82 FR 14929 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees To Modify the Member Order Routing Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 55 (March 23, 2017)
Federal Register Volume 82, Issue 55 (March 23, 2017)
| Page Range | 14929-14931 | |
| FR Document | 2017-05738 |
[Federal Register Volume 82, Number 55 (Thursday, March 23, 2017)] [Notices] [Pages 14929-14931] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-05738] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80267; File No. SR-ISE-2017-24] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees To Modify the Member Order Routing Program March 17, 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 10, 2017, the International Securities Exchange, LLC (``ISE'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its Schedule of Fees to allow members to opt in to MORP for specific sessions rather than on a member-wide basis, and to increase MORP rebates for members that participate in the program. 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 On April 1, 2015, the Exchange launched the Member Order Routing Program (``MORP''),\3\ which is a program that provides enhanced rebates to order routing firms that select the Exchange as the default routing destination for unsolicited Crossing Orders.\4\ The purpose of the proposed rule change is to amend the Schedule of Fees to allow members to opt in to MORP for specific sessions rather than on a member-wide basis, and to increase MORP rebates for members that participate in the program. The Exchange believes that these changes will encourage members to participate in MORP. --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 74706 (April 10, 2016), 80 FR 20522 (April 16, 2016) (SR-ISE-2015-11). \4\ A ``Crossing Order'' is an order executed in the Exchange's Facilitation Mechanism, Solicited Order Mechanism, Price Improvement Mechanism (``PIM'') or submitted as a Qualified Contingent Cross (``QCC'') order. For purposes of the fee schedule, orders executed in the Block Order Mechanism are also considered Crossing Orders. --------------------------------------------------------------------------- MORP Qualifications Currently, to be eligible to participate in MORP, an Electronic Access Member (``EAM'') must: (1) Provide to its clients, systems that enable the electronic routing of option orders to all of the U.S. options exchanges, including ISE; (2) interface with ISE to access the Exchange's electronic options trading platform; (3) offer to its clients a customized interface and routing functionality such that ISE will be the default destination for all unsolicited [[Page 14930]] Crossing Orders entered by the EAM,\5\ provided that market conditions allow the Crossing Order to be executed on ISE; (4) configure its own option order routing functionality such that ISE will be the default destination for all unsolicited Crossing Orders, provided that market conditions allow the Crossing Order to be executed on ISE, with respect to all option orders as to which the EAM has routing discretion; and (5) ensure that the default routing functionality permits users submitting option orders through such system to manually override the ISE as the default destination on an order-by-order basis.\6\ --------------------------------------------------------------------------- \5\ An unsolicited Crossing Order is a Crossing Order entered by a member that has not solicited the contra side of the trade. \6\ EAMs that wish to participate in the program must certify that they meet the above MORP requirements, in writing, on a monthly basis and in a form to be determined by the Exchange. The relevant notice must be provided by the last business day of the month for members to be eligible to participate in the MORP effective the first business day of the following month. --------------------------------------------------------------------------- Importantly, today an EAM must opt in to MORP for all of its business, and cannot segment its business to be eligible for MORP for only specific portion of its order flow. This means that EAMs that would otherwise have a MORP qualifying business would be prohibited from participating in the program if certain segments of its business are not eligible for the program. The Exchange therefore proposes to increase the scope of MORP. In particular, the Exchange proposes to allow EAMs to opt in to MORP for specific sessions so that firms can appropriately segment their order flow such that sessions designated as MORP eligible can benefit from the program even though the firm may not qualify on a member-wide basis.\7\ As proposed, a member may designate one or more sessions to be eligible for MORP. If a session is designated as eligible for MORP all requirements for the program must be met for that session. In addition, to be eligible to participate in MORP an EAM must designate, in writing, to the Exchange which sessions are MORP eligible according to the criteria discussed above. Only designated sessions that are opted in to MORP will receive the benefits provided under the program. The Exchange believes that this change will make it easier for firms to participate in the program, thereby increasing volume executed in the Exchange's crossing mechanisms. --------------------------------------------------------------------------- \7\ A session is connection to the exchange over which a member submits orders. See Section V.C. of the Schedule of Fees. --------------------------------------------------------------------------- Rebate for Unsolicited Crossing Orders Currently, an EAM that is MORP eligible receives a rebate for all unsolicited Crossing Orders of $0.05 per originating contract side, provided that the member executes a minimum average daily volume (``ADV'') in unsolicited Crossing Orders of at least 30,000 originating contract sides. This rebate is increased to $0.07 per originating contract side, provided that the member executes a higher ADV in unsolicited Crossing Orders of 100,000 originating contract sides.\8\ The Exchange proposes to increase the MORP rebate for eligible members that execute from 30,000 to 99,999 originating contract sides to $0.065 per originating contract side. The MORP rebate for eligible members that execute 100,000 or more originating contract sides will remain $0.07 per originating contract side. --------------------------------------------------------------------------- \8\ The rebate for the highest tier achieved is applied retroactively to all eligible contracts traded in a given month. For purposes of determining whether the member meets the above ADV thresholds, any day that the Exchange 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 such calculation; provided that the Exchange will only remove the day for members that would have a lower ADV with the day included. --------------------------------------------------------------------------- Facilitation and Solicitation Break-Up Rebate In addition, any EAM that qualifies for the MORP rebate by executing an ADV of 30,000 originating contract sides or more is also eligible for increased Facilitation and Solicitation break-up rebates \9\ for their Non-ISE Market Maker,\10\ Firm Proprietary,\11\ Broker- Dealer,\12\ Professional Customer,\13\ and Priority Customer orders.\14\ Currently, MORP eligible members that execute a qualifying ADV in unsolicited Crossing Orders of at least 30,000 originating contract sides, receive a Facilitation and Solicitation break-up rebate that is $0.35 per contract for regular and complex orders in Select Symbols,\15\ $0.15 per contract for regular orders in Non-Select Symbols,\16\ $0.80 per contract for complex orders in Non-Select Symbols, and $0.15 per contract for regular and complex orders in foreign exchange option classes (``FX Options''). The Exchange proposes to increase these Facilitation and Solicitation break-up rebates for MORP-eligible members to $0.42 per contract for regular and complex orders in Select Symbols, $0.20 per contract for regular orders in Non- Select Symbols, $1.08 per contract for complex orders in Non-Select Symbols. Regular and complex orders in FX Options will continue to receive a Facilitation and Solicitation break-up rebate of $0.15 per contract. --------------------------------------------------------------------------- \9\ Break-up rebates are provided for contracts that are submitted to the Facilitation and Solicited Order Mechanisms that do not trade with their contra order except when those contracts trade against pre-existing orders and quotes on the Exchange's orderbooks. The applicable fee for Crossing Orders is applied to any contracts for which a rebate is provided. \10\ A ``Non-ISE Market Maker'' is a market maker as defined in Section 3(a)(38) of the Securities Exchange Act of 1934, as amended, registered in the same options class on another options exchange. \11\ A ``Firm Proprietary'' order is an order submitted by a member for its own proprietary account. \12\ A ``Broker-Dealer'' order is an order submitted by a member for a broker-dealer account that is not its own proprietary account. \13\ A ``Professional Customer'' is a person or entity that is not a broker/dealer and is not a Priority Customer. \14\ 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), as defined in ISE Rule 100(a)(37A). \15\ ``Select Symbols'' are options overlying all symbols listed on the ISE that are in the Penny Pilot Program. \16\ ``Non-Select Symbols'' are options overlying all symbols excluding Select Symbols. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\17\ in general, and Section 6(b)(4) of the Act,\18\ 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. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f. \18\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes the proposed change to the MORP qualifications is reasonable and equitable because it is designed to make it easier for EAMs to participate in the program. Currently, an EAM that wishes to participate in MORP must be eligible to participate across the entire firm. Thus, firms that have business segments that are not MORP-eligible cannot participate with respect to those business segments that are. The Exchange believes that the proposed rule change will allow firms to participate in the program if they meet the requirements with respect to any segment of their order flow. This will encourage order routing firms to execute additional unsolicited Crossing Order volume on the Exchange, and will benefit all market participants on ISE by creating additional liquidity and increased opportunity to trade. In addition, the Exchange believes that the proposed change is not unfairly discriminatory as it would make it easier for firms to participate in the program, thus potentially sharing the [[Page 14931]] rewards of the program with additional EAMs that may not otherwise qualify. With the proposed changes, any qualifying EAM with designated sessions that meet the requirements of the program by offering appropriate market access and connectivity to the Exchange will be able to participate in MORP on an equal and non-discriminatory basis. The Exchange believes the proposed increases to MORP rebates, including the rebate for unsolicited Crossing Orders, and the Facilitation and Solicitation break-up rebate, are reasonable and equitable because these changes are designed to incentivize additional participation in the program. Under MORP the Exchange currently provides enhanced rebates to EAMs that connect directly to the Exchange and provide their clients with order routing functionality that includes all U.S. options exchanges, including ISE. The Exchange proposes to increase the rebates to incentivize additional firms to participate in the program, and to encourage firms to send additional order flow to the Exchange in order to benefit from the increased rebates. The Exchange believes that the proposed rebates will be attractive to members to opt in to MORP, and are competitive with rebates provided on other options exchanges. In addition, the Exchange believes that the proposed rebates are not unfairly discriminatory as they apply to all EAMs that meet the program requirements and opt in to the program. Any EAM that participates in the program will be provided the increased rebates on an equal and non-discriminatory basis based on the order flow executed on the Exchange. While MORP is targeted towards unsolicited Crossing Order flow, the Exchange offers other incentive programs to promote and encourage growth in other business areas. For example, solicited Crossing Orders benefit from the QCC and Solicitation Rebate, which applies to all QCC and/or other solicited Crossing Orders, including solicited orders executed in the Solicitation, Facilitation or Price Improvement Mechanisms. The Exchange believes that MORP is appropriately tailored to the order flow that the Exchange is seeking to attract, and will benefit all market participants that trade on ISE by encouraging additional liquidity. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\19\ 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 make it easier for firms to participate in MORP and increases incentives for doing so, in order to remain competitive with other options exchanges. 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. --------------------------------------------------------------------------- \19\ 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.\20\ 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. --------------------------------------------------------------------------- \20\ 15 U.S.C. 78s(b)(3)(A)(ii). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-ISE-2017-24 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-ISE-2017-24. 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-ISE-2017-24 and should be submitted on or before April 13, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\21\ --------------------------------------------------------------------------- \21\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-05738 Filed 3-22-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 55 / Thursday, March 23, 2017 / Notices 14929
opportunity to make an oral filings also will be available for at www.ise.com, at the principal office
presentation.35 inspection and copying at the principal of the Exchange, and at the
Interested persons are invited to office of the Exchange. All comments Commission’s Public Reference Room.
submit written data, views, and received will be posted without change;
arguments regarding whether the the Commission does not edit personal II. Self-Regulatory Organization’s
proposal should be approved or identifying information from Statement of the Purpose of, and
disapproved by April 13, 2017. Any submissions. You should submit only Statutory Basis for, the Proposed Rule
person who wishes to file a rebuttal to information that you wish to make Change
any other person’s submission must file available publicly. All submissions In its filing with the Commission, the
that rebuttal by April 27, 2017. The should refer to File Number SR–CBOE–
Exchange included statements
Commission asks that commenters 2016–082 and should be submitted on
concerning the purpose of and basis for
address the sufficiency of the or before April 13, 2017. Rebuttal
Exchange’s statements in support of the the proposed rule change and discussed
comments should be submitted by April
proposal, in addition to any other any comments it received on the
27, 2017.
comments they may wish to submit proposed rule change. The text of these
For the Commission, by the Division of statements may be examined at the
about the proposed rule change. Trading and Markets, pursuant to delegated
Comments may be submitted by any places specified in Item IV below. The
authority.36
of the following methods: Exchange has prepared summaries, set
Eduardo A. Aleman,
forth in sections A, B, and C below, of
Electronic Comments Assistant Secretary. the most significant aspects of such
• Use the Commission’s Internet [FR Doc. 2017–05741 Filed 3–22–17; 8:45 am] statements.
comment form (http://www.sec.gov/ BILLING CODE 8011–01–P
rules/sro.shtml); or A. Self-Regulatory Organization’s
• Send an email to rule-comments@ Statement of the Purpose of, and
sec.gov. Please include File Number SR– SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule
CBOE–2016–082 on the subject line. COMMISSION Change
Paper Comments [Release No. 34–80267; File No. SR–ISE– 1. Purpose
2017–24]
• Send paper comments in triplicate On April 1, 2015, the Exchange
to Secretary, Securities and Exchange Self-Regulatory Organizations; launched the Member Order Routing
Commission, 100 F Street NE., International Securities Exchange, Program (‘‘MORP’’),3 which is a
Washington, DC 20549–1090. LLC; Notice of Filing and Immediate program that provides enhanced rebates
All submissions should refer to File Effectiveness of Proposed Rule to order routing firms that select the
Numbers SR–CBOE–2016–082. This file Change To Amend the Schedule of Exchange as the default routing
number should be included on the Fees To Modify the Member Order destination for unsolicited Crossing
subject line if email is used. To help the Routing Program Orders.4 The purpose of the proposed
Commission process and review your rule change is to amend the Schedule of
March 17, 2017.
comments more efficiently, please use Fees to allow members to opt in to
Pursuant to Section 19(b)(1) of the
only one method. The Commission will MORP for specific sessions rather than
Securities Exchange Act of 1934
post all comments on the Commission’s on a member-wide basis, and to increase
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
Internet Web site (http://www.sec.gov/ MORP rebates for members that
notice is hereby given that on March 10,
rules/sro.shtml). Copies of the participate in the program. The
2017, the International Securities
submission, all subsequent Exchange believes that these changes
Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
amendments, all written statements will encourage members to participate
filed with the Securities and Exchange
with respect to the proposed rule in MORP.
Commission (‘‘Commission’’) the
change that are filed with the
proposed rule change as described in MORP Qualifications
Commission, and all written
Items I, II, and III, below, which Items
communications relating to the
have been prepared by the Exchange. Currently, to be eligible to participate
proposed rule change between the
The Commission is publishing this in MORP, an Electronic Access Member
Commission and any person, other than
notice to solicit comments on the (‘‘EAM’’) must: (1) Provide to its clients,
those that may be withheld from the
proposed rule change from interested systems that enable the electronic
public in accordance with the
persons. routing of option orders to all of the U.S.
provisions of 5 U.S.C. 552, will be
available for Web site viewing and I. Self-Regulatory Organization’s options exchanges, including ISE; (2)
printing in the Commission’s Public Statement of the Terms of Substance of interface with ISE to access the
Reference Room, 100 F Street NE., the Proposed Rule Change Exchange’s electronic options trading
Washington, DC 20549, on official platform; (3) offer to its clients a
The Exchange proposes to amend its customized interface and routing
business days between the hours of Schedule of Fees to allow members to
10:00 a.m. and 3:00 p.m. Copies of these functionality such that ISE will be the
opt in to MORP for specific sessions default destination for all unsolicited
rather than on a member-wide basis,
35 Section 19(b)(2) of the Exchange Act, as
and to increase MORP rebates for 3 See Securities Exchange Act Release No. 74706
amended by the Securities Act Amendments of
sradovich on DSK3GMQ082PROD with NOTICES
1975, Public Law 94–29 (June 4, 1975), grants the members that participate in the (April 10, 2016), 80 FR 20522 (April 16, 2016) (SR–
Commission flexibility to determine what type of program. ISE–2015–11).
proceeding—either oral or notice and opportunity The text of the proposed rule change 4 A ‘‘Crossing Order’’ is an order executed in the
for written comments—is appropriate for is available on the Exchange’s Web site Exchange’s Facilitation Mechanism, Solicited Order
consideration of a particular proposal by a self- Mechanism, Price Improvement Mechanism
regulatory organization. See Securities Act (‘‘PIM’’) or submitted as a Qualified Contingent
36 17 CFR 200.30–3(a)(57).
Amendments of 1975, Senate Comm. on Banking, Cross (‘‘QCC’’) order. For purposes of the fee
1 15 U.S.C. 78s(b)(1).
Housing & Urban Affairs, S. Rep. No. 75, 94th schedule, orders executed in the Block Order
Cong., 1st Sess. 30 (1975). 2 17 CFR 240.19b–4. Mechanism are also considered Crossing Orders.
VerDate Sep<11>2014 17:13 Mar 22, 2017 Jkt 241001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 E:\FR\FM\23MRN1.SGM 23MRN1](https://thefederalregister.org/doc/82_FR_14984/page/1.svg)
![Federal Register / Vol. 82, No. 55 / Thursday, March 23, 2017 / Notices 14931
rewards of the program with additional impose any burden on intermarket or Paper Comments
EAMs that may not otherwise qualify. intramarket competition that is not
With the proposed changes, any necessary or appropriate in furtherance • Send paper comments in triplicate
qualifying EAM with designated of the purposes of the Act. The to Secretary, Securities and Exchange
sessions that meet the requirements of proposed rule change is designed to Commission, 100 F Street NE.,
the program by offering appropriate make it easier for firms to participate in Washington, DC 20549–1090.
market access and connectivity to the MORP and increases incentives for All submissions should refer to File
Exchange will be able to participate in doing so, in order to remain competitive Number SR–ISE–2017–24. This file
MORP on an equal and non- with other options exchanges. The number should be included on the
discriminatory basis. Exchange operates in a highly
The Exchange believes the proposed subject line if email is used. To help the
competitive market in which market
increases to MORP rebates, including Commission process and review your
participants can readily direct their
the rebate for unsolicited Crossing order flow to competing venues. In such comments more efficiently, please use
Orders, and the Facilitation and an environment, the Exchange must only one method. The Commission will
Solicitation break-up rebate, are continually review, and consider post all comments on the Commission’s
reasonable and equitable because these adjusting, its fees and rebates to remain Internet Web site (http://www.sec.gov/
changes are designed to incentivize competitive with other exchanges. For rules/sro.shtml). Copies of the
additional participation in the program. the reasons described above, the submission, all subsequent
Under MORP the Exchange currently Exchange believes that the proposed fee amendments, all written statements
provides enhanced rebates to EAMs that changes reflect this competitive with respect to the proposed rule
connect directly to the Exchange and environment. change that are filed with the
provide their clients with order routing Commission, and all written
functionality that includes all U.S. C. Self-Regulatory Organization’s
communications relating to the
options exchanges, including ISE. The Statement on Comments on the
proposed rule change between the
Exchange proposes to increase the Proposed Rule Change Received From
Commission and any person, other than
rebates to incentivize additional firms to Members, Participants, or Others
those that may be withheld from the
participate in the program, and to
No written comments were either public in accordance with the
encourage firms to send additional order
solicited or received. provisions of 5 U.S.C. 552, will be
flow to the Exchange in order to benefit
from the increased rebates. The available for Web site viewing and
III. Date of Effectiveness of the
Exchange believes that the proposed printing in the Commission’s Public
Proposed Rule Change and Timing for
rebates will be attractive to members to Commission Action Reference Room, 100 F Street NE.,
opt in to MORP, and are competitive Washington, DC 20549, on official
with rebates provided on other options The foregoing rule change has become business days between the hours of
exchanges. In addition, the Exchange effective pursuant to Section 10:00 a.m. and 3:00 p.m. Copies of the
believes that the proposed rebates are 19(b)(3)(A)(ii) of the Act.20 At any time filing also will be available for
not unfairly discriminatory as they within 60 days of the filing of the inspection and copying at the principal
apply to all EAMs that meet the program proposed rule change, the Commission office of the Exchange. All comments
requirements and opt in to the program. summarily may temporarily suspend received will be posted without change;
Any EAM that participates in the such rule change if it appears to the the Commission does not edit personal
program will be provided the increased Commission that such action is: (i) identifying information from
rebates on an equal and non- Necessary or appropriate in the public submissions. You should submit only
discriminatory basis based on the order interest; (ii) for the protection of information that you wish to make
flow executed on the Exchange. While investors; or (iii) otherwise in available publicly. All submissions
MORP is targeted towards unsolicited furtherance of the purposes of the Act. should refer to File Number SR–ISE–
Crossing Order flow, the Exchange If the Commission takes such action, the
2017–24 and should be submitted on or
offers other incentive programs to Commission shall institute proceedings
before April 13, 2017.
promote and encourage growth in other to determine whether the proposed rule
business areas. For example, solicited should be approved or disapproved. For the Commission, by the Division of
Crossing Orders benefit from the QCC Trading and Markets, pursuant to delegated
IV. Solicitation of Comments authority.21
and Solicitation Rebate, which applies
to all QCC and/or other solicited Interested persons are invited to Eduardo A. Aleman,
Crossing Orders, including solicited submit written data, views, and Assistant Secretary.
orders executed in the Solicitation, arguments concerning the foregoing, [FR Doc. 2017–05738 Filed 3–22–17; 8:45 am]
Facilitation or Price Improvement including whether the proposed rule BILLING CODE 8011–01–P
Mechanisms. The Exchange believes change is consistent with the Act.
that MORP is appropriately tailored to Comments may be submitted by any of
the order flow that the Exchange is the following methods:
seeking to attract, and will benefit all
market participants that trade on ISE by Electronic Comments
encouraging additional liquidity. • Use the Commission’s Internet
sradovich on DSK3GMQ082PROD with NOTICES
B. Self-Regulatory Organization’s comment form (http://www.sec.gov/
Statement on Burden on Competition rules/sro.shtml); or
In accordance with Section 6(b)(8) of • Send an email to rule-comments@
the Act,19 the Exchange does not believe sec.gov. Please include File Number SR–
that the proposed rule change will ISE–2017–24 on the subject line.
19 15 U.S.C. 78f(b)(8). 20 15 U.S.C. 78s(b)(3)(A)(ii). 21 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 17:13 Mar 22, 2017 Jkt 241001 PO 00000 Frm 00067 Fmt 4703 Sfmt 9990 E:\FR\FM\23MRN1.SGM 23MRN1](https://thefederalregister.org/doc/82_FR_14984/page/3.svg)
Document Created: 2017-03-23 02:45:19
Document Modified: 2017-03-23 02:45:19
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 14929 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR