term ‘‘Market Maker’’ means an Options
Participant registered with the Exchange for the
purpose of making markets in options contracts
traded on the Exchange and that is vested with the
rights and responsibilities specified in the BOX
Rule 8000 Series. All Market Makers are designated
2 17
E:\FR\FM\03APN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 64 (Tuesday, April 3, 2018)]
[Notices]
[Pages 14302-14304]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06692]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release 34-82961; File No. SR-ISE-2018-21]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Extend the
Delay for Re-Introduction of Legging Functionality for Stock-Option
Orders on INET by an Additional Year
March 28, 2018.
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 16, 2018, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I and II, below, which Items have
been prepared
[[Page 14303]]
by the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to extend the delay for re-introduction of
legging functionality for Stock-Option Orders on INET by an additional
year.
The text of the proposed rule change is available on the Exchange's
website at https://ise.cchwallstreet.com/, at the principal office of
the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to extend the delay for
re-introduction of legging functionality for Stock-Option Orders on
INET by an additional year. With the recent re-platform of the
Exchange's trading system to INET, the Exchange delayed the re-
introduction of legging functionality for Stock-Option Orders.\3\ As
such, Stock-Option Orders entered on the Exchange today are not
automatically executed against bids and offers on the Exchange for the
individual legs pursuant to Rule 722(b)(3)(ii)-(iii) and Supplementary
Material .02 to Rule 722. The Exchange proposes to extend the delay of
implementation of legging functionality for Stock-Option Orders by an
additional year. Stock-Option Orders will continue to execute against
other Stock-Option Orders in the complex order book, thereby providing
an opportunity for Members to have their Stock-Option Orders executed
on the Exchange.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 80316 (March 27,
2017) 82 FR 16084 (March 31, 2017) (SR-ISE-2017-28).
---------------------------------------------------------------------------
When the Exchange initially delayed legging functionality for
Stock-Option Orders, the Exchange noted that it would re-introduce
legging for Stock-Option Orders within one year from the date of that
filing. The Exchange filed the initial rule change on March 21, 2017,
and the additional one year delay would therefore extend the
implementation timeline for this functionality to March 21, 2019. The
extended delay would provide the Exchange additional time to develop
and test this functionality on INET. The Exchange will issue an Options
Trader Alert notifying Members when this functionality will be
available. Furthermore, in connection with this change, the Exchange
also proposes to amend Rule 722 to remove language about the migration
of symbols to INET as this migration has been completed and all symbols
listed by the Exchange are currently trading on the INET platform.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\4\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\5\ in particular, in that it
is designed to 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. In particular, the Exchange believes
that the proposed rule change is consistent with the protection of
investors and the public interest as it would provide additional time
to develop and test legging functionality for Stock-Option Orders on
INET. Although the Exchange is now fully operating on the INET
platform, additional time is necessary to re-implement this
functionality to ensure a quality experience for Members. Members are
already aware that this functionality has been delayed, and the
Exchange will provide Members notice of the date when the functionality
will be available. While the Exchange is proposing to extend the delay
of legging functionality for these Stock-Option Orders, Members can
continue to submit these orders to the Exchange where they can be
executed against other Stock-Option Orders on the complex order book.
No Members have notified the Exchange of significant impact on
execution quality as a result of the delayed implementation of legging
functionality for Stock-Option Orders, and therefore the Exchange does
not believe that extending the delay will have a significant impact on
market participants. This functionality will be available on or before
March 21, 2019. Furthermore, the other proposed changes merely update
this rule to reflect the fact that all symbols listed by ISE are
currently traded on the INET platform.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. Specifically, the Exchange does
not believe that the proposed one year delay will impose any
significant burden on intra-market competition because legging for
Stock-Option Orders will be uniformly delayed for all Members.
Similarly, the Exchange does not believe that the proposed delay will
impose any significant burden on inter-market competition as it does
not impact the ability of other markets to offer or not offer competing
functionality. The Exchange believes that providing an additional year
to develop and test this functionality will be beneficial to members.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \6\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(3)(A)(iii).
\7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) normally does
not
[[Page 14304]]
become operative for 30 days after the date of the filing. However,
Rule 19b-4(f)(6)(iii) \8\ permits the Commission to designate a shorter
time if such action is consistent with the protection of investors and
the public interest. In its filing, ISE requests that the Commission
waive the 30-day operative delay to allow the proposed one-year
extension of the time for re-introducing the legging functionality for
Stock-Option Orders to begin at the conclusion of the current delay
period, which was scheduled to end on March 21, 2018. As noted above,
ISE states that extending the delay for re-introducing the legging
functionality for Stock-Option Orders will provide ISE with additional
time to develop and test the legging functionality on INET. ISE further
states that no Members have notified ISE of a significant impact on
execution quality as a result of the delayed implementation of the
legging functionality for Stock-Option Orders and, accordingly, the
Exchange does not believe that extending the delay will have a
significant impact on market participants. The Commission believes that
waiving the operative delay is consistent with the protection of
investors and the public interest because it will provide ISE with
additional time to develop and test the legging functionality for
Stock-Option Orders. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change operative upon
filing.\9\
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\8\ 17 CFR 240.19b-4(f)(6)(iii).
\9\ For purposes only of waiving the 30-day operative delay, the
Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is: (i)
Necessary or appropriate in the public interest; (ii) for the
protection of investors; or (iii) otherwise in furtherance of the
purposes of the Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-ISE-2018-21 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-2018-21. 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 website (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 website 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. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-ISE-2018-21, and should be submitted on
or before April 24, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12) and (59).
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Jill Peterson,
Assistant Secretary.
[FR Doc. 2018-06692 Filed 4-2-18; 8:45 am]
BILLING CODE 8011-01-P
