81 FR 70716 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to a Proposal To Amend a Current Billing Practice With Respect to Billing Disputes
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 198 (October 13, 2016)
Federal Register Volume 81, Issue 198 (October 13, 2016)
| Page Range | 70716-70718 | |
| FR Document | 2016-24697 |
[Federal Register Volume 81, Number 198 (Thursday, October 13, 2016)] [Notices] [Pages 70716-70718] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-24697] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79060; File No. SR-ISEGemini-2016-11] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to a Proposal To Amend a Current Billing Practice With Respect to Billing Disputes October 6, 2016. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on September 22, 2016, ISE Gemini, LLC (``ISE Gemini'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \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 Exchange proposes to amend a current billing practice with respect to billing disputes. The text of the proposed rule change is available on the Exchange's Web site at 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 Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend its Schedule of Fees to change the timeframe within which Members must dispute billing. Today, ISE Gemini Members must submit all disputes no later than ninety calendar days after receipt of an Exchange invoice. After ninety calendar days, all fees assessed by the Exchange are considered final. The Exchange is proposing to amend the policy from ninety to sixty days to submit a dispute. Today, the NASDAQ PHLX LLC (``Phlx''), NASDAQ BX, Inc. (``BX''), and The NASDAQ Options Market LLC (``NOM'') all have a sixty day timeframe within which to dispute option invoices.\3\ --------------------------------------------------------------------------- \3\ See Phlx's Pricing Schedule. See also NOM and BX Rules at Chapter XV, Section 7. --------------------------------------------------------------------------- The Exchange provides Members with both daily and monthly fee reports and thus believes Members should be aware of any potential billing errors within sixty calendar days of receiving an invoice. Requiring that Members dispute an invoice within this time period will encourage them to promptly review their invoices so that any disputed charges can be addressed in a [[Page 70717]] timely manner while the information and data underlying those charges (e.g. applicable fees and order information) is still easily and readily available. This practice will avoid issues that may arise when Members do not dispute an invoice in a timely manner, and will conserve Exchange resources that would have to be expended to resolve untimely billing disputes. The Exchange notes that this type of provision is common among many other exchanges, which require that Members dispute invoices within sixty days. Billing disputes must continue to be submitted to the Exchange in writing,\4\ and must be accompanied by supporting documentation. The Exchange believes that this requirement, which is also similar to requirements of other exchanges,\5\ will further streamline the billing dispute process. --------------------------------------------------------------------------- \4\ The Exchange invoice specifies contact information for billing inquiries. \5\ See note 3 above. --------------------------------------------------------------------------- The Exchange believes that this practice will conserve Exchange resources which are expended when untimely billing disputes require staff to research applicable fees and order information beyond two months after the transaction occurred. Further, this proposal would provide a cost savings to the Exchange in that it would alleviate administrative processes related to the untimely review of billing disputes which divert staff resources away from the Exchange's regulatory and business purposes. The sixty days would first apply to invoices related to transactional billing in November 2016 and would apply thereafter.\6\ The Exchange proposes to apply the billing policy to all charges reflected in its Schedule of Fees. --------------------------------------------------------------------------- \6\ This proposal would not apply to invoices related to October 2016 billing. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act \7\ in general, and furthers the objectives of Section 6(b)(5) of the Act \8\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest, by providing a uniform practice for disputing fees. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes the requirement that all billing disputes must be submitted in writing, and with supporting documentation, within sixty calendar days from receipt of the invoice is reasonable in the public interest because the Exchange provides ample tools to properly and swiftly monitor and account for various charges incurred in a given month. Moreover, the proposed billing dispute language, which will lower the Exchange's administrative burden, is substantially similar to billing dispute language adopted by other exchanges.\9\ Also, the Exchange's administrative costs would be lowered as a result of this policy because staff resources would not be diverted to review untimely requests regarding billing. --------------------------------------------------------------------------- \9\ See note 3 above. --------------------------------------------------------------------------- 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. The billing policy would apply uniformly to all ISE Gemini Members. The policy is similar to rules adopted by other options exchanges.\10\ --------------------------------------------------------------------------- \10\ Id. --------------------------------------------------------------------------- Further, this proposal would provide a cost savings to the Exchange in that it would alleviate administrative processes related to the untimely review of billing disputes which divert staff resources away from the Exchange's regulatory and business purposes. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the 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)(iii) of the Act \11\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A)(iii). \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file the proposed rule change at least five business days prior to the date of filing of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. --------------------------------------------------------------------------- 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: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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-ISEGemini-2016-11 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-ISEGemini-2016-11. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make [[Page 70718]] available publicly. All submissions should refer to File Number SR- ISEGemini-2016-11 and should be submitted on or before November 3, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-24697 Filed 10-12-16; 8:45 am] BILLING CODE 8011-01-P
![70716 Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Notices
to amend its listing standard to include Securities is and will continue to be The Commission is publishing this
VSTOXX as a Futures Reference Asset. required to comply with Rule 10A–3 notice to solicit comments on the
In addition, the Commission notes under the Act for the initial and proposed rule change from interested
that, notwithstanding the addition of continued listing of Linked Securities, persons.
VSTOXX Futures to the definition of as provided under BZX Rule
Futures Reference Asset, the existing I. Self-Regulatory Organization’s
14.11(d)(2)(F). Moreover, the Exchange Statement of the Terms of Substance of
initial and continued listing criteria represents that prior to listing Futures-
applicable to Linked-Securities, the Proposed Rule Change
Linked Securities linked to VSTOXX
generally, and Futures-Linked Futures pursuant to BZX Rule The Exchange proposes to amend a
Securities, specifically, would continue 14.11(c)(2)(K)(iv), an issuer would be current billing practice with respect to
to apply. For example, the Exchange required to represent to the Exchange billing disputes.
represents that any Futures-Linked that it will advise the Exchange of any The text of the proposed rule change
Securities linked to VSTOXX Futures failure of the Futures-Linked Securities is available on the Exchange’s Web site
would be required to meet both the to comply with the continued listing at www.ise.com, at the principal office
initial and continued listing standards requirements. of the Exchange, and at the
under BZX Rule 14.11(d)(2)(K)(iv)(b) For the foregoing reasons, the Commission’s Public Reference Room.
and (c) or be subject to delisting or Commission finds that the proposed II. Self-Regulatory Organization’s
removal proceedings. These initial and rule change, as modified by Amendment Statement of the Purpose of, and
continued listing standards require, No. 1, is consistent with Section 6(b)(5) Statutory Basis for, the Proposed Rule
among other things: (i) The value of the of the Act 18 and the rules and Change
Futures Reference Asset be calculated regulations thereunder applicable to a
and widely disseminated by one or In its filing with the Commission, the
national securities exchange. Exchange included statements
more major market data vendors on at
least a 15-second basis during the IV. Conclusion concerning the purpose of and basis for
Exchange’s regular market session; (ii) It is therefore ordered, pursuant to the proposed rule change and discussed
for Futures-Linked Securities that are Section 19(b)(2) of the Act,19 that the any comments it received on the
periodically redeemable, the Intraday proposed rule change (SR–BatsBZX– proposed rule change. The text of these
Indicative Value of the securities be 2016–26), as modified by Amendment statements may be examined at the
calculated and widely disseminated by No. 1 thereto, be, and it hereby is, places specified in Item IV below. The
the Exchange or one or more major approved. Exchange has prepared summaries, set
market data vendors on at least a 15- forth in sections A, B, and C below, of
For the Commission, by the Division of the most significant aspects of such
second basis during the Exchange’s Trading and Markets, pursuant to delegated
regular market session; (iii) the statements.
authority.20
aggregate market value or the principal Robert W. Errett, A. Self-Regulatory Organization’s
amount of the Futures-Linked Securities Deputy Secretary. Statement of the Purpose of, and
be at least $400,000; and (iv) the value [FR Doc. 2016–24776 Filed 10–12–16; 8:45 am] Statutory Basis for, the Proposed Rule
of the VSTOXX Futures be calculated Change
BILLING CODE 8011–01–P
and available. In addition, any Futures-
Linked Securities linked to VSTOXX 1. Purpose
Futures also would be required to meet SECURITIES AND EXCHANGE The Exchange proposes to amend its
the listing standards applicable to all COMMISSION Schedule of Fees to change the
Linked Securities under BZX Rule timeframe within which Members must
14.11(d)(2). The Exchange represents [Release No. 34–79060; File No. SR– dispute billing. Today, ISE Gemini
that any securities it would list and ISEGemini–2016–11] Members must submit all disputes no
trade pursuant to amended BZX Rule later than ninety calendar days after
14.11(d) would continue to comply with Self-Regulatory Organizations; ISE
receipt of an Exchange invoice. After
all Exchange rules applicable to the Gemini, LLC; Notice of Filing and
ninety calendar days, all fees assessed
listing and trading of Linked Securities. Immediate Effectiveness of Proposed
by the Exchange are considered final.
Further, the Exchange represents that Rule Change to a Proposal To Amend
The Exchange is proposing to amend the
its existing surveillance procedures are a Current Billing Practice With Respect
policy from ninety to sixty days to
adequate to continue to properly to Billing Disputes
submit a dispute. Today, the NASDAQ
monitor the trading of the Futures- October 6, 2016. PHLX LLC (‘‘Phlx’’), NASDAQ BX, Inc.
Linked Securities linked to VSTOXX Pursuant to Section 19(b)(1) of the (‘‘BX’’), and The NASDAQ Options
Futures in all trading sessions and to Securities Exchange Act of 1934 Market LLC (‘‘NOM’’) all have a sixty
deter and detect violations of Exchange (‘‘Act’’),1 and Rule 19b–4 thereunder,2 day timeframe within which to dispute
rules. Specifically, the Exchange stated notice is hereby given that on option invoices.3
that it intends to utilize its existing September 22, 2016, ISE Gemini, LLC The Exchange provides Members with
surveillance procedures applicable to (‘‘ISE Gemini’’ or ‘‘Exchange’’) filed both daily and monthly fee reports and
derivative products, which includes with the Securities and Exchange thus believes Members should be aware
Linked Securities, to monitor trading in Commission (‘‘SEC’’ or ‘‘Commission’’) of any potential billing errors within
the Futures-Linked Securities. The the proposed rule change as described sixty calendar days of receiving an
Commission notes that Eurex, on which in Items I, II, and III, below, which Items invoice. Requiring that Members
Lhorne on DSK30JT082PROD with NOTICES
VSTOXX Futures trade, is a member of have been prepared by the Exchange. dispute an invoice within this time
ISG, and the Exchange represents that it period will encourage them to promptly
may obtain information regarding 18 15 U.S.C. 78f(b)(5). review their invoices so that any
trading in the underlying VSTOXX 19 15 U.S.C. 78s(b)(2). disputed charges can be addressed in a
Futures. 20 17 CFR 200.30–3(a)(12).
The Commission further notes that 1 15 U.S.C. 78s(b)(1). 3 See Phlx’s Pricing Schedule. See also NOM and
the issuer of a series of Linked 2 17 CFR 240.19b–4. BX Rules at Chapter XV, Section 7.
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![70718 Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Notices
available publicly. All submissions II. Self-Regulatory Organization’s Act,6 in that it provides for the equitable
should refer to File Number SR– Statement of the Purpose of, and allocation of reasonable dues, fees and
ISEGemini–2016–11 and should be Statutory Basis for, the Proposed Rule other charges among its Members and
submitted on or before November 3, Change other persons using its facilities. The
2016. Exchange notes that it is not proposing
In its filing with the Commission, the
For the Commission, by the Division of Exchange included statements to make any changes to the rebates or
Trading and Markets, pursuant to delegated concerning the purpose of and basis for fees that it currently charges. As such,
authority.13 the proposed rule change and discussed the Exchange believes that the change is
Brent J. Fields, any comments it received on the reasonable, fair and equitable, and non-
Secretary. proposed rule change. The text of these discriminatory because it is non-
[FR Doc. 2016–24697 Filed 10–12–16; 8:45 am] statements may be examined at the substantive and is designed to make
BILLING CODE 8011–01–P places specified in Item IV below. The sure that the fee schedule is as clear and
Exchange has prepared summaries, set easily understandable as possible.
forth in Sections A, B, and C below, of
B. Self-Regulatory Organization’s
SECURITIES AND EXCHANGE the most significant parts of such
Statement on Burden on Competition
COMMISSION statements.
A. Self-Regulatory Organization’s The Exchange does not believe that
[Release No. 34–79064; File No. SR– Statement of the Purpose of, and the proposed rule change will result in
BatsBZX–2016–64] Statutory Basis for, the Proposed Rule any burden on competition that is not
Change necessary or appropriate in furtherance
Self-Regulatory Organizations; Bats of the purposes of the Act, as amended.
BZX Exchange, Inc.; Notice of Filing 1. Purpose The Exchange does not believe that the
and Immediate Effectiveness of a changes burden competition, as this
The Exchange proposes to amend its
Proposed Rule Change Related to Fees change is intended to make the
fee schedule to make clear that the
To Make a Clarifying Change Related Exchange’s fee schedule as clear and
additional rebate per share for orders in
to the Tape B Quoting Tier easily understandable as possible.
Tape B securities associated with
October 6, 2016. meeting the Tape B Quoting Tier (the
C. Self-Regulatory Organization’s
‘‘Tape B Rebate’’) does not apply to the
Pursuant to Section 19(b)(1) of the Statement on Comments on the
rebates set forth in footnote 14 part A of
Securities Exchange Act of 1934 Proposed Rule Change Received From
the fee schedule (the ‘‘LMM Incentive
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Members, Participants or Others
Program’’). Specifically, this means that
notice is hereby given that on
a Member does not receive the Tape B The Exchange has not solicited, and
September 28, 2016, Bats BZX
Rebate on top of the rebate that the does not intend to solicit, comments on
Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)
LMM receives under the LMM Incentive this proposed rule change. The
filed with the Securities and Exchange
Program for securities in which they are Exchange has not received any written
Commission (‘‘Commission’’) the
the LMM.4 The Exchange notes this comments from members or other
proposed rule change as described in
clarification applies only to the rebates interested parties.
Items I, II and III below, which Items
for securities in which a Member
have been prepared by the Exchange. III. Date of Effectiveness of the
receives rebates under the LMM
The Commission is publishing this
Incentive Program and that enrollment Proposed Rule Change and Timing for
notice to solicit comments on the
in LMP Securities is available to all Commission Action
proposed rule change from interested
Members, including LMMs, and
persons. The foregoing rule change has become
Members that act as an LMM are eligible
I. Self-Regulatory Organization’s to receive the Tape B Rebate for effective pursuant to Section 19(b)(3)(A)
Statement of the Terms of Substance of securities in which the Member is not of the Act 7 and paragraph (f) of Rule
the Proposed Rule Change the LMM. 19b–4 thereunder.8 At any time within
The Exchange proposes to implement 60 days of the filing of the proposed rule
The Exchange filed a proposal to these amendments to its fee schedule change, the Commission summarily may
amend the fee schedule applicable to effective immediately. temporarily suspend such rule change if
Members 3 and non-members of the it appears to the Commission that such
Exchange pursuant to BZX Rules 15.1(a) 2. Statutory Basis action is necessary or appropriate in the
and (c) in order to make a clarifying The Exchange believes that the public interest, for the protection of
change related to the Tape B Quoting proposed rule change is consistent with investors, or otherwise in furtherance of
Tier. the requirements of the Act and the the purposes of the Act.
The text of the proposed rule change rules and regulations thereunder that
IV. Solicitation of Comments
is available at the Exchange’s Web site are applicable to a national securities
at www.batstrading.com, at the exchange, and, in particular, with the Interested persons are invited to
principal office of the Exchange, and at requirements of Section 6 of the Act.5 submit written data, views and
the Commission’s Public Reference Specifically, the Exchange believes that arguments concerning the foregoing,
Room. the proposed rule change is consistent including whether the proposal is
with Section 6(b)(4) and 6(b)(5) of the
Lhorne on DSK30JT082PROD with NOTICES
consistent with the Act. Comments may
13 17 CFR 200.30–3(a)(12). be submitted by any of the following
1 15 U.S.C. 78s(b)(1). 4 As provided in the fee schedule, the Exchange
2 17 CFR 240.19b–4.
methods:
notes that to the extent a Member qualifies for
3 The term ‘‘Member’’ is defined as ‘‘any higher rebates than those provided by a tier for
6 15 U.S.C. 78f(b)(4) and (5).
registered broker or dealer that has been admitted which such Member qualifies, such as the LMM
to membership in the Exchange.’’ See Exchange Incentive Program, the higher rebates shall apply. 7 15 U.S.C. 78s(b)(3)(A).
Rule 1.5(n). 5 15 U.S.C. 78f. 8 17 CFR 240.19b–4(f).
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Document Created: 2016-10-13 00:53:57
Document Modified: 2016-10-13 00:53:57
| 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 70716 |
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