82_FR_22667 82 FR 22574 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Date of Appendix B Web Site Data Publication Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program

82 FR 22574 - Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the Date of Appendix B Web Site Data Publication Pursuant to the Regulation NMS Plan To Implement a Tick Size Pilot Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 93 (May 16, 2017)

Page Range22574-22576
FR Document2017-09819

Federal Register, Volume 82 Issue 93 (Tuesday, May 16, 2017) 
[Federal Register Volume 82, Number 93 (Tuesday, May 16, 2017)]
[Notices]
[Pages 22574-22576]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-09819]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80647; File No. SR-CHX-2017-07]


Self-Regulatory Organizations; Chicago Stock Exchange, Inc.; 
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change 
To Modify the Date of Appendix B Web Site Data Publication Pursuant to 
the Regulation NMS Plan To Implement a Tick Size Pilot Program

May 10, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, notice is hereby given 
that on April 28, 2017, the Chicago Stock Exchange, Inc. (``CHX'' or 
the ``Exchange'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I and 
II below, which Items have been prepared by the Exchange. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    CHX proposes to amend Article 20, Rule 13(b) of the Rules of the 
Exchange (``CHX Rules'') to modify the date of Appendix B Web site data 
publication pursuant to the Regulation NMS Plan to Implement a Tick 
Size Pilot Program (``Plan'').
    The text of this proposed rule change is available on the 
Exchange's Web site at (www.chx.com) and in 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 CHX included statements 
concerning the purpose of and basis for the proposed rule changes 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 CHX 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Article 20, Rule 13(b) (Compliance with Data Collection 
Requirements) \3\ implements the data collection and Web site 
publication requirements of the Plan.\4\ Paragraph .08 of Article 20, 
Rule 13(b) currently provides, among other things, that with respect to 
data for the Pre-Pilot Period \5\ and the Pilot Period, the Exchange 
shall make certain Appendix C data available to FINRA for aggregation 
and publication on the FINRA Web site pursuant to FINRA Rules and the 
Exchange will publish Appendix B data on the Exchange Web site, which 
shall commence on April 28, 2017.\6\ The Exchange is proposing to 
further delay the Web site publication of Appendix B data until August 
31, 2017 to permit additional time to consider a methodology to 
mitigate concerns raised in connection with the publication of Appendix 
B data.\7\
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    \3\ See Securities Exchange Act Release No. 80227 (March 13, 
2017), 82 FR 14263 (March 17, 2017) (SR-CHX-2017-05); see also 
Securities Exchange Act Release No. 79538 (December 13, 2016), 81 FR 
91979 (December 19, 2016) (SR-CHX-2016-21); see also Securities 
Exchange Act Release No. 77469 (March 29, 2016), 81 FR 19275 (April 
4, 2016) (SR-CHX-2016-02).
    \4\ The Plan Participants filed the Plan to comply with an order 
issued by the Commission on June 24, 2014. See Letter from Brendon 
J. Weiss, Vice President, Intercontinental Exchange, Inc., to 
Secretary, Commission, dated August 25, 2014 (``SRO Tick Size Plan 
Proposal''). See Securities Exchange Act Release No 72460 (June 24, 
2014), 79 FR 36840 (June 30, 2014); see also Securities Exchange Act 
Release No. 74892 (May 6, 2015), 80 FR 27513 (May 13, 2015).
    \5\ Unless otherwise defined herein, capitalized terms have the 
meaning ascribed to them in CHX Article 20, Rule 13.
    \6\ See Exchange Act Release No. 80227 (March 13, 2017), 82 FR 
14263 (March 17, 2017) (SR-CHX-2017-05). See also Letter from David 
S. Shillman, Associate Director, Division of Trading and Markets, 
Commission, to Robert L.D. Colby, Executive Vice President and Chief 
Legal Officer, FINRA, dated February 28, 2017.
    \7\ On March 3, 2017, FINRA filed a proposed rule change to 
implement an anonymous, grouped masking methodology for Appendix 
B.I, B.II. and B.IV. data. The comment period ended on April 5, 
2017, and the Commission received three comment letters. See 
Securities Exchange Act Release No. 80193 (March 9, 2017) 82 FR 
13901 (March 15, 2017). FINRA and the Exchange also submitted an 
exemptive request to the SEC, which, if granted, would permit FINRA 
to, among other things, publish on its Web site Appendix B.I., B.II. 
and B.IV. data for over-the-counter activity with respect to Trading 
Centers for which FINRA or the Exchange is the designated examining 
authority, in a manner consistent with FINRA's proposed anonymous, 
grouped masking methodology. See Letter from Marcia E. Asquith, 
Executive Vice President, Board and External Relations, FINRA, to 
Robert W. Errett, Deputy Secretary, SEC, dated March 2, 2017.
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    Pursuant to this proposed amendment, the Exchange would publish the 
required Appendix B data for the Pre-Pilot Period through April 30, 
2017 by August 31, 2017. Thereafter, Appendix B data for a given month 
would be published within 120 calendar days following month end.\8\ 
Thus, for example, Appendix B data for May 2017 would be made available 
on the Exchange Web site by September 28, 2017, and data for the month 
of June 2017 would be made available on the FINRA [sic] Web site by 
October 28, 2017.
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    \8\ FINRA, on behalf of the Participants, is submitting an 
exemptive request to the SEC in connection with the instant filing.
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    As noted in Item 2 of this filing, the Exchange has filed the 
proposed rule change for immediate effectiveness. The operative date of 
the proposed rule change will be the date of filing.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act \9\ in general, and furthers the objectives of Section 
6(b)(5) of the Act \10\ in particular, in that it is designed to 
promote just and equitable principles of

[[Page 22575]]

trade, to foster cooperation and coordination with persons engaged in 
facilitating transactions in securities, to remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system and, in general, to protect investors and the public interest; 
and are not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(5).
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    The Plan is designed to allow the Commission, market participants, 
and the public to study and assess the impact of increment conventions 
on the liquidity and trading of the common stock of small-
capitalization companies. The Exchange believes that this proposal is 
consistent with the Act because it is in furtherance of the objectives 
of Section VII(A) of the Plan in that it is designed to provide the 
Exchange with additional time to consider a methodology to mitigate 
concerns raised in connection with the publication of Appendix B data.

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

    The Exchange does not believe that the proposed rule change will 
result in any burden on competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange 
notes that the proposed rule change implements the provisions of the 
Plan.

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) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19(b)-4(f)(6) normally does 
not become operative prior to 30 days after the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii), the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest. The Exchange has filed 
the proposed rule change for immediate effectiveness and has requested 
that the Commission waive the requirement that the proposed rule change 
not become operative for 30 days after the date of the filing so that 
it may become operative on the date of filing.
    The Exchange notes that the proposed rule change is intended to 
mitigate confidentiality concerns raised in connection with Section 
VII(A) of the Plan, which provides that the data made publicly 
available will not identify the Trading Center that generated the data. 
The Exchange states that the additional time would allow consideration 
of a methodology to mitigate concerns related to the publication of 
Appendix B data.\13\
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    \13\ The Commission recently approved a FINRA proposal to 
implement an aggregated, anonymous grouped masking methodology for 
the publication of Appendix B data related to OTC trading activity. 
See Securities Exchange Release No. 80551, (April 28, 2017), 82 FR 
20948 (May 4, 2017). See also Letter from David S. Shillman, 
Associate Director, Division of Trading and Markets, Commission, to 
Marcia E. Asquith, Executive Vice President FINRA, dated April 28, 
2017.
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    The Commission believes that waiving the 30-day operative delay is 
consistent with the protection of investors and the public interest 
because it will synchronize the timing for publication of Appendix B 
data for all Participants, which should enhance the consistency and 
usefulness of the data.\14\ Therefore, the Commission hereby waives the 
30-day operative delay and designates the proposed rule change to be 
operative on the date of filing.\15\
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    \14\ The Commission recently granted exemptive relief to the 
Participants delay the publication of their Appendix B data until 
August 31, 2017. See Letter from David S. Shillman, Associate 
Director, Division of Trading and Markets, Commission, to Jennifer 
Piorko Mitchell, Vice President and Deputy Corporate Secretary, 
FINRA, dated April 28, 2017. The Commission notes that other 
Participants have submitted proposed rule changes to delay the 
publication of Appendix B data until August 31, 2017. See e.g., SR-
BatsBYX-2017-10; SR-BatsBZX-2017-31; SR-BatsEDGA-2017-10; SR-
BatsEDGX-2017-19; SR-BX-2017-022; SR-FINRA-2017-010; SR-IEX-2017-12; 
SR-NASDAQ-2017-044; SR-Phlx-2017-33; SR-NYSE-2017-19; SR-NYSEArca-
2017-49; SR-NYSEMKT-2017-24.
    \15\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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 necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic 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-CHX-2017-07 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-CHX-2017-07. 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-CHX-2017-07 and should be 
submitted on or before June 6, 2017.


[[Page 22576]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09819 Filed 5-15-17; 8:45 am]
 BILLING CODE 8011-01-P

22574 Federal Register / Vol. 82, No. 93 / Tuesday, May 16, 2017 / Notices Commission, and recording secretaries been prepared by the Exchange. The the Exchange shall make certain will attend the closed meeting. Certain Commission is publishing this notice to Appendix C data available to FINRA for staff members who have an interest in solicit comments on the proposed rule aggregation and publication on the the matters also may be present. change from interested persons. FINRA Web site pursuant to FINRA The General Counsel of the Rules and the Exchange will publish I. Self-Regulatory Organization’s Commission, or his designee, has Appendix B data on the Exchange Web Statement of the Terms of Substance of site, which shall commence on April 28, certified that, in his opinion, one or the Proposed Rule Change 2017.6 The Exchange is proposing to more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) CHX proposes to amend Article 20, further delay the Web site publication of and 17 CFR 200.402(a)(3), (a)(5), (a)(7), Rule 13(b) of the Rules of the Exchange Appendix B data until August 31, 2017 (a)(9)(ii) and (a)(10), permit (‘‘CHX Rules’’) to modify the date of to permit additional time to consider a consideration of the scheduled matter at Appendix B Web site data publication methodology to mitigate concerns raised the closed meeting. pursuant to the Regulation NMS Plan to in connection with the publication of Commissioner Piwowar, as duty Implement a Tick Size Pilot Program Appendix B data.7 officer, voted to consider the items (‘‘Plan’’). Pursuant to this proposed listed for the closed meeting in closed The text of this proposed rule change amendment, the Exchange would session. is available on the Exchange’s Web site publish the required Appendix B data The subject matter of the closed at (www.chx.com) and in the for the Pre-Pilot Period through April meeting will be: Commission’s Public Reference Room. 30, 2017 by August 31, 2017. Thereafter, Institution and settlement of Appendix B data for a given month II. Self-Regulatory Organization’s would be published within 120 calendar injunctive actions; Statement of the Purpose of, and Institution and settlement of days following month end.8 Thus, for Statutory Basis for, the Proposed Rule example, Appendix B data for May 2017 administrative proceedings; and Change Other matters relating to enforcement would be made available on the proceedings. In its filing with the Commission, the Exchange Web site by September 28, At times, changes in Commission CHX included statements concerning 2017, and data for the month of June priorities require alterations in the the purpose of and basis for the 2017 would be made available on the scheduling of meeting items. proposed rule changes and discussed FINRA [sic] Web site by October 28, For further information and to any comments it received on the 2017. ascertain what, if any, matters have been proposed rule change. The text of these As noted in Item 2 of this filing, the added, deleted or postponed; please statements may be examined at the Exchange has filed the proposed rule contact Brent J. Fields from the Office of places specified in Item IV below. The change for immediate effectiveness. The the Secretary at (202) 551–5400. CHX has prepared summaries, set forth operative date of the proposed rule in sections A, B and C below, of the change will be the date of filing. Dated: May 11, 2017. most significant aspects of such Brent J. Fields, 2. Statutory Basis statements. Secretary. The Exchange believes that its [FR Doc. 2017–09936 Filed 5–12–17; 11:15 am] A. Self-Regulatory Organization’s proposal is consistent with Section 6(b) Statement of the Purpose of, and the of the Act 9 in general, and furthers the BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule objectives of Section 6(b)(5) of the Act 10 Change in particular, in that it is designed to SECURITIES AND EXCHANGE 1. Purpose promote just and equitable principles of COMMISSION Article 20, Rule 13(b) (Compliance 6 See Exchange Act Release No. 80227 (March 13, [Release No. 34–80647; File No. SR–CHX– with Data Collection Requirements) 3 2017), 82 FR 14263 (March 17, 2017) (SR–CHX– 2017–07] implements the data collection and Web 2017–05). See also Letter from David S. Shillman, Associate Director, Division of Trading and site publication requirements of the Markets, Commission, to Robert L.D. Colby, Self-Regulatory Organizations; Plan.4 Paragraph .08 of Article 20, Rule Executive Vice President and Chief Legal Officer, Chicago Stock Exchange, Inc.; Notice 13(b) currently provides, among other FINRA, dated February 28, 2017. of Filing and Immediate Effectiveness things, that with respect to data for the 7 On March 3, 2017, FINRA filed a proposed rule of a Proposed Rule Change To Modify Pre-Pilot Period 5 and the Pilot Period, change to implement an anonymous, grouped the Date of Appendix B Web Site Data masking methodology for Appendix B.I, B.II. and B.IV. data. The comment period ended on April 5, Publication Pursuant to the Regulation 3 See Securities Exchange Act Release No. 80227 2017, and the Commission received three comment NMS Plan To Implement a Tick Size (March 13, 2017), 82 FR 14263 (March 17, 2017) letters. See Securities Exchange Act Release No. Pilot Program (SR–CHX–2017–05); see also Securities Exchange 80193 (March 9, 2017) 82 FR 13901 (March 15, Act Release No. 79538 (December 13, 2016), 81 FR 2017). FINRA and the Exchange also submitted an May 10, 2017. 91979 (December 19, 2016) (SR–CHX–2016–21); see exemptive request to the SEC, which, if granted, also Securities Exchange Act Release No. 77469 would permit FINRA to, among other things, Pursuant to Section 19(b)(1) of the (March 29, 2016), 81 FR 19275 (April 4, 2016) (SR– publish on its Web site Appendix B.I., B.II. and Securities Exchange Act of 1934 CHX–2016–02). B.IV. data for over-the-counter activity with respect (‘‘Act’’),1 and Rule 19b–4 2 thereunder, 4 The Plan Participants filed the Plan to comply to Trading Centers for which FINRA or the notice is hereby given that on April 28, with an order issued by the Commission on June Exchange is the designated examining authority, in 24, 2014. See Letter from Brendon J. Weiss, Vice a manner consistent with FINRA’s proposed 2017, the Chicago Stock Exchange, Inc. anonymous, grouped masking methodology. See President, Intercontinental Exchange, Inc., to sradovich on DSK3GMQ082PROD with NOTICES (‘‘CHX’’ or the ‘‘Exchange’’) filed with Secretary, Commission, dated August 25, 2014 Letter from Marcia E. Asquith, Executive Vice the Securities and Exchange (‘‘SRO Tick Size Plan Proposal’’). See Securities President, Board and External Relations, FINRA, to Commission (‘‘Commission’’) the Exchange Act Release No 72460 (June 24, 2014), 79 Robert W. Errett, Deputy Secretary, SEC, dated FR 36840 (June 30, 2014); see also Securities March 2, 2017. proposed rule change as described in 8 FINRA, on behalf of the Participants, is Exchange Act Release No. 74892 (May 6, 2015), 80 Items I and II below, which Items have FR 27513 (May 13, 2015). submitting an exemptive request to the SEC in 5 Unless otherwise defined herein, capitalized connection with the instant filing. 1 15 U.S.C. 78s(b)(1). 9 15 U.S.C. 78f(b). terms have the meaning ascribed to them in CHX 2 17 CFR 240.19b–4. Article 20, Rule 13. 10 15 U.S.C. 78f(b)(5). VerDate Sep<11>2014 16:42 May 15, 2017 Jkt 241001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\16MYN1.SGM 16MYN1

Federal Register / Vol. 82, No. 93 / Tuesday, May 16, 2017 / Notices 22575 trade, to foster cooperation and Exchange has filed the proposed rule Commission shall institute proceedings coordination with persons engaged in change for immediate effectiveness and to determine whether the proposed rule facilitating transactions in securities, to has requested that the Commission should be approved or disapproved. remove impediments to and perfect the waive the requirement that the proposed mechanism of a free and open market rule change not become operative for 30 IV. Solicitation of Comments and a national market system and, in days after the date of the filing so that Interested persons are invited to general, to protect investors and the it may become operative on the date of submit written data, views, and public interest; and are not designed to filing. The Exchange notes that the proposed arguments concerning the foregoing, permit unfair discrimination between including whether the proposed rule customers, issuers, brokers, or dealers. rule change is intended to mitigate confidentiality concerns raised in change is consistent with the Act. The Plan is designed to allow the Commission, market participants, and connection with Section VII(A) of the Comments may be submitted by any of the public to study and assess the Plan, which provides that the data made the following methods: impact of increment conventions on the publicly available will not identify the Electronic Comments liquidity and trading of the common Trading Center that generated the data. stock of small-capitalization companies. The Exchange states that the additional • Use the Commission’s Internet The Exchange believes that this time would allow consideration of a comment form (http://www.sec.gov/ proposal is consistent with the Act methodology to mitigate concerns rules/sro.shtml); or because it is in furtherance of the related to the publication of Appendix • Send an email to rule-comments@ objectives of Section VII(A) of the Plan B data.13 The Commission believes that sec.gov. Please include File Number SR– in that it is designed to provide the CHX–2017–07 on the subject line. Exchange with additional time to waiving the 30-day operative delay is consider a methodology to mitigate consistent with the protection of Paper Comments concerns raised in connection with the investors and the public interest publication of Appendix B data. because it will synchronize the timing • Send paper comments in triplicate for publication of Appendix B data for to Secretary, Securities and Exchange B. Self-Regulatory Organization’s all Participants, which should enhance Commission, 100 F Street NE., Statement on Burden on Competition the consistency and usefulness of the Washington, DC 20549–1090. The Exchange does not believe that data.14 Therefore, the Commission hereby waives the 30-day operative All submissions should refer to File the proposed rule change will result in delay and designates the proposed rule Number SR–CHX–2017–07. This file any burden on competition that is not change to be operative on the date of number should be included on the necessary or appropriate in furtherance filing.15 subject line if email is used. To help the of the purposes of the Act. The At any time within 60 days of the Commission process and review your Exchange notes that the proposed rule change implements the provisions of the filing of the proposed rule change, the comments more efficiently, please use Plan. Commission summarily may only one method. The Commission will temporarily suspend such rule change if post all comments on the Commission’s C. Self-Regulatory Organization’s it appears to the Commission that such Internet Web site (http://www.sec.gov/ Statement on Comments on the action is necessary or appropriate in the rules/sro.shtml). Copies of the Proposed Rule Change Received From public interest, for the protection of submission, all subsequent Members, Participants, or Others investors, or otherwise in furtherance of amendments, all written statements No written comments were either the purposes of the Act. If the with respect to the proposed rule solicited or received. Commission takes such action, the change that are filed with the Commission, and all written III. Date of Effectiveness of the 13 The Commission recently approved a FINRA communications relating to the Proposed Rule Change and Timing for proposal to implement an aggregated, anonymous grouped masking methodology for the publication proposed rule change between the Commission Action of Appendix B data related to OTC trading activity. Commission and any person, other than Because the foregoing proposed rule See Securities Exchange Release No. 80551, (April those that may be withheld from the change does not: (i) Significantly affect 28, 2017), 82 FR 20948 (May 4, 2017). See also Letter from David S. Shillman, Associate Director, public in accordance with the the protection of investors or the public Division of Trading and Markets, Commission, to provisions of 5 U.S.C. 552, will be interest; (ii) impose any significant Marcia E. Asquith, Executive Vice President FINRA, available for Web site viewing and burden on competition; and (iii) become dated April 28, 2017. printing in the Commission’s Public operative for 30 days from the date on 14 The Commission recently granted exemptive Reference Room, 100 F Street NE., which it was filed, or such shorter time relief to the Participants delay the publication of their Appendix B data until August 31, 2017. See Washington, DC 20549 on official as the Commission may designate, it has Letter from David S. Shillman, Associate Director, business days between the hours of become effective pursuant to Section Division of Trading and Markets, Commission, to 10:00 a.m. and 3:00 p.m. Copies of the 19(b)(3)(A) of the Act 11 and Rule 19b- Jennifer Piorko Mitchell, Vice President and Deputy Corporate Secretary, FINRA, dated April 28, 2017. filing also will be available for 4(f)(6) thereunder.12 The Commission notes that other Participants have inspection and copying at the principal A proposed rule change filed under submitted proposed rule changes to delay the office of the Exchange. All comments Rule 19(b)-4(f)(6) normally does not publication of Appendix B data until August 31, 2017. See e.g., SR-BatsBYX–2017–10; SR-BatsBZX– received will be posted without change; become operative prior to 30 days after 2017–31; SR-BatsEDGA–2017–10; SR-BatsEDGX– the Commission does not edit personal sradovich on DSK3GMQ082PROD with NOTICES the date of the filing. However, pursuant 2017–19; SR–BX–2017–022; SR–FINRA–2017–010; identifying information from to Rule 19b–4(f)(6)(iii), the Commission SR–IEX–2017–12; SR–NASDAQ–2017–044; SR- submissions. You should submit only may designate a shorter time if such Phlx-2017–33; SR–NYSE–2017–19; SR–NYSEArca- action is consistent with the protection 2017–49; SR–NYSEMKT–2017–24. information that you wish to make of investors and the public interest. The 15 For purposes only of waiving the operative available publicly. All submissions delay for this proposal, the Commission has should refer to File Number SR–CHX– considered the proposed rule’s impact on 11 15 U.S.C. 78s(b)(3)(A). efficiency, competition, and capital formation. See 2017–07 and should be submitted on or 12 17 CFR 240.19b-4(f)(6). 15 U.S.C. 78c(f). before June 6, 2017. VerDate Sep<11>2014 16:42 May 15, 2017 Jkt 241001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 E:\FR\FM\16MYN1.SGM 16MYN1

22576 Federal Register / Vol. 82, No. 93 / Tuesday, May 16, 2017 / Notices For the Commission, by the Division of II. Self-Regulatory Organization’s Proprietary 10/Broker-Dealer 11 orders; Trading and Markets, pursuant to delegated Statement of the Purpose of, and and (v) $0.72 per contract for authority.16 Statutory Basis for, the Proposed Rule Professional Customer 12 orders. Priority Eduardo A. Aleman, Change Customers 13 are not assessed a Assistant Secretary. In its filing with the Commission, the transaction fee for regular orders in [FR Doc. 2017–09819 Filed 5–15–17; 8:45 am] Exchange included statements Non-Select Symbols (including NDX). In concerning the purpose of and basis for addition, as set forth in Section IV.B of BILLING CODE 8011–01–P the proposed rule change and discussed the Schedule of Fees, the Exchange any comments it received on the charges a $0.25 per contract license SECURITIES AND EXCHANGE proposed rule change. The text of these surcharge for all Non-Priority statements may be examined at the Customer 14 orders in NDX (‘‘NDX COMMISSION places specified in Item IV below. The Surcharge’’). Exchange has prepared summaries, set The Exchange also currently assesses [Release No. 34–80637; File No. SR–ISE– forth in sections A, B, and C below, of different fees for regular Non-Select 2017–35] the most significant aspects of such Symbol orders executed in the statements. Exchange’s crossing mechanisms, as set Self-Regulatory Organizations; Nasdaq forth in Section I of the Schedule of ISE, LLC; Notice of Filing and A. Self-Regulatory Organization’s Fees (such orders, ‘‘Auction Orders’’). In Immediate Effectiveness of Proposed Statement of the Purpose of, and particular, the Exchange charges fees for Rule Change To Amend the Statutory Basis for, the Proposed Rule Crossing Orders,15 including separate Exchange’s Schedule of Fees To Change fees for PIM orders of 100 or fewer Amend Pricing Related to Options contracts, which fees apply to all regular 1. Purpose Overlying NDX and MNX Non-Priority Customer orders in Non- The purpose of the proposed rule Select Symbols (including NDX) on both May 10, 2017. change is to amend the Exchange’s the originating and contra side of a Pursuant to Section 19(b)(1) of the Schedule of Fees to make changes to Crossing Order.16 For regular Market Securities Exchange Act of 1934 pricing related to NDX and MNX. The Maker orders not sent by an EAM, the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposed changes are discussed in the fee for Crossing Orders is currently notice is hereby given that on April 25, following sections. $0.25 per contract, subject to applicable 2017, Nasdaq ISE, LLC (‘‘ISE’’ or Fees and Rebates for Regular Orders in tier discounts.17 For all other regular ‘‘Exchange’’) filed with the Securities NDX Non-Priority Customer orders (i.e. and Exchange Commission (‘‘SEC’’ or The Exchange proposes to amend its Market Maker orders sent by an EAM, ‘‘Commission’’) the proposed rule Schedule of Fees to make pricing Non-Nasdaq ISE Market Maker orders, change as described in Items I and II, changes related to NDX. The Exchange Firm Proprietary/Broker-Dealer orders, below, which Items have been prepared notes that NDX is transitioning to be and Professional Customers orders), the by the Exchange. The Commission is exclusively listed on the Exchange and fee for Crossing Orders is currently publishing this notice to solicit its affiliated markets in 2017.5 In light $0.20 per contract.18 For regular Priority comments on the proposed rule change of this transition, the Exchange seeks to Customer orders in Non-Select Symbols, from interested persons. amend its NDX pricing structure. 10 A ‘‘Firm Proprietary’’ order is an order Today, as set forth in Section I of the I. Self-Regulatory Organization’s submitted by a member for its own proprietary Schedule of Fees, the Exchange charges account. Statement of the Terms of Substance of the following transaction fees for regular 11 A ‘‘Broker-Dealer’’ order is an order submitted the Proposed Rule Change orders in Non-Select Symbols 6 by a member for a broker-dealer account that is not (‘‘Existing Transaction Fees’’): (i) $0.25 its own proprietary account. The Exchange proposes to amend the 12 A ‘‘Professional Customer’’ is a person or entity Exchange’s Schedule of Fees to amend per contract for Market Maker 7 orders that is not a broker/dealer and is not a Priority pricing related to options overlying not sent by an Electronic Access Customer. Member (‘‘EAM’’); 8 (ii) $0.20 per 13 A ‘‘Priority Customer’’ is a person or entity that NDX 3 and MNX,4 as described further contract for Market Maker orders sent by is not a broker/dealer in securities, and does not below. While changes to the Schedule of place more than 390 orders in listed options per day an EAM; (iii) $0.72 per contract for Non- Fees pursuant to this proposal are on average during a calendar month for its own Nasdaq ISE Market Maker 9 orders; (iv) effective upon filing, the Exchange has $0.72 per contract for Firm beneficial account(s), as defined in ISE Rule 100(a)(37A). designated these changes to be operative 14 Non-Priority Customer includes Market Maker, on May 1, 2017. 5 The Exchange and its affiliates will exclusively Non-Nasdaq ISE Market Maker, Firm Proprietary/ The text of the proposed rule change list NDX in the near future upon expiration of open Broker-Dealer, and Professional Customer. expiries in this product on other markets. 15 A ‘‘Crossing Order’’ is an order executed in the is available on the Exchange’s Web site 6 ‘‘Non-Select Symbols’’ are options overlying all Exchange’s Facilitation Mechanism, Solicited Order at www.ise.com, at the principal office symbols that are not in the Penny Pilot Program. Mechanism, Price Improvement Mechanism of the Exchange, and at the NDX is a Non-Select Symbol. (‘‘PIM’’) or submitted as a Qualified Contingent Commission’s Public Reference Room. 7 The term ‘‘Market Makers’’ refers to Cross order. For purposes of this Fee Schedule, ‘‘Competitive Market Makers’’ and ‘‘Primary Market orders executed in the Block Order Mechanism are Makers’’ collectively. See Rule 100(a)(25). also considered Crossing Orders. 8 In addition, these Market Maker fees are subject 16 Firm Proprietary and Non-Nasdaq ISE Market sradovich on DSK3GMQ082PROD with NOTICES 16 17 CFR 200.30–3(a)(12). to tier discounts. Specifically, Market Makers that Maker Crossing Orders (including PIM orders of 100 1 15 U.S.C. 78s(b)(1). execute a monthly volume of 250,000 contracts or or fewer contracts) are also subject to the Crossing 2 17 CFR 240.19b–4. more are entitled to a discounted rate of $0.20 per Fee Cap provided in Section IV.H of the Schedule contract. See Schedule of Fees, Section IV.C. of Fees. 3 NDX represents options on the Nasdaq 100 9 A ‘‘Non-Nasdaq ISE Market Maker’’ is a market 17 See Schedule of Fees, Section IV.C. Index traded under the symbol NDX (‘‘NDX’’). maker as defined in Section 3(a)(38) of the 18 This fee is reduced to $0.10 per contract for 4 MNX represents options on one-tenth the value Securities Exchange Act of 1934, as amended, Professional Customer orders either submitted as a of the Nasdaq 100 Index traded under the symbol registered in the same options class on another Qualified Contingent Cross order or executed in the MNX (‘‘MNX’’). options exchange. Exchange’s Solicited Order Mechanism. VerDate Sep<11>2014 16:42 May 15, 2017 Jkt 241001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\16MYN1.SGM 16MYN1


Document Created: 2017-05-16 13:52:44
Document Modified: 2017-05-16 13:52:44
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 22574 
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