81_FR_1267 81 FR 1261 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Delay of Implementation of Kill Switch

81 FR 1261 - Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Delay of Implementation of Kill Switch

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 6 (January 11, 2016)

Page Range1261-1263
FR Document2016-00251

Federal Register, Volume 81 Issue 6 (Monday, January 11, 2016)
[Federal Register Volume 81, Number 6 (Monday, January 11, 2016)]
[Notices]
[Pages 1261-1263]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00251]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76831; File No. SR-BX-2015-088]


Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to Delay of 
Implementation of Kill Switch

January 5, 2016.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934

[[Page 1262]]

(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on December 23, 2015, NASDAQ OMX BX, Inc. (``BX'' 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to extend the implementation timeframe for 
adopting an optional Kill Switch protection.
    The text of the proposed rule change is available on the Exchange's 
Web site at http://nasdaqomxbx.cchwallstreet.com/, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. The Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposal is to extend the implementation of the 
timeframe to adopt a new risk protection, a Kill Switch, applicable to 
all BX Participants. In its rule change adopting this new risk 
protection in Chapter VI, Section 6, the Exchange stated, ``The 
Exchange proposes to implement this rule within ninety (90) days of the 
implementation date.'' \3\ The Exchange stated that it will issue an 
Options Trader Alert in advance to inform market participants of such 
date. At this time, the Exchange desires to extend the implementation 
of this rule change to 120 days from the operative date. The Exchange 
will announce the date of implementation by issuing an Options Trader 
Alert.
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    \3\ See Securities Exchange Act Release No. 76116 (October 8, 
2015), 80 FR 62146 (October 15, 2015) (SR-BX-2015-050) [sic].
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    By way of background, the Kill Switch will allow BX Participants to 
remove quotes and cancel open orders and prevent new order submission. 
The BX Options Kill Switch is an optional tool that enables 
Participants to initiate a message(s) \4\ to the System to: (i) 
Promptly remove quotes; and/or (ii) promptly cancel orders. 
Participants may submit a request to the System to remove/cancel quotes 
and/or orders based on certain identifiers on either a user or group 
level. Participants may elect to remove quotes and cancel orders by 
Exchange account, port, and/or badge or mnemonic (``Identifier'') or by 
a group (one or more Identifier combinations),\5\ which are provided by 
such Participant to the Exchange. Participants may not remove quotes/
orders by symbol. The System will send an automated message to the 
Participant when a Kill Switch request has been processed by the 
Exchange's System.
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    \4\ BX Participants will be able to utilize an interface to send 
a message to the Exchange to initiate the Kill Switch or they may 
contact the Exchange directly.
    \5\ The type of group permissible would be within a broker-
dealer. For example, this could be including but not limited to all 
market maker accounts or all order entry ports.
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    If the Participant selects quotes to be cancelled utilizing the 
Kill Switch, the BX Participant must send a message to the Exchange to 
request the removal of all quotes requested for the certain specified 
Identifier(s). The BX Participant will be unable to enter any 
additional quotes for the affected Identifier(s) until re-entry has 
been enabled pursuant to proposed section (d)(iii).\6\ If the 
Participant selects orders to be cancelled utilizing the Kill Switch, 
the BX Participant must send a message to the Exchange to request the 
cancellation of all orders requested for the certain specified 
Identifier(s). The BX Participant will be unable to enter additional 
orders for the affected Identifier(s) until re-entry has been enabled 
pursuant to section (d)(iii). The BX Participant will be unable to 
enter additional quotes and/or orders for the affected Identifier(s) 
until the BX Participant has made a request to the Exchange and 
Exchange staff has set a re-entry indicator to enable re-entry.\7\ Once 
enabled for re-entry, the System will send a Re-entry Notification 
Message to the BX Participant. The applicable Clearing Participant for 
that BX Participant also will be notified of the re-entry into the 
System after quotes and/or orders are removed/cancelled as a result of 
the Kill Switch, provided the Clearing Participant has requested to 
receive such notification.
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    \6\ Sweeps will also be cancelled. A sweep is a one-sided 
electronic quote submitted over the Specialized Quote Feed, which is 
the market making quoting interface.
    \7\ The BX Participant must directly and verbally contact the 
Exchange to request the re-set.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \8\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \9\ in particular, in that it is designed to promote 
just and equitable principles of trade, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system, and, in general to protect investors and the public interest, 
by enhancing the risk protections available to Exchange members. The 
proposal promotes policy goals of the Commission which has encouraged 
execution venues, exchange and non-exchange alike, to enhance risk 
protection tools and other mechanisms to decrease risk and increase 
stability.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    The delay of the implementation of BX Rules at Chapter VI, Section 
6 will permit the Exchange an additional thirty days within which to 
implement this risk protection that will be utilized by BX 
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. The proposal does not impose an 
undue burden on inter-market competition because all BX Participants 
may avail themselves of the Kill Switch, which functionality will be 
optional. The proposed rule change is meant to protect BX Participants 
in the event the BX Participant is suffering from a systems issue or 
from the occurrence of unusual or unexpected market activity that would 
require them to withdraw from the market in order to protect investors. 
The ability to control risk at either the user or group level will 
permit the BX Participant to protect itself from inadvertent exposure 
to excessive risk at the each level. Reducing such risk will enable BX 
Participants to enter quotes and orders without any fear of inadvertent 
exposure to excessive risk, which in turn will benefit investors 
through increased liquidity for the execution of

[[Page 1263]]

their orders. Such increased liquidity benefits investors because they 
receive better prices and because it lowers volatility in the options 
market. For these reasons, the Exchange does not believe this proposal 
imposes an undue burden on inter-market competition, rather, the 
proposed rule change will have no impact on competition.
    The delay of the implementation of BX Rules at Chapter VII, Section 
6(f) will permit the Exchange additional time to implement this risk 
protection that will be utilized by BX Participants.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were either solicited or received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    Because the proposed rule change does not (i) significantly affect 
the protection of investors or the public interest; (ii) impose any 
significant burden on competition; and (iii) become operative for 30 
days from the date on which it was filed, or such shorter time as the 
Commission may designate if consistent with the protection of investors 
and the public interest, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act \10\ and Rule 19b-4(f)(6) 
thereunder.\11\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
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    BX requested that the Commission waive the 30-day operative delay. 
The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest, 
because the extension will provide the Exchange with the additional 
time it requires to implement the Kill Switch program. The Commission 
further notes that BX's proposal to adopt the Kill Switch \12\ was 
approved by the Commission \13\ and that the extension of the 
implementation period does not affect the parameters of the Kill Switch 
program. For these reasons, the Commission designates the proposed rule 
change to be operative upon filing.\14\
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    \12\ See Securities Exchange Act Release No. 75744 (Aug. 20, 
2015), 80 FR 52068 (Aug. 27, 2015) (SR-BX-2015-050).
    \13\ See note 3.
    \14\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-BX-2015-088 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-BX-2015-088. 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 Web site (http://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 Web site 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; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-BX-2015-088 and should be 
submitted on or before February 1, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12) and (59).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00251 Filed 1-8-16; 8:45 am]
 BILLING CODE 8011-01-P



                                                                               Federal Register / Vol. 81, No. 6 / Monday, January 11, 2016 / Notices                                                   1261

                                                at the principal office of EDGX. All                       Section 10(a)(3) of the Securities Act              of information will not be kept
                                                comments received will be posted                        (15 U.S.C. 77j(a)(3)) provides that when               confidential. An agency may not
                                                without change; the Commission does                     a prospectus is used more than nine                    conduct or sponsor, and a person is not
                                                not edit personal identifying                           months after the effective date of the                 required to respond to a collection of
                                                information from submissions. You                       registration statement, the information                information unless it displays a
                                                should submit only information that                     therein shall be as of a date not more                 currently valid OMB control number.
                                                you wish to make available publicly. All                than sixteen months prior to such use.                    Written comments are invited on: (a)
                                                submissions should refer to File                        As a result, most UITs update their                    Whether the collection of information is
                                                Number 4–546 and should be submitted                    registration statements under the
                                                                                                                                                               necessary for the proper performance of
                                                on or before February 1, 2016.                          Securities Act on an annual basis in
                                                                                                                                                               the functions of the Commission,
                                                  By the Commission.
                                                                                                        order that their sponsors may continue
                                                                                                                                                               including whether the information has
                                                                                                        to maintain a secondary market in the
                                                Robert W. Errett,                                                                                              practical utility; (b) the accuracy of the
                                                                                                        units. UITs that are registered under the
                                                Deputy Secretary.                                       Investment Company Act on Form N–                      Commission’s estimate of the burden of
                                                [FR Doc. 2016–00258 Filed 1–8–16; 8:45 am]              8B–2 file post-effective amendments to                 the collection of information; (c) ways to
                                                BILLING CODE 8011–01–P                                  their registration statements on Form S–               enhance the quality, utility, and clarity
                                                                                                        6 in order to update their prospectuses.               of the information collected; and (d)
                                                                                                           The purpose of Form S–6 is to meet                  ways to minimize the burden of the
                                                SECURITIES AND EXCHANGE                                 the filing and disclosure requirements of              collection of information on
                                                COMMISSION                                              the Securities Act and to enable filers to             respondents, including through the use
                                                                                                        provide investors with information                     of automated collection techniques or
                                                [SEC File No. 270–181, OMB Control No.                                                                         other forms of information technology.
                                                3235–0184]                                              necessary to evaluate an investment in
                                                                                                        the security. This information collection              Consideration will be given to
                                                                                                        differs significantly from many other                  comments and suggestions submitted in
                                                Proposed Collection; Comment
                                                                                                        federal information collections, which                 writing within 60 days of this
                                                Request
                                                                                                        are primarily for the use and benefit of               publication.
                                                Upon Written Request, Copy Available                    the collecting agency. The information                    Please direct your written comments
                                                 From: Securities and Exchange                          required to be filed with the                          to Pamela Dyson, Chief Information
                                                 Commission, Office of FOIA Services,                   Commission permits verification of                     Officer, Securities and Exchange
                                                 100 F Street NE., Washington, DC                       compliance with securities law                         Commission, c/o Remi Pavlik-Simon,
                                                 20549–2736.                                            requirements and assures the public                    100 F Street NE., Washington, DC
                                                   Extension: Form S–6                                  availability and dissemination of the                  20549; or send an email to:
                                                                                                        information.                                           PRA_Mailbox@sec.gov.
                                                   Notice is hereby given that, pursuant                   The Commission estimates that there
                                                to the Paperwork Reduction Act of 1995                                                                            All submissions should refer to File
                                                                                                        are approximately 1,340 initial
                                                (44 U.S.C. 3501 et seq.), the Securities                registration statements filed on Form S–               Number 270–181. This file number
                                                and Exchange Commission (the                            6 annually and approximately 1,158                     should be included on the subject line
                                                ‘‘Commission’’) is soliciting comments                  annual post-effective amendments to                    if email is used. The Commission will
                                                on the collection of information                        previously effective registration                      post all comments on the Commission’s
                                                summarized below. The Commission                        statements filed on Form S–6. The                      Internet Web site (http://www.sec.gov).
                                                plans to submit this existing collection                Commission estimates that the hour                     All comments received will be posted
                                                of information to the Office of                         burden for preparing and filing an                     without change; we do not edit personal
                                                Management and Budget (‘‘OMB’’) for                     initial registration statement on Form S–              identifying information from
                                                extension and approval.                                 6 is 45 hours and for preparing and                    submissions. You should submit only
                                                   The title for the collection of                      filing a post-effective amendment to a                 information that you wish to make
                                                information is ‘‘Form S–6 (17 CFR                       previously effective registration                      available publicly.
                                                239.16), for Registration under the                     statement filed on Form S–6 is 40 hours.                 Dated: January 5, 2016.
                                                Securities Act of 1933 of Securities of                 Therefore, we estimate that the total                  Robert W. Errett,
                                                Unit Investment Trusts Registered on                    hour burden of preparing and filing
                                                Form N–8B–2 (17 CFR 274.13).’’ Form                                                                            Deputy Secretary.
                                                                                                        registration statements on Form S–6 for
                                                S–6 is a form used for registration under                                                                      [FR Doc. 2016–00246 Filed 1–8–16; 8:45 am]
                                                                                                        all affected UITs is 106,620 hours. We
                                                the Securities Act of 1933 (15 U.S.C. 77a               estimate that the cost burden of                       BILLING CODE 8011–01–P
                                                et seq.) (‘‘Securities Act’’) of securities             preparing and filing an initial
                                                of any unit investment trust (‘‘UIT’’)                  registration statement on Form S–6 is
                                                registered under the Investment                         $33,104 and for preparing and filing a                 SECURITIES AND EXCHANGE
                                                Company Act of 1940 (15 U.S.C. 80a–1                    post-effective amendment is $19,862.                   COMMISSION
                                                et seq.) (‘‘Investment Company Act’’) on                Therefore, we estimate that the total cost
                                                Form N–8B–2. Section 5 of the                           burden of preparing and filing                         [Release No. 34–76831; File No. SR–BX–
                                                Securities Act (15 U.S.C. 77e) requires                 registration statements on Form S–6 for                2015–088]
                                                the filing of a registration statement                  all affected UITs is $67,359,556.
                                                prior to the offer of securities to the                    Estimates of average burden hours                   Self-Regulatory Organizations;
                                                public and that the statement be                        and costs are made solely for purposes                 NASDAQ OMX BX, Inc.; Notice of Filing
ebenthall on DSK6SPTVN1PROD with NOTICES




                                                effective before any securities are sold.               of the Paperwork Reduction Act, and are                and Immediate Effectiveness of
                                                Section 5(b) of the Securities Act                      not derived from a comprehensive or                    Proposed Rule Change to Delay of
                                                requires that investors be provided with                even representative survey or study of                 Implementation of Kill Switch
                                                a prospectus containing the information                 the costs of Commission rules and
                                                                                                                                                               January 5, 2016.
                                                required in a registration statement prior              forms. Compliance with the information
                                                to the sale or at the time of confirmation              collection requirements of Form S–6 is                   Pursuant to Section 19(b)(1) of the
                                                or delivery of the securities.                          mandatory. Responses to the collection                 Securities Exchange Act of 1934


                                           VerDate Sep<11>2014   21:33 Jan 14, 2016   Jkt 238001   PO 00000   Frm 00099   Fmt 4703   Sfmt 4703   E:\FR\FM\11JAN1.SGM   11JAN1


                                                1262                           Federal Register / Vol. 81, No. 6 / Monday, January 11, 2016 / Notices

                                                (‘‘Act’’),1 and Rule 19b–4 thereunder,2                 extend the implementation of this rule                 will send a Re-entry Notification
                                                notice is hereby given that, on December                change to 120 days from the operative                  Message to the BX Participant. The
                                                23, 2015, NASDAQ OMX BX, Inc. (‘‘BX’’                   date. The Exchange will announce the                   applicable Clearing Participant for that
                                                or ‘‘Exchange’’) filed with the Securities              date of implementation by issuing an                   BX Participant also will be notified of
                                                and Exchange Commission (‘‘SEC’’ or                     Options Trader Alert.                                  the re-entry into the System after quotes
                                                ‘‘Commission’’) the proposed rule                          By way of background, the Kill                      and/or orders are removed/cancelled as
                                                change as described in Items I and II                   Switch will allow BX Participants to                   a result of the Kill Switch, provided the
                                                below, which Items have been prepared                   remove quotes and cancel open orders                   Clearing Participant has requested to
                                                by the Exchange. The Commission is                      and prevent new order submission. The                  receive such notification.
                                                publishing this notice to solicit                       BX Options Kill Switch is an optional
                                                                                                        tool that enables Participants to initiate             2. Statutory Basis
                                                comments on the proposed rule change
                                                from interested persons.                                a message(s) 4 to the System to: (i)                      The Exchange believes that its
                                                                                                        Promptly remove quotes; and/or (ii)                    proposal is consistent with Section 6(b)
                                                I. Self-Regulatory Organization’s                       promptly cancel orders. Participants                   of the Act 8 in general, and furthers the
                                                Statement of the Terms of Substance of                  may submit a request to the System to                  objectives of Section 6(b)(5) of the Act 9
                                                the Proposed Rule Change                                remove/cancel quotes and/or orders                     in particular, in that it is designed to
                                                   The Exchange proposes to extend the                  based on certain identifiers on either a               promote just and equitable principles of
                                                implementation timeframe for adopting                   user or group level. Participants may                  trade, to remove impediments to and
                                                an optional Kill Switch protection.                     elect to remove quotes and cancel orders               perfect the mechanism of a free and
                                                   The text of the proposed rule change                 by Exchange account, port, and/or badge                open market and a national market
                                                is available on the Exchange’s Web site                 or mnemonic (‘‘Identifier’’) or by a                   system, and, in general to protect
                                                at http://                                              group (one or more Identifier                          investors and the public interest, by
                                                nasdaqomxbx.cchwallstreet.com/, at the                  combinations),5 which are provided by                  enhancing the risk protections available
                                                principal office of the Exchange, and at                such Participant to the Exchange.                      to Exchange members. The proposal
                                                the Commission’s Public Reference                       Participants may not remove quotes/                    promotes policy goals of the
                                                Room.                                                   orders by symbol. The System will send                 Commission which has encouraged
                                                                                                        an automated message to the Participant                execution venues, exchange and non-
                                                II. Self-Regulatory Organization’s                      when a Kill Switch request has been                    exchange alike, to enhance risk
                                                Statement of the Purpose of, and                        processed by the Exchange’s System.                    protection tools and other mechanisms
                                                Statutory Basis for, the Proposed Rule                     If the Participant selects quotes to be             to decrease risk and increase stability.
                                                Change                                                  cancelled utilizing the Kill Switch, the                  The delay of the implementation of
                                                   In its filing with the Commission, the               BX Participant must send a message to                  BX Rules at Chapter VI, Section 6 will
                                                Exchange included statements                            the Exchange to request the removal of                 permit the Exchange an additional thirty
                                                concerning the purpose of and basis for                 all quotes requested for the certain                   days within which to implement this
                                                the proposed rule change and discussed                  specified Identifier(s). The BX                        risk protection that will be utilized by
                                                any comments it received on the                         Participant will be unable to enter any                BX Participants.
                                                proposed rule change. The text of these                 additional quotes for the affected
                                                                                                                                                               B. Self-Regulatory Organization’s
                                                statements may be examined at the                       Identifier(s) until re-entry has been
                                                                                                                                                               Statement on Burden on Competition
                                                places specified in Item IV below. The                  enabled pursuant to proposed section
                                                Exchange has prepared summaries, set                    (d)(iii).6 If the Participant selects orders              The Exchange does not believe that
                                                forth in sections A, B, and C below, of                 to be cancelled utilizing the Kill Switch,             the proposed rule change will impose
                                                the most significant aspects of such                    the BX Participant must send a message                 any burden on competition not
                                                statements.                                             to the Exchange to request the                         necessary or appropriate in furtherance
                                                                                                        cancellation of all orders requested for               of the purposes of the Act. The proposal
                                                A. Self-Regulatory Organization’s                                                                              does not impose an undue burden on
                                                                                                        the certain specified Identifier(s). The
                                                Statement of the Purpose of, and                                                                               inter-market competition because all BX
                                                                                                        BX Participant will be unable to enter
                                                Statutory Basis for, the Proposed Rule                                                                         Participants may avail themselves of the
                                                                                                        additional orders for the affected
                                                Change                                                                                                         Kill Switch, which functionality will be
                                                                                                        Identifier(s) until re-entry has been
                                                1. Purpose                                              enabled pursuant to section (d)(iii). The              optional. The proposed rule change is
                                                                                                        BX Participant will be unable to enter                 meant to protect BX Participants in the
                                                   The purpose of the proposal is to
                                                                                                        additional quotes and/or orders for the                event the BX Participant is suffering
                                                extend the implementation of the
                                                                                                        affected Identifier(s) until the BX                    from a systems issue or from the
                                                timeframe to adopt a new risk
                                                                                                        Participant has made a request to the                  occurrence of unusual or unexpected
                                                protection, a Kill Switch, applicable to
                                                                                                        Exchange and Exchange staff has set a                  market activity that would require them
                                                all BX Participants. In its rule change
                                                                                                        re-entry indicator to enable re-entry.7                to withdraw from the market in order to
                                                adopting this new risk protection in
                                                                                                        Once enabled for re-entry, the System                  protect investors. The ability to control
                                                Chapter VI, Section 6, the Exchange
                                                                                                                                                               risk at either the user or group level will
                                                stated, ‘‘The Exchange proposes to
                                                                                                          4 BX Participants will be able to utilize an         permit the BX Participant to protect
                                                implement this rule within ninety (90)                  interface to send a message to the Exchange to         itself from inadvertent exposure to
                                                days of the implementation date.’’ 3 The                initiate the Kill Switch or they may contact the       excessive risk at the each level.
                                                Exchange stated that it will issue an                   Exchange directly.
                                                                                                                                                               Reducing such risk will enable BX
                                                Options Trader Alert in advance to                        5 The type of group permissible would be within
                                                                                                                                                               Participants to enter quotes and orders
ebenthall on DSK6SPTVN1PROD with NOTICES




                                                inform market participants of such date.                a broker-dealer. For example, this could be
                                                                                                        including but not limited to all market maker          without any fear of inadvertent
                                                At this time, the Exchange desires to                   accounts or all order entry ports.                     exposure to excessive risk, which in
                                                                                                          6 Sweeps will also be cancelled. A sweep is a one-
                                                  1 15 U.S.C. 78s(b)(1).
                                                                                                                                                               turn will benefit investors through
                                                                                                        sided electronic quote submitted over the
                                                  2 17 CFR 240.19b–4.                                   Specialized Quote Feed, which is the market            increased liquidity for the execution of
                                                  3 See Securities Exchange Act Release No. 76116       making quoting interface.
                                                                                                                                                                 8 15   U.S.C. 78f(b).
                                                (October 8, 2015), 80 FR 62146 (October 15, 2015)         7 The BX Participant must directly and verbally

                                                (SR–BX–2015–050) [sic].                                 contact the Exchange to request the re-set.              9 15   U.S.C. 78f(b)(5).



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                                                                                Federal Register / Vol. 81, No. 6 / Monday, January 11, 2016 / Notices                                                   1263

                                                their orders. Such increased liquidity                       At any time within 60 days of the                  office of the Exchange. All comments
                                                benefits investors because they receive                   filing of the proposed rule change, the               received will be posted without change;
                                                better prices and because it lowers                       Commission summarily may                              the Commission does not edit personal
                                                volatility in the options market. For                     temporarily suspend such rule change if               identifying information from
                                                these reasons, the Exchange does not                      it appears to the Commission that such                submissions. You should submit only
                                                believe this proposal imposes an undue                    action is necessary or appropriate in the             information that you wish to make
                                                burden on inter-market competition,                       public interest, for the protection of                available publicly. All submissions
                                                rather, the proposed rule change will                     investors, or otherwise in furtherance of             should refer to File Number SR–BX–
                                                have no impact on competition.                            the purposes of the Act. If the                       2015–088 and should be submitted on
                                                  The delay of the implementation of                      Commission takes such action, the                     or before February 1, 2016.
                                                BX Rules at Chapter VII, Section 6(f)                     Commission shall institute proceedings
                                                will permit the Exchange additional                       to determine whether the proposed rule                  For the Commission, by the Division of
                                                time to implement this risk protection                                                                          Trading and Markets, pursuant to delegated
                                                                                                          should be approved or disapproved.
                                                that will be utilized by BX Participants.                                                                       authority.15
                                                                                                          IV. Solicitation of Comments                          Robert W. Errett,
                                                C. Self-Regulatory Organization’s
                                                Statement on Comments on the                                Interested persons are invited to                   Deputy Secretary.
                                                Proposed Rule Change Received From                        submit written data, views and                        [FR Doc. 2016–00251 Filed 1–8–16; 8:45 am]
                                                Members, Participants, or Others                          arguments concerning the foregoing,                   BILLING CODE 8011–01–P
                                                                                                          including whether the proposed rule
                                                  No written comments were either                         change is consistent with the Act.
                                                solicited or received.                                    Comments may be submitted by any of                   SECURITIES AND EXCHANGE
                                                III. Date of Effectiveness of the                         the following methods:                                COMMISSION
                                                Proposed Rule Change and Timing for                       Electronic Comments
                                                Commission Action
                                                                                                            • Use the Commission’s Internet                     [Release No. 34–76836; File No. SR–ISE
                                                   Because the proposed rule change                       comment form (http://www.sec.gov/                     Gemini–2015–28]
                                                does not (i) significantly affect the                     rules/sro.shtml); or
                                                protection of investors or the public                       • Send an email to rule-                            Self-Regulatory Organizations; ISE
                                                interest; (ii) impose any significant                     comments@sec.gov. Please include File                 Gemini, LLC; Notice of Filing and
                                                burden on competition; and (iii) become                   Number SR–BX–2015–088 on the                          Immediate Effectiveness of Proposed
                                                operative for 30 days from the date on                    subject line.                                         Rule Change to Establish the
                                                which it was filed, or such shorter time                                                                        Securities Trader and Securities Trader
                                                as the Commission may designate if                        Paper Comments                                        Principal Registration Categories
                                                consistent with the protection of                            • Send paper comments in triplicate
                                                investors and the public interest, the                    to Secretary, Securities and Exchange                 January 5, 2016.
                                                proposed rule change has become                           Commission, 100 F Street NE.,                            Pursuant to Section 19(b)(1) of the
                                                effective pursuant to Section 19(b)(3)(A)                 Washington, DC 20549–1090.                            Securities Exchange Act of 1934 (the
                                                of the Act 10 and Rule 19b–4(f)(6)                        All submissions should refer to File                  ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                thereunder.11                                             Number SR–BX–2015–088. This file                      notice is hereby given that on December
                                                   BX requested that the Commission
                                                                                                          number should be included on the                      23, 2015, ISE Gemini, LLC (the
                                                waive the 30-day operative delay. The
                                                                                                          subject line if email is used. To help the            ‘‘Exchange’’ or the ‘‘ISE Gemini’’) filed
                                                Commission believes that waiving the
                                                                                                          Commission process and review your                    with the Securities and Exchange
                                                30-day operative delay is consistent
                                                                                                          comments more efficiently, please use                 Commission the proposed rule change
                                                with the protection of investors and the
                                                                                                          only one method. The Commission will                  as described in Items I, II, and III below,
                                                public interest, because the extension
                                                will provide the Exchange with the                        post all comments on the Commission’s                 of which Items I and II have been
                                                additional time it requires to implement                  Internet Web site (http://www.sec.gov/                prepared by the self-regulatory
                                                the Kill Switch program. The                              rules/sro.shtml). Copies of the                       organization. The Commission is
                                                Commission further notes that BX’s                        submission, all subsequent                            publishing this notice to solicit
                                                proposal to adopt the Kill Switch 12 was                  amendments, all written statements                    comments on the proposed rule change
                                                approved by the Commission 13 and that                    with respect to the proposed rule                     from interested persons.
                                                the extension of the implementation                       change that are filed with the
                                                                                                          Commission, and all written                           I. Self-Regulatory Organization’s
                                                period does not affect the parameters of                                                                        Statement of the Terms of Substance of
                                                the Kill Switch program. For these                        communications relating to the
                                                                                                          proposed rule change between the                      the Proposed Rule Change
                                                reasons, the Commission designates the
                                                proposed rule change to be operative                      Commission and any person, other than                    ISE Gemini proposes to codify, in the
                                                upon filing.14                                            those that may be withheld from the
                                                                                                                                                                Supplementary Material to Rule 306
                                                                                                          public in accordance with the
                                                                                                                                                                Registration Requirements, the
                                                  10 15  U.S.C. 78s(b)(3)(A).                             provisions of 5 U.S.C. 552, will be
                                                                                                                                                                categories of registration and respective
                                                  11 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–      available for Web site viewing and
                                                                                                                                                                qualification examinations required for
                                                4(f)(6) requires a self-regulatory organization to give   printing in the Commission’s Public
                                                the Commission written notice of its intent to file                                                             individual associated persons
                                                                                                          Reference Room, 100 F Street NE.,
                                                the proposed rule change at least five business days
                                                                                                          Washington, DC 20549, on official                     (‘‘associated persons’’) that engage in
                                                prior to the date of filing of the proposed rule                                                                the securities activities of members on
ebenthall on DSK6SPTVN1PROD with NOTICES




                                                change, or such shorter time as designated by the         business days between the hours of
                                                Commission. The Exchange has satisfied this               10:00 a.m. and 3:00 p.m. Copies of the                the Exchange. Specifically, the
                                                requirement.
                                                                                                          filing also will be available for                     Exchange proposes to 1) replace the
                                                  12 See Securities Exchange Act Release No. 75744
                                                                                                          inspection and copying at the principal               Proprietary Trader registration category
                                                (Aug. 20, 2015), 80 FR 52068 (Aug. 27, 2015) (SR–
                                                BX–2015–050).
                                                  13 See note 3.                                                                                                  15 17 CFR 200.30–3(a)(12) and (59).
                                                                                                          considered the proposed rule’s impact on
                                                                                                                                                                  1 15 U.S.C. 78s(b)(1).
                                                  14 For purposes only of waiving the 30-day              efficiency, competition, and capital formation. See
                                                operative delay, the Commission has also                  15 U.S.C. 78c(f).                                       2 17 CFR 240.19b–4.




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Document Created: 2016-01-16 01:05:43
Document Modified: 2016-01-16 01:05:43
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 1261 

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