Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Increase Certain Route-Out Fees Set Forth in Section IV.F of the Schedule of Fees, 28705-28707 [2018-13171]
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Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
Exchange, which would benefit all
market participants.
The Exchange believes that the
proposed changes to Setter Priority are
designed to operate consistently with
the existing functionality, which is why
multiple orders that reprice would not
be eligible for Setter Priority, unless one
order is equal to a round lot or more and
the sum of all other orders at that price
equal less than a round lot. Similarly,
the Exchange believes that it would
remove impediments to and perfect the
mechanism of a free and open market
and a national market system for a
Reserve Order to be eligible for Setter
Priority at only one price, and therefore,
during a Short Sale Period, if a Reserve
Order is replenished at a Permitted
Price, it would not be eligible for Setter
Priority at a second price level.
Finally, the Exchange believes that
the proposed amendment to Rule
7.37(h)(3)(C) to add that an order would
lose Setter Priority if it is less than a
round lot and assigned a new working
time pursuant to proposed Rule
7.31(d)(1)(B)(i) is consistent with
current behavior that an odd-lot sized
order would lose Setter Priority if it is
assigned a new working time. The
Exchange believes that it would remove
impediments to and perfect the
mechanism of a free and open market
and a national market system for a
Reserve Order to lose Setter Priority in
such circumstances because when it is
assigned a new working time, it would
be eligible to be reevaluated for Setter
Priority.
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 that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed rule change is not designed to
address any competitive issues. Rather,
the proposed rule change to Reserve
Orders is designed to reduce the
potential for market participants to
identify that a child order is related to
a Reserve Order. The changes to Setter
Priority are designed to promote the
aggressive display of liquidity on the
Exchange to provide additional
circumstances when an order would be
eligible for Setter Priority, consistent
with current rules.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
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17:58 Jun 19, 2018
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III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
28705
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–NYSE–2018–26 and should
be submitted on or before July 11, 2018.
Within 45 days of the date of
publication of this notice in the Federal
Register or up to 90 days (i) as the
Commission may designate if it finds
such longer period to be appropriate
and publishes its reasons for so finding
or (ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
IV. Solicitation of Comments
[FR Doc. 2018–13162 Filed 6–19–18; 8:45 am]
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:
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83446; File No. SR–ISE–
2018–52]
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSE–2018–26 on the subject line.
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Increase Certain
Route-Out Fees Set Forth in Section
IV.F of the Schedule of Fees
Paper Comments
June 14, 2018.
• 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–NYSE–2018–26. 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
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 June 1,
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.
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to increase
certain route-out fees set forth in
Section IV.F of the Schedule of Fees, as
described further below.
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.
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\20JNN1.SGM
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28706
Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 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
1. Purpose
The purpose of the proposed rule
change is to increase certain route-out
fees set forth in Section IV.F of the
Schedule of Fees. Today, the Exchange
charges Non-Priority Customers (i.e.,
Market Maker,3 Non-Nasdaq ISE Market
Maker,4 Firm Proprietary 5/BrokerDealer,6 and Professional Customer 7)
route-out fees of $0.95 per contract for
orders in Non-Select Symbols 8 that are
routed to away exchanges in connection
with the Options Order Protection and
Locked/Crossed Market Plan (the
‘‘Plan’’). The Exchange now proposes to
increase this fee to $1.09 per contract for
all Non-Priority Customer orders in
Non-Select Symbols that are routed to
away exchanges in connection with the
Plan. The Exchange believes that the
proposed increase will help offset the
costs associated with routing orders
through the Plan, such as paying the
transaction fees for such executions at
other exchanges.
2. Statutory Basis
sradovich on DSK3GMQ082PROD with NOTICES
The Exchange believes that its
proposal is consistent with Section 6(b)
3 The term ‘‘Market Makers’’ refers to
‘‘Competitive Market Makers’’ and ‘‘Primary Market
Makers’’ collectively. See Rule 100(a)(28).
4 A ‘‘Non-Nasdaq ISE Market Maker’’ is a market
maker as defined in Section 3(a)(38) of the
Securities Exchange Act of 1934, as amended,
registered in the same options class on another
options exchange.
5 A ‘‘Firm Proprietary’’ order is an order
submitted by a member for its own proprietary
account.
6 A ‘‘Broker-Dealer’’ order is an order submitted
by a member for a broker-dealer account that is not
its own proprietary account.
7 A ‘‘Professional Customer’’ is a person or entity
that is not a broker/dealer and is not a Priority
Customer.
8 ‘‘Non-Select Symbols’’ are options overlying all
symbols that are not in the Penny Pilot Program.
VerDate Sep<11>2014
17:58 Jun 19, 2018
Jkt 244001
of the Act,9 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,10 in particular, in that it
provides for the equitable allocation of
reasonable dues, fees, and other charges
among members and issuers and other
persons using any facility, and is not
designed to permit unfair
discrimination between customers,
issuers, brokers, or dealers.
The Exchange believes that proposed
increase in the Non-Priority Customer
route-out fees from $0.95 to $1.09 per
contract for orders in Non-Select
Symbols is reasonable because it is
designed to help recoup costs associated
with routing orders to away exchanges
in connection with the Plan, such as
paying the transaction fees for such
executions at other exchanges.
Furthermore, the Exchange notes that
the proposed fees remain competitive
with the fees of other options exchanges
which, in addition to a fixed routing fee,
assess the actual transaction fees.11
The Exchange believes that proposed
increase in the Non-Priority Customer
route-out fees is an equitable allocation
and is not unfairly discriminatory
because the Exchange will apply the
same fee to all similarly situated
members. The Exchange believes it is
equitable and not unfairly
discriminatory to increase the route-out
fees for all market participants other
than Priority Customers 12 because the
Exchange seeks to encourage Priority
Customer order flow and the liquidity
that such order flow brings to the
marketplace, which in turn benefits all
market participants.
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. In particular,
the proposed increase to the route-out
fees will apply equally to all NonPriority Customer orders that are routed
to away exchanges in connection with
the Plan, and will help offset costs
associated with routing orders via the
Plan. Furthermore as noted above, the
Exchange believes that its proposed fees
9 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
11 For example, CBOE C2 Exchange, Inc. (‘‘C2’’)
charges $1.63 per routed contract for non-public
customer, non-C2 market-maker orders in nonpenny classes. See C2 Fees Schedule, Section 1.A
(Transaction Fees) and Section 2 (Linkage Routing).
12 A ‘‘Priority Customer’’ is a person or entity that
is not a broker/dealer in securities, and does not
place more than 390 orders in listed options per day
on average during a calendar month for its own
beneficial account(s), as defined in Nasdaq ISE Rule
100(a)(37A).
10 15
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
remain competitive with another
options exchange.
The Exchange notes that it operates in
a highly competitive market in which
market participants can readily favor
competing venues if they deem fee
levels at a particular venue to be
excessive, or rebate opportunities
available at other venues to be more
favorable. In such an environment, the
Exchange must continually adjust its
fees to remain competitive with other
exchanges and with alternative trading
systems that have been exempted from
compliance with the statutory standards
applicable to exchanges. Because
competitors are free to modify their own
fees in response, and because market
participants may readily adjust their
order routing practices, the Exchange
believes that the degree to which fee
changes in this market may impose any
burden on competition is extremely
limited. In sum, if the changes proposed
herein are unattractive to market
participants, it is likely that the
Exchange will lose market share as a
result. Accordingly, the Exchange does
not believe that the proposed changes
will impair the ability of members or
competing order execution venues to
maintain their competitive standing in
the financial markets.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,13 and Rule
19b–4(f)(2) 14 thereunder. At any time
within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is: (i)
Necessary or appropriate in the public
interest; (ii) for the protection of
investors; or (iii) otherwise in
furtherance of the purposes of the Act.
If the Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
13 15
14 17
E:\FR\FM\20JNN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
20JNN1
Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices
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–2018–52 on the subject line.
Paper Comments
sradovich on DSK3GMQ082PROD with NOTICES
• 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–2018–52. 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–2018–52 and should be
submitted on or before July 11, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–13171 Filed 6–19–18; 8:45 am]
BILLING CODE 8011–01–P
15 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
17:58 Jun 19, 2018
Jkt 244001
records, additional routine uses of
records, updated contact information,
and a notice publication history.
DEPARTMENT OF STATE
[Public Notice: 10448]
Privacy Act of 1974; System of
Records
Department of State.
ACTION: Notice of a modified System of
Records.
AGENCY:
Information in the Legal
Adviser’s Case Management Records is
used to provide or facilitate the
provision of legal advice and opinion to
the offices of the Department of State
and to facilitate defense or
representation of the Department in
litigation and in other legal proceedings.
Information may also be used to reply
to requests from federal, state, local, or
international courts, agencies,
commissions, organizations, or
mechanisms.
DATES: In accordance with 5 U.S.C.
552a(e)(4) and (11), this system of
records notice is effective upon
publication, with the exception of the
routine uses (c), (e), (g), (h) and (k),
which are subject to a 30-day period
during which interested persons may
submit comments to the Department.
Please submit any comments by July 20,
2018.
ADDRESSES: Questions can be submitted
by mail or email. If mail, please write to:
U.S Department of State; Office of
Global Information Systems, Privacy
Staff; A/GIS/PRV; SA–2, Suite 8100;
Washington, DC 20522–0208. If email,
please address the email to the Senior
Agency Official for Privacy, Mary R.
Avery, at Privacy@state.gov. Please
write ‘‘Legal Case Management Records,
State-21’’ on the envelope or the subject
line of your email.
FOR FURTHER INFORMATION CONTACT:
Mary R. Avery, Senior Agency Official
for Privacy; U.S. Department of State;
Office of Global Information Services,
A/GIS/PRV; SA–2, Suite 8100;
Washington, DC 20522–0208 or at
(202)663–2215.
SUPPLEMENTARY INFORMATION: The
purpose of this modification is to make
substantive and administrative changes
to the previously published notice. This
notice modifies the following sections of
State-21, Legal Case Management
Records: Categories of Individuals,
Categories of Records, Purpose, Routine
Uses, and Record Source Categories. In
addition, this notice makes
administrative updates to the following
sections: Safeguards, Record Access
Procedures, Contesting Record
Procedures, Notification Procedures,
and History. These changes reflect new
OMB guidance, additional types of
SUMMARY:
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28707
SYSTEM NAME AND NUMBER
Legal Case Management Records,
State-21.
SECURITY CLASSIFICATION:
Unclassified and Classified.
SYSTEM LOCATION:
Department of State (‘‘Department’’),
located at 2201 C Street NW,
Washington, DC 20520; Department of
State annexes, U.S. Embassies, U.S.
Consulates General, and U.S.
Consulates.
SYSTEM MANAGER(S):
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Adviser and Bureau of Legislative
Affairs, Department of State, 600 19th
Street NW, Suite 5.600, Washington, DC
20522 and can be reached at Legalprivacy@state.gov.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
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U.S.C. 2656; 42 U.S.C. 659; 42 U.S.C.
666; 5 CFR part 581.
PURPOSE(S) OF THE SYSTEM:
Information in the Legal Adviser’s
Case Management Records is used to
provide or facilitate the provision of
legal advice and opinion to the offices
of the Department of State and to
facilitate defense or representation of
the Department in litigation and in other
legal proceedings. Information may also
be used to reply to requests from
federal, state, local, or international
courts, agencies, commissions,
organizations, or mechanisms.
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM:
Individuals who have filed or are the
subject of administrative grievances or
proceedings and Equal Employment
Opportunity complaints; individuals
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individuals involved in alleged criminal
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individuals who have sued the
Department of State or any officials;
individuals whose records may be
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individuals who are the subjects of
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individuals who are the subjects of
income withholding orders,
garnishment orders, bankruptcy orders,
E:\FR\FM\20JNN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Notices]
[Pages 28705-28707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13171]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83446; File No. SR-ISE-2018-52]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Increase Certain
Route-Out Fees Set Forth in Section IV.F of the Schedule of Fees
June 14, 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 June 1, 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.
---------------------------------------------------------------------------
\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 increase certain route-out fees set forth
in Section IV.F of the Schedule of Fees, as described further below.
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 28706]]
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 increase certain
route-out fees set forth in Section IV.F of the Schedule of Fees.
Today, the Exchange charges Non-Priority Customers (i.e., Market
Maker,\3\ Non-Nasdaq ISE Market Maker,\4\ Firm Proprietary \5\/Broker-
Dealer,\6\ and Professional Customer \7\) route-out fees of $0.95 per
contract for orders in Non-Select Symbols \8\ that are routed to away
exchanges in connection with the Options Order Protection and Locked/
Crossed Market Plan (the ``Plan''). The Exchange now proposes to
increase this fee to $1.09 per contract for all Non-Priority Customer
orders in Non-Select Symbols that are routed to away exchanges in
connection with the Plan. The Exchange believes that the proposed
increase will help offset the costs associated with routing orders
through the Plan, such as paying the transaction fees for such
executions at other exchanges.
---------------------------------------------------------------------------
\3\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Rule
100(a)(28).
\4\ A ``Non-Nasdaq ISE Market Maker'' is a market maker as
defined in Section 3(a)(38) of the Securities Exchange Act of 1934,
as amended, registered in the same options class on another options
exchange.
\5\ A ``Firm Proprietary'' order is an order submitted by a
member for its own proprietary account.
\6\ A ``Broker-Dealer'' order is an order submitted by a member
for a broker-dealer account that is not its own proprietary account.
\7\ A ``Professional Customer'' is a person or entity that is
not a broker/dealer and is not a Priority Customer.
\8\ ``Non-Select Symbols'' are options overlying all symbols
that are not in the Penny Pilot Program.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\9\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\10\ in particular, in that it provides
for the equitable allocation of reasonable dues, fees, and other
charges among members and issuers and other persons using any facility,
and is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that proposed increase in the Non-Priority
Customer route-out fees from $0.95 to $1.09 per contract for orders in
Non-Select Symbols is reasonable because it is designed to help recoup
costs associated with routing orders to away exchanges in connection
with the Plan, such as paying the transaction fees for such executions
at other exchanges. Furthermore, the Exchange notes that the proposed
fees remain competitive with the fees of other options exchanges which,
in addition to a fixed routing fee, assess the actual transaction
fees.\11\
---------------------------------------------------------------------------
\11\ For example, CBOE C2 Exchange, Inc. (``C2'') charges $1.63
per routed contract for non-public customer, non-C2 market-maker
orders in non-penny classes. See C2 Fees Schedule, Section 1.A
(Transaction Fees) and Section 2 (Linkage Routing).
---------------------------------------------------------------------------
The Exchange believes that proposed increase in the Non-Priority
Customer route-out fees is an equitable allocation and is not unfairly
discriminatory because the Exchange will apply the same fee to all
similarly situated members. The Exchange believes it is equitable and
not unfairly discriminatory to increase the route-out fees for all
market participants other than Priority Customers \12\ because the
Exchange seeks to encourage Priority Customer order flow and the
liquidity that such order flow brings to the marketplace, which in turn
benefits all market participants.
---------------------------------------------------------------------------
\12\ A ``Priority Customer'' is a person or entity that is not a
broker/dealer in securities, and does not place more than 390 orders
in listed options per day on average during a calendar month for its
own beneficial account(s), as defined in Nasdaq ISE Rule
100(a)(37A).
---------------------------------------------------------------------------
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. In particular, the proposed
increase to the route-out fees will apply equally to all Non-Priority
Customer orders that are routed to away exchanges in connection with
the Plan, and will help offset costs associated with routing orders via
the Plan. Furthermore as noted above, the Exchange believes that its
proposed fees remain competitive with another options exchange.
The Exchange notes that it operates in a highly competitive market
in which market participants can readily favor competing venues if they
deem fee levels at a particular venue to be excessive, or rebate
opportunities available at other venues to be more favorable. In such
an environment, the Exchange must continually adjust its fees to remain
competitive with other exchanges and with alternative trading systems
that have been exempted from compliance with the statutory standards
applicable to exchanges. Because competitors are free to modify their
own fees in response, and because market participants may readily
adjust their order routing practices, the Exchange believes that the
degree to which fee changes in this market may impose any burden on
competition is extremely limited. In sum, if the changes proposed
herein are unattractive to market participants, it is likely that the
Exchange will lose market share as a result. Accordingly, the Exchange
does not believe that the proposed changes will impair the ability of
members or competing order execution venues to maintain their
competitive standing in the financial markets.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\13\ and Rule 19b-4(f)(2) \14\ thereunder.
At any time within 60 days of the filing of the proposed rule change,
the Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is: (i) Necessary or
appropriate in the public interest; (ii) for the protection of
investors; or (iii) otherwise in furtherance of the purposes of the
Act. If the Commission takes such action, the Commission shall
institute proceedings to determine whether the proposed rule should be
approved or disapproved.
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\13\ 15 U.S.C. 78s(b)(3)(A)(ii).
\14\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing,
[[Page 28707]]
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-2018-52 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-2018-52. 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-2018-52 and should be submitted on
or before July 11, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13171 Filed 6-19-18; 8:45 am]
BILLING CODE 8011-01-P
