82 FR 2433 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules To Extend a Pilot Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 5 (January 9, 2017)
Federal Register Volume 82, Issue 5 (January 9, 2017)
| Page Range | 2433-2435 | |
| FR Document | 2017-00099 |
[Federal Register Volume 82, Number 5 (Monday, January 9, 2017)] [Notices] [Pages 2433-2435] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00099] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-79721; File No. SR-ISE-2016-32] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules To Extend a Pilot Program January 3, 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 December 23, 2016, the International Securities Exchange, LLC (``ISE'' or ``Exchange'') filed with the Securities and Exchange Commission (``SEC'' or ``Commission'') the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend its rules to extend a pilot program to quote and to trade certain options classes in penny increments. 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 [[Page 2434]] 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 Under the Penny Pilot Program, the minimum price variation for all participating options classes, except for the Nasdaq-100 Index Tracking Stock (``QQQQ''), the SPDR S&P 500 Exchange Traded Fund (``SPY'') and the iShares Russell 2000 Index Fund (``IWM''), is $0.01 for all quotations in options series that are quoted at less than $3 per contract and $0.05 for all quotations in options series that are quoted at $3 per contract or greater. QQQQ, SPY and IWM are quoted in $0.01 increments for all options series. The Penny Pilot Program is currently scheduled to expire on December 31, 2016.\3\ The Exchange proposes to extend the Penny Pilot Program through June 30, 2017, and to provide a revised date for adding replacement issues to the Penny Pilot Program. The Exchange proposes that any Penny Pilot Program issues that have been delisted may be replaced on the second trading day following January 1, 2017. The replacement issues will be selected based on trading activity for the most recent six month period excluding the month immediately preceding the replacement (i.e., beginning June 1, 2016, and ending November 30, 2016). This filing does not propose any substantive changes to the Penny Pilot Program: All classes currently participating will remain the same and all minimum increments will remain unchanged. The Exchange believes the benefits to public customers and other market participants who will be able to express their true prices to buy and sell options have been demonstrated to outweigh any increase in quote traffic. --------------------------------------------------------------------------- \3\ See Exchange Act Release No. 78203 (June 30, 2016), 81 FR 44404 (July 7, 2016) (SR-ISE-2016-15). --------------------------------------------------------------------------- 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.\4\ Specifically, the proposed rule change is consistent with Section 6(b)(5) of the Act,\5\ 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. In particular, the proposed rule change, which extends the Penny Pilot Program for an additional six months, will enable public customers and other market participants to express their true prices to buy and sell options to the benefit of all market participants. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78f(b). \5\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\6\ 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. Specifically, the Exchange believes that, by extending the expiration of the Penny Pilot Program, the proposed rule change will allow for further analysis of the Penny Pilot Program and a determination of how the Penny Pilot Program should be structured in the future. In doing so, the proposed rule change will also serve to promote regulatory clarity and consistency, thereby reducing burdens on the marketplace and facilitating investor protection. --------------------------------------------------------------------------- \6\ 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 Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and Rule 19b-4(f)(6) thereunder.\8\ Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, if consistent with the protection of investors and the public interest, the proposed rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b- 4(f)(6)(iii) thereunder. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \8\ 17 CFR 240.19b-4(f)(6). --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) \9\ normally does not become operative prior to 30 days after the date of the filing.\10\ However, pursuant to Rule 19b-4(f)(6)(iii),\11\ the Commission may 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 because doing so will allow the Pilot Program to continue without interruption in a manner that is consistent with the Commission's prior approval of the extension and expansion of the Pilot Program and will allow the Exchange and the Commission additional time to analyze the impact of the Pilot Program. Accordingly, the Commission designates the proposed rule change as operative upon filing with the Commission.\12\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6). \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) requires the Exchange to give the Commission written notice of the Exchange's intent to file the proposed rule change along with a brief description and the text of 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 pre-filing requirement. \11\ 17 CFR 240.19b-4(f)(6)(iii). \12\ 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). --------------------------------------------------------------------------- At any time within 60 days of the filing of such 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 under Section 19(b)(2)(B) \13\ of the Act to determine whether the proposed rule change should be approved or disapproved. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78s(b)(2)(B). --------------------------------------------------------------------------- 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: [[Page 2435]] 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 No. SR-ISE-2016-32 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-2016-32. 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. Copies of such filing also will be available for inspection and copying at the principal office of the ISE. 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-2016-32 and should be submitted by January 30, 2017. --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-00099 Filed 1-6-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices 2433
represents that Members relying on Rule consistent with the Act. Comments may a pilot period expiring on January 18,
11a2–2(T) for transactions effected be submitted by any of the following 2017.
through the BAM Auction must comply methods: For the Commission, by the Division of
with this condition of the Rule and that Trading and Markets, pursuant to delegated
Electronic Comments
the Exchange will enforce this authority.50
requirement pursuant to its obligations • Use the Commission’s Internet Eduardo A. Aleman,
under Section 6(b)(1) of the Act to comment form (http://www.sec.gov/ Assistant Secretary.
enforce compliance with federal rules/sro.shtml); or [FR Doc. 2017–00096 Filed 1–6–17; 8:45 am]
securities laws.48 • Send an email to rule-comments@ BILLING CODE 8011–01–P
V. Accelerated Approval of Proposal, as sec.gov. Please include File Number SR–
Modified by Amendment No. 1 BatsEDGX–2016–41 on the subject line.
Paper Comments SECURITIES AND EXCHANGE
The Commission finds good cause,
COMMISSION
pursuant to Section 19(b)(2) of the • Send paper comments in triplicate
Exchange Act, to approve the proposal, to Secretary, Securities and Exchange [Release No. 34–79721; File No. SR–ISE–
as modified by Amendment No. 1, prior Commission, 100 F Street NE., 2016–32]
to the 30th day after publication of Washington, DC 20549–1090.
Amendment No. 1 in the Federal Self-Regulatory Organizations;
All submissions should refer to File International Securities Exchange,
Register. In Amendment No. 1, EDGX
Number SR–BatsEDGX–2016–41. This LLC; Notice of Filing and Immediate
revised the original proposal to make
file number should be included on the Effectiveness of Proposed Rule
the changes discussed in detail above.
subject line if email is used. To help the Change To Amend Rules To Extend a
Notably, in Amendment No. 1, EDGX
Commission process and review your Pilot Program
revises its proposal to restrict an
comments more efficiently, please use
Auction from commencing with a stop January 3, 2017.
only one method. The Commission will
price equal to a same side resting order Pursuant to Section 19(b)(1) of the
except in limited circumstances, as post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934
described above, and prohibit an (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Initiating Order from being a solicited rules/sro.shtml).
Copies of the submission, all notice is hereby given that on December
order for the account of an Options 23, 2016, the International Securities
Market Maker assigned in the affected subsequent amendments, all written
statements with respect to the proposed Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’)
series on the Exchange. EDGX also made filed with the Securities and Exchange
changes to clarify and add detail to its rule change that are filed with the
Commission, and all written Commission (‘‘SEC’’ or ‘‘Commission’’)
proposal and the proposed rule text. the proposed rule change as described
The Commission believes that communications relating to the
proposed rule change between the in Items I and II, below, which Items
Amendment No. 1 does not raise any have been prepared by the Exchange.
novel regulatory issues and instead Commission and any person, other than
those that may be withheld from the The Commission is publishing this
better aligns EDGX’s proposed Auction notice to solicit comments on the
functionality with existing functionality public in accordance with the
provisions of 5 U.S.C. 552, will be proposed rule change from interested
on the Exchange and with that of similar
available for Web site viewing and persons.
auction mechanisms operated by other
options exchanges, and provides printing in the Commission’s Public I. Self-Regulatory Organization’s
additional clarity in the rule text, which Reference Room, 100 F Street NE., Statement of the Terms of Substance of
is consistent with EDGX’s original Washington, DC 20549–1090, on official the Proposed Rule Change
proposal and supports EDGX’s analysis business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the The Exchange proposes to amend its
of how its proposal is consistent with rules to extend a pilot program to quote
the Act, thus facilitating the filing also will be available for
inspection and copying at the principal and to trade certain options classes in
Commission’s ability to make the penny increments.
findings set forth above to approve the office of the Exchange. All comments
The text of the proposed rule change
proposal. Accordingly, the Commission received will be posted without change;
is available on the Exchange’s Web site
finds that good cause exists to approve the Commission does not edit personal
at www.ise.com, at the principal office
the proposal, as modified by identifying information from
of the Exchange, and at the
Amendment No. 1, on an accelerated submissions. You should submit only
Commission’s Public Reference Room.
basis. information that you wish to make
available publicly. All submissions II. Self-Regulatory Organization’s
VI. Solicitation of Comments should refer to File Number SR– Statement of the Purpose of, and
Interested persons are invited to BatsEDGX–2016–41 and should be Statutory Basis for, the Proposed Rule
submit written data, views, and submitted on or before January 30, 2017. Change
arguments concerning the foregoing, In its filing with the Commission, the
VII. Conclusion
including whether Amendment No. 1 is Exchange included statements
It is therefore ordered, pursuant to concerning the purpose of and basis for
account during the period covered by the statement. Section 19(b)(2) of the Act,49 that the the proposed rule change and discussed
See 17 CFR 240.11a2–2(T)(d). See also Securities proposed rule change (SR-BatsEDGX–
sradovich on DSK3GMQ082PROD with NOTICES
Exchange Act Release No. 14563 (March 14, 1978), any comments it received on the
43 FR 11542 (March 17, 1978) (stating ‘‘[t]he
2016–41), as modified by Amendment proposed rule change. The text of these
contractual and disclosure requirements are No. 1, be and hereby is approved on an statements may be examined at the
designed to assure that accounts electing to permit accelerated basis, except that there shall places specified in Item IV below. The
transaction-related compensation do so only after be no minimum size requirement for
deciding that such arrangements are suitable to
their interests’’).
orders to be eligible for the Auction for 50 17 CFR 200.30–3(a)(12).
48 See Notice, supra note 3, at 69180. See also 1 15 U.S.C. 78s(b)(1).
Amendment No. 1, supra note 5. 49 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices 2435
Electronic Comments ACTION: Notice. will continue to review our costs for
• Use the Commission’s Internet these services on a yearly basis.
comment form (http://www.sec.gov/ SUMMARY: We are announcing that the
assessment percentage rate under Michelle King,
rules/sro.shtml); or Acting Deputy Commissioner for Budget,
• Send an email to rule-comments@ sections 206(d) and 1631(d)(2)(C) of the
Social Security Act (Act), 42 U.S.C. Finance, Quality, and Management.
sec.gov. Please include File No. SR–ISE– [FR Doc. 2017–00136 Filed 1–6–17; 8:45 am]
2016–32 on the subject line. 406(d) and 1383(d)(2)(C), is 6.3 percent
for 2017. BILLING CODE 4191–02–P
Paper Comments
FOR FURTHER INFORMATION CONTACT:
• Send paper comments in triplicate Jeffrey C. Blair, Associate General
to Secretary, Securities and Exchange DEPARTMENT OF TRANSPORTATION
Counsel for Program Law, Office of the
Commission, 100 F Street NE., General Counsel, Social Security
Washington, DC 20549–1090. Federal Aviation Administration
Administration, 6401 Security
All submissions should refer to File Boulevard, Baltimore, MD 21235–6401. Tenth RTCA SC–229 406 MHz ELT
Number SR–ISE–2016–32. This file Phone: (410) 965–3157, email Jeff.Blair@ Plenary Joint with WG–98
number should be included on the ssa.gov.
subject line if email is used. To help the AGENCY: Federal Aviation
SUPPLEMENTARY INFORMATION: A Administration (FAA), U.S. Department
Commission process and review your
claimant may appoint a qualified of Transportation (DOT).
comments more efficiently, please use
individual as a representative to act on
only one method. The Commission will ACTION: Tenth RTCA SC–229 406 MHz
his or her behalf in matters before the
post all comments on the Commission’s ELT Plenary Joint with WG–98.
Social Security Administration (SSA). If
Internet Web site (http://www.sec.gov/
the claimant is entitled to past-due SUMMARY: The FAA is issuing this notice
rules/sro.shtml). Copies of the
benefits and was represented either by to advise the public of a meeting of
submission, all subsequent
an attorney or by a non-attorney Tenth RTCA SC–229 406 MHz ELT
amendments, all written statements
representative who has met certain Plenary Joint with WG–98.
with respect to the proposed rule
prerequisites, the Act provides that we DATES: The meeting will be held March
change that are filed with the
may withhold up to 25 percent of the 14–17, 2017 09:00 a.m.–05:00 p.m.
Commission, and all written
past-due benefits and use that money to
communications relating to the ADDRESSES: The meeting will be held at:
pay the representative’s approved fee
proposed rule change between the RTCA Headquarters, 1150 18th Street
directly to the representative.
Commission and any person, other than NW., Suite 910, Washington, DC 20036.
those that may be withheld from the When we pay the representative’s fee
FOR FURTHER INFORMATION CONTACT:
public in accordance with the directly to the representative, we must
Rebecca Morrison at rmorrison@rtca.org
provisions of 5 U.S.C. 552, will be collect from that fee payment an
or 202–330–0654, or The RTCA
available for Web site viewing and assessment to recover the costs we incur
Secretariat, 1150 18th Street NW., Suite
printing in the Commission’s Public in determining and paying
910, Washington, DC 20036, or by
Reference Room. Copies of such filing representatives’ fees. The Act provides
telephone at (202) 833–9339, fax at (202)
also will be available for inspection and that the assessment we collect will be
833–9434, or Web site at http://
copying at the principal office of the the lesser of two amounts: A specified
www.rtca.org.
ISE. All comments received will be dollar limit; or the amount determined
posted without change; the Commission by multiplying the fee we are paying by SUPPLEMENTARY INFORMATION: Pursuant
does not edit personal identifying the assessment percentage rate. to section 10(a)(2) of the Federal
information from submissions. You (Sections 206(d), 206(e), and 1631(d)(2) Advisory Committee Act (Pub. L. 92–
should submit only information that of the Act, 42 U.S.C. 406(d), 406(e), and 463, 5 U.S.C., App.), notice is hereby
you wish to make available publicly. All 1383(d)(2).) given for a meeting of the Tenth RTCA
submissions should refer to File The Act initially set the dollar limit SC–229 406 MHz ELT Plenary Joint
Number SR–ISE–2016–32 and should be at $75 in 2004 and provides that the with WG–98. The agenda will include
submitted by January 30, 2017. limit will be adjusted annually based on the following:
For the Commission, by the Division of
changes in the cost-of-living. (Sections Tuesday, March 13, 2017—9:00 a.m.–
Trading and Markets, pursuant to delegated 206(d)(2)(A) and 1631(d)(2)(C)(ii)(I) of 5:00 p.m.
authority.14 the Act, 42 U.S.C. 406(d)(2)(A) and
1383(d)(2)(C)(ii)(I).) The maximum 1. Welcome/Introductions/
Eduardo A. Aleman, Administrative Remarks
Assistant Secretary. dollar limit for the assessment currently
is $91, as we announced in the Federal 2. Agenda overview and approval
[FR Doc. 2017–00099 Filed 1–6–17; 8:45 am] 3. Fort Lauderdale meeting review and
Register on October 27, 2016 (81 FR
BILLING CODE 8011–01–P approval
74854).
4. Review Action Items from Fort
The Act requires us each year to set Lauderdale meeting
the assessment percentage rate at the 5. ‘‘Phasing in’’ RTCA/DO–204B,
SOCIAL SECURITY ADMINISTRATION
lesser of 6.3 percent or the percentage EUROCAE/ED–62B—Timeline and
[Docket No. SSA–2016–0063] rate necessary to achieve full recovery of ToR
the costs we incur to determine and pay
sradovich on DSK3GMQ082PROD with NOTICES
Rate for Assessment on Direct 6. EASA presentation
representatives’ fees. (Sections • EASA approval process
Payment of Fees to Representatives in 206(d)(2)(B)(ii) and 1631(d)(2)(C)(ii)(II) • EU rules on aircraft tracking and
2017 of the Act, 42 U.S.C. 406(d)(2)(B)(ii) and location of aircraft in distress
AGENCY: Social Security Administration 1383(d)(2)(C)(ii)(II).) 7. Briefing of: ICAO GADSS–AG,
(SSA). Based on the best available data, we COSPAS–SARSAT, activities
have determined that the current rate of 8. Other Industry coordination and
14 17 CFR 200.30–3(a)(12). 6.3 percent will continue for 2017. We presentations
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Document Created: 2018-10-24 11:10:00
Document Modified: 2018-10-24 11:10:00
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 2433 |
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