82 FR 12380 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to a Delay of Implementation for the Block Order Mechanism
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 40 (March 2, 2017)
Federal Register Volume 82, Issue 40 (March 2, 2017)
| Page Range | 12380-12381 | |
| FR Document | 2017-04030 |
[Federal Register Volume 82, Number 40 (Thursday, March 2, 2017)] [Notices] [Pages 12380-12381] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04030] [[Page 12380]] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80101; File No. SR-ISEGemini-2017-05] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to a Delay of Implementation for the Block Order Mechanism February 24, 2017. 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 February 16, 2017, ISE Gemini, LLC (``ISE Gemini'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II below, which Items have been prepared by the 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 delay the implementation of the Block Order Mechanism \3\ functionality on ISE Gemini. --------------------------------------------------------------------------- \3\ Block-size orders are orders for fifty (50) contracts or more. The Block Order Mechanism is a process by which a Member can obtain liquidity for the execution of block-size orders pursuant to Rule 716(c). --------------------------------------------------------------------------- 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 recently filed a proposed rule change to amend Rule 716, Block Order Mechanism, along with other rules to reflect the ISE Gemini technology migration to a Nasdaq, Inc. (``Nasdaq'') supported architecture.\4\ The Exchange noted in the rule change to amend Rule 716 that it intends to begin implementation of the proposed rule changes in Q1 2017.\5\ The migration will be on a symbol by symbol basis, and the Exchange will issue an alert to members in the form of an Options Trader Alert to provide notification of the symbols that will migrate and the relevant dates. --------------------------------------------------------------------------- \4\ See Securities Exchange Act Release No. 80011 (February 10, 2017), 82 FR 10927 (SR-ISEGemini-2016-17) (Order Approving Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, To Amend Various Rules in Connection With a System Migration to Nasdaq INET Technology). \5\ Id. --------------------------------------------------------------------------- At this time, the Exchange proposes to delay the implementation of the Block Order Mechanism functionality in ISE Gemini Rule 716(c). The Exchange proposes to no longer offer the functionality as of a date prior to February 27, 2017. The Exchange will notify Members of the exact date the functionality will no longer be available by issuing a Market Information Circular. The Exchange proposes to launch this functionality prior to June 1, 2017 and will notify Members of the exact implementation date by issuing a Market Information Circular. The Facilitation Mechanism in ISE Gemini Rule 716(d) and the Solicited Order Mechanism in ISE Gemini Rule 716(e) will be available and are unaffected by this rule change. The Exchange desires to rollout this functionality at a later date to allow additional time to build out and test this feature on the new INET platform. The Exchange is staging the replatform to provide maximum benefit to its Members while also ensuring a successful rollout. This delay will provide the Exchange additional time to implement this functionality. The Exchange notes that no market participant would be impacted by the delay in implementation as no participants currently utilize this feature on ISE Gemini. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\6\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\7\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest for the reasons stated below. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- The Exchange believes that delaying the implementation of the Block Order Mechanism functionality on ISE Gemini is consistent with the Act because the Exchange desires to rollout this functionality at a later date to allow additional time to build out this feature and test on the new INET platform. The Exchange is staging the replatform to provide maximum benefit to its Members while also ensuring a successful rollout. This delay will provide the Exchange additional time to implement this functionality. There is no impact to market participants as a result of this delay as no participants currently utilize this feature on ISE Gemini. The Exchange will provide notice to Members to ensure clarity about the delay of implementation of this functionality. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe that the proposed rule change will impact the intense competition that exists in the options market. No market participant will be impacted by the delay of implementation of this functionality as no participants currently utilize this feature on ISE Gemini. The Exchange plans to offer the functionality after a short period of delay. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on [[Page 12381]] 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 \8\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A)(iii). \9\ 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 pursuant to Rule 19b-4(f)(6) under the Act \10\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has asked the Commission to waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission believes that waiving the 30-day operative delay is consistent with the protection of investors and the public interest. The Exchange represents that waiver of the operative delay would provide the Exchange additional time to implement the Block Order Mechanism functionality and ensure that it is properly functioning prior to implementation on INET. The Commission notes that the Exchange represents that there will be no impact to market participants as a result of the proposed delay in implementation because no participants currently utilize the Block Order Mechanism on the Exchange. Accordingly, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\12\ --------------------------------------------------------------------------- \10\ 17 CFR 240.19b-4(f)(6). \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ For purposes only of waiving the 30-day operative delay, the Commission has also 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-ISEGemini-2017-05 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-2017-05. 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-2017-05 and should be submitted on or before March 23, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-04030 Filed 3-1-17; 8:45 am] BILLING CODE 8011-01-P
![12380 Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s of the Act,6 in general, and furthers the
COMMISSION Statement of the Purpose of, and objectives of Section 6(b)(5) of the Act,7
Statutory Basis for, the Proposed Rule in particular, in that it is designed to
[Release No. 34–80101; File No. SR– Change promote just and equitable principles of
ISEGemini–2017–05] trade, to remove impediments to and
1. Purpose
perfect the mechanism of a free and
Self-Regulatory Organizations; ISE The Exchange recently filed a open market and a national market
Gemini, LLC; Notice of Filing and proposed rule change to amend Rule system, and, in general to protect
Immediate Effectiveness of Proposed 716, Block Order Mechanism, along investors and the public interest for the
Rule Change Related to a Delay of with other rules to reflect the ISE reasons stated below.
Gemini technology migration to a The Exchange believes that delaying
Implementation for the Block Order
Nasdaq, Inc. (‘‘Nasdaq’’) supported the implementation of the Block Order
Mechanism
architecture.4 The Exchange noted in Mechanism functionality on ISE Gemini
February 24, 2017. the rule change to amend Rule 716 that is consistent with the Act because the
it intends to begin implementation of Exchange desires to rollout this
Pursuant to Section 19(b)(1) of the functionality at a later date to allow
the proposed rule changes in Q1 2017.5
Securities Exchange Act of 1934 The migration will be on a symbol by additional time to build out this feature
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 symbol basis, and the Exchange will and test on the new INET platform. The
notice is hereby given that on February issue an alert to members in the form of Exchange is staging the replatform to
16, 2017, ISE Gemini, LLC (‘‘ISE an Options Trader Alert to provide provide maximum benefit to its
Gemini’’ or ‘‘Exchange’’) filed with the notification of the symbols that will Members while also ensuring a
Securities and Exchange Commission migrate and the relevant dates. successful rollout. This delay will
(‘‘Commission’’) the proposed rule At this time, the Exchange proposes to provide the Exchange additional time to
change as described in Items I and II delay the implementation of the Block implement this functionality. There is
below, which Items have been prepared Order Mechanism functionality in ISE no impact to market participants as a
by the Exchange. The Commission is Gemini Rule 716(c). The Exchange result of this delay as no participants
publishing this notice to solicit proposes to no longer offer the currently utilize this feature on ISE
comments on the proposed rule change functionality as of a date prior to Gemini. The Exchange will provide
from interested persons. February 27, 2017. The Exchange will notice to Members to ensure clarity
notify Members of the exact date the about the delay of implementation of
I. Self-Regulatory Organization’s this functionality.
functionality will no longer be available
Statement of the Terms of Substance of by issuing a Market Information
the Proposed Rule Change B. Self-Regulatory Organization’s
Circular. The Exchange proposes to Statement on Burden on Competition
The Exchange proposes to delay the launch this functionality prior to June 1,
2017 and will notify Members of the The Exchange does not believe that
implementation of the Block Order the proposed rule change will impose
Mechanism 3 functionality on ISE exact implementation date by issuing a
Market Information Circular. The any burden on competition not
Gemini. necessary or appropriate in furtherance
Facilitation Mechanism in ISE Gemini
The text of the proposed rule change Rule 716(d) and the Solicited Order of the purposes of the Act. The
is available on the Exchange’s Web site Mechanism in ISE Gemini Rule 716(e) Exchange does not believe that the
at www.ise.com, at the principal office will be available and are unaffected by proposed rule change will impact the
of the Exchange, and at the this rule change. intense competition that exists in the
Commission’s Public Reference Room. options market. No market participant
The Exchange desires to rollout this
will be impacted by the delay of
II. Self-Regulatory Organization’s functionality at a later date to allow
implementation of this functionality as
additional time to build out and test this
Statement of the Purpose of, and no participants currently utilize this
feature on the new INET platform. The
Statutory Basis for, the Proposed Rule feature on ISE Gemini. The Exchange
Exchange is staging the replatform to
Change plans to offer the functionality after a
provide maximum benefit to its
short period of delay.
In its filing with the Commission, the Members while also ensuring a
Exchange included statements successful rollout. This delay will C. Self-Regulatory Organization’s
concerning the purpose of and basis for provide the Exchange additional time to Statement on Comments on the
the proposed rule change and discussed implement this functionality. The Proposed Rule Change Received From
any comments it received on the Exchange notes that no market Members, Participants, or Others
participant would be impacted by the No written comments were either
proposed rule change. The text of these
delay in implementation as no solicited or received.
statements may be examined at the
participants currently utilize this feature
places specified in Item IV below. The III. Date of Effectiveness of the
on ISE Gemini.
Exchange has prepared summaries, set Proposed Rule Change and Timing for
forth in sections A, B, and C below, of 2. Statutory Basis Commission Action
the most significant aspects of such The Exchange believes that its Because the foregoing proposed rule
statements. proposal is consistent with Section 6(b)
sradovich on DSK3GMQ082PROD with NOTICES
change does not: (i) Significantly affect
the protection of investors or the public
1 15 U.S.C. 78s(b)(1).
2 17
4 See Securities Exchange Act Release No. 80011
interest; (ii) impose any significant
CFR 240.19b–4. (February 10, 2017), 82 FR 10927 (SR–ISEGemini–
3 Block-size orders are orders for fifty (50)
burden on competition; and (iii) become
2016–17) (Order Approving Proposed Rule Change,
contracts or more. The Block Order Mechanism is as Modified by Amendment Nos. 1 and 2, To operative for 30 days from the date on
a process by which a Member can obtain liquidity Amend Various Rules in Connection With a System
for the execution of block-size orders pursuant to Migration to Nasdaq INET Technology). 6 15 U.S.C. 78f(b).
Rule 716(c). 5 Id. 7 15 U.S.C. 78f(b)(5).
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![Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices 12381
which it was filed, or such shorter time IV. Solicitation of Comments For the Commission, by the Division of
as the Commission may designate, it has Trading and Markets, pursuant to delegated
become effective pursuant to Section Interested persons are invited to authority.13
19(b)(3)(A)(iii) of the Act 8 and submit written data, views, and Robert W. Errett,
subparagraph (f)(6) of Rule 19b–4 arguments concerning the foregoing, Deputy Secretary.
thereunder.9 including whether the proposed rule [FR Doc. 2017–04030 Filed 3–1–17; 8:45 am]
change is consistent with the Act. BILLING CODE 8011–01–P
A proposed rule change filed Comments may be submitted by any of
pursuant to Rule 19b–4(f)(6) under the
the following methods:
Act 10 normally does not become SECURITIES AND EXCHANGE
operative for 30 days after the date of its Electronic Comments COMMISSION
filing. However, Rule 19b–4(f)(6)(iii) 11
permits the Commission to designate a • Use the Commission’s Internet [Release No. 34–80102; File No. SR–
shorter time if such action is consistent comment form (http://www.sec.gov/ ISEGemini–2017–08]
with the protection of investors and the rules/sro.shtml); or
Self-Regulatory Organizations; ISE
public interest. The Exchange has asked • Send an email to rule-comments@ Gemini, LLC; Notice of Filing and
the Commission to waive the 30-day sec.gov. Please include File Number SR– Immediate Effectiveness of Proposed
operative delay so that the proposal may ISEGemini–2017–05 on the subject line. Rule Change Related to All-or-None
become operative immediately upon Orders
filing. The Commission believes that Paper Comments
waiving the 30-day operative delay is • Send paper comments in triplicate February 24, 2017.
consistent with the protection of to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
investors and the public interest. The Commission, 100 F Street NE., Securities Exchange Act of 1934
Exchange represents that waiver of the Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
operative delay would provide the notice is hereby given that on February
Exchange additional time to implement All submissions should refer to File 24, 2017, ISE Gemini, LLC (‘‘ISE
the Block Order Mechanism Number SR–ISEGemini–2017–05. This Gemini’’ or ‘‘Exchange’’) filed with the
functionality and ensure that it is file number should be included on the Securities and Exchange Commission
properly functioning prior to subject line if email is used. To help the (‘‘SEC’’ or ‘‘Commission’’) the proposed
implementation on INET. The Commission process and review your rule change as described in Items I and
Commission notes that the Exchange comments more efficiently, please use II below, which Items have been
represents that there will be no impact only one method. The Commission will prepared by the Exchange. The
to market participants as a result of the post all comments on the Commission’s Commission is publishing this notice to
proposed delay in implementation Internet Web site (http://www.sec.gov/ solicit comments on the proposed rule
because no participants currently utilize rules/sro.shtml). Copies of the change from interested persons.
the Block Order Mechanism on the submission, all subsequent I. Self-Regulatory Organization’s
Exchange. Accordingly, the Commission amendments, all written statements Statement of the Terms of Substance of
hereby waives the operative delay and with respect to the proposed rule the Proposed Rule Change
designates the proposal operative upon change that are filed with the The Exchange proposes to provide
filing.12 Commission, and all written that All-Or-None Orders may only be
At any time within 60 days of the communications relating to the entered into the trading system with a
filing of the proposed rule change, the proposed rule change between the time-in-force designation of Immediate-
Commission summarily may Commission and any person, other than Or-Cancel.
temporarily suspend such rule change if those that may be withheld from the The Exchange requests that the
it appears to the Commission that such public in accordance with the Commission waive the 30-day operative
action is: (i) Necessary or appropriate in provisions of 5 U.S.C. 552, will be delay period contained in Exchange Act
the public interest; (ii) for the protection available for Web site viewing and Rule 19b–4(f)(6)(iii).3
of investors; or (iii) otherwise in printing in the Commission’s Public The text of the proposed rule change
furtherance of the purposes of the Act. Reference Room, 100 F Street NE., is available on the Exchange’s Web site
If the Commission takes such action, the Washington, DC 20549, on official at www.ise.com, at the principal office
Commission shall institute proceedings business days between the hours of of the Exchange, and at the
to determine whether the proposed rule 10:00 a.m. and 3:00 p.m. Copies of the Commission’s Public Reference Room.
should be approved or disapproved. filing also will be available for II. Self-Regulatory Organization’s
inspection and copying at the principal Statement of the Purpose of, and
8 15 U.S.C. 78s(b)(3)(A)(iii). office of the Exchange. All comments Statutory Basis for, the Proposed Rule
9 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– received will be posted without change; Change
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the Commission does not edit personal
identifying information from In its filing with the Commission, the
the proposed rule change at least five business days
Exchange included statements
prior to the date of filing of the proposed rule submissions. You should submit only
change, or such shorter time as designated by the concerning the purpose of and basis for
information that you wish to make
sradovich on DSK3GMQ082PROD with NOTICES
Commission. The Exchange has satisfied this the proposed rule change and discussed
requirement. available publicly. All submissions
any comments it received on the
10 17 CFR 240.19b–4(f)(6). should refer to File Number SR– proposed rule change. The text of these
11 17 CFR 240.19b–4(f)(6)(iii).
ISEGemini–2017–05 and should be
12 For purposes only of waiving the 30-day
submitted on or before March 23, 2017. 13 17 CFR 200.30–3(a)(12).
operative delay, the Commission has also
1 15 U.S.C. 78s(b)(1).
considered the proposed rule’s impact on
2 17 CFR 240.19b–4.
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 3 17 CFR 240.19b–4(f)(6)(iii).
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Document Created: 2017-03-02 00:09:28
Document Modified: 2017-03-02 00:09:28
| 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 | 82 FR 12380 |
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