82 FR 12381 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to All-or-None Orders
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 40 (March 2, 2017)
Federal Register Volume 82, Issue 40 (March 2, 2017)
| Page Range | 12381-12383 | |
| FR Document | 2017-04031 |
[Federal Register Volume 82, Number 40 (Thursday, March 2, 2017)] [Notices] [Pages 12381-12383] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04031] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80102; File No. SR-ISEGemini-2017-08] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Related to All-or- None Orders 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 24, 2017, 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 provide that All-Or-None Orders may only be entered into the trading system with a time-in-force designation of Immediate-Or-Cancel. The Exchange requests that the Commission waive the 30-day operative delay period contained in Exchange Act Rule 19b- 4(f)(6)(iii).\3\ --------------------------------------------------------------------------- \3\ 17 CFR 240.19b-4(f)(6)(iii). --------------------------------------------------------------------------- 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 [[Page 12382]] statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to amend Rule 715(c) to provide that an All- Or-None Order may only be entered into the trading system with a time- in-force designation of Immediate-Or-Cancel order in connection with the Exchange's technology migration to INET. An All-Or-None Order is a limit or market order that is to be executed in its entirety or not at all. Today, an All-Or-None Order may be designated as a market or limit order with any time-in-force designation. The Exchange proposes to limit All-Or-None Orders to only be accepted with a time-in-force designation of Immediate-Or-Cancel. An Immediate-Or-Cancel Order is a limit order that is to be executed in whole or in part upon receipt. Any portion not so executed is to be treated as cancelled. The Exchange also proposes to amend Supplementary Material .02 to Rule 713 to make clear that All-Or-None Orders will only be accepted with a time-in-force designation of Immediate-Or-Cancel and, therefore, would not persist in the Order Book. The Exchange also proposes to amend Supplementary Material .03 to Rule 717 to reserve this section as All-Or-None Orders would not be subject to exposure because they would be cancelled if not executed in their entirety.\4\ --------------------------------------------------------------------------- \4\ The Exchange notes that Rule 716(e), Solicited Order Mechanism, is not being amended because only All-Or-None Orders are accepted into this mechanism. The proposed rule change does not impact the manner in which the Solicited Order Mechanism operates. --------------------------------------------------------------------------- Implementation The Exchange will begin a system migration to Nasdaq INET in Q1 of 2017.\5\ The migration will be on a symbol by symbol basis as specified by the Exchange in a notice to Members. The Exchange is proposing to implement this rule change on the INET platform as the symbols migrate to that platform. Members could continue to submit orders with any time-in-force designation until the symbol migrates to the INET platform. Once the symbol migrates to INET an All-Or-None Order could only be submitted with a time-in-force designation of Immediate-Or- Cancel. --------------------------------------------------------------------------- \5\ 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). --------------------------------------------------------------------------- 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 by mitigating risks to market participants. The Exchange believes that the proposal is appropriate and reasonable, because the time-in-force designation of Immediate-Or-Cancel will offer Members certainty with respect to their order handling. With this proposal, an All-Or-None Order will either execute immediately or be cancelled back to the Member. All-Or-None Orders are contingency orders that have no priority on the Order Book. These orders would receive an execution after all other trading interest at the same price has been exhausted. This proposal would remove uncertainty with respect to the manner in which these orders would be handled in the Order Book by cancelling back an All-Or-None Order if it cannot be immediately executed in its entirety. Today, the NASDAQ Options Market, LLC (``NOM'') only permits All-Or- None Orders to be submitted with a time-in-force designation of Immediate-Or-Cancel.\8\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78f(b). \7\ 15 U.S.C. 78f(b)(5). \8\ See NOM Rules, Chapter VI, Section 1(g)(2). --------------------------------------------------------------------------- The Exchange notes that Members are aware of the Exchange's efforts to replatform to the INET technology. Members have been involved in testing the system and providing feedback to the Exchange throughout this migration process. Members were provided notice of this proposed change to the trading system on February 23, 2017. The Exchange intends to make clear the implementation of this functionality within its Rulebook. 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 would be able to submit an All-Or-None Order on the INET system without a time-in-force designation of Immediate-Or-Cancel. The Exchange believes the All-Or- None Order type, as proposed, will continue to offer Members a competitive alternative on ISE Gemini for submitting orders for execution. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others No written comments were either solicited or received. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Because the foregoing proposed rule change does not: (i) Significantly affect the protection of investors or the public interest; (ii) impose any significant burden on competition; and (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act \9\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\10\ --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(iii). \10\ 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 Commission has waived the five-day prefiling requirement in this case. --------------------------------------------------------------------------- A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the Act \11\ normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \12\ 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 allow the Exchange to launch its transition to the INET technology on the schedule previously announced to Members. The Exchange states that it provided notice of the proposed rule change to Members on February 23, 2017. The Exchange also represents that the Exchange has directly contacted the Members [[Page 12383]] responsible for over 99 percent of All-Or-None Orders on an average trading date on the Exchange and confirmed that the proposed rule change would have little impact on the Members' operations on the Exchange. The Exchange also represents that the primary impact of the proposal will not occur until later in the INET transition process. According to the Exchange, All-Or-None Orders are typically utilized for more liquid symbols, which will not begin to migrate to INET until the third week of the transition schedule and thereafter. Accordingly, the Commission hereby waives the operative delay and designates the proposal operative upon filing.\13\ --------------------------------------------------------------------------- \11\ 17 CFR 240.19b-4(f)(6). \12\ 17 CFR 240.19b-4(f)(6)(iii). \13\ 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-ISEGemin-2017-08 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-2017-08. 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-2017-08 and should be submitted on or before March 23, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-04031 Filed 3-1-17; 8:45 am] BILLING CODE 8011-01-P
![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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![Federal Register / Vol. 82, No. 40 / Thursday, March 2, 2017 / Notices 12383
responsible for over 99 percent of All- submission, all subsequent solicit comments on the proposed rule
Or-None Orders on an average trading amendments, all written statements change from interested persons.
date on the Exchange and confirmed with respect to the proposed rule
I. Self-Regulatory Organization’s
that the proposed rule change would change that are filed with the
Statement of the Terms of Substance of
have little impact on the Members’ Commission, and all written
the Proposed Rule Change
operations on the Exchange. The communications relating to the
Exchange also represents that the proposed rule change between the The Exchange proposes to amend
primary impact of the proposal will not Commission and any person, other than Rule 1014 of the Options Rules relating
occur until later in the INET transition those that may be withheld from the to Market Maker Quotations.
process. According to the Exchange, All- public in accordance with the The text of the proposed rule change
Or-None Orders are typically utilized provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web
for more liquid symbols, which will not available for Web site viewing and site at http://
begin to migrate to INET until the third printing in the Commission’s Public nasdaqphlx.cchwallstreet.com/, at the
week of the transition schedule and Reference Room, 100 F Street NE., principal office of the Exchange, and at
thereafter. Accordingly, the Commission Washington, DC 20549, on official the Commission’s Public Reference
hereby waives the operative delay and business days between the hours of Room.
designates the proposal operative upon 10:00 a.m. and 3:00 p.m. Copies of the
filing.13 II. Self-Regulatory Organization’s
filing also will be available for Statement of the Purpose of, and
At any time within 60 days of the inspection and copying at the principal
filing of the proposed rule change, the Statutory Basis for, the Proposed Rule
office of the Exchange. All comments Change
Commission summarily may received will be posted without change;
temporarily suspend such rule change if the Commission does not edit personal In its filing with the Commission, the
it appears to the Commission that such identifying information from Exchange included statements
action is: (i) Necessary or appropriate in submissions. You should submit only concerning the purpose of and basis for
the public interest; (ii) for the protection information that you wish to make the proposed rule change and discussed
of investors; or (iii) otherwise in available publicly. All submissions any comments it received on the
furtherance of the purposes of the Act. should refer to File Number SR– proposed rule change. The text of these
If the Commission takes such action, the ISEGemini–2017–08 and should be statements may be examined at the
Commission shall institute proceedings submitted on or before March 23, 2017. places specified in Item IV below. The
to determine whether the proposed rule Exchange has prepared summaries, set
should be approved or disapproved. For the Commission, by the Division of
Trading and Markets, pursuant to delegated
forth in sections A, B, and C below, of
IV. Solicitation of Comments authority.14 the most significant aspects of such
Robert W. Errett,
statements.
Interested persons are invited to
submit written data, views, and Deputy Secretary. A. Self-Regulatory Organization’s
arguments concerning the foregoing, [FR Doc. 2017–04031 Filed 3–1–17; 8:45 am] Statement of the Purpose of, and the
including whether the proposed rule BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
change is consistent with the Act. Change
Comments may be submitted by any of 1. Purpose
the following methods: SECURITIES AND EXCHANGE
COMMISSION Phlx is proposing to amend Rule
Electronic Comments 1014(c)(i)(A)(1) of the Options Rules
• Use the Commission’s Internet [Release No. 34–80109; File No. SR–Phlx– relating to Market Maker Quotations to
comment form (http://www.sec.gov/ 2017–16] amend the quote spread parameters for
rules/sro.shtml); or in-the-money series where the market
• Send an email to rule-comments@ Self-Regulatory Organizations; for the underlying security is wider than
sec.gov. Please include File Number SR– NASDAQ PHLX LLC; Notice of Filing the differentials set forth in the Rule.
ISEGemin–2017–08 on the subject line. and Immediate Effectiveness of Currently, Rule 1014(c)(i)(A)(1)(a)
Paper Comments Proposed Rule Change To Amend Rule provides the following bid/ask
1014 of the Options Rules Relating to differentials for options on equities and
• Send paper comments in triplicate Market Maker Quotations index options: No more than $.25
to Secretary, Securities and Exchange between the bid and the offer for each
Commission, 100 F Street NE., February 24, 2017. option contract for which the prevailing
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the bid is less than $2; no more than $.40
All submissions should refer to File Securities Exchange Act of 1934 where the prevailing bid is $2 or more
Number SR–ISEGemini–2017–08. This (‘‘Act’’),1 and Rule 19b–4 thereunder,2 but less than $5; no more than $.50
file number should be included on the notice is hereby given that on February where the prevailing bid is $5 or more
subject line if email is used. To help the 14, 2017, NASDAQ PHLX LLC (‘‘Phlx’’ but less than $10; no more than $.80
Commission process and review your or ‘‘Exchange’’) filed with the Securities where the prevailing bid is $10 or more
comments more efficiently, please use and Exchange Commission (‘‘SEC’’ or but less than $20; and no more than $1
only one method. The Commission will ‘‘Commission’’) the proposed rule where the prevailing bid is $20 or more,
post all comments on the Commission’s provided that, in the case of equity
sradovich on DSK3GMQ082PROD with NOTICES
change as described in Items I, II, and
Internet Web site (http://www.sec.gov/ III, below, which Items have been options, the bid/ask differentials stated
rules/sro.shtml). Copies of the prepared by the Exchange. The above shall not apply to in-the-money
Commission is publishing this notice to series where the market for the
13 For purposes only of waiving the 30-day
underlying security is wider than the
operative delay, the Commission has also
considered the proposed rule’s impact on
14 17 CFR 200.30–3(a)(12). differentials set forth above. For such
efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1). series, the bid/ask differentials may be
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. as wide as the quotation for the
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Document Created: 2017-03-02 00:09:40
Document Modified: 2017-03-02 00:09:40
| 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 12381 |
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