81 FR 44404 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 130 (July 7, 2016)
Federal Register Volume 81, Issue 130 (July 7, 2016)
| Page Range | 44404-44406 | |
| FR Document | 2016-16030 |
[Federal Register Volume 81, Number 130 (Thursday, July 7, 2016)] [Notices] [Pages 44404-44406] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-16030] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78203; File No. SR-ISE-2016-15] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Penny Pilot Program June 30, 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 June 29, 2016, the International Securities Exchange, LLC (the ``Exchange'' or the ``ISE'') filed with the Securities and Exchange Commission the proposed rule change as described in Items I and II 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 The ISE proposes to amend its rules to extend a pilot program to quote and to trade certain options classes in penny increments (``Penny Pilot Program''). The text of the proposed rule change is available on the Exchange's Web site 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 self-regulatory organization 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 Under the Penny Pilot Program, the minimum price variation for all participating options classes, except for the Nasdaq-100 Index Tracking Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 increments for all options series. The Penny Pilot Program is currently scheduled to expire on June 30, 2016.\3\ The Exchange proposes to extend the Penny Pilot Program through December 31, 2016, and to provide a revised date for adding replacement issues to the Penny Pilot Program. The Exchange proposes that any Penny Pilot Program issues that have been delisted may be replaced on the second trading day following July 1, 2016. The replacement issues will be selected based on trading activity for the most recent six month period excluding the month immediately preceding the replacement (i.e., beginning December 1, 2015, and ending May 31, 2016). This filing does not propose any substantive changes to the Penny Pilot Program: All classes currently participating will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been [[Page 44405]] demonstrated to outweigh any increase in quote traffic. --------------------------------------------------------------------------- \3\ See Exchange Act Release No. 75312 (June 26, 2015), 80 FR 38251 (July 2, 2015) (SR-ISE-2015-21). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder that are applicable to a national securities exchange, and, in particular, with the requirements of Section 6(b) of the Act.\4\ Specifically, the proposed rule change is consistent with Section 6(b)(5) of the Act,\5\ because it is designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system and, in general, to protect investors and the public interest. In particular, the proposed rule change, which extends the Penny Pilot Program for an additional six months, will enable public customers and other market participants to express their true prices to buy and sell options to the benefit of all market participants. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\6\ 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. Specifically, the Exchange believes that, by extending the expiration of the Penny Pilot Program, the proposed rule change will allow for further analysis of the Penny Pilot Program and a determination of how the Penny Pilot Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b)(8). --------------------------------------------------------------------------- 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 written comments from members or other interested parties. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ 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 prior to 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 and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \8\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally does not become operative prior to 30 days after the date of the filing.\10\ However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program. Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\12\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change along with a brief description and the text of 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 pre-filing requirement. \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ For purposes only of waiving the operative delay for this proposal, the Commission has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 under Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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 No. SR-ISE-2016-15 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-ISE-2016-15. 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 inspection and copying in the Commission's Public Reference Room. Copies of such filing also will be available for inspection and copying at the principal office of the ISE. 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 [[Page 44406]] submissions should refer to File Number SR-ISE-2016-15 and should be submitted by July 28, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-16030 Filed 7-6-16; 8:45 am] BILLING CODE 8011-01-P
![44404 Federal Register / Vol. 81, No. 130 / Thursday, July 7, 2016 / Notices
rules/sro.shtml). Copies of the companies time to comply with the new the Exchange, and at the Commission’s
submission, all subsequent requirements, the Commission finds Public Reference Room.
amendments, all written statements good cause for approving the proposed
II. Self-Regulatory Organization’s
with respect to the proposed rule rule change, as modified by Amendment
Statement of the Purpose of, and
change that are filed with the No. 2, on an accelerated basis, pursuant
Statutory Basis for, the Proposed Rule
Commission, and all written to Section 19(b)(2) of the Act.42
communications relating to the Change
proposed rule change between the VII. Conclusion
In its filing with the Commission, the
Commission and any person, other than It is therefore ordered, pursuant to self-regulatory organization included
those that may be withheld from the Section 19(b)(2) of the Act,43 that the statements concerning the purpose of,
public in accordance with the proposed rule change (SR–NASDAQ– and basis for, the proposed rule change
provisions of 5 U.S.C. 552, will be 2016–013), as modified by Amendment and discussed any comments it received
available for Web site viewing and No. 2, be, and it hereby is, approved on on the proposed rule change. The text
printing in the Commission’s Public an accelerated basis. of these statements may be examined at
Reference Room, 100 F Street NE., For the Commission, by the Division of the places specified in Item IV below.
Washington, DC 20549, on official Trading and Markets, pursuant to delegated The self-regulatory organization has
business days between the hours of authority.44 prepared summaries, set forth in
10:00 a.m. and 3:00 p.m. Copies of the Brent J. Fields, sections A, B and C below, of the most
filing also will be available for Secretary. significant aspects of such statements.
inspection and copying at the principal
[FR Doc. 2016–16123 Filed 7–6–16; 8:45 am] A. Self-Regulatory Organization’s
office of the Exchange. All comments
received will be posted without change; BILLING CODE 8011–01–P Statement of the Purpose of, and
the Commission does not edit personal Statutory Basis for, the Proposed Rule
identifying information from Change
SECURITIES AND EXCHANGE
submissions. You should submit only 1. Purpose
COMMISSION
information that you wish to make
available publicly. All submissions Under the Penny Pilot Program, the
[Release No. 34–78203; File No. SR–ISE– minimum price variation for all
should refer to File Number SR– 2016–15]
NASDAQ–2016–013 and should be participating options classes, except for
submitted on or before July 28, 2016. Self-Regulatory Organizations; the Nasdaq–100 Index Tracking Stock
International Securities Exchange, (‘‘QQQQ’’), the SPDR S&P 500 Exchange
VI. Accelerated Approval of Proposed Traded Fund (‘‘SPY’’) and the iShares
Rule Change, as Modified by LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule Russell 2000 Index Fund (‘‘IWM’’), is
Amendment No. 2 $0.01 for all quotations in options series
Change To Extend the Penny Pilot
The Commission finds good cause to Program that are quoted at less than $3 per
approve the proposed rule change, as contract and $0.05 for all quotations in
modified by Amendment No. 2, prior to June 30, 2016. options series that are quoted at $3 per
the 30th day after the date of Pursuant to Section 19(b)(1) of the contract or greater. QQQQ, SPY and
publication of the notice of Amendment Securities Exchange Act of 1934 (the IWM are quoted in $0.01 increments for
No. 2 in the Federal Register. As noted ‘‘Act’’),1 and Rule 19b–4 thereunder,2 all options series. The Penny Pilot
above, in Amendment No. 2, the notice is hereby given that on June 29, Program is currently scheduled to
exchange clarified various aspects of the 2016, the International Securities expire on June 30, 2016.3 The Exchange
proposed rule’s applicability and Exchange, LLC (the ‘‘Exchange’’ or the proposes to extend the Penny Pilot
included new provisions that enhance ‘‘ISE’’) filed with the Securities and Program through December 31, 2016,
the proposal.40 The Commission Exchange Commission the proposed and to provide a revised date for adding
believes the clarifications in rule change as described in Items I and replacement issues to the Penny Pilot
Amendment No. 2 would provide II below, which items have been Program. The Exchange proposes that
market participants with greater prepared by the self-regulatory any Penny Pilot Program issues that
transparency regarding the requirements organization. The Commission is have been delisted may be replaced on
for listed companies to disclose publishing this notice to solicit the second trading day following July 1,
compensation or other payments by comments on the proposed rule change 2016. The replacement issues will be
third parties to board of director’s from interested persons. selected based on trading activity for the
members or nominees under Nasdaq’s most recent six month period excluding
rules. In addition, in Amendment No. 2, I. Self-Regulatory Organization’s the month immediately preceding the
the Exchange revised the proposed date Statement of the Terms of Substance of replacement (i.e., beginning December
of effectiveness of the proposed rule the Proposed Rule Change 1, 2015, and ending May 31, 2016). This
change.41 The Commission believes this The ISE proposes to amend its rules filing does not propose any substantive
revision will allow listed companies to extend a pilot program to quote and changes to the Penny Pilot Program: All
appropriate time to comply with the to trade certain options classes in penny classes currently participating will
proposed rule change. increments (‘‘Penny Pilot Program’’). remain the same and all minimum
Because Amendment No. 2 provided The text of the proposed rule change is increments will remain unchanged. The
srobinson on DSK5SPTVN1PROD with NOTICES
additional transparency to the available on the Exchange’s Web site Exchange believes the benefits to public
disclosure requirements imposed by the www.ise.com, at the principal office of customers and other market participants
proposed rule change, enhanced its who will be able to express their true
provisions, and provided a revised date 42 15 U.S.C. 78s(b)(2). prices to buy and sell options have been
of effectiveness which will allow listed 43 15 U.S.C. 78s(b)(2).
44 17 CFR 200.30–3(a)(12). 3 See Exchange Act Release No. 75312 (June 26,
40 See supra note 6. 1 15 U.S.C. 78s(b)(1).
2015), 80 FR 38251 (July 2, 2015) (SR–ISE–2015–
41 See id. 2 17 CFR 240.19b–4. 21).
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![44406 Federal Register / Vol. 81, No. 130 / Thursday, July 7, 2016 / Notices
submissions should refer to File Based on the most recent cost Transportation Board or any U.S.
Number SR–ISE–2016–15 and should be analysis, we will adjust the fiscal year District Court or has been decided in
submitted by July 28, 2016. 2017 fee to $1.00 per SSN verification favor of a complainant within the two-
For the Commission, by the Division of transaction. New customers will still be year period; and (4) the requirements at
Trading and Markets, pursuant to delegated responsible for the one-time $5,000 49 CFR 1105.12 (newspaper
authority.14 enrollment fee. publication) and 49 CFR 1152.50(d)(1)
Robert W. Errett, DATES: The changes described above are (notice to governmental agencies) have
Deputy Secretary. effective October 1, 2016. been met.
[FR Doc. 2016–16030 Filed 7–6–16; 8:45 am] FOR FURTHER INFORMATION CONTACT:
As a condition to this exemption, any
BILLING CODE 8011–01–P Michael Wilkins, Office of Data
employee adversely affected by the
Exchange and Policy Publications,
discontinuance of service shall be
Social Security Administration, 6401
Security Boulevard, Baltimore, MD protected under Oregon Short Line
SOCIAL SECURITY ADMINISTRATION Railroad—Abandonment Portion
21235–6401, [410–966–4965], for more
[Docket No. SSA–2016–0024] information about the CBSV service, Goshen Branch Between Firth &
visit our Internet site, Social Security Ammon, in Bingham & Bonneville
Consent Based Social Security Counties, Idaho, 360 I.C.C. 91 (1979). To
Online, at http://
Number Verification (CBSV) Service address whether this condition
www.socialsecurity.gov/cbsv.
AGENCY: Social Security Administration. Dated: June 30, 2016.
adequately protects affected employees,
ACTION: Notice of revised transaction fee Michael Wilkins,
a petition for partial revocation under
for consent based Social Security 49 U.S.C. 10502(d) must be filed.
Branch Chief, Office of Data Exchange &
number verification service. Policy Publications. Provided no formal expression of
[FR Doc. 2016–16095 Filed 7–6–16; 8:45 am] intent to file an offer of financial
SUMMARY: We provide fee-based Social
Security number (SSN) verification BILLING CODE 4191–02–P assistance (OFA) to subsidize continued
service to enrolled private businesses rail service has been received, this
and government agencies who obtain a exemption will become effective on
valid, signed consent form from the SURFACE TRANSPORTATION BOARD August 6, 2016, unless stayed pending
Social Security number holder. We reconsideration. Petitions to stay that do
[Docket No. AB 319 (Sub-No. 5X)]
originally published a notice not involve environmental issues and
announcing the CBSV service in the Florida Central Railroad Company, formal expressions of intent to file an
Federal Register on August 10, 2007. Inc.—Discontinuance of Service OFA to subsidize continued rail service
Based on the consent forms, we verify Exemption—in Lake County, Fla. under 49 CFR 1152.27(c)(2) 2 must be
the number holders’ SSNs for the filed by July 18, 2016.3 Petitions to
requesting party. The Privacy Act of Florida Central Railroad Company,
reopen must be filed by July 27, 2016,
1974 (5 U.S.C. 552a(b)), section 1106 of Inc. (Florida Central), filed a verified
with the Surface Transportation Board,
the Social Security Act (42 U.S.C. 1306) notice of exemption under 49 CFR part
1152, subpart F—Exempt 395 E Street SW., Washington, DC
and our regulation at 20 CFR 401.100, 20423–0001.
establish the legal authority for us to Abandonments and Discontinuances of
provide SSN verifications to third party Service to discontinue service over an A copy of any petition filed with the
requesters based on consent. approximately 4.4-mile portion of rail Board should be sent to Florida
The CBSV process provides the line between milepost ASD 818.1 in Central’s representative: Audrey L.
business community and other Eustis, through a milepost equation at Brodrick, Fletcher & Sippel LLC, 29
government entities with consent-based the Eustis Canal Bridge where milepost North Wacker Drive, Suite 920, Chicago,
SSN verifications in high volume. We ASD 817.0 = milepost ASC 815.1, to the IL 60606.
developed CBSV as a user-friendly, end of the line at milepost ASC 818.4 in
If the verified notice contains false or
internet-based application with Umatilla, in Lake County, Fla. (the
misleading information, the exemption
safeguards that will protect the public’s Line).1 The Line traverses U.S. Postal
Service Zip Codes 32726 and 32784. is void ab initio.
information. In addition to the benefit of
providing high volume, centralized SSN Florida Central has certified that: (1) Board decisions and notices are
verification services to the business No local traffic has moved over the Line available on our Web site at
community in a secure manner, CBSV for at least two years; (2) there is no ‘‘WWW.STB.DOT.GOV.’’
provides us with cost and workload overhead traffic to be rerouted over Decided: June 30, 2016.
management benefits. other lines; (3) no formal complaint
By the Board, Rachel D. Campbell,
New Information: To use CBSV, filed by a user of rail service on the Line
Director, Office of Proceedings.
interested parties must pay a one-time (or by a state or local government entity
non-refundable enrollment fee of acting on behalf of such user) regarding Tia Delano,
$5,000. Currently, users also pay a fee cessation of service over the Line is Clearance Clerk.
of $1.40 per SSN verification transaction pending either with the Surface [FR Doc. 2016–16101 Filed 7–6–16; 8:45 am]
in advance of services. We agreed to BILLING CODE 4915–01–P
calculate our costs periodically for 1 Florida
Central is a Class III common carrier that
operates approximately 64 miles of rail line in
srobinson on DSK5SPTVN1PROD with NOTICES
providing CBSV services and adjust the 2 Each OFA must be accompanied by the filing
central Florida. Florida Central commenced
fees as needed. We also agreed to notify operations after acquiring several lines, including fee, which is currently set at $1,600. See 49 CFR
our customers who currently use the the Line, from CSX Transportation, Inc. (CSXT). See 1002.2(f)(25).
3 Because Florida Central is seeking to
service and allow them to cancel or Fla. Cent. R.R.—Acquis. & Operation—Seaboard
continue using the service at the new Sys. R.R., FD 30923 (ICC served Dec. 10, 1986). discontinue service, not to abandon the Line, trail
Florida Central states that, while it acquired the use/rail banking and public use conditions are not
transaction fee. track assets comprising the Line from CSXT in appropriate. Because there will be environmental
1986, CSXT retained ownership of the underlying review during abandonment, this discontinuance
14 17 CFR 200.30–3(a)(12). right-of-way of the Line. does not require an environmental review.
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Document Created: 2018-02-08 07:54:24
Document Modified: 2018-02-08 07:54:24
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 44404 |
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