81 FR 16238 - Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 58 (March 25, 2016)
Federal Register Volume 81, Issue 58 (March 25, 2016)
| Page Range | 16238-16240 | |
| FR Document | 2016-06746 |
[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)] [Notices] [Pages 16238-16240] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-06746] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77412; File No. SR-ISEMercury-2016-06] Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees March 21, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on March 10, 2016, ISE Mercury, LLC (the ``Exchange'' or ``ISE Mercury'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change, as described in Items I, II, and III below, which Items have been prepared by the self-regulatory organization. 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 ISE Mercury proposes to amend its Schedule of Fees to count 100% of eligible traded volume preferenced to a Market Maker towards that member's volume tiers. The text of the proposed rule change is available on the Exchange's Internet Web site at http://www.ise.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 self-regulatory organization 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 On March 10, 2016, ISE Mercury filed a proposed rule change to introduce fee and rebate tiers for Market Maker \3\ and Priority Customer \4\ orders based on the average daily volume (``ADV'') that a member executes in Priority Customer orders.\5\ Pursuant to that proposed rule change, the Exchange will assess fees and rebates for Market Maker and Priority Customer orders based on five tiers of Total Affiliated Priority Customer ADV: \6\ 0-19,999 contracts (``Tier 1''), 20,000-39,999 contracts (``Tier 2''), 40,000-59,999 contracts (``Tier 3''), 60,000-79,999 contracts (``Tier 4''), and 80,000 or more contracts (``Tier 5'').\7\ As is the case on ISE Mercury's affiliated exchanges--the International Securities Exchange, LLC (``ISE'') and ISE Gemini, LLC (``ISE Gemini'')--the Exchange's ADV calculation will also include volume executed by affiliated members. In particular, the Exchange will aggregate all eligible volume from affiliated members in determining applicable tiers, provided that there is at least 75% common ownership between the members as reflected on the member's Form BD, Schedule A. While this method of aggregating volume is beneficial to large firms with multiple affiliated members, the Exchange believes that it is important to give smaller firms the ability to compete for more favorable fees and rebates. The Exchange therefore proposes to adopt ADV tiers that are based on preferenced volume--i.e., volume directed to a specific Market Maker as provided in Supplementary Material .03 to Rule 713.\8\ In particular, the Exchange proposes to give Market Makers volume credit for 100% of eligible traded volume preferenced to that member,\9\ regardless of the actual allocation that the Market Maker receives. For example, assume Market Maker ABC is quoting at the national best bid or offer (``NBBO'') and receives a Preferenced Order for 10 contracts from an unaffiliated firm for the account of a Priority Customer. If there are other Market Makers quoting at the NBBO, Market Maker ABC may receive an allocation of 4 contracts--i.e., 40% of the order. Rather than counting only the 4 contracts executed towards [[Page 16239]] the Market Maker's volume total, the Exchange now proposes to give that Market Maker credit for the full 10 contracts preferenced to it. This is the same credit the member would receive if the 10 contracts were sent to the exchange by an affiliated member, and the Exchange believes that this will put smaller Market Makers on more equal footing with large firms that benefit from affiliated volume. --------------------------------------------------------------------------- \3\ The term Market Makers refers to ``Competitive Market Makers'' and ``Primary Market Makers'' collectively. \4\ A ``Priority Customer'' is a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s), as defined in ISE Mercury Rule 100(a)(37A). \5\ See ISE Mercury-2016-05. \6\ The Total Affiliated Priority Customer ADV category includes all Priority Customer volume executed on the Exchange in all symbols and order types, including volume executed in the PIM, Facilitation, and QCC mechanisms. \7\ The highest tier threshold attained applies retroactively in a given month to all eligible traded contracts and applies to all eligible market participants. Any day that the market is not open for the entire trading day or the Exchange instructs members in writing to route their orders to other markets may be excluded from the ADV calculation; provided that the Exchange will only remove the day for members that would have a lower ADV with the day included. \8\ An Electronic Access Member (``EAM'') may designate a ``Preferred Market Maker'' on orders it enters into the System (``Preferenced Orders''). Supplementary Material .03 to Rule 713 describes the Exchange's rules concerning Preferenced Orders. \9\ ``Eligible volume'' refers to volume that would otherwise count towards to applicable volume tier. In the case of ADV thresholds based on Total Affiliated Priority Customer ADV, as currently implemented on ISE Mercury, all Priority Customer volume would be ``eligible.'' See note 6 supra. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\10\ in general, and Section 6(b)(4) of the Act,\11\ in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. The Exchange believes that the proposed fee change is reasonable and equitable as it provides an additional way for members to increase volume used to qualify for lower fees and higher rebates. The Exchange has adopted volume based fees and rebates in another proposed rule change filed with the Commission. While volume based fees and rebates based on affiliated volume benefit Market Makers that have affiliated order routers, the Exchange believes that smaller Market Makers that attract order flow from non-affiliated firms should similarly be able to compete for more favorable fees and rebates. Preferred Market Makers attract order flow by establishing appropriate relationships with one or more EAMs that send Preferenced Orders to the Exchange. Although Preferred Market Makers may not be allocated the full volume orders preferenced to them, the Exchange believes that it is reasonable and equitable to give these Market Makers full credit for the volume of orders that they have attracted to ISE Mercury. This will put smaller Market Makers that are not affiliated with an order routing firm on more equal footing with large firms that benefit from affiliated volume today. In addition, the Exchange does not believe that it is unfairly discriminatory to provide this incentive specifically to Preferred Market Makers. As explained above, Preferred Market Makers attract order flow to the Exchange by establishing relationships with EAMs that direct Preferenced Orders to them. Moreover, all Market Makers are eligible to become Preferred Market Makers provided that they meet the quoting obligations expected of such firms.\12\ --------------------------------------------------------------------------- \10\ 15 U.S.C. 78f. \11\ 15 U.S.C. 78f(b)(4). \12\ Preferred Competitive Market Makers have quoting obligations that mirror those for Primary Market Makers. See Supplementary Material .03(d) to Rule 713 and Rule 804(e)(2)(iii). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\13\ the Exchange does not believe that the proposed rule change will impose any burden on intermarket or intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. To the contrary, the Exchange believes that the proposed rule change will increase competition by allowing smaller Market Makers to compete for more favorable fees and rebates. As currently implemented, Market Makers that are affiliated with an order router are advantaged relative to other firms in achieving volume based fees and rebates. Although the Exchange continues to believe that counting volume across affiliated members is appropriate,\14\ the Exchange also believes that Market Makers whose relationships attract Preference Orders should also receive similar benefits. As explained above, these Market Makers attract significant volume to the Exchange but currently only receive volume credit for a portion of that volume. The proposed rule change is designed to level the playing field between these members and their competitors that already benefit from affiliated volume. The Exchange operates in a highly competitive market in which market participants can readily direct their order flow to competing venues. For the reasons described above, the Exchange believes that the proposed fee change reflects this competitive environment. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78f(b)(8). \14\ See note 5 supra. --------------------------------------------------------------------------- C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Exchange has not solicited, and does not intend to solicit, comments on this proposed rule change. The Exchange has not received any unsolicited written comments from members or other interested parties. 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,\15\ and subparagraph (f)(2) of Rule 19b-4 thereunder,\16\ because it establishes a due, fee, or other charge imposed by ISE Mercury. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(ii). \16\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 CommentsUse 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-ISEMercury-2016-06 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-ISEMercury-2016-06. 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 [[Page 16240]] 10:00 a.m. and 3:00 p.m. Copies of such 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-ISEMercury-2016-06, and should be submitted on or before April 15, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-06746 Filed 3-24-16; 8:45 am] BILLING CODE 8011-01-P
![16238 Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Notices
copy of the order, the FOF Participation ‘‘Exchange’’ or ‘‘ISE Mercury’’) filed Customer ADV: 6 0–19,999 contracts
Agreement, and the list with any with the Securities and Exchange (‘‘Tier 1’’), 20,000–39,999 contracts
updated information for the duration of Commission (‘‘Commission’’) the (‘‘Tier 2’’), 40,000–59,999 contracts
the investment and for a period of not proposed rule change, as described in (‘‘Tier 3’’), 60,000–79,999 contracts
less than six years thereafter, the first Items I, II, and III below, which Items (‘‘Tier 4’’), and 80,000 or more contracts
two years in an easily accessible place. have been prepared by the self- (‘‘Tier 5’’).7 As is the case on ISE
10. Before approving any advisory regulatory organization. The Mercury’s affiliated exchanges—the
contract under section 15 of the Act, the Commission is publishing this notice to International Securities Exchange, LLC
board of directors or trustees of each solicit comments on the proposed rule (‘‘ISE’’) and ISE Gemini, LLC (‘‘ISE
Investing Management Company change from interested persons. Gemini’’)—the Exchange’s ADV
including a majority of the disinterested calculation will also include volume
directors or trustees, will find that the I. Self-Regulatory Organization’s executed by affiliated members. In
advisory fees charged under such Statement of the Terms of Substance of particular, the Exchange will aggregate
contract are based on services provided the Proposed Rule Change all eligible volume from affiliated
that will be in addition to, rather than ISE Mercury proposes to amend its members in determining applicable
duplicative of, the services provided Schedule of Fees to count 100% of tiers, provided that there is at least 75%
under the advisory contract(s) of any eligible traded volume preferenced to a common ownership between the
Fund in which the Investing Market Maker towards that member’s members as reflected on the member’s
Management Company may invest. volume tiers. The text of the proposed Form BD, Schedule A. While this
These findings and their basis will be rule change is available on the method of aggregating volume is
fully recorded in the minute books of Exchange’s Internet Web site at http:// beneficial to large firms with multiple
the appropriate Investing Management www.ise.com, at the principal office of affiliated members, the Exchange
Company. the Exchange, and at the Commission’s believes that it is important to give
11. Any sales charges and/or service Public Reference Room. smaller firms the ability to compete for
fees charged with respect to shares of a more favorable fees and rebates. The
Fund of Funds will not exceed the II. Self-Regulatory Organization’s Exchange therefore proposes to adopt
limits applicable to a fund of funds as Statement of the Purpose of, and ADV tiers that are based on preferenced
set forth in NASD Conduct Rule 2830. Statutory Basis for, the Proposed Rule volume—i.e., volume directed to a
12. No Fund will acquire securities of Change specific Market Maker as provided in
an investment company or company Supplementary Material .03 to Rule
relying on section 3(c)(1) or 3(c)(7) of In its filing with the Commission, the
Exchange included statements 713.8 In particular, the Exchange
the Act in excess of the limits contained proposes to give Market Makers volume
in section 12(d)(1)(A) of the Act, except concerning the purpose of, and basis for,
credit for 100% of eligible traded
to the extent the Fund acquires the proposed rule change and discussed
volume preferenced to that member,9
securities of another investment any comments it received on the
regardless of the actual allocation that
company pursuant to exemptive relief proposed rule change. The text of these
the Market Maker receives. For example,
from the Commission permitting the statements may be examined at the
assume Market Maker ABC is quoting at
Fund to acquire securities of one or places specified in Item IV below. The
the national best bid or offer (‘‘NBBO’’)
more investment companies for short- self-regulatory organization has
and receives a Preferenced Order for 10
term cash management purposes. prepared summaries, set forth in
contracts from an unaffiliated firm for
Sections A, B and C below, of the most
For the Commission, by the Division of the account of a Priority Customer. If
significant aspects of such statements.
Investment Management, under delegated there are other Market Makers quoting at
authority. A. Self-Regulatory Organization’s the NBBO, Market Maker ABC may
Brent J. Fields, Statement of the Purpose of, and receive an allocation of 4 contracts—i.e.,
Secretary. Statutory Basis for, the Proposed Rule 40% of the order. Rather than counting
[FR Doc. 2016–06785 Filed 3–24–16; 8:45 am] Change only the 4 contracts executed towards
BILLING CODE 8011–01–P 1. Purpose 6 The Total Affiliated Priority Customer ADV
category includes all Priority Customer volume
On March 10, 2016, ISE Mercury filed executed on the Exchange in all symbols and order
SECURITIES AND EXCHANGE a proposed rule change to introduce fee types, including volume executed in the PIM,
COMMISSION and rebate tiers for Market Maker 3 and Facilitation, and QCC mechanisms.
7 The highest tier threshold attained applies
[Release No. 34–77412; File No. SR– Priority Customer 4 orders based on the
retroactively in a given month to all eligible traded
ISEMercury–2016–06] average daily volume (‘‘ADV’’) that a contracts and applies to all eligible market
member executes in Priority Customer participants. Any day that the market is not open
Self-Regulatory Organizations; ISE orders.5 Pursuant to that proposed rule for the entire trading day or the Exchange instructs
change, the Exchange will assess fees members in writing to route their orders to other
Mercury, LLC; Notice of Filing and markets may be excluded from the ADV calculation;
Immediate Effectiveness of Proposed and rebates for Market Maker and provided that the Exchange will only remove the
Rule Change To Amend the Schedule Priority Customer orders based on five day for members that would have a lower ADV with
of Fees tiers of Total Affiliated Priority the day included.
8 An Electronic Access Member (‘‘EAM’’) may
asabaliauskas on DSK3SPTVN1PROD with NOTICES
March 21, 2016. designate a ‘‘Preferred Market Maker’’ on orders it
3 The term Market Makers refers to ‘‘Competitive
enters into the System (‘‘Preferenced Orders’’).
Pursuant to Section 19(b)(1) of the Market Makers’’ and ‘‘Primary Market Makers’’ Supplementary Material .03 to Rule 713 describes
Securities Exchange Act of 1934 (the collectively. the Exchange’s rules concerning Preferenced
‘‘Act’’),1 and Rule 19b–4 thereunder,2 4 A ‘‘Priority Customer’’ is a person or entity that
Orders.
notice is hereby given that on March 10, is not a broker/dealer in securities, and does not 9 ‘‘Eligible volume’’ refers to volume that would
place more than 390 orders in listed options per day otherwise count towards to applicable volume tier.
2016, ISE Mercury, LLC (the on average during a calendar month for its own In the case of ADV thresholds based on Total
beneficial account(s), as defined in ISE Mercury Affiliated Priority Customer ADV, as currently
1 15 U.S.C. 78s(b)(1). Rule 100(a)(37A). implemented on ISE Mercury, all Priority Customer
2 17 CFR 240.19b–4. 5 See ISE Mercury–2016–05. volume would be ‘‘eligible.’’ See note 6 supra.
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![16240 Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Notices
10:00 a.m. and 3:00 p.m. Copies of such II. Self-Regulatory Organization’s when trading against Non-Priority
filing also will be available for Statement of the Purpose of, and Customer orders.
inspection and copying at the principal Statutory Basis for, the Proposed Rule
The Member Volume Program
office of the Exchange. All comments Change
received will be posted without change; Currently, the fees and rebates
In its filing with the Commission, the
the Commission does not edit personal assessed for Regular Orders in standard
Exchange included statements
identifying information from options that are in the Penny Pilot are:
concerning the purpose of, and basis for,
submissions. You should submit only (1) $0.20 per contract for Market Maker
the proposed rule change and discussed
information that you wish to make orders,8 (2) $0.47 per contract for Non-
any comments it received on the
available publicly. All submissions ISE Mercury Market Maker,9 Firm
proposed rule change. The text of these
should refer to File Number SR– Proprietary 10/Broker-Dealer,11 and
statements may be examined at the
ISEMercury–2016–06, and should be Professional Customer 12 orders; and (3)
places specified in Item IV below. The
submitted on or before April 15, 2016. ($0.18) per contract for Priority
self-regulatory organization has
Customer orders. The transaction fees
For the Commission, by the Division of prepared summaries, set forth in
and rebates assessed for Regular Orders
Trading and Markets, pursuant to delegated Sections A, B and C below, of the most
authority.17
that are not in the Penny Pilot are: (1)
significant aspects of such statements.
$0.20 per contract for Market Maker
Brent J. Fields,
A. Self-Regulatory Organization’s orders; (2) $0.90 per contract for Non-
Secretary. Statement of the Purpose of, and ISE Mercury Market Maker, Firm
[FR Doc. 2016–06746 Filed 3–24–16; 8:45 am] Statutory Basis for, the Proposed Rule Proprietary/Broker-Dealer, and
BILLING CODE 8011–01–P Change Professional Customer orders; and (3)
($0.18) per contract for Priority
1. Purpose
Customer orders.
SECURITIES AND EXCHANGE ISE Mercury is proposing to amend its The Exchange proposes to amend the
COMMISSION Schedule of Fees to establish volume- above fees and rebates so that they will
based tiered rebates and fees (the be based on a member’s ADV of Priority
[Release No. 34–77409; File No. SR– ‘‘Member Volume Program’’ or ‘‘MVP’’).
ISEMercury–2016–05]
Customer orders traded in a given
The MVP tiers are determined by a month and the highest tier threshold
Self-Regulatory Organizations; ISE member’s average daily volume attained applies retroactively in a given
Mercury, LLC; Notice of Filing and (‘‘ADV’’) of Priority Customer 3 Regular month to all eligible traded contracts
Immediate Effectiveness of Proposed Orders,4 in Penny and Non-Penny Pilot and applies to all eligible market
Rule Change To Amend the Schedule Symbols,5 traded on the Exchange. The participants. This Priority Customer
of Fees Exchange will also aggregate the trading ADV includes all Priority Customer
activity of affiliated members in volume executed on the Exchange in all
March 21, 2016. determining this ADV.6 ISE Mercury symbols and order types, including
Pursuant to Section 19(b)(1) of the believes the proposed fee and rebate volume executed in the Price
Securities Exchange Act of 1934 (the tiers will incentivize firms to increase Improvement Mechanism (‘‘PIM’’) and
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Priority Customer order flow to the the Facilitation and Qualified
notice is hereby given that on March 10, Exchange. The Exchange is also Contingent Cross mechanisms.
2016, ISE Mercury, LLC (the proposing Penny and Non-Penny Further, the Exchange will aggregate
‘‘Exchange’’ or ‘‘ISE Mercury’’) filed Symbol fees for both Crossing Orders the trading activity of separate members
with the Securities and Exchange and Responses to Crossing Orders. in calculating Priority Customer ADV
Commission (‘‘Commission’’) the Finally, the Exchange proposes to offer provided there is at least 75% common
proposed rule change, as described in Market Makers 7 a per contract discount ownership between the firms as
Items I, II, and III below, which Items reflected on each firm’s Form BD,
3 A Priority Customer is a person or entity that is
have been prepared by the self- Schedule A. The Exchange believes that
not a broker/dealer in securities, and does not place
regulatory organization. The more than 390 orders in listed options per day on
aggregating this volume across members
Commission is publishing this notice to average during a calendar month for its own that share at least 75% common
solicit comments on the proposed rule beneficial account(s). ownership will allow members to
4 A Regular Order is an order that consists of only
change from interested persons. continue to execute trades on the
a single option series and is not submitted with a
stock leg.
Exchange through separate broker-
I. Self-Regulatory Organization’s dealer entities for different types of
5 Under the Penny Pilot, the minimum price
Statement of the Terms of Substance of
variation for all participating options classes, except
the Proposed Rule Change for the Nasdaq-100 Index Tracking Stock (‘‘QQQ’’), collectively. Market Maker orders sent to the
ISE Mercury proposes to amend its the SPDR S&P 500 Exchange Traded Fund (‘‘SPY’’) Exchange by an Electronic Access Member are
and the iShares Russell 2000 Index Fund (‘‘IWM’’), assessed fees at the same level as Market Maker
Schedule of Fees by adopting volume- is $0.01 for all quotations in options series that are orders.
based tiered rebates and fees. These tiers quoted at less than $3 per contract and $0.05 for 8 This fee applies to ISE Mercury Market Maker
are determined by a member’s average all quotations in options series that are quoted at orders sent to the Exchange by Electronic Access
$3 per contract or greater. The proposed fees and
daily volume of Priority Customer rebates for Penny Pilot symbols apply to all classes
Members.
9 A Non-ISE Mercury Market Maker, or Far Away
orders traded on the Exchange. The text in the Penny Pilot, i.e., to series that are quoted at
Market Maker (‘‘FARMM’’), is a market maker as
asabaliauskas on DSK3SPTVN1PROD with NOTICES
of the proposed rule change is available less than $3 that have a minimum price variation
defined in Section 3(a)(38) of the Securities
on the Exchange’s Internet Web site at of $0.01 and to series that are quoted at $3 or more
that have an minimum price variation of $0.05. Exchange Act of 1934, as amended (‘‘Exchange
http://www.ise.com, at the principal QQQ, SPY, and IWM are quoted in $0.01 Act’’), registered in the same options class on
office of the Exchange, and at the increments for all options series. another options exchange.
10 A Firm Proprietary order is an order submitted
Commission’s Public Reference Room. 6 Aggregation is necessary and appropriate
because certain members conduct customer and by a member for its own proprietary account.
11 A Broker-Dealer order is an order submitted by
market maker trading activity through separate but
17 17 CFR 200.30–3(a)(12). related broker-dealers. a member for a non-member broker-dealer account.
1 15 U.S.C. 78s(b)(1). 7 The term Market Makers refers to ‘‘Competitive 12 A Professional Customer is a person who is not
2 17 CFR 240.19b–4. Market Makers’’ and ‘‘Primary Market Makers’’ a broker/dealer and is not a Priority Customer.
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Document Created: 2018-02-02 15:18:10
Document Modified: 2018-02-02 15:18:10
| 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 16238 |
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