82_FR_14465 82 FR 14413 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, To Amend Supplementary Material .03 to Rule 713

82 FR 14413 - Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, To Amend Supplementary Material .03 to Rule 713

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 52 (March 20, 2017)

Page Range14413-14415
FR Document2017-05405

Federal Register, Volume 82 Issue 52 (Monday, March 20, 2017)
[Federal Register Volume 82, Number 52 (Monday, March 20, 2017)]
[Notices]
[Pages 14413-14415]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-05405]



[[Page 14413]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80239; File No. SR-ISEGemini-2017-14]


Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change, as Modified by 
Amendment No. 1, To Amend Supplementary Material .03 to Rule 713

March 14, 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 March 9, 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. On March 13, 2017, the Exchange 
filed Amendment No. 1 to the proposed rule change.\3\ The Commission is 
publishing this notice to solicit comments on the proposed rule change, 
as modified by Amendment No. 1, from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange represented that the 
proposed allocation entitlement for Preferred PMMs will be 
implemented on the INET trading system on or subsequent to the 
effective date of this proposed rule change.
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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 Supplementary Material .03 to Rule 
713 to change the allocation entitlement for Preferred PMMs.
    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
    Supplementary Material .03 to Rule 713 allows an Electronic Access 
Member (``EAM'') to designate a ``Preferred Market Maker'' on orders it 
enters into the System (``Preferenced Orders''). A Preferred Market 
Maker may be the Primary Market Maker (``PMM'') appointed to the 
options class or any Competitive Market Maker (``CMM'') appointed to 
the options class.\4\ The purpose of the proposed rule change is to 
amend Supplementary Material .03 to Rule 713 to change the allocation 
entitlement for PMMs that receive Preferenced Orders (i.e., ``Preferred 
PMMs''), consistent with allocation entitlements for PMM equivalents on 
another options exchange.
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    \4\ See Supplementary Material .03(a) to Rule 713.
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    Currently, a Preferred Market Maker that is quoting at the national 
best bid of offer (``NBBO'') at the time the Preferenced Order is 
received,\5\ is entitled to participation rights equal to the greater 
of: (i) The proportion of the total size at the best price represented 
by the size of its quote, or (ii) sixty percent (60%) of the contracts 
to be allocated if there is only one (1) other Professional Order or 
market maker quotation at the best price and forty percent (40%) if 
there are two (2) or more other Professional Orders and/or market maker 
quotes at the best price.\6\ This allocation entitlement is in lieu of 
the regular allocation provided in Supplementary Material .01 to Rule 
713, and applies regardless of whether the Preferred Market Maker is a 
PMM or CMM. In some instances where the Preferred Market Maker is the 
PMM appointed to the options class this results in a preferenced 
allocation that is worse than the market maker's regular allocation 
entitlement. Specifically, Supplementary Material .01(c) to Rule 713 
provides a small order entitlement whereby orders of five contracts or 
fewer are executed first by the PMM. A PMM that normally receives an 
allocation entitlement for orders of five contracts or fewer,\7\ would 
not receive this allocation entitlement if it were designated as the 
Preferred Market Maker.
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    \5\ If the Preferred Market Maker is not quoting at a price 
equal to the NBBO at the time the Preferenced Order is received, the 
Exchange's regular allocation procedure applies to the execution of 
the Preferenced Order. See Supplementary Material .03(b) to Rule 
713.
    \6\ See Supplementary Material .03(c) to Rule 713.
    \7\ See Supplementary Material .01(c) to Rule 713.
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    The Exchange now proposes to amend the participation rights of 
Preferred PMMs such that the PMM appointed in an option class will 
receive participation rights that are consistent with the higher 
allocation entitlement given to PMM equivalents on the MIAX Options 
Exchange (``MIAX''). In particular, the Exchange proposes to amend 
Supplementary Material .03(c) to Rule 713 to provide that, the 
Preferred Market Maker has participation rights equal to the greater 
of: (i) The proportion of the total size at the best price represented 
by the size of its quote, (ii) sixty percent (60%) of the contracts to 
be allocated if there is only one (1) other Professional Order or 
market maker quotation at the best price and forty percent (40%) if 
there are two (2) or more other Professional Orders and/or market maker 
quotes at the best price, or (iii) the full size of a Preferenced Order 
for five (5) contracts or fewer if the Primary Market Maker appointed 
to the options class is designated as the Preferred Market Maker--i.e., 
the small order allocation entitlement contained in Supplementary 
Material .01(c) to Rule 713. Thus, the PMM appointed to an options 
class would receive an allocation entitlement for orders of five 
contracts or fewer, regardless of whether that order is submitted as a 
Preferenced Order. The Exchange believes that this is appropriate since 
the PMMs obligations to the market are the same regardless of whether 
an order happens to be submitted with a preference instruction. PMM 
equivalents on MIAX currently receive this participation right when 
preferenced, in addition to the regular 60% or 40% preferenced 
allocation currently provided in the rule.\8\ Preferred CMMs will 
continue to receive the same allocation entitlement that they receive 
today.
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    \8\ See MIAX Rule 514(g), (i).
---------------------------------------------------------------------------

    Pursuant to Supplementary Material .01(c) to Rule 713 the Exchange 
evaluates on a quarterly basis what percentage of the volume executed 
on the Exchange is comprised of orders for five (5) contracts or fewer 
executed by PMMs. The Exchange represents that this review will extend 
to the small order entitlement for Preferred PMMs. Thus, consistent 
with Supplementary Material .01(c) to Rule 713, the Exchange will 
reduce the size of the orders included in the small order entitlement 
if such percentage is over forty percent (40%).

[[Page 14414]]

Implementation
    The proposed rule change will be implemented on the Exchange's new 
INET trading system, which launched on February 27, 2017,\9\ provided 
that the Exchange will provide notice of this change in a circular to 
be distributed to members prior to implementing the new allocation 
entitlement on INET. The INET migration is taking place 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. As such, PMMs will 
begin receiving the small order entitlement in symbols as they migrate 
to the INET platform. For symbols which migrated to INET prior to the 
approval of this rule change, the small order entitlement will be 
applied to such symbols starting on the implementation date noted in 
the circular distributed to members. The proposed allocation 
entitlement for Preferred PMMs will be implemented on the INET trading 
system on or subsequent to the effective date of this proposed rule 
change.
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    \9\ See Securities Exchange Act Release No. 80011 (February 10, 
2017), 82 FR 10927 (February 16, 2017) (SR-ISEGemini-2016-17).
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder that are applicable to a national securities exchange, and, 
in particular, with the requirements of Section 6(b) of the Act.\10\ In 
particular, the proposal is consistent with Section 6(b)(5) of the 
Act,\11\ because it is designed to promote just and equitable 
principles of trade, remove impediments to and perfect the mechanisms 
of a free and open market and a national market system and, in general, 
to protect investors and the public interest.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that the proposed rule change is consistent 
with the protection of investors and the public interest as it will 
allow EAMs to send Preferenced Orders to the PMM appointed in an 
options class without inadvertently disadvantaging the PMM compared to 
if the order was not preferenced. The regular allocation entitlements 
for PMMs, including the small order entitlement, are designed to 
balance the obligations that the PMM has to the market with 
corresponding benefits. The Exchange believes that it is appropriate to 
provide the small order entitlement also when the PMM is designated as 
a Preferred Market Maker as the obligations that the PMM has to the 
market are not diminished when it receives a Preferenced Order. MIAX 
similarly provides the small order entitlement to the PMM regardless of 
whether the order is submitted as a Preferenced Order.\12\ At the same 
time, the proposed rule change does not amend the current participation 
rights for Preferred CMMs, which is also consistent with allocation 
rules of MIAX. While the Exchange believes that it is appropriate to 
grant PMMs an allocation entitlement for small sized orders preferenced 
to them in recognition of the obligations that PMMs have to maintain 
fair and orderly markets, the Exchange does not believe that it is 
appropriate at this time to extend this entitlement to CMMs, 
preferenced or otherwise.
---------------------------------------------------------------------------

    \12\ See supra note 7.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\13\ 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 
rule change is designed to allow EAMs to send Preferenced Orders to the 
PMM appointed in an options class without inadvertently disadvantaging 
the PMM by reducing its participation rights. The proposed allocation 
entitlements are equivalent to those currently in effect on another 
options exchange.\14\ The proposed rule change is therefore not 
designed to impose any significant burden on competition.
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78f(b)(8).
    \14\ See supra note 7.
---------------------------------------------------------------------------

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 \15\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\16\
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    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \17\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \18\ 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 implement this proposed rule change prior to a 
significant symbol rollout to the INET technology. The Exchange states 
that symbols that account for approximately 35% of industry volume are 
scheduled to be migrated to the new INET trading system on March 27, 
2017, with additional symbols accounting for roughly 62% of industry 
volume scheduled to be migrated on April 3, 2017. Further, for symbols 
that have already migrated to INET, the Exchange represents that the 
small order entitlement will be applied to such symbols starting on the 
implementation date to be announced to the members in a circular. 
Accordingly, the Commission hereby waives the operative delay and 
designates the proposal operative upon filing.\19\
---------------------------------------------------------------------------

    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
    \19\ 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

[[Page 14415]]

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, as modified by Amendment No. 1, is consistent with the Act. 
Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-ISEGemini-2017-14 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-2017-14. 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-2017-14 and should 
be submitted on or before April 10, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-05405 Filed 3-17-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                              Federal Register / Vol. 82, No. 52 / Monday, March 20, 2017 / Notices                                                 14413

                                                SECURITIES AND EXCHANGE                                 A. Self-Regulatory Organization’s                        designated as the Preferred Market
                                                COMMISSION                                              Statement of the Purpose of, and                         Maker.
                                                                                                        Statutory Basis for, the Proposed Rule                      The Exchange now proposes to amend
                                                [Release No. 34–80239; File No. SR–                     Change                                                   the participation rights of Preferred
                                                ISEGemini–2017–14]                                      1. Purpose                                               PMMs such that the PMM appointed in
                                                                                                                                                                 an option class will receive
                                                Self-Regulatory Organizations; ISE                         Supplementary Material .03 to Rule                    participation rights that are consistent
                                                Gemini, LLC; Notice of Filing and                       713 allows an Electronic Access                          with the higher allocation entitlement
                                                Immediate Effectiveness of Proposed                     Member (‘‘EAM’’) to designate a                          given to PMM equivalents on the MIAX
                                                Rule Change, as Modified by                             ‘‘Preferred Market Maker’’ on orders it                  Options Exchange (‘‘MIAX’’). In
                                                Amendment No. 1, To Amend                               enters into the System (‘‘Preferenced                    particular, the Exchange proposes to
                                                Supplementary Material .03 to Rule 713                  Orders’’). A Preferred Market Maker                      amend Supplementary Material .03(c) to
                                                                                                        may be the Primary Market Maker                          Rule 713 to provide that, the Preferred
                                                March 14, 2017.
                                                                                                        (‘‘PMM’’) appointed to the options class                 Market Maker has participation rights
                                                   Pursuant to Section 19(b)(1) of the                  or any Competitive Market Maker
                                                Securities Exchange Act of 1934                                                                                  equal to the greater of: (i) The
                                                                                                        (‘‘CMM’’) appointed to the options                       proportion of the total size at the best
                                                (‘‘Act’’),1 and Rule 19b–4 thereunder,2                 class.4 The purpose of the proposed rule
                                                notice is hereby given that on March 9,                                                                          price represented by the size of its
                                                                                                        change is to amend Supplementary                         quote, (ii) sixty percent (60%) of the
                                                2017, ISE Gemini, LLC (‘‘ISE Gemini’’ or                Material .03 to Rule 713 to change the
                                                ‘‘Exchange’’) filed with the Securities                                                                          contracts to be allocated if there is only
                                                                                                        allocation entitlement for PMMs that                     one (1) other Professional Order or
                                                and Exchange Commission                                 receive Preferenced Orders (i.e.,
                                                (‘‘Commission’’) the proposed rule                                                                               market maker quotation at the best price
                                                                                                        ‘‘Preferred PMMs’’), consistent with                     and forty percent (40%) if there are two
                                                change as described in Items I and II                   allocation entitlements for PMM
                                                below, which Items have been prepared                                                                            (2) or more other Professional Orders
                                                                                                        equivalents on another options                           and/or market maker quotes at the best
                                                by the Exchange. On March 13, 2017,                     exchange.
                                                the Exchange filed Amendment No. 1 to                                                                            price, or (iii) the full size of a
                                                                                                           Currently, a Preferred Market Maker                   Preferenced Order for five (5) contracts
                                                the proposed rule change.3 The
                                                                                                        that is quoting at the national best bid                 or fewer if the Primary Market Maker
                                                Commission is publishing this notice to
                                                                                                        of offer (‘‘NBBO’’) at the time the                      appointed to the options class is
                                                solicit comments on the proposed rule
                                                                                                        Preferenced Order is received,5 is                       designated as the Preferred Market
                                                change, as modified by Amendment No.
                                                                                                        entitled to participation rights equal to                Maker—i.e., the small order allocation
                                                1, from interested persons.
                                                                                                        the greater of: (i) The proportion of the                entitlement contained in Supplementary
                                                I. Self-Regulatory Organization’s                       total size at the best price represented                 Material .01(c) to Rule 713. Thus, the
                                                Statement of the Terms of Substance of                  by the size of its quote, or (ii) sixty                  PMM appointed to an options class
                                                the Proposed Rule Change                                percent (60%) of the contracts to be                     would receive an allocation entitlement
                                                                                                        allocated if there is only one (1) other                 for orders of five contracts or fewer,
                                                   The Exchange proposes to amend
                                                                                                        Professional Order or market maker                       regardless of whether that order is
                                                Supplementary Material .03 to Rule 713
                                                                                                        quotation at the best price and forty                    submitted as a Preferenced Order. The
                                                to change the allocation entitlement for
                                                                                                        percent (40%) if there are two (2) or                    Exchange believes that this is
                                                Preferred PMMs.
                                                                                                        more other Professional Orders and/or                    appropriate since the PMMs obligations
                                                   The text of the proposed rule change                 market maker quotes at the best price.6
                                                is available on the Exchange’s Web site                                                                          to the market are the same regardless of
                                                                                                        This allocation entitlement is in lieu of                whether an order happens to be
                                                at www.ise.com, at the principal office                 the regular allocation provided in
                                                of the Exchange, and at the                                                                                      submitted with a preference instruction.
                                                                                                        Supplementary Material .01 to Rule 713,                  PMM equivalents on MIAX currently
                                                Commission’s Public Reference Room.                     and applies regardless of whether the                    receive this participation right when
                                                II. Self-Regulatory Organization’s                      Preferred Market Maker is a PMM or                       preferenced, in addition to the regular
                                                Statement of the Purpose of, and                        CMM. In some instances where the                         60% or 40% preferenced allocation
                                                Statutory Basis for, the Proposed Rule                  Preferred Market Maker is the PMM                        currently provided in the rule.8
                                                Change                                                  appointed to the options class this                      Preferred CMMs will continue to receive
                                                                                                        results in a preferenced allocation that                 the same allocation entitlement that
                                                  In its filing with the Commission, the                is worse than the market maker’s regular
                                                Exchange included statements                                                                                     they receive today.
                                                                                                        allocation entitlement. Specifically,
                                                concerning the purpose of and basis for                 Supplementary Material .01(c) to Rule                       Pursuant to Supplementary Material
                                                the proposed rule change and discussed                  713 provides a small order entitlement                   .01(c) to Rule 713 the Exchange
                                                any comments it received on the                         whereby orders of five contracts or                      evaluates on a quarterly basis what
                                                proposed rule change. The text of these                 fewer are executed first by the PMM. A                   percentage of the volume executed on
                                                statements may be examined at the                       PMM that normally receives an                            the Exchange is comprised of orders for
                                                places specified in Item IV below. The                  allocation entitlement for orders of five                five (5) contracts or fewer executed by
                                                Exchange has prepared summaries, set                    contracts or fewer,7 would not receive                   PMMs. The Exchange represents that
                                                forth in sections A, B, and C below, of                 this allocation entitlement if it were                   this review will extend to the small
                                                the most significant aspects of such                                                                             order entitlement for Preferred PMMs.
                                                statements.                                                                                                      Thus, consistent with Supplementary
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                          4 See Supplementary Material .03(a) to Rule 713.
                                                                                                          5 Ifthe Preferred Market Maker is not quoting at       Material .01(c) to Rule 713, the
                                                  1 15  U.S.C. 78s(b)(1).                               a price equal to the NBBO at the time the                Exchange will reduce the size of the
                                                  2 17  CFR 240.19b–4.                                  Preferenced Order is received, the Exchange’s            orders included in the small order
                                                   3 In Amendment No. 1, the Exchange represented       regular allocation procedure applies to the              entitlement if such percentage is over
                                                that the proposed allocation entitlement for            execution of the Preferenced Order. See
                                                                                                        Supplementary Material .03(b) to Rule 713.               forty percent (40%).
                                                Preferred PMMs will be implemented on the INET
                                                                                                          6 See Supplementary Material .03(c) to Rule 713.
                                                trading system on or subsequent to the effective
                                                date of this proposed rule change.                        7 See Supplementary Material .01(c) to Rule 713.         8 See   MIAX Rule 514(g), (i).



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                                                14414                         Federal Register / Vol. 82, No. 52 / Monday, March 20, 2017 / Notices

                                                Implementation                                          designated as a Preferred Market Maker                19(b)(3)(A)(iii) of the Act 15 and
                                                   The proposed rule change will be                     as the obligations that the PMM has to                subparagraph (f)(6) of Rule 19b–4
                                                implemented on the Exchange’s new                       the market are not diminished when it                 thereunder.16
                                                INET trading system, which launched                     receives a Preferenced Order. MIAX                       A proposed rule change filed
                                                on February 27, 2017,9 provided that the                similarly provides the small order                    pursuant to Rule 19b–4(f)(6) under the
                                                Exchange will provide notice of this                    entitlement to the PMM regardless of                  Act 17 normally does not become
                                                change in a circular to be distributed to               whether the order is submitted as a                   operative for 30 days after the date of its
                                                members prior to implementing the new                   Preferenced Order.12 At the same time,                filing. However, Rule 19b–4(f)(6)(iii) 18
                                                allocation entitlement on INET. The                     the proposed rule change does not                     permits the Commission to designate a
                                                INET migration is taking place on a                     amend the current participation rights                shorter time if such action is consistent
                                                symbol by symbol basis as specified by                  for Preferred CMMs, which is also                     with the protection of investors and the
                                                the Exchange in a notice to Members.                    consistent with allocation rules of                   public interest. The Exchange has asked
                                                The Exchange is proposing to                            MIAX. While the Exchange believes that                the Commission to waive the 30-day
                                                implement this rule change on the INET                  it is appropriate to grant PMMs an                    operative delay so that the proposal may
                                                platform as the symbols migrate to that                 allocation entitlement for small sized                become operative immediately upon
                                                platform. As such, PMMs will begin                      orders preferenced to them in                         filing. The Commission believes that
                                                receiving the small order entitlement in                recognition of the obligations that                   waiving the 30-day operative delay is
                                                symbols as they migrate to the INET                     PMMs have to maintain fair and orderly                consistent with the protection of
                                                platform. For symbols which migrated                    markets, the Exchange does not believe                investors and the public interest. The
                                                to INET prior to the approval of this rule              that it is appropriate at this time to                Exchange represents that waiver of the
                                                change, the small order entitlement will                extend this entitlement to CMMs,                      operative delay would allow the
                                                be applied to such symbols starting on                  preferenced or otherwise.                             Exchange to implement this proposed
                                                the implementation date noted in the                    B. Self-Regulatory Organization’s                     rule change prior to a significant symbol
                                                circular distributed to members. The                    Statement on Burden on Competition                    rollout to the INET technology. The
                                                proposed allocation entitlement for                                                                           Exchange states that symbols that
                                                Preferred PMMs will be implemented                         In accordance with Section 6(b)(8) of              account for approximately 35% of
                                                on the INET trading system on or                        the Act,13 the Exchange does not believe              industry volume are scheduled to be
                                                subsequent to the effective date of this                that the proposed rule change will                    migrated to the new INET trading
                                                proposed rule change.                                   impose any burden on intermarket or                   system on March 27, 2017, with
                                                                                                        intramarket competition that is not                   additional symbols accounting for
                                                2. Statutory Basis
                                                                                                        necessary or appropriate in furtherance               roughly 62% of industry volume
                                                   The Exchange believes that the                       of the purposes of the Act. The                       scheduled to be migrated on April 3,
                                                proposed rule change is consistent with                 proposed rule change is designed to                   2017. Further, for symbols that have
                                                the requirements of the Act and the                     allow EAMs to send Preferenced Orders                 already migrated to INET, the Exchange
                                                rules and regulations thereunder that                   to the PMM appointed in an options                    represents that the small order
                                                are applicable to a national securities                 class without inadvertently                           entitlement will be applied to such
                                                exchange, and, in particular, with the                  disadvantaging the PMM by reducing its                symbols starting on the implementation
                                                requirements of Section 6(b) of the                     participation rights. The proposed                    date to be announced to the members in
                                                Act.10 In particular, the proposal is                   allocation entitlements are equivalent to             a circular. Accordingly, the Commission
                                                consistent with Section 6(b)(5) of the                  those currently in effect on another                  hereby waives the operative delay and
                                                Act,11 because it is designed to promote                options exchange.14 The proposed rule                 designates the proposal operative upon
                                                just and equitable principles of trade,                 change is therefore not designed to                   filing.19
                                                remove impediments to and perfect the                   impose any significant burden on
                                                mechanisms of a free and open market                    competition.                                             At any time within 60 days of the
                                                and a national market system and, in                                                                          filing of the proposed rule change, the
                                                general, to protect investors and the                   C. Self-Regulatory Organization’s                     Commission summarily may
                                                public interest.                                        Statement on Comments on the                          temporarily suspend such rule change if
                                                   The Exchange believes that the                       Proposed Rule Change Received From                    it appears to the Commission that such
                                                proposed rule change is consistent with                 Members, Participants, or Others                      action is: (i) Necessary or appropriate in
                                                the protection of investors and the                                                                           the public interest; (ii) for the protection
                                                                                                          No written comments were either
                                                public interest as it will allow EAMs to                                                                      of investors; or (iii) otherwise in
                                                                                                        solicited or received.
                                                send Preferenced Orders to the PMM                                                                            furtherance of the purposes of the Act.
                                                appointed in an options class without                   III. Date of Effectiveness of the                     If the Commission takes such action, the
                                                inadvertently disadvantaging the PMM                    Proposed Rule Change and Timing for                   Commission shall institute proceedings
                                                compared to if the order was not                        Commission Action
                                                preferenced. The regular allocation                                                                             15 15  U.S.C. 78s(b)(3)(A)(iii).
                                                                                                          Because the foregoing proposed rule                   16 17  CFR 240.19b–4(f)(6). In addition, Rule 19b–
                                                entitlements for PMMs, including the
                                                                                                        change does not: (i) Significantly affect             4(f)(6) requires a self-regulatory organization to give
                                                small order entitlement, are designed to
                                                                                                        the protection of investors or the public             the Commission written notice of its intent to file
                                                balance the obligations that the PMM                                                                          the proposed rule change at least five business days
                                                                                                        interest; (ii) impose any significant
                                                has to the market with corresponding                                                                          prior to the date of filing of the proposed rule
                                                                                                        burden on competition; and (iii) become               change, or such shorter time as designated by the
                                                benefits. The Exchange believes that it
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        operative for 30 days from the date on                Commission. The Exchange has satisfied this
                                                is appropriate to provide the small order
                                                                                                        which it was filed, or such shorter time              requirement.
                                                entitlement also when the PMM is
                                                                                                        as the Commission may designate, it has                  17 17 CFR 240.19b–4(f)(6).
                                                                                                                                                                 18 17 CFR 240.19b–4(f)(6)(iii).
                                                  9 See Securities Exchange Act Release No. 80011
                                                                                                        become effective pursuant to Section
                                                                                                                                                                 19 For purposes only of waiving the 30-day
                                                (February 10, 2017), 82 FR 10927 (February 16,                                                                operative delay, the Commission has also
                                                2017) (SR–ISEGemini–2016–17).                             12 See supra note 7.                                considered the proposed rule’s impact on
                                                  10 15 U.S.C. 78f(b).                                    13 15 U.S.C. 78f(b)(8).                             efficiency, competition, and capital formation. See
                                                  11 15 U.S.C. 78f(b)(5).                                 14 See supra note 7.                                15 U.S.C. 78c(f).



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                                                                              Federal Register / Vol. 82, No. 52 / Monday, March 20, 2017 / Notices                                                    14415

                                                to determine whether the proposed rule                    For the Commission, by the Division of                  Economic Injury (EIDL) Loan
                                                should be approved or disapproved.                      Trading and Markets, pursuant to delegated             Application Deadline Date: 11/07/2017.
                                                                                                        authority.20
                                                                                                                                                               ADDRESSES: Submit completed loan
                                                IV. Solicitation of Comments                            Robert W. Errett,                                      applications to: U.S. Small Business
                                                                                                        Deputy Secretary.                                      Administration, Processing and
                                                   Interested persons are invited to
                                                                                                        [FR Doc. 2017–05405 Filed 3–17–17; 8:45 am]            Disbursement Center, 14925 Kingsport
                                                submit written data, views, and
                                                arguments concerning the foregoing,                     BILLING CODE 8011–01–P                                 Road, Fort Worth, TX 76155.
                                                including whether the proposed rule                                                                            FOR FURTHER INFORMATION CONTACT: A.
                                                change, as modified by Amendment No.                                                                           Escobar, Office of Disaster Assistance,
                                                                                                        SECURITIES AND EXCHANGE
                                                1, is consistent with the Act. Comments                                                                        U.S. Small Business Administration,
                                                                                                        COMMISSION
                                                may be submitted by any of the                                                                                 409 3rd Street SW., Suite 6050,
                                                following methods:                                      Sunshine Act Meeting                                   Washington, DC 20416.
                                                                                                                                                               SUPPLEMENTARY INFORMATION: The notice
                                                Electronic Comments                                        Notice is hereby given that, pursuant               of the President’s major disaster
                                                                                                        to the provisions of the Government in
                                                  • Use the Commission’s Internet                       the Sunshine Act, Public Law 94–409,
                                                                                                                                                               declaration for Private Non-Profit
                                                comment form (http://www.sec.gov/                                                                              organizations in the State of Georgia,
                                                                                                        the Securities and Exchange                            dated 02/07/2017, is hereby amended to
                                                rules/sro.shtml); or                                    Commission will hold an Open Meeting                   include the following areas as adversely
                                                  • Send an email to rule-comments@                     on Wednesday, March 22, 2017, at 10:00                 affected by the disaster.
                                                sec.gov. Please include File Number SR–                 a.m., in the Auditorium, Room L–002.
                                                                                                           The subject matter of the Open                      Primary Counties: Putnam.
                                                ISEGemini–2017–14 on the subject line.
                                                                                                        Meeting will be:                                          All other information in the original
                                                Paper Comments                                             • The Commission will consider                      declaration remains unchanged.
                                                  • Send paper comments in triplicate                   whether to adopt an amendment to Rule                  (Catalog of Federal Domestic Assistance
                                                                                                        15c6–1 under the Securities Exchange                   Number 59008)
                                                to Secretary, Securities and Exchange
                                                                                                        Act of 1934 to shorten the standard
                                                Commission, 100 F Street NE.,                                                                                  James E. Rivera,
                                                                                                        settlement cycle for most broker-dealer
                                                Washington, DC 20549–1090.                                                                                     Associate Administrator for Disaster
                                                                                                        transactions from three business days
                                                                                                                                                               Assistance.
                                                All submissions should refer to File                    after the trade date to two business days
                                                                                                        after the trade date.                                  [FR Doc. 2017–05411 Filed 3–17–17; 8:45 am]
                                                Number SR–ISEGemini–2017–14. This
                                                file number should be included on the                      At times, changes in Commission                     BILLING CODE 8025–01–P

                                                subject line if email is used. To help the              priorities require alterations in the
                                                Commission process and review your                      scheduling of meeting items.
                                                                                                           For further information and to                      SMALL BUSINESS ADMINISTRATION
                                                comments more efficiently, please use
                                                only one method. The Commission will                    ascertain what, if any, matters have been              [Disaster Declaration #15039 and #15040]
                                                post all comments on the Commission’s                   added, deleted, or postponed, please
                                                Internet Web site (http://www.sec.gov/                  contact Brent J. Fields in the Office of               South Dakota Disaster #SD–00073
                                                rules/sro.shtml). Copies of the                         the Secretary at (202) 551–5400.
                                                                                                                                                               AGENCY: U.S. Small Business
                                                submission, all subsequent                                Dated: March 15, 2017.                               Administration.
                                                amendments, all written statements                      Brent J. Fields,
                                                                                                                                                               ACTION: Amendment 1.
                                                with respect to the proposed rule                       Secretary.
                                                change that are filed with the                          [FR Doc. 2017–05508 Filed 3–16–17; 11:15 am]           SUMMARY:   This is an amendment of the
                                                Commission, and all written                             BILLING CODE 8011–01–P                                 Presidential declaration of a major
                                                communications relating to the                                                                                 disaster for Public Assistance Only for
                                                proposed rule change between the                                                                               the State of South Dakota (FEMA–4298–
                                                Commission and any person, other than                   SMALL BUSINESS ADMINISTRATION                          DR), dated 02/01/2017.
                                                those that may be withheld from the                                                                              Incident: Severe Winter Storm.
                                                public in accordance with the                           [Disaster Declaration #15043 and #15044]                 Incident Period: 12/24/2016 through
                                                provisions of 5 U.S.C. 552, will be                                                                            12/26/2016.
                                                                                                        Georgia Disaster Number GA–00092
                                                available for Web site viewing and                                                                               Effective Date: 03/06/2017.
                                                printing in the Commission’s Public                     AGENCY: U.S. Small Business                              Physical Loan Application Deadline
                                                Reference Room, 100 F Street NE.,                       Administration.                                        Date: 04/03/2017.
                                                Washington, DC 20549, on official                       ACTION: Amendment 3.                                     Economic Injury (Eidl) Loan
                                                business days between the hours of                                                                             Application Deadline Date: 11/01/2017.
                                                10:00 a.m. and 3:00 p.m. Copies of the                  SUMMARY:   This is an amendment of the                 ADDRESSES: Submit completed loan
                                                filing also will be available for                       Presidential declaration of a major                    applications to: U.S. Small Business
                                                inspection and copying at the principal                 disaster for Public Assistance Only for                Administration, Processing and
                                                office of the Exchange. All comments                    the State of GEORGIA (FEMA–4297–                       Disbursement Center, 14925 Kingsport
                                                received will be posted without change;                 DR), dated 02/07/2017.                                 Road, Fort Worth, TX 76155.
                                                the Commission does not edit personal                     Incident: Severe Storms, Tornadoes,
                                                                                                                                                               FOR FURTHER INFORMATION CONTACT: A.
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                        Straight-line Winds, and Flooding.
                                                identifying information from                                                                                   Escobar, Office of Disaster Assistance,
                                                                                                          Incident Period: 01/21/2017 through
                                                submissions. You should submit only                                                                            U.S. Small Business Administration,
                                                                                                        01/22/2017.
                                                information that you wish to make                         Effective Date: 03/06/2017.                          409 3rd Street SW., Suite 6050,
                                                available publicly. All submissions                       Physical Loan Application Deadline                   Washington, DC 20416.
                                                should refer to File Number SR–                         Date: 04/10/2017.                                      SUPPLEMENTARY INFORMATION: The notice
                                                ISEGemini–2017–14 and should be                                                                                of the President’s major disaster
                                                submitted on or before April 10, 2017.                    20 17   CFR 200.30–3(a)(12).                         declaration for Private Non-Profit


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Document Created: 2017-03-18 01:10:56
Document Modified: 2017-03-18 01:10:56
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 14413 

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