81 FR 47483 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Price Improvement Mechanism Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 140 (July 21, 2016)

Page Range		47483-47484
FR Document		2016-17196
Federal Register, Volume 81 Issue 140 (Thursday, July 21, 2016)
[Federal Register Volume 81, Number 140 (Thursday, July 21, 2016)]
[Notices]
[Pages 47483-47484]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17196]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78343; File No. SR-ISEGemini-2016-07]


Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Extend the Price 
Improvement Mechanism Pilot Program

July 15, 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 July 14, 2016, ISE Gemini, LLC (the ``Exchange'' or ``ISE 
Gemini'') filed with the Securities and Exchange Commission 
(``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.
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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 two pilot programs related to its 
Price Improvement Mechanism (``PIM''). 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
    The Exchange currently has two pilot programs related to its PIM 
(collectively, the ``PIM Pilot Programs'' or ``Pilot Programs''). The 
current Pilot Period provided in paragraphs .03 and .05 of the 
Supplementary Material to Rule 723 is set to expire on July 18, 
2016.\3\ Paragraph .03 provides that there is no minimum size 
requirement for orders to be eligible for the Price Improvement 
Mechanism. Paragraph .05 concerns the termination of the exposure 
period by unrelated orders. The Exchange has continually submitted 
certain data in support of extending the current Pilot Programs. The 
Exchange proposes to extend these Pilot Programs in their present form, 
through January 18, 2017, to give the Exchange and the Commission 
additional time to evaluate the effects of these Pilot Programs before 
the Exchange requests permanent approval of the rules.
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    \3\ See Securities Exchange Act Release No. 75481 (July 17, 
2015), 80 FR 43826 (July 23, 2015) (SR-ISE Gemini-2015-13).
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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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes the Pilot Programs are consistent with the 
Act because they provide opportunity for price improvement for all 
orders executed in the Exchange's Price Improvement Mechanism. The 
proposed extension would allow the Pilot Programs to continue 
uninterrupted, thereby avoiding any potential investor confusion that 
could result from a temporary interruption to the pilot. Further, the 
Exchange believes that the data demonstrates that there is sufficient 
investor interest and demand to extend the Pilot Programs for an 
additional six months. The Exchange further believes it is appropriate 
to extend the Pilot Programs to provide the Exchange and Commission 
more data upon which to evaluate the rules. With this data, the 
Commission can evaluate whether the new data shows there is meaningful 
competition for all size orders within the PIM, whether there is 
significant price improvement for all orders executed through the PIM, 
and whether there is an active and liquid market functioning on the 
Exchange outside of the PIM.

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 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 Pilot Programs, the 
proposed rule change will allow for further analysis of the PIM. 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.

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

[[Page 47484]]

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

    Because the foregoing 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, it has become 
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6) thereunder.\6\
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    \6\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written 
notice of its 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \7\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \8\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. The Exchange 
has requested that the Commission waive the 30-day operative delay 
period because the Pilot Programs are set to expire on July 18, 2016. 
The Exchange noted that such waiver will allow the Pilot Programs to 
continue uninterrupted.
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    \7\ 17 CFR 240.19b-4(f)(6).
    \8\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest, as 
it will allow the Pilot Programs to continue uninterrupted, thereby 
avoiding any potential investor confusion that could result from a 
temporary interruption in the Pilot Programs. For this reason, the 
Commission designates the proposed rule change to be operative on July 
18, 2016.\9\
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    \9\ 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).
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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-ISEGemini-2016-07 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-ISEGemini-2016-07. 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 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-ISEGemini-2016-07, and 
should be submitted on or before August 11, 2016.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-17196 Filed 7-20-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 140 / Thursday, July 21, 2016 / Notices 47483

submission, all subsequent solicit comments on the proposed rule rules and regulations thereunder that
amendments, all written statements change from interested persons. are applicable to a national securities
with respect to the proposed rule exchange, and, in particular, with the
I. Self-Regulatory Organization’s
change that are filed with the requirements of Section 6(b) of the Act.4
Statement of the Terms of Substance of
Commission, and all written Specifically, the proposed rule change is
the Proposed Rule Change
communications relating to the consistent with Section 6(b)(5) of the
proposed rule change between the The Exchange proposes to extend two Act,5 because it is designed to promote
Commission and any person, other than pilot programs related to its Price just and equitable principles of trade,
those that may be withheld from the Improvement Mechanism (‘‘PIM’’). The remove impediments to and perfect the
public in accordance with the text of the proposed rule change is mechanisms of a free and open market
provisions of 5 U.S.C. 552, will be available on the Exchange’s Web site and a national market system and, in
available for Web site viewing and www.ise.com, at the principal office of general, to protect investors and the
printing in the Commission’s Public the Exchange, and at the Commission’s public interest.
Reference Room, 100 F Street NE., Public Reference Room. The Exchange believes the Pilot
Washington, DC 20549 on official Programs are consistent with the Act
II. Self-Regulatory Organization’s
business days between the hours of because they provide opportunity for
Statement of the Purpose of, and
10:00 a.m. and 3:00 p.m. Copies of such price improvement for all orders
Statutory Basis for, the Proposed Rule
filing also will be available for executed in the Exchange’s Price
Change
inspection and copying at the principal Improvement Mechanism. The proposed
office of the Exchange. All comments In its filing with the Commission, the extension would allow the Pilot
received will be posted without change; self-regulatory organization included Programs to continue uninterrupted,
the Commission does not edit personal statements concerning the purpose of, thereby avoiding any potential investor
identifying information from and basis for, the proposed rule change confusion that could result from a
submissions. You should submit only and discussed any comments it received temporary interruption to the pilot.
information that you wish to make on the proposed rule change. The text Further, the Exchange believes that the
available publicly. All submissions of these statements may be examined at data demonstrates that there is sufficient
should refer to File Number SR– the places specified in Item IV below. investor interest and demand to extend
ISEMercury–2016–13, and should be The self-regulatory organization has the Pilot Programs for an additional six
submitted on or before August 11, 2016. prepared summaries, set forth in months. The Exchange further believes
sections A, B and C below, of the most it is appropriate to extend the Pilot
For the Commission, by the Division of significant aspects of such statements. Programs to provide the Exchange and
Trading and Markets, pursuant to delegated
authority.10 A. Self-Regulatory Organization’s Commission more data upon which to
Statement of the Purpose of, and evaluate the rules. With this data, the
Robert W. Errett,
Statutory Basis for, the Proposed Rule Commission can evaluate whether the
Deputy Secretary.
Change new data shows there is meaningful
[FR Doc. 2016–17195 Filed 7–20–16; 8:45 am] competition for all size orders within
BILLING CODE 8011–01–P 1. Purpose the PIM, whether there is significant
The Exchange currently has two pilot price improvement for all orders
programs related to its PIM (collectively, executed through the PIM, and whether
SECURITIES AND EXCHANGE there is an active and liquid market
the ‘‘PIM Pilot Programs’’ or ‘‘Pilot
COMMISSION functioning on the Exchange outside of
Programs’’). The current Pilot Period
provided in paragraphs .03 and .05 of the PIM.
[Release No. 34–78343; File No. SR– the Supplementary Material to Rule 723
ISEGemini–2016–07] B. Self-Regulatory Organization’s
is set to expire on July 18, 2016.3 Statement on Burden on Competition
Self-Regulatory Organizations; ISE Paragraph .03 provides that there is no
minimum size requirement for orders to The Exchange does not believe that
Gemini, LLC; Notice of Filing and the proposed rule change will impose
Immediate Effectiveness of Proposed be eligible for the Price Improvement
Mechanism. Paragraph .05 concerns the any burden on competition that is not
Rule Change To Extend the Price necessary or appropriate in furtherance
Improvement Mechanism Pilot termination of the exposure period by
unrelated orders. The Exchange has of the purposes of the Act. Specifically,
Program the Exchange believes that, by extending
continually submitted certain data in
July 15, 2016. support of extending the current Pilot the expiration of the Pilot Programs, the
Programs. The Exchange proposes to proposed rule change will allow for
Pursuant to Section 19(b)(1) of the further analysis of the PIM. In doing so,
extend these Pilot Programs in their
Securities Exchange Act of 1934 (the the proposed rule change will also serve
present form, through January 18, 2017,
‘‘Act’’),1 and Rule 19b–4 thereunder,2 to promote regulatory clarity and
to give the Exchange and the
notice is hereby given that on July 14, consistency, thereby reducing burdens
Commission additional time to evaluate
2016, ISE Gemini, LLC (the ‘‘Exchange’’ on the marketplace and facilitating
the effects of these Pilot Programs before
or ‘‘ISE Gemini’’) filed with the investor protection.
the Exchange requests permanent
Securities and Exchange Commission
approval of the rules. C. Self-Regulatory Organization’s
asabaliauskas on DSK3SPTVN1PROD with NOTICES

(‘‘Commission’’) the proposed rule
change as described in Items I and II 2. Statutory Basis Statement on Comments on the
below, which Items have been prepared Proposed Rule Change Received From
The Exchange believes that the Members, Participants, or Others
by the self-regulatory organization. The proposed rule change is consistent with
Commission is publishing this notice to the requirements of the Act and the The Exchange has not solicited, and
does not intend to solicit, comments on
10 17 CFR 200.30–3(a)(12). 3 See Securities Exchange Act Release No. 75481
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
(July 17, 2015), 80 FR 43826 (July 23, 2015) (SR–
2 17 CFR 240.19b–4. ISE Gemini–2015–13). 5 15 U.S.C. 78f(b)(5).

VerDate Sep<11>2014 17:15 Jul 20, 2016 Jkt 238001 PO 00000 Frm 00140 Fmt 4703 Sfmt 4703 E:\FR\FM\21JYN1.SGM 21JYN1
47484 Federal Register / Vol. 81, No. 140 / Thursday, July 21, 2016 / Notices

this proposed rule change. The investors, or otherwise in furtherance of ISEGemini–2016–07, and should be
Exchange has not received any written the purposes of the Act. If the submitted on or before August 11, 2016.
comments from members or other Commission takes such action, the For the Commission, by the Division of
interested parties. Commission shall institute proceedings Trading and Markets, pursuant to delegated
to determine whether the proposed rule authority.10
III. Date of Effectiveness of the
should be approved or disapproved. Robert W. Errett,
Proposed Rule Change and Timing for
Commission Action IV. Solicitation of Comments Deputy Secretary.
[FR Doc. 2016–17196 Filed 7–20–16; 8:45 am]
Because the foregoing proposed rule
Interested persons are invited to BILLING CODE 8011–01–P
change does not: (i) Significantly affect
submit written data, views, and
the protection of investors or the public
arguments concerning the foregoing,
interest; (ii) impose any significant
including whether the proposed rule SMALL BUSINESS ADMINISTRATION
burden on competition; and (iii) become
change is consistent with the Act.
operative for 30 days from the date on [Disaster Declaration #14754 and #14755]
Comments may be submitted by any of
which it was filed, or such shorter time
the following methods:
as the Commission may designate, it has West Virginia Disaster Number WV–
become effective pursuant to Section Electronic Comments 00044
19(b)(3)(A) of the Act and Rule 19b–
4(f)(6) thereunder.6 • Use the Commission’s Internet AGENCY: U.S. Small Business
A proposed rule change filed comment form (http://www.sec.gov/ Administration.
pursuant to Rule 19b–4(f)(6) under the rules/sro.shtml); or ACTION: Amendment 1.
Act 7 normally does not become • Send an email to rule-comments@
operative for 30 days after the date of its SUMMARY: This is an amendment of the
sec.gov. Please include File Number SR–
filing. However, Rule 19b–4(f)(6)(iii) 8 Presidential declaration of a major
ISEGemini–2016–07 on the subject line.
permits the Commission to designate a disaster for Public Assistance Only for
shorter time if such action is consistent Paper Comments the State of West Virginia (FEMA–4273–
with the protection of investors and the DR), dated 07/06/2016.
• Send paper comments in triplicate Incident: Severe Storms, Flooding,
public interest. The Exchange has
requested that the Commission waive to Brent J. Fields, Secretary, Securities Landslides, and Mudslides.
the 30-day operative delay period and Exchange Commission, 100 F Street Incident Period: 06/22/2016 through
because the Pilot Programs are set to NE., Washington, DC 20549–1090. 06/29/2016.
expire on July 18, 2016. The Exchange All submissions should refer to File Effective Date: 07/13/2016.
noted that such waiver will allow the Number SR–ISEGemini–2016–07. This Physical Loan Application Deadline
Pilot Programs to continue file number should be included on the Date: 09/06/2016.
uninterrupted. subject line if email is used. To help the Economic Injury (EIDL) Loan
The Commission believes that Commission process and review your Application Deadline Date: 04/06/2017.
waiving the 30-day operative delay is comments more efficiently, please use ADDRESSES: Submit completed loan
consistent with the protection of only one method. The Commission will applications to: U.S. Small Business
investors and the public interest, as it post all comments on the Commission’s Administration, Processing And
will allow the Pilot Programs to Internet Web site (http://www.sec.gov/ Disbursement Center, 14925 Kingsport
continue uninterrupted, thereby rules/sro.shtml). Copies of the Road, Fort Worth, TX 76155.
avoiding any potential investor submission, all subsequent FOR FURTHER INFORMATION CONTACT: A.
confusion that could result from a amendments, all written statements Escobar, Office of Disaster Assistance,
temporary interruption in the Pilot with respect to the proposed rule U.S. Small Business Administration,
Programs. For this reason, the change that are filed with the 409 3rd Street SW., Suite 6050,
Commission designates the proposed Commission, and all written Washington, DC 20416.
rule change to be operative on July 18, communications relating to the SUPPLEMENTARY INFORMATION: The notice
2016.9 proposed rule change between the of the President’s major disaster
At any time within 60 days of the Commission and any person, other than declaration for Private Non-Profit
filing of the proposed rule change, the those that may be withheld from the organizations in the State of West
Commission summarily may public in accordance with the Virginia, dated 07/06/2016, is hereby
temporarily suspend such rule change if provisions of 5 U.S.C. 552, will be amended to include the following areas
it appears to the Commission that such available for Web site viewing and as adversely affected by the disaster.
action is necessary or appropriate in the printing in the Commission’s Public
public interest, for the protection of Primary Counties: Braxton, Gilmer,
Reference Room, 100 F Street NE., Lewis, Lincoln, Randolph, Upshur,
Washington, DC 20549 on official Wayne.
6 17 CFR 240.19b–4(f)(6). As required under Rule
business days between the hours of All other information in the original
19b–4(f)(6)(iii), the Exchange provided the
Commission with written notice of its intent to file 10:00 a.m. and 3:00 p.m. Copies of such declaration remains unchanged.
the proposed rule change, along with a brief filing also will be available for
description and the text of the proposed rule inspection and copying at the principal (Catalog of Federal Domestic Assistance
asabaliauskas on DSK3SPTVN1PROD with NOTICES

change, at least five business days prior to the date Number 59008)
office of the Exchange. All comments
of filing of the proposed rule change, or such
shorter time as designated by the Commission. received will be posted without change; Lisa Lopez-Suarez,
7 17 CFR 240.19b–4(f)(6). the Commission does not edit personal Acting Associate Administrator for Disaster
8 17 CFR 240.19b–4(f)(6)(iii). identifying information from Assistance.
9 For purposes only of waiving the operative submissions. You should submit only [FR Doc. 2016–17320 Filed 7–20–16; 8:45 am]
delay for this proposal, the Commission has information that you wish to make BILLING CODE 8025–01–P
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
available publicly. All submissions
15 U.S.C. 78c(f). should refer to File Number SR– 10 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 17:15 Jul 20, 2016 Jkt 238001 PO 00000 Frm 00141 Fmt 4703 Sfmt 9990 E:\FR\FM\21JYN1.SGM 21JYN1
Document Created: 2018-02-08 07:59:05
Document Modified: 2018-02-08 07:59:05
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 47483