82_FR_13942 82 FR 13893 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees

82 FR 13893 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 49 (March 15, 2017)

Page Range13893-13895
FR Document2017-05085

Federal Register, Volume 82 Issue 49 (Wednesday, March 15, 2017)
[Federal Register Volume 82, Number 49 (Wednesday, March 15, 2017)]
[Notices]
[Pages 13893-13895]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-05085]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80184; File No. SR-ISEGemini-2017-09]


Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend the 
Schedule of Fees

March 9, 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 27, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the Schedule of Fees to (1) 
eliminate fees and rebates for trades in Calpine Corporation executed 
on February 27-28, 2017, and (2) modify the Exchange's average daily 
volume calculation for March 2017.
    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 amend the Schedule of 
Fees to (1) eliminate fees and rebates for trades in Calpine 
Corporation (``CPN'') executed on February 27-28, 2017, and (2) modify 
the Exchange's average daily volume (``ADV'') calculation for March 
2017. These changes are both being made in connection with the 
migration of the Exchange's trading system to the Nasdaq INET 
technology, which is scheduled to begin on February 27, 2017.
    The Exchange will launch its re-platformed INET trading system 
beginning with a single symbol--CPN--on February 27, 2017. The Exchange 
proposes to eliminate fees and rebates for trades in options overlying 
Symbol CPN executed on the INET trading system during the last two 
trading days of the month, i.e., February 27-28, 2017. Because the 
Exchange is eliminating fees and rebates for trades in this

[[Page 13894]]

symbol, during this two day period trades in options overlying Symbol 
CPN will not be counted towards a member's tier for February activity. 
The proposed change would allow the Exchange to bill February fees 
solely based on activity traded on the current T7 trading system, and 
is an inducement for members to trade the first symbol launched on the 
INET trading system as there would be no transaction fees for doing so.
    In addition, the Exchange currently provides volume-based maker 
rebates to Market Maker \3\ and Priority Customer \4\ orders in four 
tiers based on a member's ADV in the following categories: (1) Total 
Affiliated Member ADV,\5\ and (2) Priority Customer Maker ADV,\6\ as 
shown in the table below.\7\ In addition, the Exchange charges volume 
based taker fees to market participants based on achieving these volume 
thresholds.
---------------------------------------------------------------------------

    \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 will be 
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 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.

                                                     Table 1
----------------------------------------------------------------------------------------------------------------
                   Tier                     Total affiliated member ADV        Priority customer 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.
----------------------------------------------------------------------------------------------------------------

    The Exchange proposes to provide two alternatives for calculation 
of ADV during the month of March, i.e., the first month where members 
will be charged for trading activity on the INET trading system. In 
particular, for March 2017 only, all Qualifying Tier Threshold ADV 
calculations will be based on the better of (1) the member's full month 
ADV for the period of March 1-31, 2017, or (2) the member's ADV for the 
period of March 1-24, 2017. March 1-24, 2017 represents a partial month 
where, due to the Exchange's rollout of symbols on the INET trading 
system, the vast majority of volume is expected to trade on the current 
T7 trading system. On the following trading day, i.e., March 27, 2017, 
the Exchange intends to ramp up its symbol rollout, resulting in a 
large volume of trading occurring on the INET trading system.\8\ The 
Exchange believes that the proposed approach to calculating tiers will 
minimize the impact to members that trade on the Exchange during the 
symbol rollout as members can achieve their tier either based on the 
full month or on the part of the month where trading primarily occurred 
on the current T7 trading system.
---------------------------------------------------------------------------

    \8\ The rollout scheduled for March 27, 2017 contains symbols 
that account for approximately 35% of the industry volume. Prior to 
that date, the Exchange expects to be trading symbols that account 
for between 2% and 3% of industry volume on the INET trading system.
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\9\ in general, and Section 
6(b)(4) of the Act,\10\ 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78f.
    \10\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that it is reasonable and equitable to 
eliminate fees and rebates for CPN during the first two days of trading 
on the Exchange's re-platformed trading system. Eliminating fees and 
rebates for CPN during those two days will simplify the Exchange's 
billing and serve as an inducement for members to trade the first 
symbol migrated to the INET trading system. Because the Exchange is 
offering free executions in CPN, volume executed in CPN on February 27-
28, 2017 will not be counted towards any volume based tiers. The 
Exchange believes that these two changes will be attractive to members 
that trade on the new INET trading system. The Exchange also believes 
that this proposed change is not unfairly discriminatory as it will 
apply to trades in CPN that are executed by all members. As noted 
above, CPN was selected for this treatment as it will be the first 
symbol traded on the INET trading system, and will be the only symbol 
traded on INET during February.
    In addition, the Exchange believes that the proposed changes to the 
ADV tier calculation for March 2017 is reasonable and equitable as it 
will give members the opportunity to trade on the INET trading system 
while, if more favorable to the member, keeping their ADV tier based on 
the first portion of the month where most trading occurred on T7. The 
Exchange believes that this change is appropriate given the pending 
migration of the Exchange's trading system to INET. Come the first 
trading day of April, i.e., April 3, 2017, the Exchange intends to roll 
out the remaining symbols on INET,\11\ and ADV tiers will once again be 
based solely on full month volume. The Exchange also believes that this 
proposed change is not unfairly discriminatory as the alternative means 
of calculating ADV tiers will be available to all members that trade on 
the Exchange, and will only be applied if it is better for the member.
---------------------------------------------------------------------------

    \11\ The Exchange intends to roll out symbols accounting for the 
remaining 62% to 63% of industry volume on this date.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\12\ 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 are intended to ease members' transition to the re-platformed

[[Page 13895]]

INET trading system and is not designed to have any significant 
competitive impact. 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 competitive with other exchanges. For the reasons described 
above, the Exchange believes that the proposed fee changes reflect this 
competitive environment.
---------------------------------------------------------------------------

    \12\ 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,\13\ and Rule 19b-4(f)(2) \14\ 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.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \14\ 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 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-ISEGemini-2017-09 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-2017-09. 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-2017-09 and should 
be submitted on or before April 5, 2017.
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    \15\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-05085 Filed 3-14-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                 Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices                                           13893

                                                     a rule filing to list and trade a product,              change that are filed with the                        II, below, which Items have been
                                                     all statements or representations                       Commission, and all written                           prepared by the Exchange. The
                                                     regarding the applicability of Exchange                 communications relating to the                        Commission is publishing this notice to
                                                     listing rules (including, for example,                  proposed rule change between the                      solicit comments on the proposed rule
                                                     statements and representations related                  Commission and any person, other than                 change from interested persons.
                                                     to the dissemination of the intraday                    those that may be withheld from the
                                                     indicative value and index value, as                    public in accordance with the                         I. Self-Regulatory Organization’s
                                                     applicable) specified in such rule filing               provisions of 5 U.S.C. 552, will be                   Statement of the Terms of Substance of
                                                     constitute continued listing                            available for Web site viewing and                    the Proposed Rule Change
                                                     requirements; (iv) specified an                         printing in the Commission’s Public                      The Exchange proposes to amend the
                                                     implementation date for the proposed                    Reference Room, 100 F Street NE.,                     Schedule of Fees to (1) eliminate fees
                                                     changes; and (v) made other technical,                  Washington, DC 20549, on official                     and rebates for trades in Calpine
                                                     clarifying, and conforming changes                      business days between the hours of                    Corporation executed on February 27–
                                                     throughout the Rule 5 and Rule 8 Series.                10:00 a.m. and 3:00 p.m. Copies of the                28, 2017, and (2) modify the Exchange’s
                                                     The Commission believes that                            filing also will be available for                     average daily volume calculation for
                                                     Amendment No. 2 furthers the goals of                   inspection and copying at the principal               March 2017.
                                                     the proposed rule change as discussed                   office of the Exchange. All comments                     The text of the proposed rule change
                                                     above, enhances consistency between                     received will be posted without change;               is available on the Exchange’s Web site
                                                     the Exchange’s proposal and recently                    the Commission does not edit personal                 at www.ise.com, at the principal office
                                                     approved proposals from other                           identifying information from                          of the Exchange, and at the
                                                     exchanges,38 and provides clarity and                   submissions. You should submit only                   Commission’s Public Reference Room.
                                                     consistency within the Exchange’s rules.                information that you wish to make
                                                     Accordingly, the Commission finds                                                                             II. Self-Regulatory Organization’s
                                                                                                             available publicly. All submissions
                                                     good cause, pursuant to Section 19(b)(2)                                                                      Statement of the Purpose of, and
                                                                                                             should refer to File Number SR–
                                                     of the Act,39 to approve the proposed                                                                         Statutory Basis for, the Proposed Rule
                                                                                                             NYSEArca–2017–01 and should be
                                                     rule change, as modified by Amendment                                                                         Change
                                                                                                             submitted on or before April 5, 2017.
                                                     No. 2, on an accelerated basis.                                                                                 In its filing with the Commission, the
                                                                                                             VI. Conclusion
                                                     V. Solicitation of Comments on                                                                                Exchange included statements
                                                                                                               It is therefore ordered, pursuant to                concerning the purpose of and basis for
                                                     Amendment No. 2                                         Section 19(b)(2) of the Act,40 that the               the proposed rule change and discussed
                                                       Interested persons are invited to                     proposed rule change (SR–NYSEArca–                    any comments it received on the
                                                     submit written data, views, and                         2017–01), as modified by Amendment                    proposed rule change. The text of these
                                                     arguments concerning the foregoing,                     No. 2, be, and hereby is, approved on an              statements may be examined at the
                                                     including whether Amendment No. 2 is                    accelerated basis.                                    places specified in Item IV below. The
                                                     consistent with the Act. Comments may                                                                         Exchange has prepared summaries, set
                                                                                                               For the Commission, by the Division of
                                                     be submitted by any of the following                    Trading and Markets, pursuant to delegated            forth in sections A, B, and C below, of
                                                     methods:                                                authority.41                                          the most significant aspects of such
                                                     Electronic Comments                                     Eduardo A. Aleman,                                    statements.
                                                                                                             Assistant Secretary.
                                                       • Use the Commission’s Internet                                                                             A. Self-Regulatory Organization’s
                                                     comment form (http://www.sec.gov/                       [FR Doc. 2017–05090 Filed 3–14–17; 8:45 am]           Statement of the Purpose of, and
                                                     rules/sro.shtml); or                                    BILLING CODE 8011–01–P                                Statutory Basis for, the Proposed Rule
                                                       • Send an email to rule-comments@                                                                           Change
                                                     sec.gov. Please include File Number SR–
                                                     NYSEArca–2017–01 on the subject line.                   SECURITIES AND EXCHANGE                               1. Purpose
                                                                                                             COMMISSION                                               The purpose of the proposed rule
                                                     Paper Comments
                                                                                                             [Release No. 34–80184; File No. SR–                   change is to amend the Schedule of Fees
                                                        • Send paper comments in triplicate                  ISEGemini–2017–09]                                    to (1) eliminate fees and rebates for
                                                     to Brent J. Fields, Secretary, Securities                                                                     trades in Calpine Corporation (‘‘CPN’’)
                                                     and Exchange Commission, 100 F Street                   Self-Regulatory Organizations; ISE                    executed on February 27–28, 2017, and
                                                     NE., Washington, DC 20549–1090.                         Gemini, LLC; Notice of Filing and                     (2) modify the Exchange’s average daily
                                                     All submissions should refer to File                    Immediate Effectiveness of Proposed                   volume (‘‘ADV’’) calculation for March
                                                     Number SR–NYSEArca–2017–01. This                        Rule Change To Amend the Schedule                     2017. These changes are both being
                                                     file number should be included on the                   of Fees                                               made in connection with the migration
                                                     subject line if email is used. To help the                                                                    of the Exchange’s trading system to the
                                                                                                             March 9, 2017.
                                                     Commission process and review your                                                                            Nasdaq INET technology, which is
                                                     comments more efficiently, please use                      Pursuant to Section 19(b)(1) of the
                                                                                                             Securities Exchange Act of 1934                       scheduled to begin on February 27,
                                                     only one method. The Commission will                                                                          2017.
                                                     post all comments on the Commission’s                   (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                             notice is hereby given that on February                  The Exchange will launch its re-
                                                     Internet Web site (http://www.sec.gov/                                                                        platformed INET trading system
                                                     rules/sro.shtml). Copies of the                         27, 2017, ISE Gemini, LLC (‘‘ISE
asabaliauskas on DSK3SPTVN1PROD with NOTICES2




                                                                                                             Gemini’’ or ‘‘Exchange’’) filed with the              beginning with a single symbol—CPN—
                                                     submission, all subsequent                                                                                    on February 27, 2017. The Exchange
                                                     amendments, all written statements                      Securities and Exchange Commission
                                                                                                             (‘‘SEC’’ or ‘‘Commission’’) the proposed              proposes to eliminate fees and rebates
                                                     with respect to the proposed rule                                                                             for trades in options overlying Symbol
                                                                                                             rule change as described in Items I and
                                                                                                                                                                   CPN executed on the INET trading
                                                        38 See Securities Exchange Act Release Nos.
                                                                                                               40 15 U.S.C. 78s(b)(2).                             system during the last two trading days
                                                     79784 (January 12, 2017), 82 FR 6664 (January 19,
                                                     2017) (SR–NASDAQ–2016–135) and 80169 (March               41 17 CFR 200.30–3(a)(12).                          of the month, i.e., February 27–28, 2017.
                                                     7, 2017) (SR–BatsBZX–2016–80).                            1 15 U.S.C. 78s(b)(1).                              Because the Exchange is eliminating
                                                        39 15 U.S.C. 78s(b)(2).                                2 17 CFR 240.19b–4.                                 fees and rebates for trades in this


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                                                     13894                                    Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices

                                                     symbol, during this two day period                                             and is an inducement for members to                                       ADV in the following categories: (1)
                                                     trades in options overlying Symbol CPN                                         trade the first symbol launched on the                                    Total Affiliated Member ADV,5 and (2)
                                                     will not be counted towards a member’s                                         INET trading system as there would be                                     Priority Customer Maker ADV,6 as
                                                     tier for February activity. The proposed                                       no transaction fees for doing so.                                         shown in the table below.7 In addition,
                                                     change would allow the Exchange to bill                                           In addition, the Exchange currently                                    the Exchange charges volume based
                                                     February fees solely based on activity                                         provides volume-based maker rebates to                                    taker fees to market participants based
                                                     traded on the current T7 trading system,                                       Market Maker 3 and Priority Customer 4                                    on achieving these volume thresholds.
                                                                                                                                    orders in four tiers based on a member’s

                                                                                                                                                                TABLE 1
                                                                                                                                                                                                                                                    Priority customer
                                                                                                 Tier                                                                         Total affiliated 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.



                                                        The Exchange proposes to provide                                            the provisions of Section 6 of the Act,9                                  tier calculation for March 2017 is
                                                     two alternatives for calculation of ADV                                        in general, and Section 6(b)(4) of the                                    reasonable and equitable as it will give
                                                     during the month of March, i.e., the first                                     Act,10 in particular, in that it is designed                              members the opportunity to trade on the
                                                     month where members will be charged                                            to provide for the equitable allocation of                                INET trading system while, if more
                                                     for trading activity on the INET trading                                       reasonable dues, fees, and other charges                                  favorable to the member, keeping their
                                                     system. In particular, for March 2017                                          among its members and other persons                                       ADV tier based on the first portion of
                                                     only, all Qualifying Tier Threshold ADV                                        using its facilities.                                                     the month where most trading occurred
                                                     calculations will be based on the better                                          The Exchange believes that it is                                       on T7. The Exchange believes that this
                                                     of (1) the member’s full month ADV for                                         reasonable and equitable to eliminate                                     change is appropriate given the pending
                                                     the period of March 1–31, 2017, or (2)                                         fees and rebates for CPN during the first                                 migration of the Exchange’s trading
                                                     the member’s ADV for the period of                                             two days of trading on the Exchange’s                                     system to INET. Come the first trading
                                                     March 1–24, 2017. March 1–24, 2017                                             re-platformed trading system.                                             day of April, i.e., April 3, 2017, the
                                                     represents a partial month where, due to                                       Eliminating fees and rebates for CPN                                      Exchange intends to roll out the
                                                     the Exchange’s rollout of symbols on the                                       during those two days will simplify the                                   remaining symbols on INET,11 and ADV
                                                     INET trading system, the vast majority                                         Exchange’s billing and serve as an                                        tiers will once again be based solely on
                                                     of volume is expected to trade on the                                          inducement for members to trade the                                       full month volume. The Exchange also
                                                     current T7 trading system. On the                                              first symbol migrated to the INET                                         believes that this proposed change is not
                                                     following trading day, i.e., March 27,                                         trading system. Because the Exchange is                                   unfairly discriminatory as the
                                                     2017, the Exchange intends to ramp up                                          offering free executions in CPN, volume                                   alternative means of calculating ADV
                                                     its symbol rollout, resulting in a large                                       executed in CPN on February 27–28,                                        tiers will be available to all members
                                                     volume of trading occurring on the INET                                        2017 will not be counted towards any                                      that trade on the Exchange, and will
                                                     trading system.8 The Exchange believes                                         volume based tiers. The Exchange                                          only be applied if it is better for the
                                                     that the proposed approach to                                                  believes that these two changes will be                                   member.
                                                     calculating tiers will minimize the                                            attractive to members that trade on the                                   B. Self-Regulatory Organization’s
                                                     impact to members that trade on the                                            new INET trading system. The Exchange                                     Statement on Burden on Competition
                                                     Exchange during the symbol rollout as                                          also believes that this proposed change
                                                     members can achieve their tier either                                          is not unfairly discriminatory as it will                                   In accordance with Section 6(b)(8) of
                                                     based on the full month or on the part                                         apply to trades in CPN that are executed                                  the Act,12 the Exchange does not believe
                                                     of the month where trading primarily                                           by all members. As noted above, CPN                                       that the proposed rule change will
                                                     occurred on the current T7 trading                                             was selected for this treatment as it will                                impose any burden on intermarket or
                                                     system.                                                                        be the first symbol traded on the INET                                    intramarket competition that is not
                                                     2. Statutory Basis                                                             trading system, and will be the only                                      necessary or appropriate in furtherance
                                                                                                                                    symbol traded on INET during February.                                    of the purposes of the Act. The
                                                       The Exchange believes that the                                                  In addition, the Exchange believes                                     proposed changes are intended to ease
                                                     proposed rule change is consistent with                                        that the proposed changes to the ADV                                      members’ transition to the re-platformed
                                                        3 The term Market Maker refers to ‘‘Competitive                                7 All eligible volume from affiliated Members will                       8 The rollout scheduled for March 27, 2017

                                                     Market Makers’’ and ‘‘Primary Market Makers’’                                  be aggregated in determining applicable tiers,                            contains symbols that account for approximately
                                                     collectively.                                                                  provided there is at least 75% common ownership                           35% of the industry volume. Prior to that date, the
                                                        4 A Priority Customer is a person or entity that is                         between the Members as reflected on each                                  Exchange expects to be trading symbols that
                                                     not a broker/dealer in securities, and does not place                          Member’s Form BD, Schedule A.
                                                                                                                                                                                                              account for between 2% and 3% of industry volume
asabaliauskas on DSK3SPTVN1PROD with NOTICES2




                                                     more than 390 orders in listed options per day on                                 The highest tier threshold attained above applies
                                                                                                                                                                                                              on the INET trading system.
                                                     average during a calendar month for its own                                    retroactively in a given month to all eligible traded
                                                                                                                                                                                                                9 15 U.S.C. 78f.
                                                     beneficial account(s).                                                         contracts and applies to all eligible market
                                                        5 The Total Affiliated Member ADV category                                  participants.                                                               10 15 U.S.C. 78f(b)(4).

                                                     includes all volume in all symbols and order types,                               Any day that the market is not open for the entire                       11 The Exchange intends to roll out symbols
                                                     including both maker and taker volume and volume                               trading day or the Exchange instructs members in                          accounting for the remaining 62% to 63% of
                                                     executed in the PIM, Facilitation, Solicitation, and                           writing to route their orders to other markets may                        industry volume on this date.
                                                     QCC mechanisms.                                                                be excluded from the ADV calculation; provided                              12 15 U.S.C. 78f(b)(8).
                                                        6 The Priority Customer Maker ADV category                                  that the Exchange will only remove the day for
                                                     includes all Priority Customer volume that adds                                members that would have a lower ADV with the
                                                     liquidity in all symbols.                                                      day included.



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                                                                                     Federal Register / Vol. 82, No. 49 / Wednesday, March 15, 2017 / Notices                                                     13895

                                                     INET trading system and is not designed                    All submissions should refer to File                   thereunder,2 notice is hereby given that
                                                     to have any significant competitive                        Number SR–ISEGemini–2017–09. This                      on February 28, 2017, Miami
                                                     impact. The Exchange operates in a                         file number should be included on the                  International Securities Exchange LLC
                                                     highly competitive market in which                         subject line if email is used. To help the             (‘‘MIAX Options’’ or ‘‘Exchange’’) filed
                                                     market participants can readily direct                     Commission process and review your                     with the Securities and Exchange
                                                     their order flow to competing venues. In                   comments more efficiently, please use                  Commission (‘‘Commission’’) a
                                                     such an environment, the Exchange                          only one method. The Commission will                   proposed rule change as described in
                                                     must continually review, and consider                      post all comments on the Commission’s                  Items I, II, and III below, which Items
                                                     adjusting, its fees and rebates to remain                  Internet Web site (http://www.sec.gov/                 have been prepared by the Exchange.
                                                     competitive with other exchanges. For                      rules/sro.shtml). Copies of the                        The Commission is publishing this
                                                     the reasons described above, the                           submission, all subsequent                             notice to solicit comments on the
                                                     Exchange believes that the proposed fee                    amendments, all written statements                     proposed rule change from interested
                                                     changes reflect this competitive                           with respect to the proposed rule                      persons.
                                                     environment.                                               change that are filed with the
                                                                                                                Commission, and all written                            I. Self-Regulatory Organization’s
                                                     C. Self-Regulatory Organization’s
                                                                                                                communications relating to the                         Statement of the Terms of Substance of
                                                     Statement on Comments on the
                                                                                                                proposed rule change between the                       the Proposed Rule Change
                                                     Proposed Rule Change Received From
                                                                                                                Commission and any person, other than
                                                     Members, Participants, or Others                                                                                     The Exchange is filing a proposal to
                                                                                                                those that may be withheld from the
                                                       No written comments were either                          public in accordance with the                          amend the MIAX Options Fee Schedule
                                                     solicited or received.                                     provisions of 5 U.S.C. 552, will be                    (the ‘‘Fee Schedule’’).
                                                                                                                available for Web site viewing and                        The text of the proposed rule change
                                                     III. Date of Effectiveness of the
                                                                                                                printing in the Commission’s Public                    is available on the Exchange’s Web site
                                                     Proposed Rule Change and Timing for
                                                                                                                Reference Room, 100 F Street NE.,                      at http://www.miaxoptions.com/rule-
                                                     Commission Action
                                                                                                                Washington, DC 20549, on official                      filings, at MIAX’s principal office, and
                                                        The foregoing rule change has become                    business days between the hours of                     at the Commission’s Public Reference
                                                     effective pursuant to Section                              10:00 a.m. and 3:00 p.m. Copies of the                 Room.
                                                     19(b)(3)(A)(ii) of the Act,13 and Rule                     filing also will be available for
                                                     19b–4(f)(2) 14 thereunder. At any time                     inspection and copying at the principal                II. Self-Regulatory Organization’s
                                                     within 60 days of the filing of the                        office of the Exchange. All comments                   Statement of the Purpose of, and
                                                     proposed rule change, the Commission                       received will be posted without change;                Statutory Basis for, the Proposed Rule
                                                     summarily may temporarily suspend                          the Commission does not edit personal                  Change
                                                     such rule change if it appears to the                      identifying information from
                                                     Commission that such action is: (i)                        submissions. You should submit only                      In its filing with the Commission, the
                                                     Necessary or appropriate in the public                     information that you wish to make                      Exchange included statements
                                                     interest; (ii) for the protection of                       available publicly. All submissions                    concerning the purpose of and basis for
                                                     investors; or (iii) otherwise in                           should refer to File Number SR–                        the proposed rule change and discussed
                                                     furtherance of the purposes of the Act.                    ISEGemini–2017–09 and should be                        any comments it received on the
                                                     If the Commission takes such action, the                   submitted on or before April 5, 2017.                  proposed rule change. The text of these
                                                     Commission shall institute proceedings                                                                            statements may be examined at the
                                                                                                                  For the Commission, by the Division of
                                                     to determine whether the proposed rule                     Trading and Markets, pursuant to delegated
                                                                                                                                                                       places specified in Item IV below. The
                                                     should be approved or disapproved.                         authority.15                                           Exchange has prepared summaries, set
                                                                                                                Eduardo A. Aleman,                                     forth in sections A, B, and C below, of
                                                     IV. Solicitation of Comments                                                                                      the most significant aspects of such
                                                                                                                Assistant Secretary.
                                                       Interested persons are invited to                                                                               statements.
                                                                                                                [FR Doc. 2017–05085 Filed 3–14–17; 8:45 am]
                                                     submit written data, views, and                            BILLING CODE 8011–01–P                                 A. Self-Regulatory Organization’s
                                                     arguments concerning the foregoing,                                                                               Statement of the Purpose of, and the
                                                     including whether the proposed rule                                                                               Statutory Basis for, the Proposed Rule
                                                     change is consistent with the Act.                         SECURITIES AND EXCHANGE                                Change
                                                     Comments may be submitted by any of                        COMMISSION
                                                     the following methods:                                                                                            1. Purpose
                                                                                                                [Release No. 34–80190; File No. SR–MIAX–
                                                     Electronic Comments                                        2017–11]                                                  The Exchange proposes to amend its
                                                       • Use the Commission’s Internet                                                                                 Fee Schedule to make adjustments to its
                                                     comment form (http://www.sec.gov/                          Self-Regulatory Organizations; Miami                   Professional Rebate Program (the
                                                     rules/sro.shtml); or                                       International Securities Exchange LLC;                 ‘‘Program’’). Under the Program, which
                                                                                                                Notice of Filing and Immediate                         is set forth in Section (1)(a)(iv) of the
                                                       • Send an email to rule-comments@                        Effectiveness of Proposed Rule
                                                     sec.gov. Please include File Number SR–                                                                           Fee Schedule, the Exchange credits each
                                                                                                                Change To Amend Its Fee Schedule                       Member 3 a per contract amount
                                                     ISEGemini–2017–09 on the subject line.                     Relating to the Professional Rebate                    resulting from any contracts executed
asabaliauskas on DSK3SPTVN1PROD with NOTICES2




                                                     Paper Comments                                             Program                                                from an order submitted by that Member
                                                       • Send paper comments in triplicate                      March 9, 2017.                                         for the account of a: (i) Public
                                                     to Secretary, Securities and Exchange                        Pursuant to the provisions of Section
                                                     Commission, 100 F Street NE.,                              19(b)(1) of the Securities Exchange Act                  2 17CFR 240.19b–4.
                                                                                                                                                                         3 The term ‘‘Member’’ means an individual or
                                                     Washington, DC 20549–1090.                                 of 1934 (‘‘Act’’) 1 and Rule 19b–4
                                                                                                                                                                       organization approved to exercise the trading rights
                                                                                                                                                                       associated with a Trading Permit. Members are
                                                       13 15   U.S.C. 78s(b)(3)(A)(ii).                           15 17   CFR 200.30–3(a)(12).                         deemed ‘‘members’’ under the Exchange Act. See
                                                       14 17   CFR 240.19b–4(f)(2).                               1 15   U.S.C. 78s(b)(1).                             Exchange Rule 100.



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Document Created: 2017-03-15 06:04:31
Document Modified: 2017-03-15 06:04:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 13893 

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