Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to an Amendment to Options 7, Section 4, Related to Complex Orders Fees and Rebates, and Options 7, Section 9, 77328-77333 [2020-26400]
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77328
Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
proposed rule change, as modified by
Amendment No. 1.7
Section 19(b)(2) of the Act 8 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
June 1, 2020.9 November 28, 2020 is 180
days from that date, and January 27,
2021 is 240 days from that date. The
Commission finds it appropriate to
designate a longer period within which
to issue an order approving or
disapproving 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,10 designated January
27, 2021 as the date by which the
Commission shall either approve or
disapprove the proposed rule change, as
modified by Amendment No. 1 (File No.
SR–BOX–2020–14).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–26411 Filed 11–30–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
office of the Exchange, and at the
Commission’s Public Reference Room.
[Release No. 34–90501; File No. SR–ISE–
2020–39]
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
Self-Regulatory Organizations; Nasdaq
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to an Amendment to
Options 7, Section 4, Related to
Complex Orders Fees and Rebates,
and Options 7, Section 9
November 24, 2020.
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 November
13, 2020, Nasdaq ISE, LLC (‘‘ISE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Options 7, Section 4, ‘‘Complex Order
Fees and Rebates,’’ and Options 7,
Section 9, ‘‘Legal & Regulatory.’’
The Exchange originally filed the
proposed pricing change on November
2, 2020 (SR–ISE–2020–37). On
November 12, 2020, the Exchange
withdrew that filing and is submitting
this replacement filing on November 13,
2020.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/ise/rules, at the principal
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Options 7, Section 4, ‘‘Complex Order
Fees and Rebates,’’ and Options 7,
Section 9, ‘‘Legal & Regulatory.’’ Each
change will be described below.
Options 7, Section 4
Priority Customer Rebates for Complex
Orders
The Exchange’s proposal to amend
Options 7, Section 4, ‘‘Complex Order
Fees and Rebates’’ is intended to offer
Members an ability to earn higher
Priority Customer Complex Order
rebates. Specifically, the Exchange
proposes to amend Priority Customer
Complex Order Tiers 8 and 9 and add
a new Tier 10. Today, the Exchange
pays rebates to Priority Customers
pursuant to the below tier schedule.
PRIORITY CUSTOMER REBATES
Total affiliated member or affiliated entity complex order volume (excluding
crossing orders and responses to crossing orders) calculated as a percentage
of customer total consolidated volume
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Priority customer
complex tier (7) (13) (16)
Tier
Tier
Tier
Tier
Tier
Tier
Tier
Tier
Tier
1
2
3
4
5
6
7
8
9
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
0.000%–0.200% ......................................................................................................
Above 0.200%–0.400% ..........................................................................................
Above 0.400%–0.450% ..........................................................................................
Above 0.450%–0.750% ..........................................................................................
Above 0.750%–1.000% ..........................................................................................
Above 1.000%–1.350% ..........................................................................................
Above 1.350%–2.000% ..........................................................................................
Above 2.000%–2.600% ..........................................................................................
Above 2.600% ........................................................................................................
7 See Securities Exchange Act Release No. 89536
(August 12, 2020), 85 FR 51250 (August 19, 2020).
8 15 U.S.C. 78s(b)(2).
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Rebate
for select
symbols (1)
18:11 Nov 30, 2020
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9 See
Original Notice, supra note 3.
10 Id.
11 17
PO 00000
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
CFR 200.30–3(a)(57).
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01DEN1
($0.25)
(0.30)
(0.35)
(0.40)
(0.45)
(0.47)
(0.48)
(0.50)
(0.52)
Rebate for
non-select
symbols (1) (4)
($0.40)
(0.55)
(0.70)
(0.75)
(0.80)
(0.80)
(0.80)
(0.85)
(0.85)
77329
Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
First, the Exchange proposes to
amend the criteria to qualify for Tiers 8
and 9 and certain rebates as discussed
below.
Today, Tier 8 of the Complex Order
Priority Customer Rebates requires
Members to submit above 2.000%–
2.60% of Total Affiliated Member or
Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and
Responses to Crossing Orders)
Calculated as a Percentage of Customer
Total Consolidated Volume in order to
receive a $0.50 per contract rebate for
Select Symbols 3 and an $0.85 per
contract rebate for Non-Select Symbols.4
The Exchange proposes to amend the
qualifications of Tier 8 to require
Members to submit above 2.000%–
2.750% of Total Affiliated Member or
Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and
Responses to Crossing Orders)
Calculated as a Percentage of Customer
Total Consolidated Volume to receive
an increased $0.52 per contract rebate
for Select Symbols and continue to
receive an $0.85 per contract rebate for
Non-Select Symbols. The Exchange is
both amending the qualifications for
Tier 8 and increasing the rebate for
Select Symbols with this proposal. A
Member who qualified for Tier 8 in a
prior month, with above 2.000% to
2.60% of Total Affiliated Member or
Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and
Responses to Crossing Orders)
Calculated as a Percentage of Customer
Total Consolidated Volume (‘‘Current
Tier 8 Volume’’), would continue to
qualify for Tier 8 rebates with this
proposal if that same amount of volume
was submitted. The Member would
qualify for an increased Tier 8 Rebate
for Select Symbols of $0.52 per contract
when submitting Current Tier 8 Volume
and the same $0.85 per contract Tier 8
Rebate for Non-Select Symbols.
Today, Tier 9 of the Complex Order
Priority Customer Rebates requires
Members to submit above 2.600% of
Total Affiliated Member or Affiliated
Entity Complex Order Volume
(Excluding Crossing Orders and
Responses to Crossing Orders)
Calculated as a Percentage of Customer
Total Consolidated Volume in order to
receive a $0.52 per contract rebate for
Select Symbols and an $0.85 per
contract rebate for Non-Select Symbols.
The Exchange proposes to amend the
qualifications of Tier 9 to require
Members to submit above 2.750%–
4.500% of Total Affiliated Member or
Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and
Responses to Crossing Orders)
Calculated as a Percentage of Customer
Total Consolidated Volume to continue
to receive a $0.52 per contract rebate for
Select Symbols and an increased $0.86
per contract rebate for Non-Select
Symbols. The Exchange is both
amending the qualifications for Tier 9
and increasing the rebate for Non-Select
Symbols with this proposal. A Member
who qualified for Tier 9 in a prior
month, with above 2.600% of Total
Affiliated Member or Affiliated Entity
Complex Order Volume (Excluding
Crossing Orders and Responses to
Crossing Orders) Calculated as a
Percentage of Customer Total
Consolidated Volume (‘‘Current Tier 9
Volume’’), may continue to qualify for
Tier 9 rebates with this proposal if the
Member submitted greater than 2.750%
volume Calculated as a Percentage of
Customer Total Consolidated Volume. A
Member who submitted the same
amount of volume as in the prior month
would receive either: (1) An increased
Tier 8 Rebate for Select Symbols of
$0.52 per contract and the same $0.85
per contract Rebate for Non-Select
Symbols; or (2) the same Tier 9 Rebate
for Select Symbols of $0.52 per contract
and an increased $0.86 per contract
Rebate for Non-Select Symbols,
depending on the Member’s volume
Calculated as a Percentage of Customer
Total Volume. Also, with this proposal,
a Member would have the opportunity
to qualify for increased Tier 10 rebates
of $0.53 per contract for Select Symbols
and $0.88 per contract for Non-Select
Symbols by submitting above 4.500% of
Total Affiliated Member or Affiliated
Entity Complex Order Volume
(Excluding Crossing Orders and
Responses to Crossing Orders)
Calculated as a Percentage of Customer
Total Consolidated Volume.
Second, the Exchange proposes to add
a new Priority Customer Complex Order
Tier 10 which requires Members to
submit above 4.500% of Total Affiliated
Member or Affiliated Entity Complex
Order Volume (Excluding Crossing
Orders and Responses to Crossing
Orders) Calculated as a Percentage of
Customer Total Consolidated Volume to
receive a $0.53 per contract rebate for
Select Symbols and an $0.88 per
contract rebate for Non-Select Symbols.
This new Tier 10 would offer Members
an opportunity to earn higher Priority
Customer Complex Order rebates on
ISE.
The Exchange believes that amending
Priority Customer Complex Order
Rebate Tiers 8 and 9 and adding a new
Tier 10 will attract a greater amount of
Priority Customer Complex Order
volume to ISE.
Maker and Taker Fees for Complex
Orders
Today, the Exchange assesses certain
Maker and Taker Fees for Complex
Orders transacted on ISE as follows:
MAKER AND TAKER FEES
Maker fee
for select
symbols
khammond on DSKJM1Z7X2PROD with NOTICES4
Market participant
Market Maker ...........................................
Non-Nasdaq ISE Market Maker (FarMM)
Firm Proprietary/Broker-Dealer ................
Professional Customer .............................
Priority Customer .....................................
3 ‘‘Select Symbols’’ are options overlying all
symbols listed on the Nasdaq ISE that are in the
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18:11 Nov 30, 2020
Jkt 253001
Maker fee for
non-select
symbols
$0.10
0.20
0.10
0.10
0.00
Maker fee
for select
symbols
when trading
against
priority
customer
$0.20
0.20
0.20
0.20
0.00
(3) $0.47
Frm 00191
Fmt 4703
Sfmt 4703
$0.86
0.88
0.88
0.88
0.00
0.48
0.48
0.48
0.00
Penny Interval Program. See Options 7, Section
1(b).
PO 00000
Maker fee for
non-select
symbols
when trading
against
priority
customer
Taker fee for
select
symbols
Taker fee for
non-select
symbols
(3) $0.50
(8) $0.86
0.50
0.50
0.50
0.00
(8) 0.88
(8) 0.88
(8) 0.88
0.00
4 ‘‘Non-Select Symbols’’ are options overlying all
symbols excluding Select Symbols. See Options 7,
Section 1(b).
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77330
Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
Current note 3 of Options 7, Section
4, which applies to orders for Market
Makers who qualify for the Complex
Order Maker Fee for Select Symbols
when trading against Priority Customer
Complex Orders and the Complex Order
Taker Fee for Select Symbols, states,
‘‘This fee is $0.47 per contract for
Market Makers that achieve Priority
Customer Complex Tier 8 and $0.44 per
contract for Market Makers that achieve
Priority Customer Complex Tier 9.’’
Current note 8 of Options 7, Section 4
which applies to Complex Orders of
Market Makers, Non-Nasdaq ISE Market
Makers (FarMM), Firm Proprietary/
Broker-Dealers, and Professional
Customers who qualify for the Complex
Order Taker Fee for Non-Select
Symbols, states, ‘‘A $0.05 per contract
surcharge will be assessed to nonPriority Customer Complex Orders that
take liquidity from the Complex Order
Book, excluding Complex Orders
executed in the Facilitation Mechanism,
Solicited Order Mechanism, Price
Improvement Mechanism and
‘‘exposure’’ auctions pursuant to
Options 3, Section 14(c)(3).’’
The Exchange proposes to increase
the Complex Order Maker Fees for
Select Symbols when trading against
Priority Customer for Market Makers
from $0.47 to $0.50 per contract. The
Exchange also proposes to increase the
Complex Order Maker Fees for Select
Symbols when trading against Priority
Customer for Non-Nasdaq ISE Market
Makers (FarMM), Firm Proprietary/
Broker-Dealers, and Professional
Customers from $0.48 to $0.50 per
contract. Priority Customers would
continue to pay no Complex Order
Maker Fees for Select Symbols when
trading against Priority Customer.
In addition, the Exchange proposes to
amend note 3 which is applicable to the
aforementioned Complex Order Maker
and Taker Fees by instead providing,
‘‘This fee is $0.49 per contract for
Market Makers that achieve Priority
Customer Complex Tier 8, $0.47 per
contract for Market Makers that achieve
Priority Customer Complex Tier 9, and
$0.44 per contract for Market Makers
that achieve Priority Customer Complex
Tier 10.’’
While the Exchange is increasing the
Complex Order Maker Fees for Select
Symbols when trading against Priority
Customers, Market Makers, Non-Nasdaq
ISE Market Makers (FarMM), Firm
Proprietary/Broker-Dealers, and
Professional Customers who qualify for
Priority Customer Complex Order Tiers
8 and 9 or new Tier 10, would continue
to receive lower Complex Order Maker
Fees, which is intended to incentive
these Members to transact a greater
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18:11 Nov 30, 2020
Jkt 253001
amount of Priority Customer Complex
Orders on ISE.
Technical Amendments
The Exchange proposes to remove
reserved note 17 within Options 7,
Section 4 because this note is not
necessary. The Exchange also proposes
to remove obsolete date references and
an obsolete rate within Options 7,
Section 9.C. related to the Options
Regulatory Fee. The dates refer to past
dates.
2. Statutory Basis
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Act,5 in general, and furthers the
objectives of Sections 6(b)(4) and 6(b)(5)
of the Act,6 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 Commission and the courts have
repeatedly expressed their preference
for competition over regulatory
intervention in determining prices,
products, and services in the securities
markets. In Regulation NMS, while
adopting a series of steps to improve the
current market model, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 7
Likewise, in NetCoalition v. Securities
and Exchange Commission 8
(‘‘NetCoalition’’) the D.C. Circuit upheld
the Commission’s use of a market-based
approach in evaluating the fairness of
market data fees against a challenge
claiming that Congress mandated a costbased approach.9 As the court
emphasized, the Commission ‘‘intended
in Regulation NMS that ‘market forces,
rather than regulatory requirements’
play a role in determining the market
data . . . to be made available to
investors and at what cost.’’ 10
Further, ‘‘[n]o one disputes that
competition for order flow is ‘fierce.’
. . . As the SEC explained, ‘[i]n the U.S.
5 15
U.S.C. 78f(b).
U.S.C. 78f(b)(4) and (5).
7 Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(‘‘Regulation NMS Adopting Release’’).
8 NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir.
2010).
9 See NetCoalition, at 534–535.
10 Id. at 537.
6 15
PO 00000
Frm 00192
Fmt 4703
Sfmt 4703
national market system, buyers and
sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’ 11 Although the court
and the SEC were discussing the cash
equities markets, the Exchange believes
that these views apply with equal force
to the options markets.
Options 7, Section 4
Priority Customer Rebates for Complex
Orders
The Exchange’s proposal to amend
the qualifications of Tier 8, to require
Members to submit above 2.000%–
2.750% of Total Affiliated Member or
Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and
Responses to Crossing Orders)
Calculated as a Percentage of Customer
Total Consolidated Volume in order to
receive an increase $0.52 per contract
rebate for Select Symbols and continue
to receive an $0.85 per contract rebate
for Non-Select Symbols, and its
proposal to amend the qualifications of
Tier 9, to require Members to submit
above 2.750%–4.500% of Total
Affiliated Member or Affiliated Entity
Complex Order Volume (Excluding
Crossing Orders and Responses to
Crossing Orders) Calculated as a
Percentage of Customer Total
Consolidated Volume to continue to
receive a $0.52 per contract rebate for
Select Symbols and an increased $0.86
per contract rebate for Non-Select
Symbols, are reasonable. The Exchange
believes amending Priority Customer
Complex Order Tiers 8 and 9 will attract
a greater amount of Priority Customer
Complex Order volume to ISE.
Specifically, Members who desire to
qualify for the increased $0.52 per
contract rebate for Select Symbols in
Tier 8 or continue to qualify for an $0.85
per contract rebate for Non-Select
Symbols in Tier 8 or Members who
desire to continue to qualify for the
$0.52 per contract rebate in Select
Symbols for Tier 9 or an increased $0.86
per contract rebate for Non-Select
Symbols in Tier 9 will be encouraged to
submit the requisite order flow to obtain
the same or higher rebates. With respect
to Priority Customer Complex Order
Tier 8, the Exchange notes that the
11 Id. at 539 (quoting Securities Exchange Act
Release No. 59039 (December 2, 2008), 73 FR
74770, 74782–83 (December 9, 2008) (SR–
NYSEArca–2006–21)).
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Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
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proposed amendment should not result
in lower rebates for any Member
submitting the same Complex Order
volume as the Member submitted in the
prior month. With respect to Priority
Customer Complex Order Tier 9,
Members who qualified for Tier 8 in a
prior month with Current Tier 8
Volume 12 would continue to qualify for
Tier 8 rebates with this proposal if that
same amount of volume was submitted
and would receive an increased Tier 8
Rebate for Select Symbols of $0.52 per
contract and the same $0.85 per contract
Rebate for Non-Select Symbols. In
addition, the Member may earn
increased Tier 9 13 or Tier 10 rebates if
the Member submitted additional
qualifying volume. Therefore, the
Member would receive the same or
higher Tier 8 rebates.
Members who qualified for Tier 9 in
a prior month with Current Tier 9
Volume may continue to qualify for Tier
9 rebates with this proposal if the
Member submitted greater than 2.750%
volume and would receive either: (1) An
increased Tier 8 Rebate for Select
Symbols of $0.52 per contract and the
same $0.85 per contract Rebate for NonSelect Symbols; or (2) the same Tier 9
Rebate for Select Symbols of $0.52 per
contract and an increased $0.86 per
contract Rebate for Non-Select Symbols,
depending on the Member’s volume
Calculated as a Percentage of Customer
Total Consolidated Volume. Despite the
increase required in Complex Order
volume for Priority Customer Complex
Order Tier 9, the Exchange’s proposal
offers Members an opportunity to earn
the same or higher Tier 9 rebates. Also,
with this proposal, a Member would
have the opportunity to qualify for
increased Tier 10 rebates of $0.53 per
contract for Select Symbols and $0.88
per contract for Non-Select Symbols by
submitting above 4.500% of Total
Affiliated Member or Affiliated Entity
Complex Order Volume (Excluding
Crossing Orders and Responses to
Crossing Orders) Calculated as a
Percentage of Customer Total
Consolidated Volume. The Priority
12 Today, Tier 8 of the Complex Order Priority
Customer Rebates pays rebates to Members who
submit above 2.000%–2.60% of Total Affiliated
Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to
Crossing Orders) Calculated as a Percentage of
Customer Total Consolidated Volume. With this
proposal, Members who submit above 2.000%–
2.750% of Total Affiliated Member or Affiliated
Entity Complex Order Volume (Excluding Crossing
Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total
Consolidated Volume are entitled to rebates.
13 The Exchange notes that the propose Tier 8
Rebate for Select Symbols and the Tier 9 Rebate for
Select Symbols, which remains unchanged, are both
$0.52 per contract.
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Jkt 253001
Customer Complex Order rebate
program is optional and available to all
Members that choose to transact
Complex Order flow on ISE in order to
earn a rebate on their Priority Customer
Complex Order volume. To the extent
the program, as modified, continues to
attract Complex Order volume to the
Exchange, the Exchange believes that
the proposed changes would improve
the Exchange’s overall competitiveness
and strengthen its market quality for all
market participants.
The Exchange’s proposal to add a new
Priority Customer Complex Order Tier
10, which requires Members to submit
above 4.500% of Total Affiliated
Member or Affiliated Entity Complex
Order Volume (Excluding Crossing
Orders and Responses to Crossing
Orders) Calculated as a Percentage of
Customer Total Consolidated Volume in
order to receive a $0.53 per contract
rebate for Select Symbols and an $0.88
per contract rebate for Non-Select
Symbols is reasonable. The Exchange
believes proposed new Tier 10 will
attract a greater amount of Priority
Customer Complex Order volume to ISE
as the Exchange proposes to pay $0.53
per contract rebate for Select Symbols
and $0.88 per contract rebate for NonSelect Symbols, the highest Priority
Customer Complex Order rebates for
that order flow.
The Exchange’s proposals to amend
the tier qualifications for Priority
Customer Complex Order Tiers 8 and 9,
increase the Select Symbol rebate in
Tier 8, increase the Non-Select Symbol
rebate in Tier 9, and add a new Priority
Customer Complex Order Tier 10 with
rebates of $0.53 per contract for Select
Symbols and $0.88 per contract for NonSelect Symbols are equitable and not
unfairly discriminatory. Any ISE
Member may qualify for a Priority
Customer Complex Order rebate tier,
provided the qualifications are met. By
encouraging all Members to transact
significant amounts of Priority Customer
Complex Order flow (i.e., to qualify for
the higher tiers) in order to earn a higher
rebate on their Priority Customer
Complex Orders, the Exchange seeks to
provide more trading opportunities for
all market participants, thereby
promoting price discovery, and
improving the overall market quality of
the Exchange. ISE would uniformly pay
rebates to Members that qualified for
Priority Customer Complex Order
rebates. The Exchange anticipates all
Members that currently qualify for the
Tier 8 or 9 Priority Customer Complex
Order rebates will receive the same or
higher rebates with this proposal. Also,
any Member may qualify for the new
Tier 10 Priority Customer Complex
PO 00000
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Sfmt 4703
77331
Order rebate to earn even higher rebates.
To the extent the proposed changes
encourage additional Members to strive
for the modified tiers and thus attract
more Priority Customer Complex Order
volume to the Exchange, this increased
order flow would improve the overall
quality and attractiveness of the
Exchange.
Maker and Taker Fees for Complex
Orders
The Exchange’s proposal to increase
the Complex Order Maker Fees for
Select Symbols when trading against
Priority Customer for Market Makers
from $0.47 to $0.50 per contract and to
increase the Complex Order Maker Fees
for Select Symbols when trading against
Priority Customer for Non-Nasdaq ISE
Market Makers (FarMM), Firm
Proprietary/Broker-Dealers, and
Professional Customers from $0.48 to
$0.50 per contract is reasonable because
while the Exchange is proposing to
increase these fees, the Exchange
believes that market participants will
continue to be incentivized to send
Priority Customer order flow to ISE to
obtain rebates offered by the Exchange.
Additionally, Market Makers would
continue to be offered the opportunity
to reduce their Complex Order Maker
Fees. If a Market Maker qualifies for
Priority Customer Complex Order Tiers
8 and 9, the Complex Order Maker Fee
would be reduced to $0.49 and $0.47
per contract, respectively. In addition, a
Market Maker that qualifies for Priority
Customer Complex Order Tier 10 would
reduce the Complex Order Maker Fees
to $0.44 per contract. Finally, Priority
Customers will continue to pay no
Maker Fees for Select Symbols when
trading against Priority Customer.
The Exchange’s proposal to increase
the Complex Order Maker Fees for
Select Symbols when trading against
Priority Customer for Market Makers
from $0.47 to $0.50 per contract and to
increase the Complex Order Maker Fees
for Select Symbols when trading against
Priority Customer for Non-Nasdaq ISE
Market Makers (FarMM), Firm
Proprietary/Broker-Dealers, and
Professional Customers from $0.48 to
$0.50 per contract is equitable and not
unfairly discriminatory as all NonPriority Customers would be assessed
the same Complex Order Maker Fees for
Select Symbols when trading against
Priority Customer. Priority Customer
orders bring valuable liquidity to the
market which liquidity benefits other
market participants. Priority Customers
are not assessed Complex Order Maker
Fees for Select Symbols when trading
against Priority Customer.
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Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
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The Exchange’s proposal to amend
note 3 of Options 7, Section 4 with
respect to Complex Order Maker Fees
for Select Symbols when trading against
Priority Customer for Market Makers as
well as Complex Order Taker Fees for
Select Symbols for Market Makers is
reasonable because while the Exchange
is reducing the fee discount for
Members who qualify for Priority
Customer Complex Order Tiers 8 and
9,14 Market Makers will continue to
have the opportunity to reduce their
costs when they qualify for Priority
Customer Complex Order Tiers 8 and 9.
The Exchange will continue to offer
Market Makers the opportunity to
reduce Complex Order Maker Fees for
Select Symbols when trading against
Priority Customers, as well as Complex
Order Taker Fees for Select Symbols.
The Exchange’s proposal also offers
Market Makers a fee discount when
trading against Priority Customer
Complex Orders if the qualifications for
new Tier 10 are met.15
The Exchange’s proposal to amend
note 3 of Options 7, Section 4 with
respect to Complex Order Maker Fees
for Select Symbols when trading against
Priority Customer for Market Makers as
well as Complex Order Taker Fees for
Select Symbols for Market Makers is
equitable and not unfairly
discriminatory. Market Makers would
continue to be permitted to lower their
Maker Fees for Select Symbols when
trading against Priority Customers, as
well as Taker Fees for Select Symbols,
provided the Market Maker qualified for
Priority Customer Complex Order Tiers
8, 9 or 10. Today, Market Makers are
able to lower their Maker Fees for Select
Symbols when trading against Priority
Customers, as well as Taker Fees for
Select Symbols, provided they qualify
for Priority Customer Complex Order
Tiers 8 or 9. With this proposal Market
Makers would also be able to lower their
Maker Fees for Select Symbols when
trading against Priority Customers, as
well as Taker Fees for Select Symbols,
if they qualify for new Priority Customer
Complex Order Tier 10. Unlike other
market participants, Market Makers
14 Today, the Exchange offers Market Makers the
opportunity to reduce the Complex Order Maker
Fee for Select Symbols when trading against
Priority Customer and the Complex Order Taker Fee
for Select Symbols to $0.47 per contract for Tier 8
and $0.44 per contract for Tier 9. With this
proposal, the fee discount within note 3 would
decrease. The Exchange would offer Market Makers
that qualify for Priority Customer Complex Order
Tier 8 a rate of $0.49 per contract, and the Exchange
would offer Market Makers that qualify for Priority
Customer Complex Order Tier 9 a rate of $0.47 per
contract.
15 The Exchange would offer Market Makers that
qualify for Priority Customer Complex Order Tier
10 a rate of $0.44 per contract.
VerDate Sep<11>2014
18:11 Nov 30, 2020
Jkt 253001
have an obligation to maintain quotes 16
and provide liquidity in the regular
market. The Exchange is providing
Market Makers the opportunity to
reduce their Maker Fees for Select
Symbols when trading against Priority
Customers, as well as Taker Fees for
Select Symbols, provided the Market
Maker qualified for Priority Customer
Complex Order Tiers 8, 9 or 10, to
incentivize these market participants to
continue to provide liquidity on ISE.
Technical Amendments
The Exchange’s proposal to remove
reserved note 17 within Options 7,
Section 4 is reasonable, equitable and
not unfairly discriminatory as this note
is not necessary and the amendment is
non-substantive. The Exchange’s
proposal to remove obsolete date
references and an obsolete rate within
Options 7, Section 9.C. related to the
Options Regulatory Fee is reasonable,
equitable and not unfairly
discriminatory as the dates have passed
and the rate is obsolete.
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.
Inter-Market Competition
The proposal does not impose an
undue burden on inter-market
competition. The Exchange believes its
proposal remains competitive with
other options markets and will offer
market participants with another choice
of where to transact options. 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 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.
16 See
PO 00000
ISE, Options 2, Section 5.
Frm 00194
Fmt 4703
Sfmt 4703
Intra-Market Competition
The proposed amendments do not
impose an undue burden on intramarket competition.
Options 7, Section 4
Priority Customer Rebates for Complex
Orders
The Exchange’s proposals to amend
the tier qualifications for Priority
Customer Complex Order Tiers 8 and 9,
increase the Select Symbol rebate in
Tier 8, increase the Non-Select Symbol
rebate in Tier 9, and add a new Priority
Customer Complex Order Tier 10 with
rebates of $0.53 per contract for Select
Symbols and $0.88 per contract for NonSelect Symbols does not impose an
undue burden on competition. Any ISE
Member may qualify for a Priority
Customer Complex Order rebate tier,
provided the qualifications are met. By
encouraging all Members to transact
significant amounts of Priority Customer
Complex Order flow (i.e., to qualify for
the higher tiers) in order to earn a higher
rebate on their Priority Customer
Complex Orders, the Exchange seeks to
provide more trading opportunities for
all market participants, thereby
promoting price discovery, and
improving the overall market quality of
the Exchange. ISE would uniformly pay
rebates to Members that qualified for
Priority Customer Complex Order
rebates. The Exchange anticipates all
Members that currently qualify for the
Tier 8 Priority Customer Complex Order
rebates will receive the same or higher
Tier 8 rebates with this proposal.
Members that currently qualify for Tier
9 Priority Customer Complex Order
rebates may need to submit additional
Priority Customer Complex Order flow
to continue to qualify for the same or
higher Tier 9 rebates. Also, any Member
may qualify for the new Tier 10 Priority
Customer Complex Order rebate to earn
even higher rebates. To the extent the
proposed changes encourage additional
Members to strive for the modified tiers
and thus attract more Priority Customer
Complex Order volume to the Exchange,
this increased order flow would
improve the overall quality and
attractiveness of the Exchange.
Maker and Taker Fees for Complex
Orders
The Exchange’s proposal to increase
the Complex Order Maker Fees for
Select Symbols when trading against
Priority Customer for Market Makers
from $0.47 to $0.50 per contract and to
increase the Complex Order Maker Fees
for Select Symbols when trading against
Priority Customer for Non-Nasdaq ISE
Market Makers (FarMM), Firm
E:\FR\FM\01DEN1.SGM
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Federal Register / Vol. 85, No. 231 / Tuesday, December 1, 2020 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES4
Proprietary/Broker-Dealers, and
Professional Customers from $0.48 to
$0.50 per contract does not impose an
undue burden on competition as all
Non-Priority Customers would be
assessed the same Complex Order
Maker Fees for Select Symbols when
trading against Priority Customer.
Priority Customer orders bring valuable
liquidity to the market which liquidity
benefits other market participants.
Priority Customers are not assessed
Complex Order Maker Fees for Select
Symbols when trading against Priority
Customer.
The Exchange’s proposal to amend
note 3 of Options 7, Section 4 with
respect to Complex Order Maker Fees
for Select Symbols when trading against
Priority Customer for Market Makers as
well as Complex Order Taker Fees for
Select Symbols for Market Makers does
not impose an undue burden on
competition. Market Makers would
continue to be permitted to lower their
Maker Fees for Select Symbols when
trading against Priority Customers, as
well as Taker Fees for Select Symbols,
provided the Market Maker qualified for
Priority Customer Complex Order Tiers
8, 9 or 10. Today, Market Makers are
able to lower their Maker Fees for Select
Symbols when trading against Priority
Customers, as well as Taker Fees for
Select Symbols, provided they qualify
for Priority Customer Complex Order
Tiers 8 or 9. With this proposal Market
Makers would also be able to lower their
Maker Fees for Select Symbols when
trading against Priority Customers, as
well as Taker Fees for Select Symbols,
if they qualify for new Priority Customer
Complex Order Tier 10. Unlike other
market participants, Market Makers
have an obligation to maintain quotes 17
and provide liquidity in the regular
market. The Exchange is providing
Market Makers the opportunity to
reduce their Maker Fees for Select
Symbols when trading against Priority
Customers, as well as Taker Fees for
Select Symbols, provided the Market
Maker qualified for Priority Customer
Complex Order Tiers 8, 9 or 10, to
incentivize these market participants to
continue to provide liquidity on ISE.
Technical Amendments
The Exchange’s proposal to remove
reserved note 17 within Options 7,
Section 4 does not impose an undue
burden on competition as this note is
not necessary and the amendment is
non-substantive. The Exchange’s
proposal to remove obsolete date
references and an obsolete rate within
Options 7, Section 9.C. related to the
Options Regulatory Fee does not impose
an undue burden on competition.
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 18 and Rule
19b–4(f)(2) 19 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–2020–39 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–2020–39. 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
18 15
17 See
ISE, Options 2, Section 5.
VerDate Sep<11>2014
18:11 Nov 30, 2020
19 17
Jkt 253001
PO 00000
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
Frm 00195
Fmt 4703
Sfmt 4703
77333
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–2020–39 and should be
submitted on or before December 22,
2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–26400 Filed 11–30–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–625, OMB Control No.
3235–0686]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Form TCR
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit an extension for this
current collection of information to the
Office of Management and Budget for
approval.
The Commission invites comment on
updates to Form TCR, which is a hard
copy form adopted by the Commission
20 17
E:\FR\FM\01DEN1.SGM
CFR 200.30–3(a)(12).
01DEN1
]]>Agencies
[Federal Register Volume 85, Number 231 (Tuesday, December 1, 2020)]
[Notices]
[Pages 77328-77333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26400]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90501; File No. SR-ISE-2020-39]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change to an Amendment to
Options 7, Section 4, Related to Complex Orders Fees and Rebates, and
Options 7, Section 9
November 24, 2020.
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 November 13, 2020, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change as described in Items I and II below, which
Items have been prepared by the Exchange. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\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 Options 7, Section 4, ``Complex
Order Fees and Rebates,'' and Options 7, Section 9, ``Legal &
Regulatory.''
The Exchange originally filed the proposed pricing change on
November 2, 2020 (SR-ISE-2020-37). On November 12, 2020, the Exchange
withdrew that filing and is submitting this replacement filing on
November 13, 2020.
The text of the proposed rule change is available on the Exchange's
website at https://listingcenter.nasdaq.com/rulebook/ise/rules, 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 proposes to amend Options 7, Section 4, ``Complex
Order Fees and Rebates,'' and Options 7, Section 9, ``Legal &
Regulatory.'' Each change will be described below.
Options 7, Section 4
Priority Customer Rebates for Complex Orders
The Exchange's proposal to amend Options 7, Section 4, ``Complex
Order Fees and Rebates'' is intended to offer Members an ability to
earn higher Priority Customer Complex Order rebates. Specifically, the
Exchange proposes to amend Priority Customer Complex Order Tiers 8 and
9 and add a new Tier 10. Today, the Exchange pays rebates to Priority
Customers pursuant to the below tier schedule.
Priority Customer Rebates
----------------------------------------------------------------------------------------------------------------
Total affiliated member or
affiliated entity complex order
volume (excluding crossing Rebate for Rebate for non-
Priority customer complex tier (7) (13) (16) orders and responses to crossing select symbols select symbols
orders) calculated as a (1) (1) (4)
percentage of customer total
consolidated volume
----------------------------------------------------------------------------------------------------------------
Tier 1........................................ 0.000%-0.200%................... ($0.25) ($0.40)
Tier 2........................................ Above 0.200%-0.400%............. (0.30) (0.55)
Tier 3........................................ Above 0.400%-0.450%............. (0.35) (0.70)
Tier 4........................................ Above 0.450%-0.750%............. (0.40) (0.75)
Tier 5........................................ Above 0.750%-1.000%............. (0.45) (0.80)
Tier 6........................................ Above 1.000%-1.350%............. (0.47) (0.80)
Tier 7........................................ Above 1.350%-2.000%............. (0.48) (0.80)
Tier 8........................................ Above 2.000%-2.600%............. (0.50) (0.85)
Tier 9........................................ Above 2.600%.................... (0.52) (0.85)
----------------------------------------------------------------------------------------------------------------
[[Page 77329]]
First, the Exchange proposes to amend the criteria to qualify for
Tiers 8 and 9 and certain rebates as discussed below.
Today, Tier 8 of the Complex Order Priority Customer Rebates
requires Members to submit above 2.000%-2.60% of Total Affiliated
Member or Affiliated Entity Complex Order Volume (Excluding Crossing
Orders and Responses to Crossing Orders) Calculated as a Percentage of
Customer Total Consolidated Volume in order to receive a $0.50 per
contract rebate for Select Symbols \3\ and an $0.85 per contract rebate
for Non-Select Symbols.\4\ The Exchange proposes to amend the
qualifications of Tier 8 to require Members to submit above 2.000%-
2.750% of Total Affiliated Member or Affiliated Entity Complex Order
Volume (Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume to
receive an increased $0.52 per contract rebate for Select Symbols and
continue to receive an $0.85 per contract rebate for Non-Select
Symbols. The Exchange is both amending the qualifications for Tier 8
and increasing the rebate for Select Symbols with this proposal. A
Member who qualified for Tier 8 in a prior month, with above 2.000% to
2.60% of Total Affiliated Member or Affiliated Entity Complex Order
Volume (Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume
(``Current Tier 8 Volume''), would continue to qualify for Tier 8
rebates with this proposal if that same amount of volume was submitted.
The Member would qualify for an increased Tier 8 Rebate for Select
Symbols of $0.52 per contract when submitting Current Tier 8 Volume and
the same $0.85 per contract Tier 8 Rebate for Non-Select Symbols.
---------------------------------------------------------------------------
\3\ ``Select Symbols'' are options overlying all symbols listed
on the Nasdaq ISE that are in the Penny Interval Program. See
Options 7, Section 1(b).
\4\ ``Non-Select Symbols'' are options overlying all symbols
excluding Select Symbols. See Options 7, Section 1(b).
---------------------------------------------------------------------------
Today, Tier 9 of the Complex Order Priority Customer Rebates
requires Members to submit above 2.600% of Total Affiliated Member or
Affiliated Entity Complex Order Volume (Excluding Crossing Orders and
Responses to Crossing Orders) Calculated as a Percentage of Customer
Total Consolidated Volume in order to receive a $0.52 per contract
rebate for Select Symbols and an $0.85 per contract rebate for Non-
Select Symbols. The Exchange proposes to amend the qualifications of
Tier 9 to require Members to submit above 2.750%-4.500% of Total
Affiliated Member or Affiliated Entity Complex Order Volume (Excluding
Crossing Orders and Responses to Crossing Orders) Calculated as a
Percentage of Customer Total Consolidated Volume to continue to receive
a $0.52 per contract rebate for Select Symbols and an increased $0.86
per contract rebate for Non-Select Symbols. The Exchange is both
amending the qualifications for Tier 9 and increasing the rebate for
Non-Select Symbols with this proposal. A Member who qualified for Tier
9 in a prior month, with above 2.600% of Total Affiliated Member or
Affiliated Entity Complex Order Volume (Excluding Crossing Orders and
Responses to Crossing Orders) Calculated as a Percentage of Customer
Total Consolidated Volume (``Current Tier 9 Volume''), may continue to
qualify for Tier 9 rebates with this proposal if the Member submitted
greater than 2.750% volume Calculated as a Percentage of Customer Total
Consolidated Volume. A Member who submitted the same amount of volume
as in the prior month would receive either: (1) An increased Tier 8
Rebate for Select Symbols of $0.52 per contract and the same $0.85 per
contract Rebate for Non-Select Symbols; or (2) the same Tier 9 Rebate
for Select Symbols of $0.52 per contract and an increased $0.86 per
contract Rebate for Non-Select Symbols, depending on the Member's
volume Calculated as a Percentage of Customer Total Volume. Also, with
this proposal, a Member would have the opportunity to qualify for
increased Tier 10 rebates of $0.53 per contract for Select Symbols and
$0.88 per contract for Non-Select Symbols by submitting above 4.500% of
Total Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders) Calculated
as a Percentage of Customer Total Consolidated Volume.
Second, the Exchange proposes to add a new Priority Customer
Complex Order Tier 10 which requires Members to submit above 4.500% of
Total Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders) Calculated
as a Percentage of Customer Total Consolidated Volume to receive a
$0.53 per contract rebate for Select Symbols and an $0.88 per contract
rebate for Non-Select Symbols. This new Tier 10 would offer Members an
opportunity to earn higher Priority Customer Complex Order rebates on
ISE.
The Exchange believes that amending Priority Customer Complex Order
Rebate Tiers 8 and 9 and adding a new Tier 10 will attract a greater
amount of Priority Customer Complex Order volume to ISE.
Maker and Taker Fees for Complex Orders
Today, the Exchange assesses certain Maker and Taker Fees for
Complex Orders transacted on ISE as follows:
Maker and Taker Fees
--------------------------------------------------------------------------------------------------------------------------------------------------------
Maker fee for
Maker fee for non-select
Maker fee for select symbols symbols when Taker fee for
Market participant Maker fee for non-select when trading trading Taker fee for non-select
select symbols symbols against against select symbols symbols
priority priority
customer customer
--------------------------------------------------------------------------------------------------------------------------------------------------------
Market Maker............................................ $0.10 $0.20 (3) $0.47 $0.86 (3) $0.50 (8) $0.86
Non-Nasdaq ISE Market Maker (FarMM)..................... 0.20 0.20 0.48 0.88 0.50 (8) 0.88
Firm Proprietary/Broker-Dealer.......................... 0.10 0.20 0.48 0.88 0.50 (8) 0.88
Professional Customer................................... 0.10 0.20 0.48 0.88 0.50 (8) 0.88
Priority Customer....................................... 0.00 0.00 0.00 0.00 0.00 0.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 77330]]
Current note 3 of Options 7, Section 4, which applies to orders for
Market Makers who qualify for the Complex Order Maker Fee for Select
Symbols when trading against Priority Customer Complex Orders and the
Complex Order Taker Fee for Select Symbols, states, ``This fee is $0.47
per contract for Market Makers that achieve Priority Customer Complex
Tier 8 and $0.44 per contract for Market Makers that achieve Priority
Customer Complex Tier 9.'' Current note 8 of Options 7, Section 4 which
applies to Complex Orders of Market Makers, Non-Nasdaq ISE Market
Makers (FarMM), Firm Proprietary/Broker-Dealers, and Professional
Customers who qualify for the Complex Order Taker Fee for Non-Select
Symbols, states, ``A $0.05 per contract surcharge will be assessed to
non-Priority Customer Complex Orders that take liquidity from the
Complex Order Book, excluding Complex Orders executed in the
Facilitation Mechanism, Solicited Order Mechanism, Price Improvement
Mechanism and ``exposure'' auctions pursuant to Options 3, Section
14(c)(3).''
The Exchange proposes to increase the Complex Order Maker Fees for
Select Symbols when trading against Priority Customer for Market Makers
from $0.47 to $0.50 per contract. The Exchange also proposes to
increase the Complex Order Maker Fees for Select Symbols when trading
against Priority Customer for Non-Nasdaq ISE Market Makers (FarMM),
Firm Proprietary/Broker-Dealers, and Professional Customers from $0.48
to $0.50 per contract. Priority Customers would continue to pay no
Complex Order Maker Fees for Select Symbols when trading against
Priority Customer.
In addition, the Exchange proposes to amend note 3 which is
applicable to the aforementioned Complex Order Maker and Taker Fees by
instead providing, ``This fee is $0.49 per contract for Market Makers
that achieve Priority Customer Complex Tier 8, $0.47 per contract for
Market Makers that achieve Priority Customer Complex Tier 9, and $0.44
per contract for Market Makers that achieve Priority Customer Complex
Tier 10.''
While the Exchange is increasing the Complex Order Maker Fees for
Select Symbols when trading against Priority Customers, Market Makers,
Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/Broker-Dealers,
and Professional Customers who qualify for Priority Customer Complex
Order Tiers 8 and 9 or new Tier 10, would continue to receive lower
Complex Order Maker Fees, which is intended to incentive these Members
to transact a greater amount of Priority Customer Complex Orders on
ISE.
Technical Amendments
The Exchange proposes to remove reserved note 17 within Options 7,
Section 4 because this note is not necessary. The Exchange also
proposes to remove obsolete date references and an obsolete rate within
Options 7, Section 9.C. related to the Options Regulatory Fee. The
dates refer to past dates.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\5\ in general, and furthers the objectives of Sections
6(b)(4) and 6(b)(5) of the Act,\6\ 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.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4) and (5).
---------------------------------------------------------------------------
The Commission and the courts have repeatedly expressed their
preference for competition over regulatory intervention in determining
prices, products, and services in the securities markets. In Regulation
NMS, while adopting a series of steps to improve the current market
model, the Commission highlighted the importance of market forces in
determining prices and SRO revenues and, also, recognized that current
regulation of the market system ``has been remarkably successful in
promoting market competition in its broader forms that are most
important to investors and listed companies.'' \7\
---------------------------------------------------------------------------
\7\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting
Release'').
---------------------------------------------------------------------------
Likewise, in NetCoalition v. Securities and Exchange Commission \8\
(``NetCoalition'') the D.C. Circuit upheld the Commission's use of a
market-based approach in evaluating the fairness of market data fees
against a challenge claiming that Congress mandated a cost-based
approach.\9\ As the court emphasized, the Commission ``intended in
Regulation NMS that `market forces, rather than regulatory
requirements' play a role in determining the market data . . . to be
made available to investors and at what cost.'' \10\
---------------------------------------------------------------------------
\8\ NetCoalition v. SEC, 615 F.3d 525 (D.C. Cir. 2010).
\9\ See NetCoalition, at 534-535.
\10\ Id. at 537.
---------------------------------------------------------------------------
Further, ``[n]o one disputes that competition for order flow is
`fierce.' . . . As the SEC explained, `[i]n the U.S. national market
system, buyers and sellers of securities, and the broker-dealers that
act as their order-routing agents, have a wide range of choices of
where to route orders for execution'; [and] `no exchange can afford to
take its market share percentages for granted' because `no exchange
possesses a monopoly, regulatory or otherwise, in the execution of
order flow from broker dealers'. . . .'' \11\ Although the court and
the SEC were discussing the cash equities markets, the Exchange
believes that these views apply with equal force to the options
markets.
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\11\ Id. at 539 (quoting Securities Exchange Act Release No.
59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008)
(SR-NYSEArca-2006-21)).
---------------------------------------------------------------------------
Options 7, Section 4
Priority Customer Rebates for Complex Orders
The Exchange's proposal to amend the qualifications of Tier 8, to
require Members to submit above 2.000%-2.750% of Total Affiliated
Member or Affiliated Entity Complex Order Volume (Excluding Crossing
Orders and Responses to Crossing Orders) Calculated as a Percentage of
Customer Total Consolidated Volume in order to receive an increase
$0.52 per contract rebate for Select Symbols and continue to receive an
$0.85 per contract rebate for Non-Select Symbols, and its proposal to
amend the qualifications of Tier 9, to require Members to submit above
2.750%-4.500% of Total Affiliated Member or Affiliated Entity Complex
Order Volume (Excluding Crossing Orders and Responses to Crossing
Orders) Calculated as a Percentage of Customer Total Consolidated
Volume to continue to receive a $0.52 per contract rebate for Select
Symbols and an increased $0.86 per contract rebate for Non-Select
Symbols, are reasonable. The Exchange believes amending Priority
Customer Complex Order Tiers 8 and 9 will attract a greater amount of
Priority Customer Complex Order volume to ISE. Specifically, Members
who desire to qualify for the increased $0.52 per contract rebate for
Select Symbols in Tier 8 or continue to qualify for an $0.85 per
contract rebate for Non-Select Symbols in Tier 8 or Members who desire
to continue to qualify for the $0.52 per contract rebate in Select
Symbols for Tier 9 or an increased $0.86 per contract rebate for Non-
Select Symbols in Tier 9 will be encouraged to submit the requisite
order flow to obtain the same or higher rebates. With respect to
Priority Customer Complex Order Tier 8, the Exchange notes that the
[[Page 77331]]
proposed amendment should not result in lower rebates for any Member
submitting the same Complex Order volume as the Member submitted in the
prior month. With respect to Priority Customer Complex Order Tier 9,
Members who qualified for Tier 8 in a prior month with Current Tier 8
Volume \12\ would continue to qualify for Tier 8 rebates with this
proposal if that same amount of volume was submitted and would receive
an increased Tier 8 Rebate for Select Symbols of $0.52 per contract and
the same $0.85 per contract Rebate for Non-Select Symbols. In addition,
the Member may earn increased Tier 9 \13\ or Tier 10 rebates if the
Member submitted additional qualifying volume. Therefore, the Member
would receive the same or higher Tier 8 rebates.
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\12\ Today, Tier 8 of the Complex Order Priority Customer
Rebates pays rebates to Members who submit above 2.000%-2.60% of
Total Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume.
With this proposal, Members who submit above 2.000%-2.750% of Total
Affiliated Member or Affiliated Entity Complex Order Volume
(Excluding Crossing Orders and Responses to Crossing Orders)
Calculated as a Percentage of Customer Total Consolidated Volume are
entitled to rebates.
\13\ The Exchange notes that the propose Tier 8 Rebate for
Select Symbols and the Tier 9 Rebate for Select Symbols, which
remains unchanged, are both $0.52 per contract.
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Members who qualified for Tier 9 in a prior month with Current Tier
9 Volume may continue to qualify for Tier 9 rebates with this proposal
if the Member submitted greater than 2.750% volume and would receive
either: (1) An increased Tier 8 Rebate for Select Symbols of $0.52 per
contract and the same $0.85 per contract Rebate for Non-Select Symbols;
or (2) the same Tier 9 Rebate for Select Symbols of $0.52 per contract
and an increased $0.86 per contract Rebate for Non-Select Symbols,
depending on the Member's volume Calculated as a Percentage of Customer
Total Consolidated Volume. Despite the increase required in Complex
Order volume for Priority Customer Complex Order Tier 9, the Exchange's
proposal offers Members an opportunity to earn the same or higher Tier
9 rebates. Also, with this proposal, a Member would have the
opportunity to qualify for increased Tier 10 rebates of $0.53 per
contract for Select Symbols and $0.88 per contract for Non-Select
Symbols by submitting above 4.500% of Total Affiliated Member or
Affiliated Entity Complex Order Volume (Excluding Crossing Orders and
Responses to Crossing Orders) Calculated as a Percentage of Customer
Total Consolidated Volume. The Priority Customer Complex Order rebate
program is optional and available to all Members that choose to
transact Complex Order flow on ISE in order to earn a rebate on their
Priority Customer Complex Order volume. To the extent the program, as
modified, continues to attract Complex Order volume to the Exchange,
the Exchange believes that the proposed changes would improve the
Exchange's overall competitiveness and strengthen its market quality
for all market participants.
The Exchange's proposal to add a new Priority Customer Complex
Order Tier 10, which requires Members to submit above 4.500% of Total
Affiliated Member or Affiliated Entity Complex Order Volume (Excluding
Crossing Orders and Responses to Crossing Orders) Calculated as a
Percentage of Customer Total Consolidated Volume in order to receive a
$0.53 per contract rebate for Select Symbols and an $0.88 per contract
rebate for Non-Select Symbols is reasonable. The Exchange believes
proposed new Tier 10 will attract a greater amount of Priority Customer
Complex Order volume to ISE as the Exchange proposes to pay $0.53 per
contract rebate for Select Symbols and $0.88 per contract rebate for
Non-Select Symbols, the highest Priority Customer Complex Order rebates
for that order flow.
The Exchange's proposals to amend the tier qualifications for
Priority Customer Complex Order Tiers 8 and 9, increase the Select
Symbol rebate in Tier 8, increase the Non-Select Symbol rebate in Tier
9, and add a new Priority Customer Complex Order Tier 10 with rebates
of $0.53 per contract for Select Symbols and $0.88 per contract for
Non-Select Symbols are equitable and not unfairly discriminatory. Any
ISE Member may qualify for a Priority Customer Complex Order rebate
tier, provided the qualifications are met. By encouraging all Members
to transact significant amounts of Priority Customer Complex Order flow
(i.e., to qualify for the higher tiers) in order to earn a higher
rebate on their Priority Customer Complex Orders, the Exchange seeks to
provide more trading opportunities for all market participants, thereby
promoting price discovery, and improving the overall market quality of
the Exchange. ISE would uniformly pay rebates to Members that qualified
for Priority Customer Complex Order rebates. The Exchange anticipates
all Members that currently qualify for the Tier 8 or 9 Priority
Customer Complex Order rebates will receive the same or higher rebates
with this proposal. Also, any Member may qualify for the new Tier 10
Priority Customer Complex Order rebate to earn even higher rebates. To
the extent the proposed changes encourage additional Members to strive
for the modified tiers and thus attract more Priority Customer Complex
Order volume to the Exchange, this increased order flow would improve
the overall quality and attractiveness of the Exchange.
Maker and Taker Fees for Complex Orders
The Exchange's proposal to increase the Complex Order Maker Fees
for Select Symbols when trading against Priority Customer for Market
Makers from $0.47 to $0.50 per contract and to increase the Complex
Order Maker Fees for Select Symbols when trading against Priority
Customer for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/
Broker-Dealers, and Professional Customers from $0.48 to $0.50 per
contract is reasonable because while the Exchange is proposing to
increase these fees, the Exchange believes that market participants
will continue to be incentivized to send Priority Customer order flow
to ISE to obtain rebates offered by the Exchange. Additionally, Market
Makers would continue to be offered the opportunity to reduce their
Complex Order Maker Fees. If a Market Maker qualifies for Priority
Customer Complex Order Tiers 8 and 9, the Complex Order Maker Fee would
be reduced to $0.49 and $0.47 per contract, respectively. In addition,
a Market Maker that qualifies for Priority Customer Complex Order Tier
10 would reduce the Complex Order Maker Fees to $0.44 per contract.
Finally, Priority Customers will continue to pay no Maker Fees for
Select Symbols when trading against Priority Customer.
The Exchange's proposal to increase the Complex Order Maker Fees
for Select Symbols when trading against Priority Customer for Market
Makers from $0.47 to $0.50 per contract and to increase the Complex
Order Maker Fees for Select Symbols when trading against Priority
Customer for Non-Nasdaq ISE Market Makers (FarMM), Firm Proprietary/
Broker-Dealers, and Professional Customers from $0.48 to $0.50 per
contract is equitable and not unfairly discriminatory as all Non-
Priority Customers would be assessed the same Complex Order Maker Fees
for Select Symbols when trading against Priority Customer. Priority
Customer orders bring valuable liquidity to the market which liquidity
benefits other market participants. Priority Customers are not assessed
Complex Order Maker Fees for Select Symbols when trading against
Priority Customer.
[[Page 77332]]
The Exchange's proposal to amend note 3 of Options 7, Section 4
with respect to Complex Order Maker Fees for Select Symbols when
trading against Priority Customer for Market Makers as well as Complex
Order Taker Fees for Select Symbols for Market Makers is reasonable
because while the Exchange is reducing the fee discount for Members who
qualify for Priority Customer Complex Order Tiers 8 and 9,\14\ Market
Makers will continue to have the opportunity to reduce their costs when
they qualify for Priority Customer Complex Order Tiers 8 and 9. The
Exchange will continue to offer Market Makers the opportunity to reduce
Complex Order Maker Fees for Select Symbols when trading against
Priority Customers, as well as Complex Order Taker Fees for Select
Symbols. The Exchange's proposal also offers Market Makers a fee
discount when trading against Priority Customer Complex Orders if the
qualifications for new Tier 10 are met.\15\
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\14\ Today, the Exchange offers Market Makers the opportunity to
reduce the Complex Order Maker Fee for Select Symbols when trading
against Priority Customer and the Complex Order Taker Fee for Select
Symbols to $0.47 per contract for Tier 8 and $0.44 per contract for
Tier 9. With this proposal, the fee discount within note 3 would
decrease. The Exchange would offer Market Makers that qualify for
Priority Customer Complex Order Tier 8 a rate of $0.49 per contract,
and the Exchange would offer Market Makers that qualify for Priority
Customer Complex Order Tier 9 a rate of $0.47 per contract.
\15\ The Exchange would offer Market Makers that qualify for
Priority Customer Complex Order Tier 10 a rate of $0.44 per
contract.
---------------------------------------------------------------------------
The Exchange's proposal to amend note 3 of Options 7, Section 4
with respect to Complex Order Maker Fees for Select Symbols when
trading against Priority Customer for Market Makers as well as Complex
Order Taker Fees for Select Symbols for Market Makers is equitable and
not unfairly discriminatory. Market Makers would continue to be
permitted to lower their Maker Fees for Select Symbols when trading
against Priority Customers, as well as Taker Fees for Select Symbols,
provided the Market Maker qualified for Priority Customer Complex Order
Tiers 8, 9 or 10. Today, Market Makers are able to lower their Maker
Fees for Select Symbols when trading against Priority Customers, as
well as Taker Fees for Select Symbols, provided they qualify for
Priority Customer Complex Order Tiers 8 or 9. With this proposal Market
Makers would also be able to lower their Maker Fees for Select Symbols
when trading against Priority Customers, as well as Taker Fees for
Select Symbols, if they qualify for new Priority Customer Complex Order
Tier 10. Unlike other market participants, Market Makers have an
obligation to maintain quotes \16\ and provide liquidity in the regular
market. The Exchange is providing Market Makers the opportunity to
reduce their Maker Fees for Select Symbols when trading against
Priority Customers, as well as Taker Fees for Select Symbols, provided
the Market Maker qualified for Priority Customer Complex Order Tiers 8,
9 or 10, to incentivize these market participants to continue to
provide liquidity on ISE.
---------------------------------------------------------------------------
\16\ See ISE, Options 2, Section 5.
---------------------------------------------------------------------------
Technical Amendments
The Exchange's proposal to remove reserved note 17 within Options
7, Section 4 is reasonable, equitable and not unfairly discriminatory
as this note is not necessary and the amendment is non-substantive. The
Exchange's proposal to remove obsolete date references and an obsolete
rate within Options 7, Section 9.C. related to the Options Regulatory
Fee is reasonable, equitable and not unfairly discriminatory as the
dates have passed and the rate is obsolete.
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.
Inter-Market Competition
The proposal does not impose an undue burden on inter-market
competition. The Exchange believes its proposal remains competitive
with other options markets and will offer market participants with
another choice of where to transact options. 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 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.
Intra-Market Competition
The proposed amendments do not impose an undue burden on intra-
market competition.
Options 7, Section 4
Priority Customer Rebates for Complex Orders
The Exchange's proposals to amend the tier qualifications for
Priority Customer Complex Order Tiers 8 and 9, increase the Select
Symbol rebate in Tier 8, increase the Non-Select Symbol rebate in Tier
9, and add a new Priority Customer Complex Order Tier 10 with rebates
of $0.53 per contract for Select Symbols and $0.88 per contract for
Non-Select Symbols does not impose an undue burden on competition. Any
ISE Member may qualify for a Priority Customer Complex Order rebate
tier, provided the qualifications are met. By encouraging all Members
to transact significant amounts of Priority Customer Complex Order flow
(i.e., to qualify for the higher tiers) in order to earn a higher
rebate on their Priority Customer Complex Orders, the Exchange seeks to
provide more trading opportunities for all market participants, thereby
promoting price discovery, and improving the overall market quality of
the Exchange. ISE would uniformly pay rebates to Members that qualified
for Priority Customer Complex Order rebates. The Exchange anticipates
all Members that currently qualify for the Tier 8 Priority Customer
Complex Order rebates will receive the same or higher Tier 8 rebates
with this proposal. Members that currently qualify for Tier 9 Priority
Customer Complex Order rebates may need to submit additional Priority
Customer Complex Order flow to continue to qualify for the same or
higher Tier 9 rebates. Also, any Member may qualify for the new Tier 10
Priority Customer Complex Order rebate to earn even higher rebates. To
the extent the proposed changes encourage additional Members to strive
for the modified tiers and thus attract more Priority Customer Complex
Order volume to the Exchange, this increased order flow would improve
the overall quality and attractiveness of the Exchange.
Maker and Taker Fees for Complex Orders
The Exchange's proposal to increase the Complex Order Maker Fees
for Select Symbols when trading against Priority Customer for Market
Makers from $0.47 to $0.50 per contract and to increase the Complex
Order Maker Fees for Select Symbols when trading against Priority
Customer for Non-Nasdaq ISE Market Makers (FarMM), Firm
[[Page 77333]]
Proprietary/Broker-Dealers, and Professional Customers from $0.48 to
$0.50 per contract does not impose an undue burden on competition as
all Non-Priority Customers would be assessed the same Complex Order
Maker Fees for Select Symbols when trading against Priority Customer.
Priority Customer orders bring valuable liquidity to the market which
liquidity benefits other market participants. Priority Customers are
not assessed Complex Order Maker Fees for Select Symbols when trading
against Priority Customer.
The Exchange's proposal to amend note 3 of Options 7, Section 4
with respect to Complex Order Maker Fees for Select Symbols when
trading against Priority Customer for Market Makers as well as Complex
Order Taker Fees for Select Symbols for Market Makers does not impose
an undue burden on competition. Market Makers would continue to be
permitted to lower their Maker Fees for Select Symbols when trading
against Priority Customers, as well as Taker Fees for Select Symbols,
provided the Market Maker qualified for Priority Customer Complex Order
Tiers 8, 9 or 10. Today, Market Makers are able to lower their Maker
Fees for Select Symbols when trading against Priority Customers, as
well as Taker Fees for Select Symbols, provided they qualify for
Priority Customer Complex Order Tiers 8 or 9. With this proposal Market
Makers would also be able to lower their Maker Fees for Select Symbols
when trading against Priority Customers, as well as Taker Fees for
Select Symbols, if they qualify for new Priority Customer Complex Order
Tier 10. Unlike other market participants, Market Makers have an
obligation to maintain quotes \17\ and provide liquidity in the regular
market. The Exchange is providing Market Makers the opportunity to
reduce their Maker Fees for Select Symbols when trading against
Priority Customers, as well as Taker Fees for Select Symbols, provided
the Market Maker qualified for Priority Customer Complex Order Tiers 8,
9 or 10, to incentivize these market participants to continue to
provide liquidity on ISE.
---------------------------------------------------------------------------
\17\ See ISE, Options 2, Section 5.
---------------------------------------------------------------------------
Technical Amendments
The Exchange's proposal to remove reserved note 17 within Options
7, Section 4 does not impose an undue burden on competition as this
note is not necessary and the amendment is non-substantive. The
Exchange's proposal to remove obsolete date references and an obsolete
rate within Options 7, Section 9.C. related to the Options Regulatory
Fee does not impose an undue burden on competition.
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 \18\ and Rule 19b-4(f)(2) \19\ 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.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78s(b)(3)(A)(ii).
\19\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2020-39 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-2020-39. 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-2020-39 and should be submitted on
or before December 22, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-26400 Filed 11-30-20; 8:45 am]
BILLING CODE 8011-01-P
