81 FR 96060 - Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Permit Phlx To Accept Inbound Options Orders Routed by Nasdaq Execution Services LLC
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 250 (December 29, 2016)
Federal Register Volume 81, Issue 250 (December 29, 2016)
| Page Range | 96060-96062 | |
| FR Document | 2016-31475 |
[Federal Register Volume 81, Number 250 (Thursday, December 29, 2016)] [Notices] [Pages 96060-96062] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-31475] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79660; File No. SR-Phlx-2016-120] Self-Regulatory Organizations; NASDAQ PHLX LLC; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1 Thereto, To Permit Phlx To Accept Inbound Options Orders Routed by Nasdaq Execution Services LLC December 22, 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, NASDAQ PHLX LLC (``Phlx'' or the ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change. On December 20, 2016, the Exchange filed Amendment No. 1 to the proposed rule change, which amended and replaced the original filing in its entirety. The proposed rule change, as modified by Amendment No. 1, is 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, as modified by Amendment No. 1 thereto, 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 permit Phlx to accept inbound options orders routed by Nasdaq Execution Services LLC (``NES'') from the International Securities Exchange, LLC (``ISE'') ISE Gemini, LLC (``ISE Gemini'') and ISE Mercury, LLC (``ISE Mercury'') (collectively ``ISE Exchanges''). 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. [[Page 96061]] A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 1. Purpose In conjunction with the ISE Exchanges seeking approval to provide outbound routing services to all options markets using an affiliated routing broker, NES,\3\ Phlx proposes that NES be permitted to route orders from the ISE Exchanges to Phlx, subject to certain limitations and conditions, as described below. --------------------------------------------------------------------------- \3\ See SR-ISE-2016-27, SR-ISEGemini-2016-16 and SR-ISE-Mercury- 2016-22 (not yet published). --------------------------------------------------------------------------- NES is a broker-dealer and member of The Nasdaq Options Market LLC (``NOM''), Nasdaq BX, Inc. (``BX'') and Phlx (collectively ``Nasdaq Exchanges''). NES provides all routing functions for the Nasdaq Exchanges. The Nasdaq Exchanges and NES are permitted affiliates.\4\ Accordingly, the affiliate relationship between Phlx and NES, its member, raises the issue of an exchange's affiliation with a member of such exchange. Specifically, in connection with prior filings, the Commission has expressed concern that the affiliation of an exchange with one of its members raises the potential for unfair competitive advantage and potential conflicts of interest between an exchange's self-regulatory obligations and its commercial interests.\5\ --------------------------------------------------------------------------- \4\ See Phlx Rule 985, Nasdaq Rule 2160 and BX Rule 2140. \5\ See Securities Exchange Act Release Nos. 59153 (December 23, 2008), 73 FR 80485 (December 31, 2008) (SR-NASDAQ-2008-098); and 62736 (August 17, 2010), 75 FR 51861 (August 23, 2010) (SR-NASDAQ- 2010-100). See also Securities Exchange Act Release No. 58135 (July 10, 2008), 73 FR 40898 (July 16, 2008) (SR-NASDAQ-2008-061) (Permitting NOS to be affiliated with Phlx). --------------------------------------------------------------------------- Specifically, in connection with prior filings, the Commission has expressed concern that the affiliation of an exchange with one of its members raises the potential for unfair competitive advantage and potential conflicts of interest between an exchange's self-regulatory obligations and its commercial interests.\6\ The Nasdaq Exchanges received approval from the Commission to permit NES to become a member of these three markets subject to certain limitations and conditions in order to perform certain routing and other functions, respectively.\7\ Also recognizing that the Commission has expressed concern regarding the potential for conflicts of interest in instances where a member firm is affiliated with an exchange to which it is routing orders, the Nasdaq Exchanges previously proposed, and the Commission approved,\8\ NES's affiliation with the Nasdaq Exchanges to permit the Exchange to accept inbound orders that NES routes in its capacity as a facility from other Nasdaq Exchanges, subject to the certain limitations and conditions. Phlx now proposes to permit Phlx to accept inbound options orders that NES routes in its capacity as a facility of the ISE Exchanges, subject to the following limitations and conditions: \9\ --------------------------------------------------------------------------- \6\ Securities Exchange Act Release Nos. 71416 (January 28, 2014), 79 FR 6244 (February 3, 2014) (SR-Phlx-2014-05); 71419 (January 28, 2014), 79 FR 6247 (February 3, 2014) (SR-NASDAQ-2014- 007); and 714121 (January 28, 2014), 79 FR 6264 (February 3, 2014) (SR-BX-2014-003). \7\ See Securities Exchange Act Release Nos. 59721 (April 7, 2009), 74 FR 17245 (April 14, 2009) (SR-Phlx-2009-32); 59779 (April 16, 2009) 74 FR 18600 (April 23, 2009) (SR-Phlx-2009-32, Amendment No. 1) notice of filing of proposed rule change relating to enhanced electronic trading platform for options); 61667 (March 5, 2010), 75 FR 11964 (March 12, 2016) (SR-Phlx-2010-36) (notice of filing and immediate effectiveness of proposed rule changes to establish procedures to prevent information advantages resulting from the affiliation between Phlx and NES); and 71416 (January 28, 2014), 79 FR 6244 (February 3, 2014) (SR-Phlx-2014-05) (notice of filing and immediate effectiveness of proposed rule change to inbound routing of options orders). Nasdaq Options Services was the affiliated broker-dealer prior to a rule change to utilize NES, another affiliated broker-dealer of Nasdaq. See also Securities Exchange Act Release Nos. 63769 (January 25, 2011), 76 FR 5423 (January 31, 2011) (SR-BX-2011-003); 63859 (February 7, 2011), 76 FR 8391 (February 14, 2011) (SR-BX-2011-007) (notice of filing of proposed rule change relating to permanent approval of the BX and NES inbound routing relationship); 71420 (January 28, 2014), 79 FR 6256 (February 3, 2014) (SR-BX-2014-004) (notice of filing and immediate effectiveness of proposed rule change to inbound routing). See also Securities Exchange Act Release Nos. 65554 (October 13, 2011), 76 FR 65311 (October 20, 2011) (SR-NASDAQ-2011-142); 71418 (January 28, 2014), 79 FR 6262 (February 3, 2014) (SR-NASDAQ-2014-008) (notice of filing and immediate effectiveness of proposed rule change to inbound routing). \8\ Id. \9\ The Exchange notes that similar filings are proposed for the Nasdaq and BX markets. See SR-Nasdaq-2016-169 and SR-BX-2016-068 (not published). ---------------------------------------------------------------------------First, the Exchange and FINRA maintain a Regulatory Services Agreement (``RSA''), as well as an agreement pursuant to Rule 17d-2 under the Act (``17d-2 Agreement'').\10\ Pursuant to the RSA and the 17d-2 Agreement, FINRA is allocated regulatory responsibilities to review NES's compliance with certain Exchange rules.\11\ Pursuant to the RSA, however, Phlx retains ultimate responsibility for enforcing its rules with respect to NES. --------------------------------------------------------------------------- \10\ 17 CFR 240.17d-2. FINRA reviews NES' compliance for certain common rules. The RSA with FINRA specifies the types of business activities that NES may undertake and it also indicates the obligations to which NES is subject under the RSA. Among other things, NES must maintain a certain amount of net capital pursuant to SEC Rule 15c3-1(a)(1)(ii) and operate pursuant to SEC Rule 15c3- 3(k)(2)(ii). NES is permitted to route orders in options to the appropriate market center for execution in accordance with member order and requirements. \11\ NES is also subject to independent oversight by FINRA, its designated examining authority, for compliance with financial responsibility requirements. --------------------------------------------------------------------------- Second, FINRA monitors NES for compliance with the Exchange's trading rules, and collects and maintains certain related information.\12\ --------------------------------------------------------------------------- \12\ Pursuant to the RSA, both FINRA and Phlx collect and maintain all alerts, complaints, investigations and enforcement actions in which NES (in its capacity as a facility of BX and NOM routing orders to Phlx) is identified as a participant that has potentially violated applicable Commission or Exchange rules. The Exchange and FINRA retain these records in an easily accessible manner in order to facilitate any potential review conducted by the Commission's Office of Compliance Inspections and Examinations. Pursuant to the RSA, the Exchange and FINRA would be required to perform these activities with respect to NES acting in its capacity as a facility of each of the affiliated entities routing orders to Phlx. --------------------------------------------------------------------------- Third, FINRA provides a report to the Exchange's chief regulatory officer (``CRO''), on a quarterly basis, that: (i) Quantifies all alerts (of which the Exchange or FINRA is aware) that identify NES as a participant that has potentially violated Commission or Exchange rules, and (ii) lists all investigations that identify NES as a participant that has potentially violated Commission or Exchange rules. Fourth, Phlx has in place Phlx Rule 985(c)(2) which requires Nasdaq, Inc., as the holding company owning both the Exchange and NES, to establish and maintain procedures and internal controls reasonably designed to ensure that NES does not develop or implement changes to its system, based on non-public information obtained regarding planned changes to the Exchange's systems as a result of its affiliation with the Exchange, until such information is available generally to similarly situated Exchange members, in connection with the provision of inbound order routing to the Exchange.\13\ --------------------------------------------------------------------------- \13\ See Securities Exchange Act Release Nos. 59721 (April 7, 2009), 74 FR 17245 (April 14, 2009) (SR-Phlx-2009-32); 59779 (April 16, 2009), 74 FR 18600 (April 23, 2009) (SR-Phlx-2009-32, Amendment No. 1) notice of filing of proposed rule change relating to enhanced electronic trading platform for options); 61667 (March 5, 2010), 75 FR 11964 (March 12, 2016) (SR-Phlx-2010-36) (notice of filing and immediate effectiveness of proposed rule changes to establish procedures to prevent information advantages resulting from the affiliation between Phlx and NES); and 71416 (January 28, 2014), 79 FR 6244 (February 3, 2014) (SR-Phlx-2014-05) (notice of filing and immediate effectiveness of proposed rule change to inbound routing of options orders). Nasdaq Options Services was the affiliated broker-dealer prior to a rule change to utilize NES, another affiliated broker-dealer of Nasdaq. --------------------------------------------------------------------------- The Exchange has met all the above-listed conditions in connection with [[Page 96062]] NES routing in its capacity as a facility of BX and NOM. By meeting the above conditions, the Exchange has set up mechanisms that protect the independence of the Exchange's regulatory responsibility with respect to NES, as well as demonstrate that NES cannot use any information advantage it may have because of its affiliation with the Exchange. Because the Exchange has met all the above-listed conditions, it now seeks to permit an inbound routing relationship with the ISE Exchanges pursuant to the same conditions. The Exchange will continue to comply with the four conditions stated above. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\14\ in general, and with Sections 6(b)(5) of the Act,\15\ in particular, in that the proposal is designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, 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, because the proposed rule change will allow the Exchange to continue to receive inbound orders from NES, acting in its capacity as a facility of BX and NOM, in a manner consistent with prior approvals and established protections and will further be permitted to receive inbound orders from the ISE Exchanges, for which NES will also act in its capacity as a facility of those markets. The Exchange believes that the proposed conditions establish mechanisms that protect the independence of the Exchange's regulatory responsibility with respect to NES, as well as ensure that NES cannot use any information it may have because of its affiliation with the Exchange, or affiliation with other Nasdaq Exchanges or ISE Exchanges, to its advantage. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78f. \15\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will result in any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act, as amended. Permitting Phlx to receive inbound orders from the ISE Exchanges does not create any issues of intra-market competition because it involves inbound routing from affiliated markets. Nor does it result in a burden on competition among exchanges, because there are many competing options exchanges that provide routing services, including through an affiliate. 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 Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the Commission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the Exchange consents, the Commission shall: (a) By order approve or disapprove such proposed rule change, or (b) institute proceedings to determine whether the proposed rule change should be 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, as modified by Amendment No. 1, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-Phlx-2016-120 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-Phlx-2016-120. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-Phlx-2016-120, and should be submitted on or before January 19, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2016-31475 Filed 12-28-16; 8:45 am] BILLING CODE 8011-01-P
![96060 Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices
impose any burden on competition that Nos. 1, 2, and 3 is consistent with the SECURITIES AND EXCHANGE
is not necessary or appropriate in Exchange Act. Comments may be COMMISSION
furtherance of the purposes of the Act submitted by any of the following
because providing VCCs satisfies User methods: [Release No. 34–79660; File No. SR-Phlx-
demand for an alternative to cross 2016–120]
connects. Electronic Comments
The Exchange believes that revising • Use the Commission’s Internet Self-Regulatory Organizations;
the Price List to provide a more detailed comment form (http://www.sec.gov/ NASDAQ PHLX LLC; Notice of Filing of
description of the Access and rules/sro.shtml); or Proposed Rule Change, as Modified by
Connectivity available to Users would Amendment No. 1 Thereto, To Permit
make such descriptions more accessible • Send an email to rule-comments@
Phlx To Accept Inbound Options
and transparent, thereby providing sec.gov. Please include File No. SR–
Orders Routed by Nasdaq Execution
market participants with clarity as to NYSE–2016–45 on the subject line.
Services LLC
what Access and Connectivity is Paper Comments
available to them and what the related December 22, 2016.
costs are, thereby enhancing • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
competition by ensuring that all Users to Brent J. Fields, Secretary, Securities Securities Exchange Act of 1934
have access to the same information and Exchange Commission, 100 F Street (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
regarding Access and Connectivity. NE., Washington, DC 20549–1090. notice is hereby given that on December
Finally, the Exchange operates in a 9, 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
highly competitive market in which All submissions should refer to File No.
SR–NYSE–2016–45. This file number the ‘‘Exchange’’) filed with the
exchanges offer co-location services as a Securities and Exchange Commission
means to facilitate the trading and other should be included on the subject line
if email is used. To help the (‘‘Commission’’) the proposed rule
market activities of those market change. On December 20, 2016, the
participants who believe that co- Commission process and review your
comments more efficiently, please use Exchange filed Amendment No. 1 to the
location enhances the efficiency of their proposed rule change, which amended
operations. Accordingly, fees charged only one method. The Commission will
post all comments on the Commission’s and replaced the original filing in its
for co-location services are constrained entirety. The proposed rule change, as
by the active competition for the order Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the modified by Amendment No. 1, is
flow of, and other business from, such described in Items I, II, and III below,
market participants. If a particular submission, all subsequent
amendments, all written statements which Items have been prepared by the
exchange charges excessive fees for co- Exchange. The Commission is
location services, affected market with respect to the proposed rule
change that are filed with the publishing this notice to solicit
participants will opt to terminate their comments on the proposed rule change,
co-location arrangements with that Commission, and all written
communications relating to the as modified by Amendment No. 1
exchange, and adopt a possible range of thereto, from interested persons.
alternative strategies, including placing proposed rule change between the
their servers in a physically proximate Commission and any person, other than I. Self-Regulatory Organization’s
location outside the exchange’s data those that may be withheld from the Statement of the Terms of Substance of
center (which could be a competing public in accordance with the the Proposed Rule Change
exchange), or pursuing strategies less provisions of 5 U.S.C. 552, will be
available for Web site viewing and The Exchange proposes to permit
dependent upon the lower exchange-to-
printing in the Commission’s Public Phlx to accept inbound options orders
participant latency associated with co-
Reference Room, 100 F Street NE., routed by Nasdaq Execution Services
location. Accordingly, the exchange
Washington, DC 20549 on official LLC (‘‘NES’’) from the International
charging excessive fees would stand to
business days between the hours of Securities Exchange, LLC (‘‘ISE’’) ISE
lose not only co-location revenues but
10:00 a.m. and 3:00 p.m. Copies of such Gemini, LLC (‘‘ISE Gemini’’) and ISE
also the liquidity of the formerly co-
filing also will be available for Mercury, LLC (‘‘ISE Mercury’’)
located trading firms, which could have
inspection and copying at the principal (collectively ‘‘ISE Exchanges’’).
additional follow-on effects on the
market share and revenue of the affected office of the Exchange. All comments II. Self-Regulatory Organization’s
exchange. For the reasons described received will be posted without change; Statement of the Purpose of, and
above, the Exchange believes that the the Commission does not edit personal Statutory Basis for, the Proposed Rule
proposed rule change reflects this identifying information from Change
competitive environment. submissions. You should submit only
information that you wish to make In its filing with the Commission, the
C. Self-Regulatory Organization’s available publicly. All submissions Exchange included statements
Statement on Comments on the should refer to File No. SR–NYSE– concerning the purpose of and basis for
Proposed Rule Change Received From 2016–45, and should be submitted on or the proposed rule change and discussed
Members, Participants, or Others before January 19, 2017. any comments it received on the
No written comments were solicited proposed rule change. The text of these
For the Commission, by the Division of
statements may be examined at the
asabaliauskas on DSK3SPTVN1PROD with NOTICES
or received with respect to the proposed Trading and Markets, pursuant to delegated
rule change. authority.34 places specified in Item IV below. The
Exchange has prepared summaries, set
III. Solicitation of Comments Eduardo A. Aleman,
forth in sections A, B, and C below, of
Interested persons are invited to Assistant Secretary. the most significant aspects of such
submit written data, views and [FR Doc. 2016–31486 Filed 12–28–16; 8:45 am] statements.
arguments concerning the foregoing, BILLING CODE 8011–01–P
including whether the proposed rule 1 15 U.S.C. 78s(b)(1).
change, as amended by Amendment 34 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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![96062 Federal Register / Vol. 81, No. 250 / Thursday, December 29, 2016 / Notices
NES routing in its capacity as a facility orders from the ISE Exchanges does not with respect to the proposed rule
of BX and NOM. By meeting the above create any issues of intra-market change that are filed with the
conditions, the Exchange has set up competition because it involves Commission, and all written
mechanisms that protect the inbound routing from affiliated markets. communications relating to the
independence of the Exchange’s Nor does it result in a burden on proposed rule change between the
regulatory responsibility with respect to competition among exchanges, because Commission and any person, other than
NES, as well as demonstrate that NES there are many competing options those that may be withheld from the
cannot use any information advantage it exchanges that provide routing services, public in accordance with the
may have because of its affiliation with including through an affiliate. provisions of 5 U.S.C. 552, will be
the Exchange. Because the Exchange has available for Web site viewing and
met all the above-listed conditions, it C. Self-Regulatory Organization’s
Statement on Comments on the printing in the Commission’s Public
now seeks to permit an inbound routing Reference Room, 100 F Street NE.,
relationship with the ISE Exchanges Proposed Rule Change Received From
Members, Participants, or Others Washington, DC 20549 on official
pursuant to the same conditions. The
No written comments were either business days between the hours of
Exchange will continue to comply with
the four conditions stated above. solicited or received. 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
2. Statutory Basis III. Date of Effectiveness of the inspection and copying at the principal
The Exchange believes that the Proposed Rule Change and Timing for office of the Exchange. All comments
proposed rule change is consistent with Commission Action received will be posted without change;
the provisions of Section 6 of the Act,14 Within 45 days of the date of the Commission does not edit personal
in general, and with Sections 6(b)(5) of publication of this notice in the Federal identifying information from
the Act,15 in particular, in that the Register or within such longer period (i) submissions. You should submit only
proposal is designed to prevent as the Commission may designate up to information that you wish to make
fraudulent and manipulative acts and 90 days of such date if it finds such available publicly. All submissions
practices, to promote just and equitable longer period to be appropriate and should refer to File Number SR–Phlx–
principles of trade, to foster cooperation publishes its reasons for so finding or 2016–120, and should be submitted on
and coordination with persons engaged (ii) as to which the Exchange consents, or before January 19, 2017.
in regulating, clearing, settling, the Commission shall: (a) By order
processing information with respect to, For the Commission, by the Division of
approve or disapprove such proposed
Trading and Markets, pursuant to delegated
and facilitating transactions in rule change, or (b) institute proceedings
authority.16
securities, to remove impediments to to determine whether the proposed rule
and perfect the mechanism of a free and change should be disapproved. Eduardo A. Aleman,
open market and a national market Assistant Secretary.
system, and, in general, to protect IV. Solicitation of Comments [FR Doc. 2016–31475 Filed 12–28–16; 8:45 am]
investors and the public interest, Interested persons are invited to BILLING CODE 8011–01–P
because the proposed rule change will submit written data, views, and
allow the Exchange to continue to arguments concerning the foregoing,
receive inbound orders from NES, acting including whether the proposed rule SECURITIES AND EXCHANGE
in its capacity as a facility of BX and change, as modified by Amendment No. COMMISSION
NOM, in a manner consistent with prior 1, is consistent with the Act. Comments
approvals and established protections may be submitted by any of the
[Release No. 34–79679; File No. SR–
and will further be permitted to receive following methods: ISEGemini–2016–18]
inbound orders from the ISE Exchanges, Electronic Comments
for which NES will also act in its Self-Regulatory Organizations; ISE
capacity as a facility of those markets. • Use the Commission’s Internet
Gemini, LLC; Notice of Filing of
The Exchange believes that the comment form (http://www.sec.gov/
rules/sro.shtml); or Proposed Rule Change To Amend the
proposed conditions establish Opening Process
mechanisms that protect the • Send an email to rule-comments@
independence of the Exchange’s sec.gov. Please include File Number SR– December 22, 2016.
regulatory responsibility with respect to Phlx–2016–120 on the subject line.
Pursuant to Section 19(b)(1) of the
NES, as well as ensure that NES cannot Paper Comments Securities Exchange Act of 1934
use any information it may have
• Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2
because of its affiliation with the
to Brent J. Fields, Secretary, Securities notice is hereby given that on December
Exchange, or affiliation with other
and Exchange Commission, 100 F Street 16, 2016, ISE Gemini, LLC (‘‘ISE
Nasdaq Exchanges or ISE Exchanges, to
NE., Washington, DC 20549–1090. Gemini’’ or ‘‘Exchange’’) filed with the
its advantage.
All submissions should refer to File Securities and Exchange Commission
B. Self-Regulatory Organization’s Number SR–Phlx–2016–120. This file (‘‘SEC’’ or ‘‘Commission’’) the proposed
Statement on Burden on Competition number should be included on the rule change as described in Items I and
subject line if email is used. To help the II below, which Items have been
asabaliauskas on DSK3SPTVN1PROD with NOTICES
The Exchange does not believe that
the proposed rule change will result in Commission process and review your prepared by the Exchange. The
any burden on competition that is not comments more efficiently, please use Commission is publishing this notice to
necessary or appropriate in furtherance only one method. The Commission will solicit comments on the proposed rule
of the purposes of the Act, as amended. post all comments on the Commission’s change from interested persons.
Permitting Phlx to receive inbound Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the 16 17 CFR 200.30–3(a)(12).
14 15 U.S.C. 78f. submission, all subsequent 1 15 U.S.C. 78s(b)(1).
15 15 U.S.C. 78f(b)(5). amendments, all written statements 2 17 CFR 240.19b–4.
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Document Created: 2016-12-29 01:59:07
Document Modified: 2016-12-29 01:59:07
| 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 96060 |
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