81 FR 13433 - Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Plan for the Purpose of Developing and Implementing Procedures Designed To Facilitate the Listing and Trading of Standardized Options To Add ISE Mercury, LLC as a Plan Sponsor

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 49 (March 14, 2016)

Page Range		13433-13434
FR Document		2016-05598
Federal Register, Volume 81 Issue 49 (Monday, March 14, 2016)
[Federal Register Volume 81, Number 49 (Monday, March 14, 2016)]
[Notices]
[Pages 13433-13434]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-05598]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77323; File No. 4-443]


Joint Industry Plan; Notice of Filing and Immediate Effectiveness 
of Amendment to the Plan for the Purpose of Developing and Implementing 
Procedures Designed To Facilitate the Listing and Trading of 
Standardized Options To Add ISE Mercury, LLC as a Plan Sponsor

March 8, 2016.
    Pursuant to Section 11A(a)(3) of the Securities Exchange Act of 
1934 (``Act'') \1\ and Rule 608 thereunder,\2\ notice is hereby given 
that on February 11, 2016, ISE Mercury, LLC (``ISE Mercury'' or 
``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') an amendment to the Plan for the Purpose of Developing 
and Implementing Procedures Designed to Facilitate the Listing and 
Trading of Standardized Options (``OLPP'').\3\ The amendment adds ISE 
Mercury as a Sponsor \4\ of the OLPP. The Commission is publishing this 
notice to solicit comments on the amendment from interested persons.
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    \1\ 15 U.S.C. 78k-1(a)(3).
    \2\ 17 CFR 242.608.
    \3\ On July 6, 2001, the Commission approved the OLPP, which was 
proposed by the American Stock Exchange LLC (``Amex''), Chicago 
Board Options Exchange, Incorporated (``CBOE''), International 
Securities Exchange LLC (``ISE''), Options Clearing Corporation 
(``OCC''), Philadelphia Stock Exchange, Inc. (``Phlx''), and Pacific 
Exchange, Inc. (n/k/a ``NYSE Arca''). See Securities Exchange Act 
Release No. 44521, 66 FR 36809 (July 13, 2001). See also Securities 
Exchange Act Release Nos. 49199 (February 5, 2004), 69 FR 7030 
(February 12, 2004) (adding Boston Stock Exchange, Inc. as a Sponsor 
to the OLPP); 57546 (March 21, 2008), 73 FR 16393 (March 27, 2008) 
(adding Nasdaq Stock Market, LLC (``Nasdaq'') as a Sponsor to the 
OLPP); 61528 (February 17, 2010), 75 FR 8415 (February 24, 2010) 
(adding BATS Exchange, Inc. (``BATS'') as a Sponsor to the OLPP); 
63162 (October 22, 2010), 75 FR 66401 (October 28, 2010) (adding C2 
Options Exchange Incorporated (``C2'') as a sponsor to the OLPP); 
66952 (May 9, 2012), 77 FR 28641 (May 15, 2012) (adding BOX Options 
Exchange LLC (``BOX'') as a Sponsor to the OLPP); 67327 (June 29, 
2012), 77 FR 40125 (July 6, 2012) (adding Nasdaq OMX BX, Inc. 
(``BX'') as a Sponsor to the OLPP); 70765 (October 28, 2013), 78 FR 
65739 (November 1, 2013) (adding Topaz Exchange, LLC as a Sponsor to 
the OLPP (``Topaz''); 70764 (October 28, 2013), 78 FR 65733 
(November 1, 2013) (adding Miami International Securities Exchange, 
LLC (``MIAX'') as a Sponsor to the OLPP); and 76822 (January 1, 
2016), 81 FR 1251 (January 11, 2016) (adding EDGX Exchange, Inc. 
(``EDGX'') as a Sponsor to the OLPP).
    \4\ A ``Sponsor'' is an Eligible Exchange whose participation in 
the OLPP has become effective pursuant to Section 7 of the Plan.
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I. Description and Purpose of the Amendment

    The OLPP establishes procedures designed to facilitate the listing 
and trading of standardized options contracts on the options exchanges. 
The amendment to the OLPP adds ISE Mercury as a Sponsor. The other OLPP 
Sponsors are Amex, BATS, BOX, BX, CBOE, C2, EDGX, ISE, MIAX, Nasdaq, 
NYSE Arca, OCC, Phlx, and Topaz. ISE Mercury has submitted an executed 
copy of the OLPP to the Commission in accordance with the procedures 
set forth in the OLPP regarding new Sponsors. Section 7 of the OLPP 
provides for the entry of new Sponsors to the OLPP. Specifically, 
Section 7 of the OLPP provides that an Eligible Exchange \5\ may become 
a Sponsor of the OLPP by: (i) Executing a copy of the OLPP, as then in 
effect; (ii) providing each current Sponsor with a copy of such 
executed OLPP; and (iii) effecting an amendment to the OLPP, as 
specified in Section 7(ii) of the OLPP.
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    \5\ The OLPP defines an ``Eligible Exchange'' as a national 
securities exchange registered with the Commission pursuant to 
Section 6(a) of the Exchange Act, 15 U.S.C. 78f(a), that (1) has 
effective rules for the trading of options contracts issued and 
cleared by the OCC approved in accordance with the provisions of the 
Exchange Act and the rules and regulations thereunder and (2) is a 
party to the Plan for Reporting Consolidated Options Last Sale 
Reports and Quotation Information (the ``OPRA Plan''). ISE Mercury 
has represented that it has met both the requirements for being 
considered an Eligible Exchange. See letter from Michael Simon, 
Secretary, ISE, to Brent J. Fields, Secretary, Commission, dated 
February 9, 2016.
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    Section 7(ii) of the OLPP sets forth the process by which an 
Eligible Exchange may effect an amendment to the OLPP. Specifically, an 
Eligible Exchange must: (a) Execute a copy of the OLPP with the only 
change being the addition of the new Sponsor's name in Section 8 of the 
OLPP; \6\ and (b) submit the executed OLPP to the Commission. The OLPP 
then provides that such an amendment will be effective when the 
amendment is approved by the Commission or otherwise becomes effective 
pursuant to Section 11A of the Act and Rule 608 thereunder.
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    \6\ The Commission notes that the list of Sponsors is set forth 
in Section 9 of the OLPP.
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II. Effectiveness of the OLPP Amendment

    The foregoing OLPP amendment has become effective pursuant to Rule 
608(b)(3)(iii) \7\ because it involves solely technical or ministerial 
matters. At any time within sixty days of the filing of this amendment, 
the Commission may summarily abrogate the amendment and require that it 
be refiled pursuant to paragraph (a)(1) of Rule 608,\8\ if it appears 
to the Commission that such action is necessary or appropriate in the 
public interest, for the protection of investors or the maintenance of 
fair and orderly markets, to remove impediments to, and perfect the 
mechanisms of, a national market system or otherwise in furtherance of 
the purposes of the Act.
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    \7\ 17 CFR 242.608(b)(3)(iii).
    \8\ 17 CFR 242.608(a)(1).
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III. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the amendment 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 4-443 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 4-443. This file number 
should be included on the subject line if email is used. To help the 
Commission

[[Page 13434]]

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 such filing also will be available for inspection 
and copying at ISE Mercury's principal office. 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 No. 4-443 and should be submitted on or before 
April 4, 2016.

    By the Commission.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-05598 Filed 3-11-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Notices 13433

CBOE’s ability to surveil for potential amendment adds ISE Mercury as a an amendment to the OLPP, as specified
manipulation in EAFE and EM options Sponsor 4 of the OLPP. The Commission in Section 7(ii) of the OLPP.
or adversely affect market participants. is publishing this notice to solicit Section 7(ii) of the OLPP sets forth the
The Commission further believes that comments on the amendment from process by which an Eligible Exchange
approval of this proposal on an interested persons. may effect an amendment to the OLPP.
accelerated basis should benefit Specifically, an Eligible Exchange must:
investors by creating, without undue I. Description and Purpose of the (a) Execute a copy of the OLPP with the
delay, additional competition in the Amendment only change being the addition of the
market for these and similar products. new Sponsor’s name in Section 8 of the
The OLPP establishes procedures
Accordingly, the Commission finds OLPP; 6 and (b) submit the executed
designed to facilitate the listing and OLPP to the Commission. The OLPP
good cause, pursuant to Section 19(b)(2)
of the Act,15 to approve the proposed trading of standardized options then provides that such an amendment
rule change prior to the 30th day after contracts on the options exchanges. The will be effective when the amendment
the date of publication of the notice of amendment to the OLPP adds ISE is approved by the Commission or
filing thereof in the Federal Register. Mercury as a Sponsor. The other OLPP otherwise becomes effective pursuant to
Sponsors are Amex, BATS, BOX, BX, Section 11A of the Act and Rule 608
V. Conclusion CBOE, C2, EDGX, ISE, MIAX, Nasdaq, thereunder.
It is therefore ordered, pursuant to NYSE Arca, OCC, Phlx, and Topaz. ISE
Section 19(b)(2) of the Act,16 that the Mercury has submitted an executed II. Effectiveness of the OLPP
proposed rule change (SR–CBOE–2016– copy of the OLPP to the Commission in Amendment
016) be, and hereby is, approved on an accordance with the procedures set The foregoing OLPP amendment has
accelerated basis. forth in the OLPP regarding new become effective pursuant to Rule
For the Commission, by the Division of Sponsors. Section 7 of the OLPP 608(b)(3)(iii) 7 because it involves solely
Trading and Markets, pursuant to delegated provides for the entry of new Sponsors technical or ministerial matters. At any
authority.17 to the OLPP. Specifically, Section 7 of time within sixty days of the filing of
Robert W. Errett, the OLPP provides that an Eligible this amendment, the Commission may
Deputy Secretary. Exchange 5 may become a Sponsor of summarily abrogate the amendment and
[FR Doc. 2016–05587 Filed 3–11–16; 8:45 am] the OLPP by: (i) Executing a copy of the require that it be refiled pursuant to
OLPP, as then in effect; (ii) providing paragraph (a)(1) of Rule 608,8 if it
BILLING CODE 8011–01–P
appears to the Commission that such
each current Sponsor with a copy of
action is necessary or appropriate in the
such executed OLPP; and (iii) effecting
SECURITIES AND EXCHANGE public interest, for the protection of
COMMISSION investors or the maintenance of fair and
‘‘NYSE Arca’’). See Securities Exchange Act Release
No. 44521, 66 FR 36809 (July 13, 2001). See also
orderly markets, to remove impediments
[Release No. 34–77323; File No. 4–443] to, and perfect the mechanisms of, a
Securities Exchange Act Release Nos. 49199
(February 5, 2004), 69 FR 7030 (February 12, 2004) national market system or otherwise in
Joint Industry Plan; Notice of Filing (adding Boston Stock Exchange, Inc. as a Sponsor furtherance of the purposes of the Act.
and Immediate Effectiveness of to the OLPP); 57546 (March 21, 2008), 73 FR 16393
Amendment to the Plan for the (March 27, 2008) (adding Nasdaq Stock Market, LLC III. Solicitation of Comments
Purpose of Developing and (‘‘Nasdaq’’) as a Sponsor to the OLPP); 61528
(February 17, 2010), 75 FR 8415 (February 24, 2010) Interested persons are invited to
Implementing Procedures Designed To (adding BATS Exchange, Inc. (‘‘BATS’’) as a submit written data, views, and
Facilitate the Listing and Trading of Sponsor to the OLPP); 63162 (October 22, 2010), 75 arguments concerning the foregoing,
Standardized Options To Add ISE FR 66401 (October 28, 2010) (adding C2 Options
including whether the amendment is
Mercury, LLC as a Plan Sponsor Exchange Incorporated (‘‘C2’’) as a sponsor to the
OLPP); 66952 (May 9, 2012), 77 FR 28641 (May 15, consistent with the Act. Comments may
March 8, 2016. 2012) (adding BOX Options Exchange LLC (‘‘BOX’’) be submitted by any of the following
as a Sponsor to the OLPP); 67327 (June 29, 2012), methods:
Pursuant to Section 11A(a)(3) of the 77 FR 40125 (July 6, 2012) (adding Nasdaq OMX
Securities Exchange Act of 1934 BX, Inc. (‘‘BX’’) as a Sponsor to the OLPP); 70765 Electronic Comments
(‘‘Act’’) 1 and Rule 608 thereunder,2 (October 28, 2013), 78 FR 65739 (November 1, 2013)
notice is hereby given that on February (adding Topaz Exchange, LLC as a Sponsor to the • Use the Commission’s Internet
11, 2016, ISE Mercury, LLC (‘‘ISE OLPP (‘‘Topaz’’); 70764 (October 28, 2013), 78 FR comment form (http://www.sec.gov/
65733 (November 1, 2013) (adding Miami rules/sro.shtml); or
Mercury’’ or ‘‘Exchange’’) filed with the International Securities Exchange, LLC (‘‘MIAX’’) as
Securities and Exchange Commission a Sponsor to the OLPP); and 76822 (January 1,
• Send an email to rule-
(‘‘Commission’’) an amendment to the 2016), 81 FR 1251 (January 11, 2016) (adding EDGX comments@sec.gov. Please include File
Plan for the Purpose of Developing and Exchange, Inc. (‘‘EDGX’’) as a Sponsor to the OLPP). Number 4–443 on the subject line.
4 A ‘‘Sponsor’’ is an Eligible Exchange whose
Implementing Procedures Designed to participation in the OLPP has become effective Paper Comments
Facilitate the Listing and Trading of pursuant to Section 7 of the Plan.
• Send paper comments in triplicate
Standardized Options (‘‘OLPP’’).3 The 5 The OLPP defines an ‘‘Eligible Exchange’’ as a

national securities exchange registered with the to Secretary, Securities and Exchange
15 15 U.S.C. 78s(b)(2). Commission pursuant to Section 6(a) of the Commission, 100 F Street NE.,
16 15 U.S.C. 78s(b)(2).
Exchange Act, 15 U.S.C. 78f(a), that (1) has effective Washington, DC 20549–1090.
rules for the trading of options contracts issued and
17 17 CFR 200.30–3(a)(12).
cleared by the OCC approved in accordance with All submissions should refer to File
jstallworth on DSK7TPTVN1PROD with NOTICES

1 15 U.S.C. 78k–1(a)(3).
the provisions of the Exchange Act and the rules Number 4–443. This file number should
2 17 CFR 242.608.
and regulations thereunder and (2) is a party to the be included on the subject line if email
3 On July 6, 2001, the Commission approved the Plan for Reporting Consolidated Options Last Sale is used. To help the Commission
OLPP, which was proposed by the American Stock Reports and Quotation Information (the ‘‘OPRA
Exchange LLC (‘‘Amex’’), Chicago Board Options Plan’’). ISE Mercury has represented that it has met
6 The Commission notes that the list of Sponsors
Exchange, Incorporated (‘‘CBOE’’), International both the requirements for being considered an
Securities Exchange LLC (‘‘ISE’’), Options Clearing Eligible Exchange. See letter from Michael Simon, is set forth in Section 9 of the OLPP.
7 17 CFR 242.608(b)(3)(iii).
Corporation (‘‘OCC’’), Philadelphia Stock Exchange, Secretary, ISE, to Brent J. Fields, Secretary,
Inc. (‘‘Phlx’’), and Pacific Exchange, Inc. (n/k/a Commission, dated February 9, 2016. 8 17 CFR 242.608(a)(1).

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13434 Federal Register / Vol. 81, No. 49 / Monday, March 14, 2016 / Notices

process and review your comments comment on February 19, 2016.1 The the applicable financial responsibility
more efficiently, please use only one Commission received no comments on rules. On its face, Rule 17d–1 deals only
method. The Commission will post all the Plan. This order approves and with an SRO’s obligations to enforce
comments on the Commission’s Internet declares effective the Plan. member compliance with financial
Web site (http://www.sec.gov/rules/ responsibility requirements. Rule 17d–1
I. Introduction
sro.shtml). Copies of the submission, all does not relieve an SRO from its
subsequent amendments, all written Section 19(g)(1) of the Securities obligation to examine a common
statements with respect to the proposed Exchange Act of 1934 (‘‘Act’’),2 among member for compliance with its own
rule change that are filed with the other things, requires every self- rules and provisions of the federal
Commission, and all written regulatory organization (‘‘SRO’’) securities laws governing matters other
registered as either a national securities than financial responsibility, including
communications relating to the
exchange or national securities sales practices and trading activities and
proposed rule change between the
association to examine for, and enforce practices.
Commission and any person, other than
compliance by, its members and persons To address regulatory duplication in
those that may be withheld from the associated with its members with the these and other areas, the Commission
public in accordance with the Act, the rules and regulations adopted Rule 17d–2 under the Act.8
provisions of 5 U.S.C. 552, will be thereunder, and the SRO’s own rules, Rule 17d–2 permits SROs to propose
available for Web site viewing and unless the SRO is relieved of this joint plans for the allocation of
printing in the Commission’s Public responsibility pursuant to Section 17(d) regulatory responsibilities with respect
Reference Room, 100 F Street NE., or Section 19(g)(2) of the Act.3 Without to their common members. Under
Washington, DC 20549, on official this relief, the statutory obligation of paragraph (c) of Rule 17d–2, the
business days between the hours of each individual SRO could result in a Commission may declare such a plan
10:00 a.m. and 3:00 p.m. Copies of such pattern of multiple examinations of effective if, after providing for
filing also will be available for broker-dealers that maintain appropriate notice and comment, it
inspection and copying at ISE Mercury’s memberships in more than one SRO determines that the plan is necessary or
principal office. All comments received (‘‘common members’’). Such regulatory appropriate in the public interest and
will be posted without change; the duplication would add unnecessary for the protection of investors; to foster
Commission does not edit personal expenses for common members and cooperation and coordination among the
identifying information from their SROs. SROs; to remove impediments to, and
submissions. You should submit only Section 17(d)(1) of the Act 4 was foster the development of, a national
information that you wish to make intended, in part, to eliminate market system and a national clearance
available publicly. All submissions unnecessary multiple examinations and and settlement system; and is in
should refer to File No. 4–443 and regulatory duplication.5 With respect to conformity with the factors set forth in
should be submitted on or before April a common member, Section 17(d)(1) Section 17(d) of the Act. Commission
4, 2016. authorizes the Commission, by rule or approval of a plan filed pursuant to Rule
order, to relieve an SRO of the 17d–2 relieves an SRO of those
By the Commission. responsibility to receive regulatory regulatory responsibilities allocated by
Robert W. Errett, reports, to examine for and enforce the plan to another SRO.
Deputy Secretary. compliance with applicable statutes,
rules, and regulations, or to perform II. Proposed Plan
[FR Doc. 2016–05598 Filed 3–11–16; 8:45 am]
BILLING CODE 8011–01–P
other specified regulatory functions. The proposed 17d–2 Plan is intended
To implement Section 17(d)(1), the to reduce regulatory duplication for
Commission adopted two rules: Rule firms that are common members of both
SECURITIES AND EXCHANGE 17d–1 and Rule 17d–2 under the Act.6 ISE Mercury and FINRA.9 Pursuant to
COMMISSION Rule 17d–1 authorizes the Commission the proposed 17d–2 Plan, FINRA would
to name a single SRO as the designated assume certain examination and
examining authority (‘‘DEA’’) to enforcement responsibilities for
[Release No. 34–77321; File No. 4–697] examine common members for common members with respect to
compliance with the financial certain applicable laws, rules, and
Program for Allocation of Regulatory
responsibility requirements imposed by regulations.
Responsibilities Pursuant to Rule 17d– The text of the Plan delineates the
the Act, or by Commission or SRO
2; Order Approving and Declaring proposed regulatory responsibilities
rules.7 When an SRO has been named as
Effective a Proposed Plan for the with respect to the Parties. Included in
a common member’s DEA, all other
Allocation of Regulatory the proposed Plan is an exhibit (the
SROs to which the common member
Responsibilities Between the Financial ‘‘ISE Mercury Certification of Common
belongs are relieved of the responsibility
Industry Regulatory Authority, Inc. and Rules,’’ referred to herein as the
to examine the firm for compliance with
ISE Mercury, LLC ‘‘Certification’’) that lists every ISE
March 8, 2016.
1 See Securities Exchange Act Release No. 77122 Mercury rule, and select federal
(February 11, 2016), 81 FR 8566. securities laws, rules, and regulations,
On February 9, 2016, ISE Mercury, 2 15 U.S.C. 78s(g)(1).
for which FINRA would bear
LLC (‘‘ISE Mercury’’) and the Financial 3 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2),

Industry Regulatory Authority, Inc. respectively. 8 See Securities Exchange Act Release No. 12935
jstallworth on DSK7TPTVN1PROD with NOTICES

4 15 U.S.C. 78q(d)(1).
(‘‘FINRA’’) (together with ISE Mercury, 5 See Securities Act Amendments of 1975, Report
(October 28, 1976), 41 FR 49091 (November 8,
the ‘‘Parties’’) filed with the Securities 1976).
of the Senate Committee on Banking, Housing, and 9 The proposed 17d–2 Plan refers to these
and Exchange Commission Urban Affairs to Accompany S. 249, S. Rep. No. 94– common members as ‘‘Dual Members.’’ See
(‘‘Commission’’ or ‘‘SEC’’) a plan for the 75, 94th Cong., 1st Session 32 (1975). Paragraph 1(c) of the proposed 17d–2 Plan. On
6 17 CFR 240.17d–1 and 17 CFR 240.17d–2,
allocation of regulatory responsibilities, January 29, 2016, the Commission approved ISE
respectively. Mercury’s application for registration as a national
dated February 8, 2016 (‘‘17d–2 Plan’’ or 7 See Securities Exchange Act Release No. 12352 securities exchange. See Securities Exchange Act
the ‘‘Plan’’). The Plan was published for (April 20, 1976), 41 FR 18808 (May 7, 1976). Release No. 76998, 81 FR 6066 (February 4, 2016).

VerDate Sep<11>2014 14:27 Mar 11, 2016 Jkt 238001 PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 E:\FR\FM\14MRN1.SGM 14MRN1
Document Created: 2016-03-12 01:00:37
Document Modified: 2016-03-12 01:00:37
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 13433