81 FR 83884 - Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Non-Controversial and Technical Changes to Exchange Rules
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 225 (November 22, 2016)
Federal Register Volume 81, Issue 225 (November 22, 2016)
| Page Range | 83884-83886 | |
| FR Document | 2016-28031 |
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)] [Notices] [Pages 83884-83886] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28031] [[Page 83884]] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79323; File No. SR-ISEMercury-2016-20] Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Non- Controversial and Technical Changes to Exchange Rules November 16, 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 November 3, 2016, ISE Mercury, LLC (``ISE Mercury'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II 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 make a number of non-controversial and technical changes to its rules as described in more detail below. 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 is proposing to make a number of non-controversial changes and technical corrections to its rules. Specifically, these changes are all to correct typographical errors and delete obsolete rule text.\3\ The changes are described in more detail below. --------------------------------------------------------------------------- \3\ See also Securities Exchange Act Release No. 73808 (December 10, 2014), 79 FR 74797 (December 16, 2014) (SR-ISE-2014-54) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Technical Corrections to the International Securities Exchange, LLC (``ISE'') Rules). --------------------------------------------------------------------------- 1. No Bid Options/Limit Price Rule 713(b), which deals with priority of orders, provides that if the lowest offer for any options contract is $0.05 then no member shall enter a market order to sell that series, and any such market order shall be considered a limit order to sell at a price of $0.05. This provision is intended to prevent members from submitting market orders to sell in no bid series, which could execute at a price of $0.00, and to instead convert those orders to limit orders with a limit price equal to the minimum trading increment, i.e., $0.05 for most option classes.\4\ A ``no bid'' or ``zero bid'' series refers to an option where the bid price is $0.00. Series of options quoted no bid are usually deep out-of-the-money series that are perceived as having little if any chance of expiring in-the-money. For options that trade in regular nickel increments, a best offer of $0.05 corresponds to a best bid of $0.00, i.e. one minimum trading increment below the offer. However, option series may be no bid with other offer prices as well. For example, an option class would be considered no bid if it is quoted at $0.00 (bid)--$0.15 (offer). In order to avoid having these orders execute at a price of $0.00, the Exchange proposes to clarify that Rule 713(b) applies to all option classes that are quoted no bid, rather than just those option classes that have an offer of $0.05. Currently, options exchanges have in place a pilot (the ``Penny Pilot'') to quote and trade options in one cent increments, lowering the minimum trading increment from $0.05 in certain symbols. The Exchange therefore proposes to amend Rule 713(b) to clarify that the Exchange will put a limit price equal to the minimum trading increment on market orders to sell a no bid option series. For example, if the deep out-of-the-money SPY December $230.00 call, which is traded in penny increments, is quoted at $0.00 (bid)--$0.03 (offer), a market order to sell would instead be treated as a limit order to sell at a price of $0.01. --------------------------------------------------------------------------- \4\ Symbols not included in the Penny Pilot generally trade in $0.05 increments if the options contract is trading at less than $3.00 per option, and $0.10 increments if the options contract is trading at $3.00 per option or higher. See Rule 710. --------------------------------------------------------------------------- 2. Non-Displayed Penny Orders and Quotes The Exchange currently has rules in place that allow members to enter non-displayed orders and quotes in penny increments in designated options with a minimum trading increment greater than one cent (``non- displayed penny orders and quotes'').\5\ A non-displayed penny order or quote is available for execution at its penny price but is displayed at the closest minimum trading increment that does not violate the limit price.\6\ The Exchange does not offer non-displayed penny orders or quotes and therefore proposes to delete obsolete references to this order type from its rules. First, the Exchange proposes to delete Rule 715(b)(4), which defines non-displayed penny orders. Second, the Exchange proposes to delete language in Rule 804(b)(1) and Rule 805(a) that permits market makers to enter non-displayed penny quotes and orders, respectively. Third, the Exchange proposes to delete language in Supplementary Material .06 to Rule 716 concerning split prices for non-displayed penny orders and quotes entered into the Facilitation and Solicitation Mechanisms. Finally, the Exchange proposes to delete language in Supplementary Material .03 to Rule 717 concerning the execution of non-displayed penny orders that an Electronic Access Member represents as agent against principal orders and orders solicited from other broker dealers. --------------------------------------------------------------------------- \5\ See Rule 715(b)(4), Rule 804(b)(1) and Rule 805(a). \6\ See Rule 715(b)(4) and Rule 804(b)(1). --------------------------------------------------------------------------- 3. Customer Participation Orders A customer participation order (``CPO'') is an order type that can be used by Public Customers\7\ to participate in the Price Improvement Mechanism (``PIM'').\8\ Upon entry of a Crossing Transaction into the PIM,\9\ a [[Page 83885]] broadcast message is sent to all members, who then have 500 milliseconds to enter orders that indicate the size and price at which they want to participate in the execution (``Improvement Orders'').\10\ The CPO is an instruction to the member to enter an Improvement Order on behalf of a Public Customer. Specifically, a CPO is a limit order on behalf of a Public Customer that, in addition to the limit order price in standard increments, includes a price stated in one cent increments at which the Public Customer wishes to participate in trades executed in the same options series in penny increments through the PIM.\11\ The Exchange does not offer CPOs and therefore proposes to delete obsolete references to this order type from its rules. The Exchange first proposes to delete Rule 715(f), which defines CPOs. Furthermore, the Exchange proposes to remove two references to CPOs in other rules. Specifically, the Exchange proposes to remove references to CPOs in Supplementary Material .06 to Rule 723, which explains when Improvement Orders can be entered with respect to CPOs,\12\ and in Rule 723(d), which notes that the agency side of an order entered into the Price Improvement Mechanism may execute against CPOs at the end of the exposure period. --------------------------------------------------------------------------- \7\ The term ``Public Customer'' means a person or entity that is not a broker or dealer in securities. See Rule 100(a)(38). \8\ The PIM is a process by which an Electronic Access Member can provide price improvement opportunities for a transaction wherein the Electronic Access Member seeks to facilitate an order it represents as agent, and/or a transaction wherein the Electronic Access Member solicited interest to execute against an order it represents as agent (a ``Crossing Transaction''). See Rule 723(a). \9\ A Crossing Transaction is comprised of the order the Electronic Access Member represents as agent (the ``Agency Order'') and a counter-side order for the full size of the Agency Order (the ``Counter-Side Order''). The Counter-Side Order may represent interest for the Member's own account, or interest the Member has solicited from one or more other parties, or a combination of both. See Rule 723(b). \10\ See Rule 723(c)(1). \11\ See Rule 715(f). \12\ Although CPOs are no longer available, members will continue to be able to enter Improvement Orders for the account of Public Customers. --------------------------------------------------------------------------- 4. Linkage Rules The Exchange proposes to delete Supplementary Material .04 and .05 to Rule 803, which contains duplicative and obsolete provisions relevant to away market routing. In particular, the content of Supplementary Material .04 and .05 to Rule 803 is now contained in Supplementary Material .06 and .07 to Rule 1901\13\ because linkage handling is performed by unaffiliated broker dealers (i.e., Linkage Handlers) on the Exchange. Therefore as described above, the Exchange proposes to delete this language from Rule 803, which concerns the obligations of market makers. --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release No. 73808 (December 10, 2014), 79 FR 74797 (December 16, 2014) (SR-ISE-2014-54) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Make Technical Corrections to the ISE Rules). Chapter 19 of the Exchange's rulebook incorporates Chapter 19 of the ISE rulebook by reference. --------------------------------------------------------------------------- 5. Supplementary Material The Exchange notes that certain supplementary material is mistakenly labelled as ``supplemental'' material in the Exchange's rulebook.\14\ In order to achieve consistency with how other rules are labelled, the Exchange proposes to change these to instead refer to ``supplementary'' material. Finally, the Exchange proposes to make a non-substantive change to Supplementary Material to Rule 803, which concerns the obligations of market makers, by updating the word ``To'' to lower case. --------------------------------------------------------------------------- \14\ See ``Supplemental'' Material to Rules 717 and 809. See also reference in Rule 721(a)(3) to ``Supplemental'' Material .01 to Rule 717. --------------------------------------------------------------------------- 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.\15\ In particular, the proposal is consistent with Section 6(b)(5) of the Act \16\ because it is designed to promote just and equitable principles of trade, to 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. The Exchange believes it is appropriate to make the proposed technical corrections to its rules so that Exchange members and investors have a clear and accurate understanding of the meaning of the ISE Mercury rules. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78f(b). \16\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 1. No Bid Options/Limit Price The Exchange currently operates a pilot program to permit designated options classes to be quoted and traded in increments as low as one cent. The Exchange is proposing to amend Rule 713(b) to account for the fact that option classes selected for inclusion in the Penny Pilot are permitted to trade in penny increments. For penny classes that are quoted no bid, the Exchange will convert a market order to sell to a limit order with a price of one cent. In addition, the proposed rule change clarifies that Rule 713(b) applies to all series with a bid of $0.00, and not just those series that also have an offer of $0.05. The proposed rule change is necessary to account for options trading in multiple trading increments, including under the Penny Pilot, and will ensure that market orders to sell are not inadvertently executed at a price of zero. The Exchange believes that these changes more accurately reflect the intent of Rule 713(b), as described above, and will eliminate investor confusion with respect to the operation of this rule by more accurately describing the functionality provided by the Exchange. 2. Non-Displayed Penny Orders and Quotes/Customer Participation Orders As explained above, the Exchange does not offer non-displayed penny orders and quotes or customer participation orders, and thus proposes to remove obsolete definitions and other outdated references to these order types. The Exchange believes that these changes will eliminate investor confusion regarding order types available for trading on ISE Mercury to the benefit of members and investors. 3. Linkage Rules The proposed changes to the linkage rules are non-substantive and intended to reduce investor confusion. As explained above, the Exchange is deleting duplicative and obsolete rule text from Chapter 8 of its rulebook because linkage handling is handled by Linkage Handlers. Therefore, the Exchange believes that these rules are more appropriately located in Chapter 19 of the Exchange's rulebook, which incorporates by reference Chapter 19 of the ISE rulebook. 4. Supplementary Material The proposed change to label supplementary material correctly is non-substantive and is intended to achieve consistency in how these rules are labelled to the benefit of members and investors. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\17\ 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. The proposed rule change makes technical, non-substantive amendments to the Exchange's rules in order to eliminate investor confusion, and is not designed to have any competitive impact. --------------------------------------------------------------------------- \17\ 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 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 [[Page 83886]] 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 \18\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\19\ --------------------------------------------------------------------------- \18\ 15 U.S.C. 78s(b)(3)(A)(iii). \19\ 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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative prior to 30 days after the date of filing. However, Rule 19b-4(f)(6)(iii) \20\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. In its filing with the Commission, the Exchange requests that the Commission waive the 30-day operative delay. The Exchange asserts that waiver of the operative delay is consistent with the protection of investors and the public interest because the proposed rule change makes non-substantive, technical changes to the Exchange's rules. The Exchange also believes that the proposed rule change increases the clarity of ISE Mercury rules to the benefit of members and investors that trade on the Exchange. For these reasons, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Therefore, the Commission designates the proposed rule change to be operative upon filing. \21\ --------------------------------------------------------------------------- \20\ 17 CFR 240.19b-4(f)(6)(iii). \21\ For purposes only of waiving the 30-day operative delay, the Commission also 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 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-ISEMercury-2016-20 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-ISEMercury-2016-20. 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 available publicly. All submissions should refer to File Number SR-ISEMercury-2016-20 and should be submitted on or before December 13, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ Brent J. Fields, Secretary. --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2016-28031 Filed 11-21-16; 8:45 am] BILLING CODE 8011-01-P
![83884 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices
SECURITIES AND EXCHANGE Specifically, these changes are all to would instead be treated as a limit order
COMMISSION correct typographical errors and delete to sell at a price of $0.01.
obsolete rule text.3 The changes are
[Release No. 34–79323; File No. SR– 2. Non-Displayed Penny Orders and
ISEMercury-2016–20] described in more detail below. Quotes
1. No Bid Options/Limit Price The Exchange currently has rules in
Self-Regulatory Organizations; ISE
Mercury, LLC; Notice of Filing and Rule 713(b), which deals with priority place that allow members to enter non-
Immediate Effectiveness of Proposed of orders, provides that if the lowest displayed orders and quotes in penny
Rule Change To Make Non- increments in designated options with a
offer for any options contract is $0.05
Controversial and Technical Changes minimum trading increment greater
then no member shall enter a market
to Exchange Rules than one cent (‘‘non-displayed penny
order to sell that series, and any such
orders and quotes’’).5 A non-displayed
November 16, 2016. market order shall be considered a limit
penny order or quote is available for
Pursuant to Section 19(b)(1) of the order to sell at a price of $0.05. This
execution at its penny price but is
Securities Exchange Act of 1934 provision is intended to prevent
displayed at the closest minimum
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 members from submitting market orders trading increment that does not violate
notice is hereby given that on November to sell in no bid series, which could the limit price.6 The Exchange does not
3, 2016, ISE Mercury, LLC (‘‘ISE execute at a price of $0.00, and to offer non-displayed penny orders or
Mercury’’ or ‘‘Exchange’’) filed with the instead convert those orders to limit quotes and therefore proposes to delete
Securities and Exchange Commission orders with a limit price equal to the obsolete references to this order type
(‘‘SEC’’ or ‘‘Commission’’) the proposed minimum trading increment, i.e., $0.05 from its rules. First, the Exchange
rule change as described in Items I and for most option classes.4 A ‘‘no bid’’ or proposes to delete Rule 715(b)(4), which
II below, which Items have been ‘‘zero bid’’ series refers to an option defines non-displayed penny orders.
prepared by the Exchange. The where the bid price is $0.00. Series of Second, the Exchange proposes to delete
Commission is publishing this notice to options quoted no bid are usually deep language in Rule 804(b)(1) and Rule
solicit comments on the proposed rule out-of-the-money series that are 805(a) that permits market makers to
change from interested persons. perceived as having little if any chance enter non-displayed penny quotes and
I. Self-Regulatory Organization’s of expiring in-the-money. For options orders, respectively. Third, the
Statement of the Terms of Substance of that trade in regular nickel increments, Exchange proposes to delete language in
the Proposed Rule Change a best offer of $0.05 corresponds to a Supplementary Material .06 to Rule 716
best bid of $0.00, i.e. one minimum concerning split prices for non-
The Exchange proposes to make a trading increment below the offer.
number of non-controversial and displayed penny orders and quotes
However, option series may be no bid entered into the Facilitation and
technical changes to its rules as with other offer prices as well. For
described in more detail below. Solicitation Mechanisms. Finally, the
example, an option class would be Exchange proposes to delete language in
The text of the proposed rule change
considered no bid if it is quoted at $0.00 Supplementary Material .03 to Rule 717
is available on the Exchange’s Web site
(bid)—$0.15 (offer). In order to avoid concerning the execution of non-
at www.ise.com, at the principal office
having these orders execute at a price of displayed penny orders that an
of the Exchange, and at the
$0.00, the Exchange proposes to clarify Electronic Access Member represents as
Commission’s Public Reference Room.
that Rule 713(b) applies to all option agent against principal orders and
II. Self-Regulatory Organization’s classes that are quoted no bid, rather orders solicited from other broker
Statement of the Purpose of, and than just those option classes that have dealers.
Statutory Basis for, the Proposed Rule an offer of $0.05. Currently, options
Change exchanges have in place a pilot (the 3. Customer Participation Orders
In its filing with the Commission, the ‘‘Penny Pilot’’) to quote and trade A customer participation order
Exchange included statements options in one cent increments, (‘‘CPO’’) is an order type that can be
concerning the purpose of and basis for lowering the minimum trading used by Public Customers7 to
the proposed rule change and discussed increment from $0.05 in certain participate in the Price Improvement
any comments it received on the symbols. The Exchange therefore Mechanism (‘‘PIM’’).8 Upon entry of a
proposed rule change. The text of these proposes to amend Rule 713(b) to clarify Crossing Transaction into the PIM,9 a
statements may be examined at the that the Exchange will put a limit price
places specified in Item IV below. The equal to the minimum trading 5 See Rule 715(b)(4), Rule 804(b)(1) and Rule
805(a).
Exchange has prepared summaries, set increment on market orders to sell a no 6 See Rule 715(b)(4) and Rule 804(b)(1).
forth in sections A, B, and C below, of bid option series. For example, if the 7 The term ‘‘Public Customer’’ means a person or
the most significant aspects of such deep out-of-the-money SPY December entity that is not a broker or dealer in securities. See
statements. $230.00 call, which is traded in penny Rule 100(a)(38).
increments, is quoted at $0.00 (bid)— 8 The PIM is a process by which an Electronic
A. Self-Regulatory Organization’s $0.03 (offer), a market order to sell Access Member can provide price improvement
Statement of the Purpose of, and opportunities for a transaction wherein the
Statutory Basis for, the Proposed Rule Electronic Access Member seeks to facilitate an
3 See also Securities Exchange Act Release No. order it represents as agent, and/or a transaction
Change 73808 (December 10, 2014), 79 FR 74797 (December wherein the Electronic Access Member solicited
sradovich on DSK3GMQ082PROD with NOTICES
1. Purpose 16, 2014) (SR–ISE–2014–54) (Notice of Filing and interest to execute against an order it represents as
Immediate Effectiveness of Proposed Rule Change agent (a ‘‘Crossing Transaction’’). See Rule 723(a).
The Exchange is proposing to make a to Make Technical Corrections to the International 9 A Crossing Transaction is comprised of the
number of non-controversial changes Securities Exchange, LLC (‘‘ISE’’) Rules). order the Electronic Access Member represents as
4 Symbols not included in the Penny Pilot agent (the ‘‘Agency Order’’) and a counter-side
and technical corrections to its rules. generally trade in $0.05 increments if the options order for the full size of the Agency Order (the
contract is trading at less than $3.00 per option, and ‘‘Counter-Side Order’’). The Counter-Side Order
1 15 U.S.C. 78s(b)(1). $0.10 increments if the options contract is trading may represent interest for the Member’s own
2 17 CFR 240.19b–4. at $3.00 per option or higher. See Rule 710. account, or interest the Member has solicited from
VerDate Sep<11>2014 16:52 Nov 21, 2016 Jkt 241001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\22NON1.SGM 22NON1](https://thefederalregister.org/doc/81_FR_84109/page/1.svg)
![83886 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices
the protection of investors or the public IV. Solicitation of Comments For the Commission, by the Division of
interest; (ii) impose any significant Trading and Markets, pursuant to delegated
burden on competition; and (iii) become Interested persons are invited to authority.22
operative for 30 days from the date on submit written data, views, and Brent J. Fields,
which it was filed, or such shorter time arguments concerning the foregoing, Secretary.
as the Commission may designate, it has including whether the proposed rule [FR Doc. 2016–28031 Filed 11–21–16; 8:45 am]
become effective pursuant to Section change is consistent with the Act. BILLING CODE 8011–01–P
19(b)(3)(A)(iii) of the Act 18 and Comments may be submitted by any of
subparagraph (f)(6) of Rule 19b–4 the following methods:
SECURITIES AND EXCHANGE
thereunder.19 Electronic Comments COMMISSION
A proposed rule change filed under
• Use the Commission’s Internet [Release No. 34–79322; File No. SR–Phlx–
Rule 19b–4(f)(6) normally does not 2016–97)
comment form (http://www.sec.gov/
become operative prior to 30 days after
rules/sro.shtml); or
the date of filing. However, Rule 19b– Self-Regulatory Organizations;
4(f)(6)(iii) 20 permits the Commission to • Send an email to rule-comments@ NASDAQ PHLX LLC; Order Granting
designate a shorter time if such action sec.gov. Please include File Number SR– Approval of Proposed Rule Change To
is consistent with the protection of ISEMercury–2016–20 on the subject Delete Outdated or Unnecessary Rule
investors and the public interest. In its line. Language in Phlx Rule 1020
filing with the Commission, the Paper Comments November 16, 2016.
Exchange requests that the Commission
waive the 30-day operative delay. The • Send paper comments in triplicate I. Introduction
Exchange asserts that waiver of the to Secretary, Securities and Exchange On September 27, 2016, NASDAQ
operative delay is consistent with the Commission, 100 F Street NE., PHLX LLC (‘‘Exchange’’ or ‘‘Phlx’’) filed
protection of investors and the public Washington, DC 20549–1090. with the Securities and Exchange
interest because the proposed rule Commission (‘‘SEC’’ or ‘‘Commission’’),
All submissions should refer to File
change makes non-substantive, pursuant to Section 19(b)(1) of the
Number SR–ISEMercury-2016–20. This Securities Exchange Act of 1934
technical changes to the Exchange’s
file number should be included on the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
rules. The Exchange also believes that
subject line if email is used. To help the proposed rule change to delete or
the proposed rule change increases the
Commission process and review your amend its rules relating to specialists.
clarity of ISE Mercury rules to the
comments more efficiently, please use The proposed rule change was
benefit of members and investors that
only one method. The Commission will published for comment in the Federal
trade on the Exchange. For these
post all comments on the Commission’s Register on October 14, 2016.3 The
reasons, the Commission believes that
Internet Web site (http://www.sec.gov/ Commission received no comment
waiver of the 30-day operative delay is
rules/sro.shtml). Copies of the letters on the proposed rule change.
consistent with the protection of
submission, all subsequent This order approves the proposed rule
investors and the public interest.
amendments, all written statements change.
Therefore, the Commission designates
with respect to the proposed rule II. Description of the Proposal
the proposed rule change to be operative
change that are filed with the
upon filing. 21 Phlx Rule 1020 contains provisions
Commission, and all written
At any time within 60 days of the communications relating to the relating to the registration and functions
filing of the proposed rule change, the proposed rule change between the of options specialists.4 Section (b)
Commission summarily may provides that a member registered as a
Commission and any person, other than
temporarily suspend such rule change if specialist in one or more options has an
those that may be withheld from the
it appears to the Commission that such obligation to assist in the maintenance
public in accordance with the
action is: (i) Necessary or appropriate in of a fair and orderly market, ‘‘in
provisions of 5 U.S.C. 552, will be addition to the execution of orders
the public interest; (ii) for the protection available for Web site viewing and entrusted to him in such options.’’ The
of investors; or (iii) otherwise in printing in the Commission’s Public Exchange proposes to delete the
furtherance of the purposes of the Act. Reference Room, 100 F Street NE., language in section (b) regarding
If the Commission takes such action, the Washington, DC 20549, on official execution of entrusted orders. The
Commission shall institute proceedings business days between the hours of Exchange represents that today,
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the specialists on the Exchange trade only
should be approved or disapproved. filing also will be available for for their own account and ‘‘no longer
inspection and copying at the principal handle any agency orders whatsoever in
18 15 U.S.C. 78s(b)(3)(A)(iii). office of the Exchange. All comments their role as specialists.’’ 5
19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
received will be posted without change;
the Commission written notice of its intent to file the Commission does not edit personal 22 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
the proposed rule change at least five business days identifying information from
2 17 CFR 240.19b–4.
prior to the date of filing of the proposed rule submissions. You should submit only
sradovich on DSK3GMQ082PROD with NOTICES
change, or such shorter time as designated by the 3 See Securities Exchange Act Release No. 79073
Commission. The Exchange has satisfied this information that you wish to make (October 11, 2016), 81 FR 71153 (October 14, 2016)
requirement. available publicly. All submissions (‘‘Notice’’).
20 17 CFR 240.19b–4(f)(6)(iii).
should refer to File Number SR– 4 A ‘‘specialist’’ is an Exchange member who is
21 For purposes only of waiving the 30-day
ISEMercury–2016–20 and should be registered as an options specialist pursuant to Phlx
operative delay, the Commission also has Rule 1020(a). Specialists are subject to quoting and
considered the proposed rule’s impact on submitted on or before December 13, registration obligations set forth in Phlx Rules
efficiency, competition, and capital formation. See 2016. 1014(b), 1020 and 1080.02.
15 U.S.C. 78c(f). 5 See Notice, supra note 3, at 71154.
VerDate Sep<11>2014 16:52 Nov 21, 2016 Jkt 241001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\22NON1.SGM 22NON1](https://thefederalregister.org/doc/81_FR_84109/page/3.svg)
Document Created: 2018-02-14 08:29:25
Document Modified: 2018-02-14 08:29:25
| 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 83884 |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR