81 FR 95710 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adjust Qualifying Tier Thresholds and Fees and Rebates
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 249 (December 28, 2016)
Federal Register Volume 81, Issue 249 (December 28, 2016)
| Page Range | 95710-95713 | |
| FR Document | 2016-31305 |
[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)] [Notices] [Pages 95710-95713] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31305] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79644; File No. SR-ISEGemini-2016-22] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adjust Qualifying Tier Thresholds and Fees and Rebates December 21, 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 December 9, 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 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 adjust qualifying tier thresholds and fees and rebates under the Schedule of Fees. 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 purpose of the proposed rule change is to adjust qualifying tier thresholds and fees and rebates under the Exchange's Schedule of Fees. Each of the proposed changes is described in more detail below. Qualifying Tier Thresholds ISE Gemini currently provides volume-based maker rebates to Market Maker \3\ and Priority Customer \4\ orders in five tiers based on a member's average daily volume (``ADV'') in the following categories: (i) Total Affiliated Member ADV,\5\ (ii) Priority Customer Maker ADV,\6\ and (iii) Total Affiliated Member ADV with a Minimum Priority Customer Maker ADV, as shown in the table below.\7\ In addition, the Exchange --------------------------------------------------------------------------- \3\ The term Market Maker refers to ``Competitive Market Makers'' and ``Primary Market Makers'' collectively. \4\ A Priority Customer is a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). \5\ The Total Affiliated Member ADV category includes all volume in all symbols and order types, including both maker and taker volume and volume executed in the PIM, Facilitation, Solicitation, and QCC mechanisms. \6\ The Priority Customer Maker ADV category includes all Priority Customer volume that adds liquidity in all symbols. \7\ All eligible volume from affiliated members is aggregated in determining applicable tiers, provided there is at least 75% common ownership between the Members as reflected on each Member's Form BD, Schedule A. The highest tier threshold attained by any method above applies retroactively in a given month to all eligible traded contracts and applies to all eligible market participants. Any day that the market is not open for the entire trading day or the Exchange instructs members in writing to route their orders to other markets may be excluded from the ADV calculation; provided that the Exchange will only remove the day for members that would have a lower ADV with the day included. --------------------------------------------------------------------------- [[Page 95711]] charges volume based taker fees to market participants based on achieving these volume thresholds. Table 1--Current -------------------------------------------------------------------------------------------------------------------------------------------------------- Total Affiliated Member Tier Total Affiliated Member Priority Customer Maker ADV/Minimum Priority ADV ADV Customer Maker ADV -------------------------------------------------------------------------------------------------------------------------------------------------------- Tier 1........................................................... 0-49,999 0-19,999 0-39,999/0+ Tier 2........................................................... 50,000-124,999 20,000-49,999 40,000-99,999/15,000+ Tier 3........................................................... 125,000-249,999 50,000-84,999 100,000-174,999/40,000+ Tier 4........................................................... 250,000-349,999 85,000-124,999 175,000-249,999/65,000+ Tier 5........................................................... 350,000+ 125,000+ 250,000+/85,000+ -------------------------------------------------------------------------------------------------------------------------------------------------------- As outlined in the following table, the Exchange now proposes to decrease the number of tiers available to four, modify the ADV thresholds required for members to achieve for each of those tiers, and eliminate the qualifying thresholds based on Total Affiliated Member ADV with a Minimum Priority Customer Maker ADV. With the elimination of the fifth tier, the Exchange hereby proposes to eliminate all fees and rebates applicable to members that achieve that tier.\8\ As described in the following sections, the Exchange is proposing to make changes to rates in other tiers so that fees and rebates remain competitive. --------------------------------------------------------------------------- \8\ The current fees and rebates applicable to Tier 5 are described in the following sections. Those fees and rebates are eliminated in connection with the reduction to four tiers. Table 1--Proposed ------------------------------------------------------------------------ Total Affiliated Priority Customer Tier Member ADV Maker ADV ------------------------------------------------------------------------ Tier 1.......................... 0-99,999.......... 0-19,999. Tier 2.......................... 100,000-224,999... 20,000-99,999. Tier 3.......................... 225,000-349,999... 100,000-149,999. Tier 4.......................... 350,000 or more... 150,000 or more. ------------------------------------------------------------------------ Maker Rebates in Penny Symbols and SPY Currently, the Exchange provides a maker rebate to Market Maker orders in Penny Symbols and SPY that is $0.30 per contract in Tier 1, $0.32 per contract in Tier 2 (or $0.33 per contract for members that execute a Market Maker ADV of 100,000 to 124,999 contracts in a given month), $0.34 per contract in Tier 3, $0.37 per contract in Tier 4, and $0.38 per contract in Tier 5. The Exchange proposes to increase the maker rebate provided to Market Maker orders in Penny Symbols and SPY to $0.45 per contract in Tier 4.\9\ In addition, the Exchange proposes to eliminate the higher maker rebate provided in Tier 2 for members that execute a Market Maker ADV of 100,000 to 124,999 contracts in a given month.\10\ --------------------------------------------------------------------------- \9\ Tier 5 is being eliminated, and the Exchange has therefore proposed to eliminate all fees and rebates applicable to members that achieve this tier. See id. and accompanying text. The proposed Tier 4 rates in this and following sections will therefore represent the rates for the highest volume tier. \10\ The Exchange will therefore eliminate footnote 9 under the Schedule of Fees, Section I Regular Order Fees and Rebates. --------------------------------------------------------------------------- Currently, the Exchange provides a maker rebate to Priority Customer orders in Penny Symbols and SPY that is $0.25 per contract in Tier 1 (or $0.32 per contract for members that execute a Priority Customer Maker ADV of 5,000 to 19,999 contracts in a given month), $0.40 per contract in Tier 2, $0.48 per contract in Tier 3, $0.50 per contract in Tier 4, and $0.52 per contract in Tier 5. The Exchange proposes to increase the maker rebate provided to Priority Customer orders in Penny Symbols and SPY to $0.53 per contract in Tier 4. Maker Rebates in Non-Penny Symbols Currently, the Exchange provides a maker rebate to Market Maker orders in Non-Penny Symbols that is $0.40 per contract in Tier 1, $0.42 per contract in Tier 2 (or $0.43 per contract for members that execute a Market Maker ADV of 100,000 to 124,999 contracts in a given month), $0.44 per contract in Tier 3, $0.47 per contract in Tier 4, and $0.49 per contract in Tier 5. The Exchange proposes to increase the maker rebate provided to Market Maker orders in Non-Penny Symbols to $0.50 per contract in Tier 3, and $0.75 per contract in Tier 4. In addition, the Exchange proposes to eliminate the higher rebate provided in Tier 2 for members that execute a Market Maker ADV of 100,000 to 124,999 contracts in a given month.\11\ --------------------------------------------------------------------------- \11\ The Exchange will therefore eliminate footnote 10 under the Schedule of Fees, Section I Regular Order Fees and Rebates. --------------------------------------------------------------------------- Currently, the Exchange provides a maker rebate to Priority Customer orders in Non-Penny Symbols that is $0.75 per contract in Tier 1 (or $0.76 per contract for members that execute a Priority Customer Maker ADV of 5,000 to 19,999 contracts in a given month), $0.80 per contract in Tier 2, and $0.85 per contract in Tiers 3 through 5. The Exchange proposes to increase the maker rebate provided to Priority Customer orders in Non-Penny Symbols to $1.05 per contract in Tier 4. Taker Fees in Penny Symbols and SPY Currently, the Exchange charges a taker fee for Market Maker and Non-ISE Gemini Market Maker \12\ orders in Penny Symbols and SPY that is $0.49 per contract for Tiers 1 through 4, and $0.48 per contract in Tier 5, for trades executed against a Non-Priority Customer.\13\ Firm Proprietary,\14\ Broker-Dealer,\15\ and Professional Customer \16\ orders in Penny Symbols and SPY are charged a $0.49 per contract taker fee for trades executed against a Non-Priority Customer, regardless of the tier achieved. The taker fee is $0.50 per contract for all Non[hyphen]Priority Customer orders in Penny Symbols and SPY for trades executed against a Priority Customer. Finally, the Exchange charges a taker fee for Priority Customer orders in Penny Symbols and SPY that is $0.45 per contract in Tier 1, and $0.44 per contract in Tiers 2 through 5. Priority [[Page 95712]] Customer orders are charged these rates regardless of the counterparty. --------------------------------------------------------------------------- \12\ A ``Non-ISE Gemini Market Maker'' is a market maker as defined in Section 3(a)(38) of the Securities Exchange Act of 1934, as amended, registered in the same options class on another options exchange. \13\ Non-Priority Customer includes Market Maker, Non-ISE Market Maker, Firm Proprietary, Broker-Dealer, and Professional Customer. \14\ A ``Firm Proprietary'' order is an order submitted by a member for its own proprietary account. \15\ A ``Broker-Dealer'' order is an order submitted by a member for a broker-dealer account that is not its own proprietary account. \16\ A ``Professional Customer'' is a person or entity that is not a broker/dealer and is not a Priority Customer. --------------------------------------------------------------------------- The Exchange proposes to decrease the taker fee charged to Market Maker and Non-ISE Gemini Market Maker orders in Penny Symbols and SPY to $0.48 per contract in Tier 4 for trades executed against a Non- Priority Customer. The Exchange also proposes to increase the taker fee for Priority Customer orders in Penny Symbols and SPY to $0.48 per contract in Tier 1, $0.47 per contract in Tiers 2 and 3, and $0.45 per contract in Tier 4. Finally, the Exchange proposes to charge a taker fee of $0.49 per contract for Priority Customer orders in Penny Symbols and SPY for trades executed against a Priority Customer. Taker Fees in Non-Penny Symbols Currently, the Exchange charges a taker fee for Non-Priority Customer orders in Non-Penny Symbols that is $0.89 per contract, regardless of the tier achieved.\17\ In addition, the Exchange charges a taker fee for Priority Customer orders that is $0.82 per contract for Tier 1, and $0.81 per contract for Tiers 2 through 5. Today, the taker fees in Non-Penny Symbols described above apply regardless of the counterparty. --------------------------------------------------------------------------- \17\ Non[hyphen]Priority Customer orders are also charged the taker fee for trades executed during the opening rotation. Priority Customer orders executed during the opening rotation receive the applicable maker rebate based on the tier achieved. --------------------------------------------------------------------------- The Exchange proposes to increase the taker fee for Non-Priority Customer orders to $1.10 for trades executed against a Priority Customer in Non-Penny Symbols. In addition, the Exchange proposes to increase the taker fee for Priority Customer orders in Non-Penny Symbols to $0.85 per contract for trades executed against a Priority Customer. With these changes, different taker fees will be charged for trades executed against a Priority Customer similar to taker fees charged in Penny Symbols. Orders that do not trade against a Priority Customer will continue to be charged at their current rates. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\18\ in general, and Section 6(b)(4) of the Act,\19\ in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78f. \19\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that the proposed fee change is reasonable and equitable. The Exchange is reducing the number of tiers offered to four, and is eliminating one of the methods of achieving those tiers-- i.e., the Total Affiliated Member ADV/Minimum Priority Customer ADV categories. These two changes will simplify the Exchange's volume tiers. As the Exchange implements new pricing programs over time, the Exchange believes that it is appropriate to eliminate pricing programs when the Exchange no longer believes they are necessary. With respect to the elimination of the Total Affiliated Member ADV/Minimum Priority Customer ADV qualifying methodology in particular, the Exchange notes that members were not making use of these qualifying thresholds to achieve higher tiers on the Exchange. The Exchange therefore believes that it is appropriate to remove this alternative method of qualifying for higher tiers. The proposed changes to the tier structure are also accompanied by changes to the fees charged and rebates offered to members. The Exchange believes that these changes taken together will be attractive to market participants. The proposed fee change will allow the Exchange to offer more favorable rebates to Market Maker and Priority Customer orders in the highest tiers, and is designed to attract more of that volume to the Exchange. Even though the Exchange is reducing the number of volume tiers, the maker rebates proposed for the new highest tier (i.e., Tier 4) are higher than the current Tier 5 maker rebates. Today, the Exchange provides enhanced maker rebates for Market Maker Priority Customer orders. Further increasing the rebates will incentivize these members to send additional order flow to ISE Gemini, thereby creating additional liquidity to the benefit of members and investors that trade on the Exchange. Although the proposed fee changes are designed to attract liquidity from Market Makers and Priority Customers by increasing maker rebates, certain taker fees will also be increased. The Exchange believes that the taker fee increases are appropriate as the fees will remain attractive to market participants who will now also benefit from additional liquidity posted on the Exchange. With respect to increased taker fees for trades executed against a Priority Customer, the Exchange believes that the proposed fees are appropriate as they are designed to offset the enhanced rebates. With the proposed changes, Priority Customers will be offered even more favorable maker rebates. The Exchange believes that members will benefit from the additional liquidity created by the higher Priority Customer rebates, and it is therefore appropriate to charge an increased taker fee for trades executed against a Priority Customer. Furthermore, these taker fees are within the range of taker fees charged on other markets, including for example the Nasdaq Options Market (``NOM''), which charges a taker fee of up to $1.10 in Non-Penny Pilot Options and $0.50 per contract in Penny Pilot Options.\20\ --------------------------------------------------------------------------- \20\ See NOM Rules, Chapter XV Options Pricing, Sec. 2 NOM--Fees and Rebates. --------------------------------------------------------------------------- The Exchange also does not believe that the proposed fee change is unfairly discriminatory. While the proposed fee change generally increases maker rebates for Market Maker and Priority Customer orders, and increases taker fees for trades executed against a Priority Customer, the Exchange believe that the proposed fee structure will remain attractive to all members. As has historically been the case, Market Maker and Priority Customer orders will earn more favorable maker rebates in order to encourage that order flow. Market Makers have different requirements and obligations to the Exchange that other market participants do not (such as quoting requirements). In addition, a Priority Customer is by definition not a broker or dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). This limitation does not apply to participants whose behavior is substantially similar to that of market professionals, including Professional Customers, who will generally submit a higher number of orders than Priority Customers. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\21\ 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 changes to fees and rebates are designed to attract additional order flow to the Exchange. The Exchange believes that the proposed fees and rebates are competitive with fees and rebates offered to orders executed on other options exchanges. The Exchange operates in a highly competitive market in which market participants can readily direct their order flow to competing venues. In such an environment, the Exchange must continually review, and consider adjusting, its fees and rebates to remain [[Page 95713]] competitive with other exchanges. For the reasons described above, the Exchange believes that the proposed fee changes reflect this competitive environment. --------------------------------------------------------------------------- \21\ 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 The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act,\22\ and Rule 19b-4(f)(2) \23\ thereunder. 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. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A)(ii). \23\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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-2016-22 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-2016-22. 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-ISEGemini-2016-22 and should be submitted on or before January 18, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-31305 Filed 12-27-16; 8:45 am] BILLING CODE 8011-01-P
![95710 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices
working with market participants to Washington, DC 20549, on official II. Self-Regulatory Organization’s
provide the information necessary to business days between the hours of Statement of the Purpose of, and
educate retail investors. 10:00 a.m. and 3:00 p.m. Copies of such Statutory Basis for, the Proposed Rule
filing also will be available for Change
III. Date of Effectiveness of the
inspection and copying at the principal In its filing with the Commission, the
Proposed Rule Change and Timing for
office of FINRA. All comments received Exchange included statements
Commission Action
will be posted without change; the concerning the purpose of and basis for
Within 45 days of the date of Commission does not edit personal the proposed rule change and discussed
publication of this notice in the Federal identifying information from any comments it received on the
Register or within such longer period (i) submissions. You should submit only proposed rule change. The text of these
as the Commission may designate up to information that you wish to make statements may be examined at the
90 days of such date if it finds such available publicly. All submissions places specified in Item IV below. The
longer period to be appropriate and should refer to File Number SR–FINRA– Exchange has prepared summaries, set
publishes its reasons for so finding or 2016–047 and should be submitted on forth in sections A, B, and C below, of
(ii) as to which the self-regulatory or before January 18, 2017. the most significant aspects of such
organization consents, the Commission statements.
For the Commission, by the Division of
will:
Trading and Markets, pursuant to delegated A. Self-Regulatory Organization’s
(A) by order approve or disapprove
authority.36 Statement of the Purpose of, and
such proposed rule change, or
(B) institute proceedings to determine Eduardo A. Aleman, Statutory Basis for, the Proposed Rule
whether the proposed rule change Assistant Secretary. Change
should be disapproved. [FR Doc. 2016–31308 Filed 12–27–16; 8:45 am]
1. Purpose
BILLING CODE 8011–01–P
IV. Solicitation of Comments The purpose of the proposed rule
Interested persons are invited to change is to adjust qualifying tier
submit written data, views, and SECURITIES AND EXCHANGE thresholds and fees and rebates under
arguments concerning the foregoing, COMMISSION the Exchange’s Schedule of Fees. Each
including whether the proposed rule of the proposed changes is described in
change is consistent with the Act. more detail below.
[Release No. 34–79644; File No. SR–
Comments may be submitted by any of ISEGemini–2016–22] Qualifying Tier Thresholds
the following methods:
ISE Gemini currently provides
Electronic Comments Self-Regulatory Organizations; ISE
volume-based maker rebates to Market
Gemini, LLC; Notice of Filing and
• Use the Commission’s Internet Immediate Effectiveness of Proposed
Maker 3 and Priority Customer 4 orders
comment form (http://www.sec.gov/ in five tiers based on a member’s
Rule Change To Adjust Qualifying Tier
rules/sro.shtml); or average daily volume (‘‘ADV’’) in the
Thresholds and Fees and Rebates
• Send an email to rule-comments@ following categories: (i) Total Affiliated
sec.gov. Please include File Number SR– December 21, 2016. Member ADV,5 (ii) Priority Customer
FINRA–2016–047 on the subject line. Maker ADV,6 and (iii) Total Affiliated
Pursuant to Section 19(b)(1) of the Member ADV with a Minimum Priority
Paper Comments Securities Exchange Act of 1934 Customer Maker ADV, as shown in the
• Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2 table below.7 In addition, the Exchange
to Secretary, Securities and Exchange notice is hereby given that on December
Commission, 100 F Street NE., 9, 2016, ISE Gemini, LLC (‘‘ISE Gemini’’ 3 The term Market Maker refers to ‘‘Competitive
Washington, DC 20549–1090. or ‘‘Exchange’’) filed with the Securities Market Makers’’ and ‘‘Primary Market Makers’’
and Exchange Commission (‘‘SEC’’ or collectively.
All submissions should refer to File 4 A Priority Customer is a person or entity that is
‘‘Commission’’) the proposed rule
Number SR–FINRA–2016–047. This file not a broker/dealer in securities, and does not place
change as described in Items I and II
number should be included on the more than 390 orders in listed options per day on
below, which Items have been prepared average during a calendar month for its own
subject line if email is used. To help the
by the Exchange. The Commission is beneficial account(s).
Commission process and review your 5 The Total Affiliated Member ADV category
publishing this notice to solicit
comments more efficiently, please use includes all volume in all symbols and order types,
comments on the proposed rule change
only one method. The Commission will including both maker and taker volume and volume
from interested persons. executed in the PIM, Facilitation, Solicitation, and
post all comments on the Commission’s
QCC mechanisms.
Internet Web site (http://www.sec.gov/ I. Self-Regulatory Organization’s 6 The Priority Customer Maker ADV category
rules/sro.shtml). Copies of the Statement of the Terms of Substance of includes all Priority Customer volume that adds
submission, all subsequent the Proposed Rule Change liquidity in all symbols.
amendments, all written statements 7 All eligible volume from affiliated members is
with respect to the proposed rule The Exchange proposes to adjust aggregated in determining applicable tiers, provided
qualifying tier thresholds and fees and there is at least 75% common ownership between
change that are filed with the the Members as reflected on each Member’s Form
Commission, and all written rebates under the Schedule of Fees. BD, Schedule A.
communications relating to the The text of the proposed rule change The highest tier threshold attained by any method
proposed rule change between the above applies retroactively in a given month to all
sradovich on DSK3GMQ082PROD with NOTICES
is available on the Exchange’s Web site eligible traded contracts and applies to all eligible
Commission and any person, other than at www.ise.com, at the principal office market participants.
those that may be withheld from the of the Exchange, and at the Any day that the market is not open for the entire
public in accordance with the Commission’s Public Reference Room. trading day or the Exchange instructs members in
provisions of 5 U.S.C. 552, will be writing to route their orders to other markets may
be excluded from the ADV calculation; provided
available for Web site viewing and 36 17 CFR 200.30–3(a)(12). that the Exchange will only remove the day for
printing in the Commission’s Public 1 15 U.S.C. 78s(b)(1). members that would have a lower ADV with the
Reference Room, 100 F Street NE., 2 17 CFR 240.19b–4. day included.
VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00156 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1](https://thefederalregister.org/doc/81_FR_95959/page/1.svg)
![Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Notices 95713
competitive with other exchanges. For submission, all subsequent solicit comments on the proposed rule
the reasons described above, the amendments, all written statements change from interested persons.
Exchange believes that the proposed fee with respect to the proposed rule
I. Self-Regulatory Organization’s
changes reflect this competitive change that are filed with the
Statement of the Terms of Substance of
environment. Commission, and all written
the Proposed Rule Change
communications relating to the
C. Self-Regulatory Organization’s The Exchange proposes to adopt (i)
proposed rule change between the
Statement on Comments on the BOX Rule 3220 (Disruptive Quoting and
Commission and any person, other than
Proposed Rule Change Received From Trading Activity Prohibited) to clearly
those that may be withheld from the
Members, Participants, or Others prohibit disruptive quoting and trading
public in accordance with the
No written comments were either provisions of 5 U.S.C. 552, will be activity on the Exchange and (ii) BOX
solicited or received. available for Web site viewing and Rule 12160 (Expedited Suspension
III. Date of Effectiveness of the printing in the Commission’s Public Proceeding) to permit the Exchange to
Proposed Rule Change and Timing for Reference Room, 100 F Street NE., take prompt action to suspend Option
Commission Action Washington, DC 20549, on official Participants or their clients that violate
business days between the hours of Rule 3220. The text of the proposed rule
The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the change is available from the principal
effective pursuant to Section filing also will be available for office of the Exchange, at the
19(b)(3)(A)(ii) of the Act,22 and Rule inspection and copying at the principal Commission’s Public Reference Room
19b–4(f)(2) 23 thereunder. At any time office of the Exchange. All comments and also on the Exchange’s Internet Web
within 60 days of the filing of the received will be posted without change; site at http://boxexchange.com.
proposed rule change, the Commission the Commission does not edit personal
summarily may temporarily suspend II. Self-Regulatory Organization’s
identifying information from Statement of the Purpose of, and
such rule change if it appears to the submissions. You should submit only
Commission that such action is: (i) Statutory Basis for, the Proposed Rule
information that you wish to make Change
Necessary or appropriate in the public available publicly. All submissions
interest; (ii) for the protection of should refer to File Number SR– In its filing with the Commission, the
investors; or (iii) otherwise in ISEGemini–2016–22 and should be self-regulatory organization included
furtherance of the purposes of the Act. submitted on or before January 18, 2017. statements concerning the purpose of,
If the Commission takes such action, the and basis for, the proposed rule change
Commission shall institute proceedings For the Commission, by the Division of
Trading and Markets, pursuant to delegated
and discussed any comments it received
to determine whether the proposed rule on the proposed rule change. The text
authority.24
should be approved or disapproved. of these statements may be examined at
Eduardo A. Aleman,
IV. Solicitation of Comments the places specified in Item IV below.
Assistant Secretary.
The self-regulatory organization has
Interested persons are invited to [FR Doc. 2016–31305 Filed 12–27–16; 8:45 am]
prepared summaries, set forth in
submit written data, views, and BILLING CODE 8011–01–P Sections A, B, and C below, of the most
arguments concerning the foregoing, significant aspects of such statements.
including whether the proposed rule
change is consistent with the Act. SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
Comments may be submitted by any of COMMISSION Statement of the Purpose of, and the
the following methods: Statutory Basis for, the Proposed Rule
[Release No. 34–79646; File No. SR–BOX– Change
Electronic Comments 2016–59]
1. Purpose
• Use the Commission’s Internet Self-Regulatory Organizations; BOX
comment form (http://www.sec.gov/ Options Exchange LLC; Notice of The Exchange proposes to adopt BOX
rules/sro.shtml); or Filing and Immediate Effectiveness of Rule 3220 (Disruptive Quoting and
• Send an email to rule-comments@ Proposed Rule Change To Adopt Rule Trading Activity Prohibited) to clearly
sec.gov. Please include File Number SR– 3220, Disruptive Quoting and Trading prohibit disruptive quoting and trading
ISEGemini–2016–22 on the subject line. Activity Prohibited and Rule 12160, activity on the Exchange and to adopt a
Expedited Suspension Proceeding new Exchange Rule 12160 (Expedited
Paper Comments
Suspension Proceeding), to permit the
• Send paper comments in triplicate December 21, 2016. Exchange to take prompt action to
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the suspend Options Participants 3 and their
Commission, 100 F Street, NE., Securities Exchange Act of 1934 clients that violate such rule.
Washington, DC 20549–1090. (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Background
All submissions should refer to File notice is hereby given that on December
Number SR–ISEGemini–2016–22. This 14, 2016, BOX Options Exchange LLC As a national securities exchange
file number should be included on the (‘‘BOX’’ or the ‘‘Exchange’’) filed with registered pursuant to Section 6 of the
subject line if email is used. To help the the Securities and Exchange Act, the Exchange is required to be
Commission process and review your Commission (‘‘Commission’’) the organized and to have the capacity to
enforce compliance by its members and
sradovich on DSK3GMQ082PROD with NOTICES
comments more efficiently, please use proposed rule change as described in
only one method. The Commission will Items I and II below, which Items have persons associated with its members,
post all comments on the Commission’s been prepared by the Exchange. The with the Act, the rules and regulations
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to
3 The term ‘‘Options Participant’’ or ‘‘Participant’’
rules/sro.shtml). Copies of the means a firm, or organization that is registered with
24 17 CFR 200.30–3(a)(12). the Exchange pursuant to the Rule 2000 Series for
22 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1). purposes of participating in options trading on BOX
23 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4. as an ‘‘Order Flow Provider’’ or ‘‘Market Maker’’.
VerDate Sep<11>2014 18:54 Dec 27, 2016 Jkt 241001 PO 00000 Frm 00159 Fmt 4703 Sfmt 4703 E:\FR\FM\28DEN1.SGM 28DEN1](https://thefederalregister.org/doc/81_FR_95959/page/4.svg)
Document Created: 2016-12-28 02:16:33
Document Modified: 2016-12-28 02:16:33
| 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 95710 |
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