Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Codify Within Rule 718 the Data Feeds on ISE, 17451-17454 [2018-08158]
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Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Notices
NUREG–1556 volumes listed in this
Federal Register notice were issued as
final reports.
II. Additional Information
The NRC published notices of the
availability of the draft report for
comment versions of NUREG–1556,
Volume 6, Revision 1 in the Federal
Register on August 30, 2013 (78 FR
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Dated at Rockville, Maryland, this 13th day
of April, 2018.
For the Nuclear Regulatory Commission.
Kevin Williams,
Acting Director, Division of Materials Safety,
Security, State and Tribal Programs, Office
of Nuclear Material Safety and Safeguards.
[FR Doc. 2018–08190 Filed 4–18–18; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket No. CP2018–204]
New Postal Product
Postal Regulatory Commission.
ACTION: Notice.
AGENCY:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
negotiated service agreements. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: April 20,
2018.
ADDRESSES: Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
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SUMMARY:
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comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the market dominant or
the competitive product list, or the
modification of an existing product
currently appearing on the market
dominant or the competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3007.40.
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern market dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3010, and 39
CFR part 3020, subpart B. For request(s)
that the Postal Service states concern
competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3015, and
39 CFR part 3020, subpart B. Comment
deadline(s) for each request appear in
section II.
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17451
II. Docketed Proceeding(s)
1. Docket No(s).: CP2018–204; Filing
Title: Notice of United States Postal
Service of Filing a Functionally
Equivalent Global Expedited Package
Services 7 Negotiated Service
Agreement and Application for NonPublic Treatment of Materials Filed
Under Seal; Filing Acceptance Date:
April 12, 2018; Filing Authority: 39 CFR
3015.50; Public Representative:
Christopher C. Mohr; Comments Due:
April 20, 2018.
This Notice will be published in the
Federal Register.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2018–08148 Filed 4–18–18; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83051; File No. SR–ISE–
2018–32]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Codify Within Rule
718 the Data Feeds on ISE
April 13, 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 April 4,
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
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 a proposed
rule change to codify within Rule 718,
which rule is currently reserved, the
data feeds that are currently offered on
ISE.
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.
1 15
2 17
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U.S.C. 78s(b)(1).
CFR 240.19b–4.
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Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / 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
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1. Purpose
The purpose of the proposed rule
change is to codify within Rule 718,
which rule is currently reserved, the
data feeds that are currently offered on
ISE and previously described in prior
rule changes as described in more detail
below. The Exchange proposes to
rename Rule 718 ‘‘Data Feeds’’ and list
the various data feed offerings within
that rule.
The Exchange has previously filed a
rule change which describes the various
data offerings.3 The data offerings
contained in that rule change included:
Nasdaq ISE Real-time Depth of Market
Raw Data Feed (‘‘Depth of Market
Feed’’), the Nasdaq ISE Order Feed
(‘‘Order Feed’’), the Nasdaq ISE Top
Quote Feed (‘‘Top Quote Feed’’), the
Nasdaq ISE Trades Feed (‘‘Trades
Feed’’), and the Nasdaq ISE Spread Feed
(‘‘Spread Feed’’). Each of the data
offerings are described in more detail
below.
Universal Changes
The Exchange notes it proposes
various universal amendments to its
data feeds for consistency and clarity.
References to ‘‘instrument’’ will be
replaced by the more specific language
‘‘options series.’’ Where the Exchange
previously referred to ‘‘trading status’’
those words will be replaced with
language which specifically explains the
information for status, which is,
‘‘whether the option series is available
for trading on ISE and identifies if the
series is available for closing
transactions only.’’ The word
3 See Securities Exchange Act Release No. 81095
(July 7, 2017), 82 FR 32409 (July 13, 2017) (SR–ISE–
2017–62) (Notice of Filing and Immediate
Effectiveness of Proposed Rule Change To Establish
Ports and Gateways That Members Use To Connect
to the Exchange)(‘‘Prior Filing’’).
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‘‘customer’’ will be replaced with the
defined term ‘‘Priority Customer.’’ 4
References to the word ‘‘cumulative,’’
when referring to volume, will be
replaced with more specific language
namely, ‘‘daily trading,’’ to refer to the
volume. These aforementioned
amendments are made, where
applicable, within the data feeds
described below in more detail. Finally,
the Exchange is adding language in Rule
718(a) to make clear that the data feeds
pertain to ISE trading information.
Depth of Market Feed
In a Prior Filing the Exchange
described the Depth Feed as providing
aggregate quotes and orders at the top
five price levels on the Exchange, and
provides subscribers with a
consolidated view of tradable prices
beyond the BBO, showing additional
liquidity and enhancing transparency
for ISE traded options. The data
provided for each instrument includes
the symbols (series and underlying
security), put or call indicator,
expiration date, the strike price of the
series, and trading status. In addition,
subscribers are provided with total
quantity, customer quantity, price, and
side (i.e., bid/ask). This information is
provided for each of the five indicated
price levels on the Depth Feed. The feed
also provides participants of imbalances
on opening/reopening.
In codifying the feed description, the
Exchange proposes a few amendments
to the description in the Prior Filing in
addition to the universal changes
mentioned above. For the Depth of
Market Feed, the Exchange is removing
the words ‘‘’’Real-time’’ and ‘‘Raw’’
because all the feeds are real-time and
contain raw data. Removing these words
conforms the language of all the feeds.
The Exchange proposes to replace
‘‘Exchange’’ with ‘‘ISE’’ for clarity. Also,
the Exchange is expanding the
description of total quantity to ‘‘total
aggregate quantity’’ including Public
Customer 5 aggregate quantity and
Priority Customer aggregate quantity.
The Exchange is amending a description
of the imbalances on opening/reopening
to note the imbalances are order and not
participant imbalances. Finally a
typographical error is being amended in
the last sentence of this data feed to
4 The term ‘‘Priority Customer’’ means a person
or entity that (i) is not a broker or dealer in
securities, and (ii) does not place more than 390
orders in listed options per day on average during
a calendar month for its own beneficial account(s).
See ISE Rule 100(a)(41A).
5 The term ‘‘Public Customer’’ means a person or
entity that is not a broker or dealer in securities. See
Rule 100(a)(42).
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remove an extraneous ‘‘of’’ in the
sentence.
Order Feed
In a Prior Filing the Exchange
described the Order Feed as providing
information on new orders resting on
the book. In addition, the feed also
announces auctions. The data provided
for each instrument includes the
symbols (series and underlying
security), put or call indicator,
expiration date, the strike price of the
series, and trading status. The feed also
provides participants of imbalances on
opening/reopening.
In codifying the feed description, the
Exchange proposes a few amendments
to the description in the Prior Filing in
addition to the universal changes
mentioned above. The Exchange is
amending the order feed to include the
word ‘‘all’’ before auctions to make clear
all auction information is included. The
Exchange is adding examples of the
information provided on new orders
resting on the book, e.g. price, quantity
and market participant capacity. The
words ‘‘market participant’’ are
intended to make clear which capacity
is referred to for the information. The
Exchange is amending a description of
the imbalances on opening/reopening to
note the imbalances are order and not
participant imbalances. Also, a
typographical error is being amended in
the last sentence of this data feed to
remove an extraneous ‘‘of’’ in the
sentence.
Top Quote Feed
In a Prior Filing the Exchange
described the Top Quote Feed as one
that calculates and disseminates its best
bid and offer position, with aggregated
size (Total & Customer), based on
displayable order and quote interest in
the options market system. The feed
also provides last trade information
along with opening price, cumulative
volume, high and low prices for the day.
The data provided for each instrument
includes the symbols (series and
underlying security), put or call
indicator, expiration date, the strike
price of the series, and trading status.
In codifying the feed description, the
Exchange proposes a few amendments
to the description in the Prior Filing in
addition to the universal changes
mentioned above. The Exchange
proposes to amend the Top Quote Feed
to make clear that aggregated size
included total size, Public Customer
size in the aggregate and also Priority
Customer size in the aggregate. The
Exchange is replacing the term ‘‘options
market system’’ with the defined term
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‘‘System.’’ 6 The Exchange also proposes
to add a sentence, similar to the Depth
of Market Feed and Order Feed which
provides ‘‘The feed also provides order
imbalances on opening/reopening.’’
This sentence should have been
included with this feed as well. The
universal changes described above
apply as well.
Trades Feed
In a Prior Filing the Exchange
described the Trades Feed as displaying
last trade information along with
opening price, cumulative volume, high
and low prices for the day. The data
provided for each instrument includes
the symbols (series and underlying
security), put or call indicator,
expiration date, the strike price of the
series, and trading status.
The Exchange is only amending the
description of the Trades Feed as
described in the universal changes.
Spread Feed
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In a Prior Filing the Exchange
described the Spread Feed as a real-time
feed that consists of options quotes and
orders for all Complex Orders (i.e.,
spreads, buy-writes, delta neutral
strategies, etc.) aggregated at the top
price level on both the bid and offer side
of the market as well as all aggregated
quotes and orders for complex orders at
the top five price levels on both the bid
and offer side of the market. In addition,
the Spread Feed provides real-time
updates every time a new complex limit
order that is not immediately executable
at the BBO is placed on the ISE complex
order book. The Spread Feed shows
aggregate bid/ask quote size for
Customer and Professional Customer
option orders for ISE traded options.
In codifying the Trades Feed
description, the Exchange proposes a
few amendments to the description in
the Prior Filing in addition to the
universal changes mentioned above.
The Exchange is also removing a
reference to ‘‘real-time’’ as not
necessary. The Exchange is also
capitalizing the term ‘‘Complex Order,’’
which is a defined term.7 The Exchange
is also amending the sentence which
currently provides, ‘‘Nasdaq ISE Spread
is a real-time feed that consists of
options quotes and orders for all
Complex Orders (i.e., spreads, buy6 See
Rule 100(a)(53).
complex order is any order involving the
simultaneous purchase and/or sale of two or more
different options series in the same underlying
security, for the same account, in a ratio that is
equal to or greater than one-to-three (.333) and less
than or equal to three-to-one (3.00) and for the
purpose of executing a particular investment
strategy. See ISE Rule 722(a)(1).
7A
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writes, delta neutral strategies, etc.)
aggregated at the top price level on both
the bid and offer side of the market as
well as all aggregated quotes and orders
for complex orders at the top five price
levels on both the bid and offer side of
the market.’’ The Exchange proposes to
provide, ‘‘Nasdaq ISE Spread Feed
(‘‘Spread Feed’’) is a feed that consists
of options quotes and orders for all
Complex Orders (i.e., spreads, buywrites, delta neutral strategies, etc.)
aggregated at the top five price levels
(BBO) on both the bid and offer side of
the market as well as last trades
information.’’ The Exchange believes
that the proposed sentence is clear with
respect to the fact that the data takes
into account the top five price levels or
‘‘BBO.’’ The Exchange is adding ‘‘last
trades information’’ to make clear that
the execution information is contained
in this data feed as well. Finally, the
Exchange is making clear that the
Spread Feed shows bid/ask quote size
for Public Customer and Priority
Customer option orders for ISE traded
options. The universal changes
described above apply as well.
The Exchange notes that market
participants are charged for
subscriptions to these products.8 The
Exchange believes that codifying these
data feeds within the Exchange’s
Rulebook will bring greater
transparency to its Rules as well as the
data which is available on the Exchange.
The amendments are also intended to
provide greater clarity and transparency
concerning the data offerings.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Securities Exchange
Act of 1934 (the ‘‘Act’’),9 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,10 in particular, in that it is
designed to promote just and equitable
principles of trade, to remove
impediments to and perfect the
mechanism for a free and open market
and a national market system, and, in
general, to protect investors and the
public interest. By codifying the various
data feed offerings, which have already
been filed for in another rule change,11
will bring greater transparency to the
Exchange’s Rules. Also, the content of
each data feed is described within the
Rule for ease of reference. The Exchange
believes that the proposed rule change
is consistent with the protection of
investors and the public interest as it
8 See
Schedule of Fees, Section VIII, Market Data.
U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(5).
11 See note 3 above.
9 15
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17453
provides information relating to the data
available on the Exchange for the benefit
of its Members within its Rules and
adds greater transparency to these
offerings. Finally, the amendments
seeks to add greater clarity to the data
offerings and conform the text of the
offerings.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,12 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intra-market competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The data feed
offerings are available to any market
participant. The Exchange’s proposal
seeks to codify the data offerings in a
rule for ease of reference and
transparency within the Rulebook. The
amendments seeks to add greater clarity
to the data offerings and conform the
text of the offerings.
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 13 and
subparagraph (f)(6) of Rule 19b–4
thereunder.14
A proposed rule change filed under
Rule 19b–4(f)(6) 15 normally does not
become operative prior to 30 days after
the date of the 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
12 15
U.S.C. 78f(b)(8).
U.S.C. 78s(b)(3)(A)(iii).
14 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires the Exchange to give the
Commission written notice of the Exchange’s intent
to file the proposed rule change, along with a brief
description and 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. The Exchange
has satisfied this requirement.
15 17 CFR 240.19b–4(f)(6).
16 17 CFR 240.19b–4(f)(6)(iii).
13 15
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Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Notices
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that waiving
the operative delay will allow it to
immediately reflect the Exchange’s data
feed offerings within its Rules and bring
greater transparency to these data feed
offerings. The Commission believes that
waiver of the 30-day operative delay is
consistent with the protection of
investors and the public interest.
Therefore, the Commission hereby
waives the operative delay and
designates the proposed rule change as
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
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:
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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–2018–32 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–2018–32. 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
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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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–2018–32 and should be
submitted on or before May 10, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–08158 Filed 4–18–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83045; File No. SR–BX–
2018–011]
Self-Regulatory Organizations; Nasdaq
BX, Inc.; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the
Exchange’s Transaction Fees at Rule
7018
April 13, 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 April 2,
2018, Nasdaq BX, Inc. (‘‘BX’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the Exchange. The
Commission is publishing this notice to
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend the
Exchange’s transaction fees at Rule 7018
to reduce the credit for a Retail Order
that accesses liquidity provided by a
Retail Price Improvement Order.
The text of the proposed rule change
is available on the Exchange’s website at
https://nasdaqbx.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 amend the Exchange’s
transaction fees at Rule 7018 to reduce
the credit for a Retail Order that
accesses liquidity provided by a Retail
Price Improvement Order in connection
with the Retail Price Improvement
Program (‘‘Program’’).
Under the RPI Program, a member (or
a division thereof) approved by the
Exchange to participate in the Program
(a ‘‘Retail Member Organization’’ or
‘‘RMO’’) may submit designated ‘‘Retail
Orders’’ 3 for the purpose of seeking
price improvement. All BX members
may enter retail price improving orders
(‘‘RPI Orders’’),4 a form of non3 A Retail Order is defined, in part, as ‘‘an agency
Order, or riskless principal Order that satisfies the
criteria of FINRA Rule 5320.03. The Retail Order
must reflect trading interest of a natural person with
no change made to the terms of the underlying
order of the natural person with respect to price
(except in the case of a market order that is changed
to a marketable limit order) or side of market and
that does not originate from a trading algorithm or
any other computerized methodology.’’ See BX
Rules 4702(b)(6); 4780(a)(2).
4 A Retail Price Improvement Order is defined, in
part, as ‘‘an Order Type with a Non-Display Order
E:\FR\FM\19APN1.SGM
19APN1
]]>Agencies
[Federal Register Volume 83, Number 76 (Thursday, April 19, 2018)]
[Notices]
[Pages 17451-17454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08158]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83051; File No. SR-ISE-2018-32]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Codify Within
Rule 718 the Data Feeds on ISE
April 13, 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 April 4, 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 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 a proposed rule change to codify within
Rule 718, which rule is currently reserved, the data feeds that are
currently offered on ISE.
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.
[[Page 17452]]
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 codify within Rule
718, which rule is currently reserved, the data feeds that are
currently offered on ISE and previously described in prior rule changes
as described in more detail below. The Exchange proposes to rename Rule
718 ``Data Feeds'' and list the various data feed offerings within that
rule.
The Exchange has previously filed a rule change which describes the
various data offerings.\3\ The data offerings contained in that rule
change included: Nasdaq ISE Real-time Depth of Market Raw Data Feed
(``Depth of Market Feed''), the Nasdaq ISE Order Feed (``Order Feed''),
the Nasdaq ISE Top Quote Feed (``Top Quote Feed''), the Nasdaq ISE
Trades Feed (``Trades Feed''), and the Nasdaq ISE Spread Feed (``Spread
Feed''). Each of the data offerings are described in more detail below.
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\3\ See Securities Exchange Act Release No. 81095 (July 7,
2017), 82 FR 32409 (July 13, 2017) (SR-ISE-2017-62) (Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To
Establish Ports and Gateways That Members Use To Connect to the
Exchange)(``Prior Filing'').
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Universal Changes
The Exchange notes it proposes various universal amendments to its
data feeds for consistency and clarity. References to ``instrument''
will be replaced by the more specific language ``options series.''
Where the Exchange previously referred to ``trading status'' those
words will be replaced with language which specifically explains the
information for status, which is, ``whether the option series is
available for trading on ISE and identifies if the series is available
for closing transactions only.'' The word ``customer'' will be replaced
with the defined term ``Priority Customer.'' \4\ References to the word
``cumulative,'' when referring to volume, will be replaced with more
specific language namely, ``daily trading,'' to refer to the volume.
These aforementioned amendments are made, where applicable, within the
data feeds described below in more detail. Finally, the Exchange is
adding language in Rule 718(a) to make clear that the data feeds
pertain to ISE trading information.
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\4\ The term ``Priority Customer'' means a person or entity that
(i) is not a broker or dealer in securities, and (ii) does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial account(s). See ISE Rule
100(a)(41A).
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Depth of Market Feed
In a Prior Filing the Exchange described the Depth Feed as
providing aggregate quotes and orders at the top five price levels on
the Exchange, and provides subscribers with a consolidated view of
tradable prices beyond the BBO, showing additional liquidity and
enhancing transparency for ISE traded options. The data provided for
each instrument includes the symbols (series and underlying security),
put or call indicator, expiration date, the strike price of the series,
and trading status. In addition, subscribers are provided with total
quantity, customer quantity, price, and side (i.e., bid/ask). This
information is provided for each of the five indicated price levels on
the Depth Feed. The feed also provides participants of imbalances on
opening/reopening.
In codifying the feed description, the Exchange proposes a few
amendments to the description in the Prior Filing in addition to the
universal changes mentioned above. For the Depth of Market Feed, the
Exchange is removing the words ``''Real-time'' and ``Raw'' because all
the feeds are real-time and contain raw data. Removing these words
conforms the language of all the feeds. The Exchange proposes to
replace ``Exchange'' with ``ISE'' for clarity. Also, the Exchange is
expanding the description of total quantity to ``total aggregate
quantity'' including Public Customer \5\ aggregate quantity and
Priority Customer aggregate quantity. The Exchange is amending a
description of the imbalances on opening/reopening to note the
imbalances are order and not participant imbalances. Finally a
typographical error is being amended in the last sentence of this data
feed to remove an extraneous ``of'' in the sentence.
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\5\ The term ``Public Customer'' means a person or entity that
is not a broker or dealer in securities. See Rule 100(a)(42).
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Order Feed
In a Prior Filing the Exchange described the Order Feed as
providing information on new orders resting on the book. In addition,
the feed also announces auctions. The data provided for each instrument
includes the symbols (series and underlying security), put or call
indicator, expiration date, the strike price of the series, and trading
status. The feed also provides participants of imbalances on opening/
reopening.
In codifying the feed description, the Exchange proposes a few
amendments to the description in the Prior Filing in addition to the
universal changes mentioned above. The Exchange is amending the order
feed to include the word ``all'' before auctions to make clear all
auction information is included. The Exchange is adding examples of the
information provided on new orders resting on the book, e.g. price,
quantity and market participant capacity. The words ``market
participant'' are intended to make clear which capacity is referred to
for the information. The Exchange is amending a description of the
imbalances on opening/reopening to note the imbalances are order and
not participant imbalances. Also, a typographical error is being
amended in the last sentence of this data feed to remove an extraneous
``of'' in the sentence.
Top Quote Feed
In a Prior Filing the Exchange described the Top Quote Feed as one
that calculates and disseminates its best bid and offer position, with
aggregated size (Total & Customer), based on displayable order and
quote interest in the options market system. The feed also provides
last trade information along with opening price, cumulative volume,
high and low prices for the day. The data provided for each instrument
includes the symbols (series and underlying security), put or call
indicator, expiration date, the strike price of the series, and trading
status.
In codifying the feed description, the Exchange proposes a few
amendments to the description in the Prior Filing in addition to the
universal changes mentioned above. The Exchange proposes to amend the
Top Quote Feed to make clear that aggregated size included total size,
Public Customer size in the aggregate and also Priority Customer size
in the aggregate. The Exchange is replacing the term ``options market
system'' with the defined term
[[Page 17453]]
``System.'' \6\ The Exchange also proposes to add a sentence, similar
to the Depth of Market Feed and Order Feed which provides ``The feed
also provides order imbalances on opening/reopening.'' This sentence
should have been included with this feed as well. The universal changes
described above apply as well.
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\6\ See Rule 100(a)(53).
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Trades Feed
In a Prior Filing the Exchange described the Trades Feed as
displaying last trade information along with opening price, cumulative
volume, high and low prices for the day. The data provided for each
instrument includes the symbols (series and underlying security), put
or call indicator, expiration date, the strike price of the series, and
trading status.
The Exchange is only amending the description of the Trades Feed as
described in the universal changes.
Spread Feed
In a Prior Filing the Exchange described the Spread Feed as a real-
time feed that consists of options quotes and orders for all Complex
Orders (i.e., spreads, buy-writes, delta neutral strategies, etc.)
aggregated at the top price level on both the bid and offer side of the
market as well as all aggregated quotes and orders for complex orders
at the top five price levels on both the bid and offer side of the
market. In addition, the Spread Feed provides real-time updates every
time a new complex limit order that is not immediately executable at
the BBO is placed on the ISE complex order book. The Spread Feed shows
aggregate bid/ask quote size for Customer and Professional Customer
option orders for ISE traded options.
In codifying the Trades Feed description, the Exchange proposes a
few amendments to the description in the Prior Filing in addition to
the universal changes mentioned above. The Exchange is also removing a
reference to ``real-time'' as not necessary. The Exchange is also
capitalizing the term ``Complex Order,'' which is a defined term.\7\
The Exchange is also amending the sentence which currently provides,
``Nasdaq ISE Spread is a real-time feed that consists of options quotes
and orders for all Complex Orders (i.e., spreads, buy-writes, delta
neutral strategies, etc.) aggregated at the top price level on both the
bid and offer side of the market as well as all aggregated quotes and
orders for complex orders at the top five price levels on both the bid
and offer side of the market.'' The Exchange proposes to provide,
``Nasdaq ISE Spread Feed (``Spread Feed'') is a feed that consists of
options quotes and orders for all Complex Orders (i.e., spreads, buy-
writes, delta neutral strategies, etc.) aggregated at the top five
price levels (BBO) on both the bid and offer side of the market as well
as last trades information.'' The Exchange believes that the proposed
sentence is clear with respect to the fact that the data takes into
account the top five price levels or ``BBO.'' The Exchange is adding
``last trades information'' to make clear that the execution
information is contained in this data feed as well. Finally, the
Exchange is making clear that the Spread Feed shows bid/ask quote size
for Public Customer and Priority Customer option orders for ISE traded
options. The universal changes described above apply as well.
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\7\ A complex order is any order involving the simultaneous
purchase and/or sale of two or more different options series in the
same underlying security, for the same account, in a ratio that is
equal to or greater than one-to-three (.333) and less than or equal
to three-to-one (3.00) and for the purpose of executing a particular
investment strategy. See ISE Rule 722(a)(1).
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The Exchange notes that market participants are charged for
subscriptions to these products.\8\ The Exchange believes that
codifying these data feeds within the Exchange's Rulebook will bring
greater transparency to its Rules as well as the data which is
available on the Exchange. The amendments are also intended to provide
greater clarity and transparency concerning the data offerings.
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\8\ See Schedule of Fees, Section VIII, Market Data.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (the
``Act''),\9\ in general, and furthers the objectives of Section 6(b)(5)
of the Act,\10\ in particular, in that it is designed to promote just
and equitable principles of trade, to remove impediments to and perfect
the mechanism for a free and open market and a national market system,
and, in general, to protect investors and the public interest. By
codifying the various data feed offerings, which have already been
filed for in another rule change,\11\ will bring greater transparency
to the Exchange's Rules. Also, the content of each data feed is
described within the Rule for ease of reference. The Exchange believes
that the proposed rule change is consistent with the protection of
investors and the public interest as it provides information relating
to the data available on the Exchange for the benefit of its Members
within its Rules and adds greater transparency to these offerings.
Finally, the amendments seeks to add greater clarity to the data
offerings and conform the text of the offerings.
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\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(5).
\11\ See note 3 above.
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B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\12\ the Exchange
does not believe that the proposed rule change will impose any burden
on intermarket or intra-market competition that is not necessary or
appropriate in furtherance of the purposes of the Act. The data feed
offerings are available to any market participant. The Exchange's
proposal seeks to codify the data offerings in a rule for ease of
reference and transparency within the Rulebook. The amendments seeks to
add greater clarity to the data offerings and conform the text of the
offerings.
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\12\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 \13\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and 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. The
Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \15\ normally
does not become operative prior to 30 days after the date of the
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
[[Page 17454]]
interest. The Exchange has asked the Commission to waive the 30-day
operative delay so that the proposal may become operative immediately
upon filing. The Exchange states that waiving the operative delay will
allow it to immediately reflect the Exchange's data feed offerings
within its Rules and bring greater transparency to these data feed
offerings. The Commission believes that waiver of the 30-day operative
delay is consistent with the protection of investors and the public
interest. Therefore, the Commission hereby waives the operative delay
and designates the proposed rule change as 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: (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-2018-32 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-2018-32. 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-2018-32 and should be submitted on
or before May 10, 2018.
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. 2018-08158 Filed 4-18-18; 8:45 am]
BILLING CODE 8011-01-P
