Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Schedule of Fees To Waive Fees and Rebates for Trades in NQX Options, 35038-35040 [2018-15767]
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35038
Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Notices
all market participants. Therefore, ICC
does not believe the proposed rule
changes impose any burden on
competition that is inappropriate in
furtherance of the purposes of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change, Security-Based Swap
Submission, or Advance Notice
Received From Members, Participants or
Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change, Security-Based
Swap Submission, or Advance Notice
and Timing for Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
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
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be 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, security-based swap
submission, or advance notice is
consistent with the Act. Comments may
be submitted by any of the following
methods:
jstallworth on DSKBBY8HB2PROD with NOTICES
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2018–008 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–ICC–2018–008. 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
VerDate Sep<11>2014
13:59 Jul 23, 2018
Jkt 244001
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, security-based swap
submission, or advance notice that are
filed with the Commission, and all
written communications relating to the
proposed rule change, security-based
swap submission, or advance notice
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 the
filing also will be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s website at https://
www.theice.com/clear-credit/regulation.
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–ICC–2018–008 and
should be submitted on or before
August 14, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–15771 Filed 7–23–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83660; File No. SR–ISE–
2018–63]
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the
Exchange’s Schedule of Fees To
Waive Fees and Rebates for Trades in
NQX Options
July 18, 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 July 6,
2018, Nasdaq ISE, LLC (‘‘ISE’’ or
PO 00000
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00058
Fmt 4703
Sfmt 4703
‘‘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 amend the
Exchange’s Schedule of Fees, as further
described 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.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange recently received
approval to list index options on the
Nasdaq 100 Reduced Value Index
(‘‘NQX’’) on a pilot basis.3 The NQX
options contract will be the same in all
respects as the current Nasdaq-100
Index (‘‘NDX’’) options contract listed
on the Exchange, except that it will be
based on 1⁄5 of the value of the Nasdaq
100 Index, and will be P.M. settled with
an exercise settlement value based on
the closing index value of the Nasdaq
100 on the day of expiration.4 The
3 See Securities Exchange Act Release No. 82911
(March 20, 2018), 83 FR 12966 (March 26, 2018)
(SR–ISE–2017–106).
4 Id. The Exchange notes that similar features are
available with other index options contracts listed
on the Exchange and other options exchanges,
including P.M. settled options on the full value of
the Nasdaq-100 Index (‘‘NDXP’’).
E:\FR\FM\24JYN1.SGM
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Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Notices
Exchange will begin to list NQX on June
26, 2018.5
The Exchange now proposes to amend
its Schedule of Fees to provide that
there will be no fees or rebates for trades
in NQX options executed from June 26–
29, 2018. Volume executed in NQX
options during this period will continue
to be counted toward a member’s tier for
June activity. As such, NQX executions
from June 26–29, 2018 will be included
in the applicable volume tier
calculations for a member’s June
activity, including those volume
calculations specific to Non-Select
Symbols (i.e., options overlying all
symbols that are not in the Penny Pilot
Program).6 The Exchange plans to adopt
pricing for NQX as of July 2, 2018, and
will do so through the SEC rulemaking
process. The proposed changes would
simplify the Exchange’s billing by
allowing the Exchange to bill for NQX
activity traded as of July 2nd, and is an
inducement for members to trade NQX
options during the first week of listing
as there would be no transaction fees for
doing so.
jstallworth on DSKBBY8HB2PROD with NOTICES
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,7 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,8 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 it is
reasonable and equitable to assess no
fees or rebates for executions in NQX
from June 26–29, 2018 because it will
simplify the Exchange’s billing and
promote members to trade in NQX
during the first week of listing, as
further discussed above. For the same
foregoing reasons, the Exchange also
believes that it is reasonable and
5 The Exchange initially filed the proposed
pricing changes on June 26, 2018 (SR–ISE–2018–
58). On July 6, 2018, the Exchange withdrew that
filing and submitted this filing.
6 For example, the Exchange provides Market
Makers discounted fees for regular orders in NonSelect Symbols if the Market Maker executes a
monthly volume of 250,000 contracts or more. See
Schedule of Fees, Section IV.D. As proposed, the
Market Maker’s executions in NQX between June
26–29, 2018 would not be entitled to any
discounted fees given that no fees or rebates would
be provided during the proposed period, but such
executions would still be counted toward the
monthly volume calculation (i.e., to reach the
250,000 contract threshold). NQX is a Non-Select
Symbol.
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4) and (5).
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13:59 Jul 23, 2018
Jkt 244001
equitable to provide that volume
executed in NQX during this time
period will continue to be counted
toward a member’s tier for June activity.
The Exchange also believes that it is
reasonable to include NQX volume in
this manner because it would be more
burdensome to make changes to the
Exchange’s billing system in the middle
of the month rather than the start to
exclude a new symbol from the
applicable volume tier calculations, as
described above. The Exchange further
believes that its proposal is not unfairly
discriminatory as it will apply to trades
in NQX that are executed by 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. As discussed
above, the proposed change to not
assess any fees or rebates for executions
of NQX orders from June 26–29, 2018 is
merely intended to simplify the
Exchange’s billing, and promote
members to trade in NQX during the
first week of listing. Furthermore, the
proposal will apply uniformly to all
similarly situated market participants,
as discussed above. For the foregoing
reasons, the Exchange does not believe
that its proposal will impose an undue
burden on competition.
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.
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.
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
35039
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,9 and Rule
19b–4(f)(2) 10 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,
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–2018–63 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–2018–63. 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
9 15
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
10 17
E:\FR\FM\24JYN1.SGM
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35040
Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Notices
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–2018–63 and should be
submitted on or before August 14, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–15767 Filed 7–23–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83668; File No. SR–
NYSEAMER–2018–22]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Designation
of a Longer Period for Commission
Action on a Proposed Rule Change To
Amend Exchange Rule 7.35E Relating
to the Auction Reference Price for a
Trading Halt Auction Following a
Regulatory Halt
July 18, 2018.
jstallworth on DSKBBY8HB2PROD with NOTICES
On May 15, 2018, NYSE American
LLC (‘‘Exchange’’ or ‘‘NYSE American’’)
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 amend Exchange Rule 7.35E
relating to the Auction Reference Price
for a Trading Halt Auction following a
regulatory halt. The proposed rule
change was published for comment in
the Federal Register on June 5, 2018.3
The Commission has received one
comment letter in response to the
proposed rule change.4
Section 19(b)(2) of the Act 5 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 83341
(May 30, 2018), 83 FR 2612 (June 5, 2018).
4 See Letter from Duane Fiedler, to Secretary,
Securities and Exchange Commission (June 23,
2018).
5 15 U.S.C. 78s(b)(2).
1 15
VerDate Sep<11>2014
13:59 Jul 23, 2018
Jkt 244001
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The Commission is
extending this 45-day time period. The
Commission finds that it is appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider the proposed rule change.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,6
designates September 3, 2018, as the
date by which the Commission shall
either approve or disapprove, or
institute proceedings to determine
whether to disapprove, the proposed
rule change (File No. SR–NYSEAMER–
2018–22).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–15765 Filed 7–23–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–83661; File No. SR–
NYSEArca–2018–02]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Designation of a
Longer Period for Commission Action
on Proceedings To Determine Whether
To Approve or Disapprove a Proposed
Rule Change Relating to Listing and
Trading of the Direxion Daily Bitcoin
Bear 1X Shares, Direxion Daily Bitcoin
1.25X Bull Shares, Direxion Daily
Bitcoin 1.5X Bull Shares, Direxion
Daily Bitcoin 2X Bull Shares and
Direxion Daily Bitcoin 2X Bear Shares
Under NYSE Arca Rule 8.200–E
July 18, 2018.
On January 4, 2018, NYSE Arca, Inc.
(‘‘NYSE Arca’’) 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
list and trade shares of the following
PO 00000
6 Id.
7 17
CFR 200.30–3(a)(31).
U.S.C.78s(b)(1).
2 17 CFR 240.19b–4.
1 15
Frm 00060
Fmt 4703
Sfmt 4703
exchange-traded products under NYSE
Arca Rule 8.200–E, Commentary .02:
Direxion Daily Bitcoin Bear 1X Shares,
Direxion Daily Bitcoin 1.25X Bull
Shares, Direxion Daily Bitcoin 1.5X Bull
Shares, Direxion Daily Bitcoin 2X Bull
Shares, and Direxion Daily Bitcoin 2X
Bear Shares. The proposed rule change
was published for comment in the
Federal Register on January 24, 2018.3
On March 1, 2018, pursuant to Section
19(b)(2) of the Act,4 the Commission
designated a longer period within which
to approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether to disapprove the proposed
rule change.5 On April 23, 2018, the
Commission instituted proceedings
under Section 19(b)(2)(B) of the Act 6 to
determine whether to approve or
disapprove the proposed rule change.7
The Commission has received two
comments on the proposed rule
change.8
Section 19(b)(2) of the Act 9 provides
that, after initiating disapproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes the reasons for such
determination. The proposed rule
change was published for notice and
comment in the Federal Register on
January 24, 2018. July 23, 2018, is 180
3 See Securities Exchange Act Release No. 82532
(Jan. 18, 2018), 83 FR 3380 (Jan. 24, 2018).
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 82795
(Mar. 1, 2018), 83 FR 9768 (Mar. 7, 2018).
6 15 U.S.C. 78s(b)(2)(B).
7 See Securities Exchange Act Release No. 83094
(Apr. 23, 2018), 83 FR 18603 (Apr. 27, 2018).
Specifically, the Commission instituted proceedings
to allow for additional analysis of the proposed rule
change’s consistency with Section 6(b)(5) of the
Act, which requires, among other things, that the
rules of a national securities exchange be ‘‘designed
to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles
of trade,’’ and ‘‘to protect investors and the public
interest.’’ See id. at 18604 (citing 15 U.S.C.
78f(b)(5)).
8 See Letters from Steven Williams (May 17, 2018)
and Sharon Brown-Hruska, Managing Director, and
Trevor Wagener, Consultant, NERA Economic
Consulting (May 18, 2018). All comments on the
proposed rule change are available on the
Commission’s website at: https://www.sec.gov/
comments/sr-nysearca-2018-02/
nysearca201802.htm.
9 15 U.S.C. 78s(b)(2).
E:\FR\FM\24JYN1.SGM
24JYN1
]]>Agencies
[Federal Register Volume 83, Number 142 (Tuesday, July 24, 2018)]
[Notices]
[Pages 35038-35040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15767]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-83660; File No. SR-ISE-2018-63]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Schedule of Fees To Waive Fees and Rebates for Trades in NQX
Options
July 18, 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 July 6, 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 amend the Exchange's Schedule of Fees, as
further described 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.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange recently received approval to list index options on
the Nasdaq 100 Reduced Value Index (``NQX'') on a pilot basis.\3\ The
NQX options contract will be the same in all respects as the current
Nasdaq-100 Index (``NDX'') options contract listed on the Exchange,
except that it will be based on \1/5\ of the value of the Nasdaq 100
Index, and will be P.M. settled with an exercise settlement value based
on the closing index value of the Nasdaq 100 on the day of
expiration.\4\ The
[[Page 35039]]
Exchange will begin to list NQX on June 26, 2018.\5\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 82911 (March 20,
2018), 83 FR 12966 (March 26, 2018) (SR-ISE-2017-106).
\4\ Id. The Exchange notes that similar features are available
with other index options contracts listed on the Exchange and other
options exchanges, including P.M. settled options on the full value
of the Nasdaq-100 Index (``NDXP'').
\5\ The Exchange initially filed the proposed pricing changes on
June 26, 2018 (SR-ISE-2018-58). On July 6, 2018, the Exchange
withdrew that filing and submitted this filing.
---------------------------------------------------------------------------
The Exchange now proposes to amend its Schedule of Fees to provide
that there will be no fees or rebates for trades in NQX options
executed from June 26-29, 2018. Volume executed in NQX options during
this period will continue to be counted toward a member's tier for June
activity. As such, NQX executions from June 26-29, 2018 will be
included in the applicable volume tier calculations for a member's June
activity, including those volume calculations specific to Non-Select
Symbols (i.e., options overlying all symbols that are not in the Penny
Pilot Program).\6\ The Exchange plans to adopt pricing for NQX as of
July 2, 2018, and will do so through the SEC rulemaking process. The
proposed changes would simplify the Exchange's billing by allowing the
Exchange to bill for NQX activity traded as of July 2nd, and is an
inducement for members to trade NQX options during the first week of
listing as there would be no transaction fees for doing so.
---------------------------------------------------------------------------
\6\ For example, the Exchange provides Market Makers discounted
fees for regular orders in Non-Select Symbols if the Market Maker
executes a monthly volume of 250,000 contracts or more. See Schedule
of Fees, Section IV.D. As proposed, the Market Maker's executions in
NQX between June 26-29, 2018 would not be entitled to any discounted
fees given that no fees or rebates would be provided during the
proposed period, but such executions would still be counted toward
the monthly volume calculation (i.e., to reach the 250,000 contract
threshold). NQX is a Non-Select Symbol.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\7\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\8\ 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Exchange believes that it is reasonable and equitable to assess
no fees or rebates for executions in NQX from June 26-29, 2018 because
it will simplify the Exchange's billing and promote members to trade in
NQX during the first week of listing, as further discussed above. For
the same foregoing reasons, the Exchange also believes that it is
reasonable and equitable to provide that volume executed in NQX during
this time period will continue to be counted toward a member's tier for
June activity. The Exchange also believes that it is reasonable to
include NQX volume in this manner because it would be more burdensome
to make changes to the Exchange's billing system in the middle of the
month rather than the start to exclude a new symbol from the applicable
volume tier calculations, as described above. The Exchange further
believes that its proposal is not unfairly discriminatory as it will
apply to trades in NQX that are executed by 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. As discussed above, the
proposed change to not assess any fees or rebates for executions of NQX
orders from June 26-29, 2018 is merely intended to simplify the
Exchange's billing, and promote members to trade in NQX during the
first week of listing. Furthermore, the proposal will apply uniformly
to all similarly situated market participants, as discussed above. For
the foregoing reasons, the Exchange does not believe that its proposal
will impose an undue burden on competition.
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.
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,\9\ and Rule 19b-4(f)(2) \10\ 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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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
\10\ 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, 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-2018-63 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-2018-63. 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
[[Page 35040]]
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-
2018-63 and should be submitted on or before August 14, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-15767 Filed 7-23-18; 8:45 am]
BILLING CODE 8011-01-P
