82 FR 28178 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees To (1) Reduce the Priority Customer Taker Fee for Regular Orders in SPY to $0.35 Per Contract, and (2) Lower the Threshold of Net Zero Complex Contracts
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 117 (June 20, 2017)
Federal Register Volume 82, Issue 117 (June 20, 2017)
| Page Range | 28178-28180 | |
| FR Document | 2017-12763 |
[Federal Register Volume 82, Number 117 (Tuesday, June 20, 2017)] [Notices] [Pages 28178-28180] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12763] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80922; File No. SR-ISE-2017-49] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Schedule of Fees To (1) Reduce the Priority Customer Taker Fee for Regular Orders in SPY to $0.35 Per Contract, and (2) Lower the Threshold of Net Zero Complex Contracts June 14, 2017. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on May 31, 2017, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I and II, below, which Items have been prepared by the Exchange. 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 (1) reduce the Priority Customer taker fee for regular orders in SPY to $0.35 per contract, and (2) lower the threshold of net zero complex contracts from 2,000 contracts to 1,000 contracts. The text of the proposed rule change is available on the Exchange's Web site at www.ise.com, at the principal office of the Exchange, and at the Commission's Public Reference Room. II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of the proposed rule change is to amend the Schedule of Fees to (1) reduce the Priority Customer \3\ taker fee for regular orders in SPY to $0.35 per contract, and (2) lower the threshold of net zero complex contracts from 2,000 contracts to 1,000 contracts. Each of these changes is described in more detail below. --------------------------------------------------------------------------- \3\ 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 Nasdaq ISE Rule 100(a)(37A). --------------------------------------------------------------------------- Priority Customer Taker Fee Currently, the Exchange charges a taker fee for regular orders in Select Symbols \4\ that is $0.44 per contract for Market Maker \5\ orders, $0.45 per contract for Non-Nasdaq ISE Market Maker,\6\ Firm Proprietary,\7\ Broker-Dealer,\8\ and Professional Customer orders,\9\ and $0.40 per contract for Priority Customer orders. The Exchange now proposes to adopt a reduced Priority Customer taker fee of $0.35 per contract for regular orders in SPY, which is the most actively traded name on the Exchange. This taker fee will remain unchanged for Select Symbols other than SPY. The Exchange believes that this reduction in fees will attract additional Priority Customer orders in SPY to the Exchange. --------------------------------------------------------------------------- \4\ ``Select Symbols'' are options overlying all symbols listed on the Nasdaq ISE that are in the Penny Pilot Program. \5\ The term ``Market Makers'' refers to ``Competitive Market Makers'' and ``Primary Market Makers'' collectively. See ISE Rule 100(a)(25). \6\ A ``Non-Nasdaq 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. \7\ A ``Firm Proprietary'' order is an order submitted by a member for its own proprietary account. \8\ A ``Broker-Dealer'' order is an order submitted by a member for a broker-dealer account that is not its own proprietary account. \9\ A ``Professional Customer'' is a person or entity that is not a broker/dealer and is not a Priority Customer. --------------------------------------------------------------------------- Net Zero Complex Orders Currently, the Exchange does not provide Priority Customer rebates for complex orders that that leg in to the regular order book and trade at a net price per contract at or near $0.00 (i.e., net zero complex orders), provided those orders are entered on behalf of originating market participants that execute an ADV of at least 2,000 contracts in net zero complex orders in a given month.\10\ While these complex orders would generally not find a counterparty in the complex order book, they may leg in to the regular order book where they are typically executed by Market Makers or other market participants on the individual legs who pay a fee to trade with this order flow. The Exchange does not provide rebates for net zero complex orders to prevent members from engaging in rebate arbitrage by entering valueless complex orders solely to recover rebates. For purposes of determining which complex orders qualify as net zero, the Exchange counts all complex orders that leg in to the regular order book and are executed at a net price per contract that is within a range of $0.01 credit and $0.01 debit. The 2,000 contract threshold exists to differentiate market participants that are entering legitimate complex orders from those that are entering net zero complex orders solely to earn a rebate. The Exchange now proposes to lower the threshold of net zero complex contracts from 2,000 contracts to 1,000 contracts per day. As such, net zero priced complex orders that leg into the regular order book and are entered by firms with an ADV in this type of activity of 1,000 contracts or more in a given month will not earn the Priority Customer complex order rebate. --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release No. 80219 (March 13, 2017), 82 FR 14249 (March 17, 2017) (SR-ISE-2017-22). Priority Customer complex orders that do not meet the definition of a net zero complex order, or that are entered on behalf of originating market participants that do not reach the 2,000 contract ADV threshold, remain eligible for rebates based on the tier achieved. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\11\ in general, and Section 6(b)(4) of the Act,\12\ in particular, in that it is designed [[Page 28179]] to provide for the equitable allocation of reasonable dues, fees, and other charges among its members and other persons using its facilities. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78f. \12\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- Priority Customer Taker Fee The Exchange believes that it is reasonable and equitable to reduce the Priority Customer taker fee for regular orders in SPY as the proposed fees are more favorable than those currently offered on the Exchange. The Exchange is targeting SPY for this change as SPY is the most actively traded symbol on the Exchange. With this change, the Exchange will charge lower taker fees for Priority Customer orders in SPY, thereby attracting additional order flow in this symbol to the benefit of all members that trade on the Exchange. The Exchange also believes that it is equitable and not unfairly discriminatory to only offer this reduced taker fee to Priority Customer orders. A Priority Customer is by definition not a broker or 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). This limitation does not apply to participants on the Exchange whose behavior is substantially similar to that of market professionals, including Professional Customers, who will generally submit a higher number of orders than Priority Customers. Net Zero Complex Orders The Exchange believes that the proposed change to lower the threshold of net zero complex contracts is reasonable, equitable, and not unfairly discriminatory as it is designed to remove financial incentives for market participants to engage in rebate arbitrage by entering valueless complex orders on the Exchange that do not have any economic purpose. The Exchange has determined that the current threshold is still too high to effectively discourage market participants from engaging in rebate arbitrage, and believes that the lower threshold proposed in this filing more accurately reflects the Exchange's original intent. No market participants meet the current ADV threshold, as firms have modified their activity to ensure that their complex ADV in the net zero range is lower than the current 2,000 ADV threshold. Between May 1, 2017 and May 26, 2017, for example, the market participant with the largest ADV in net zero contracts executed an ADV of 1,204 net zero contracts. By comparison the average net zero ADV of market participants that traded complex orders during this time period was only 24 contracts, with the vast majority of these market participants executing no net zero contracts.\13\ The continued submission of a high volume of net zero complex orders that leg into the regular order book by these firms has generated complaints from the Market Makers that trade against these orders in the regular order book, as firms recognize these net zero complex orders as essentially non-economic. --------------------------------------------------------------------------- \13\ Excluding market participants that did not execute any net zero complex orders, the average net zero ADV was only 109 contracts. --------------------------------------------------------------------------- The Exchange believes that lowering the threshold will make it more difficult for firms to continue to enter net zero complex orders purely to earn a rebate. In particular, the Exchange notes that any firm that engages in this activity will be prevented from doing so with an ADV of more than 1,000 contracts in net zero complex orders. This will reduce the cost of these trades to the Exchange and its members as firms are limited in the amount of this net zero complex order activity that they can conduct on the Exchange. The Exchange believes that market participants will stop entering net zero complex orders when they reach the proposed ADV threshold as these firms are entering these orders solely for the purpose of earning a rebate. Indeed, this is consistent with the Exchange's experience with this rule to date, as firms that were previously entering a high volume of net zero complex orders have reduced their volume in activity covered by this rule in response to other changes. To the extent that market participants enter legitimate complex orders, however, they will continue to receive the same rebates that they do today. In addition, market participants that enter an insubstantial volume of net zero complex orders will also continue to receive rebates. The Exchange believes that it is reasonable, equitable, and not unfairly discriminatory to continue to provide rebates where appropriate based on the market participant executing only a low ADV of net zero complex orders. While the Exchange could prohibit rebates for any net zero complex orders without an ADV threshold, doing so would disadvantage innocent market participants that are not engaged in rebate arbitrage. The Exchange believes that the decision to allow rebates for firms with a limited ADV in net zero complex orders properly balances the need to encourage market participants to send order flow to the Exchange, and the need to prevent activity that is harmful to the market. Moreover, all market participants will be treated the same based on their net zero ADV. B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\14\ 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 reduction in Priority Customer taker fees for regular orders in SPY is better for these market participants, and illustrates competition in the options industry. In addition, the proposed net zero complex order change is designed to reduce the ability for certain market participants to engage in rebate arbitrage to the detriment of the Exchange and its members. 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. --------------------------------------------------------------------------- \14\ 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,\15\ and Rule 19b-4(f)(2) \16\ thereunder. At any time within 60 days of the filing of the proposed rule change, the Commission summarily may temporarily suspend such rule change if it appears to the Commission that such action is: (i) Necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) otherwise in furtherance of the purposes of the Act. If the Commission takes such action, the Commission shall institute proceedings to determine whether the proposed rule should be approved or disapproved. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78s(b)(3)(A)(ii). \16\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. [[Page 28180]] 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-2017-49 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-2017-49. 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-2017-49 and should be submitted on or before July 11, 2017. --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-12763 Filed 6-19-17; 8:45 am] BILLING CODE 8011-01-P
![28178 Federal Register / Vol. 82, No. 117 / Tuesday, June 20, 2017 / Notices
identifying information from II. Self-Regulatory Organization’s which is the most actively traded name
submissions. You should submit only Statement of the Purpose of, and on the Exchange. This taker fee will
information that you wish to make Statutory Basis for, the Proposed Rule remain unchanged for Select Symbols
available publicly. All submissions Change other than SPY. The Exchange believes
should refer to File Number SR– In its filing with the Commission, the that this reduction in fees will attract
NASDAQ–2017–056, and should be Exchange included statements additional Priority Customer orders in
submitted on or before July 11, 2017. SPY to the Exchange.
concerning the purpose of and basis for
For the Commission, by the Division of the proposed rule change and discussed Net Zero Complex Orders
Trading and Markets, pursuant to delegated any comments it received on the Currently, the Exchange does not
authority.8 proposed rule change. The text of these provide Priority Customer rebates for
Eduardo A. Aleman, statements may be examined at the complex orders that that leg in to the
Assistant Secretary. places specified in Item IV below. The regular order book and trade at a net
[FR Doc. 2017–12769 Filed 6–19–17; 8:45 am] Exchange has prepared summaries, set price per contract at or near $0.00 (i.e.,
BILLING CODE 8011–01–P
forth in sections A, B, and C below, of net zero complex orders), provided
the most significant aspects of such those orders are entered on behalf of
statements. originating market participants that
SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s execute an ADV of at least 2,000
COMMISSION Statement of the Purpose of, and contracts in net zero complex orders in
Statutory Basis for, the Proposed Rule a given month.10 While these complex
[Release No. 34–80922; File No. SR–ISE– Change orders would generally not find a
2017–49] counterparty in the complex order book,
1. Purpose they may leg in to the regular order book
Self-Regulatory Organizations; Nasdaq The purpose of the proposed rule where they are typically executed by
ISE, LLC; Notice of Filing and change is to amend the Schedule of Fees Market Makers or other market
Immediate Effectiveness of Proposed to (1) reduce the Priority Customer 3 participants on the individual legs who
Rule Change To Amend Its Schedule of taker fee for regular orders in SPY to pay a fee to trade with this order flow.
Fees To (1) Reduce the Priority $0.35 per contract, and (2) lower the The Exchange does not provide rebates
Customer Taker Fee for Regular threshold of net zero complex contracts for net zero complex orders to prevent
Orders in SPY to $0.35 Per Contract, from 2,000 contracts to 1,000 contracts. members from engaging in rebate
and (2) Lower the Threshold of Net Each of these changes is described in arbitrage by entering valueless complex
Zero Complex Contracts more detail below. orders solely to recover rebates. For
purposes of determining which complex
June 14, 2017. Priority Customer Taker Fee orders qualify as net zero, the Exchange
Pursuant to Section 19(b)(1) of the Currently, the Exchange charges a counts all complex orders that leg in to
Securities Exchange Act of 1934 taker fee for regular orders in Select the regular order book and are executed
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Symbols 4 that is $0.44 per contract for at a net price per contract that is within
notice is hereby given that on May 31, Market Maker 5 orders, $0.45 per a range of $0.01 credit and $0.01 debit.
2017, Nasdaq ISE, LLC (‘‘ISE’’ or contract for Non-Nasdaq ISE Market The 2,000 contract threshold exists to
‘‘Exchange’’) filed with the Securities Maker,6 Firm Proprietary,7 Broker- differentiate market participants that are
and Exchange Commission Dealer,8 and Professional Customer entering legitimate complex orders from
(‘‘Commission’’) the proposed rule orders,9 and $0.40 per contract for those that are entering net zero complex
change as described in Items I and II, Priority Customer orders. The Exchange orders solely to earn a rebate. The
below, which Items have been prepared now proposes to adopt a reduced Exchange now proposes to lower the
by the Exchange. The Commission is Priority Customer taker fee of $0.35 per threshold of net zero complex contracts
publishing this notice to solicit contract for regular orders in SPY, from 2,000 contracts to 1,000 contracts
comments on the proposed rule change per day. As such, net zero priced
from interested persons. 3 A ‘‘Priority Customer’’ is a person or entity that complex orders that leg into the regular
is not a broker/dealer in securities, and does not order book and are entered by firms
I. Self-Regulatory Organization’s place more than 390 orders in listed options per day with an ADV in this type of activity of
Statement of the Terms of Substance of on average during a calendar month for its own 1,000 contracts or more in a given
beneficial account(s), as defined in Nasdaq ISE Rule
the Proposed Rule Change 100(a)(37A). month will not earn the Priority
4 ‘‘Select Symbols’’ are options overlying all Customer complex order rebate.
The Exchange proposes to amend its symbols listed on the Nasdaq ISE that are in the
Schedule of Fees to (1) reduce the Penny Pilot Program. 2. Statutory Basis
Priority Customer taker fee for regular 5 The term ‘‘Market Makers’’ refers to
The Exchange believes that the
orders in SPY to $0.35 per contract, and ‘‘Competitive Market Makers’’ and ‘‘Primary Market proposed rule change is consistent with
Makers’’ collectively. See ISE Rule 100(a)(25).
(2) lower the threshold of net zero 6 A ‘‘Non-Nasdaq ISE Market Maker’’ is a market the provisions of Section 6 of the Act,11
complex contracts from 2,000 contracts maker as defined in Section 3(a)(38) of the in general, and Section 6(b)(4) of the
to 1,000 contracts. Securities Exchange Act of 1934, as amended, Act,12 in particular, in that it is designed
registered in the same options class on another
The text of the proposed rule change options exchange. 10 See Securities Exchange Act Release No. 80219
sradovich on DSK3GMQ082PROD with NOTICES
is available on the Exchange’s Web site 7 A ‘‘Firm Proprietary’’ order is an order
(March 13, 2017), 82 FR 14249 (March 17, 2017)
at www.ise.com, at the principal office submitted by a member for its own proprietary (SR–ISE–2017–22). Priority Customer complex
of the Exchange, and at the account. orders that do not meet the definition of a net zero
8 A ‘‘Broker-Dealer’’ order is an order submitted complex order, or that are entered on behalf of
Commission’s Public Reference Room.
by a member for a broker-dealer account that is not originating market participants that do not reach the
its own proprietary account. 2,000 contract ADV threshold, remain eligible for
8 17 CFR 200.30–3(a)(12). 9 A ‘‘Professional Customer’’ is a person or entity rebates based on the tier achieved.
1 15 U.S.C. 78s(b)(1). 11 15 U.S.C. 78f.
that is not a broker/dealer and is not a Priority
2 17 CFR 240.19b–4. Customer. 12 15 U.S.C. 78f(b)(4).
VerDate Sep<11>2014 18:01 Jun 19, 2017 Jkt 241001 PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 E:\FR\FM\20JNN1.SGM 20JNN1](https://thefederalregister.org/doc/82_FR_28295/page/1.svg)
![28180 Federal Register / Vol. 82, No. 117 / Tuesday, June 20, 2017 / Notices
Comments may be submitted by any of SECURITIES AND EXCHANGE Chicago Stock Exchange, Inc., Financial
the following methods: COMMISSION Industry Regulatory Authority, Inc.,
Investors’ Exchange LLC, Miami
Electronic Comments [Release No. 34–80930; File No. 4–698]
International Securities Exchange, LLC,
• Use the Commission’s Internet Joint Industry Plan; Notice of Filing MIAX PEARL, LLC, NASDAQ BX, Inc.,
comment form (http://www.sec.gov/ and Immediate Effectiveness of Nasdaq GEMX, LLC, Nasdaq ISE, LLC,
Amendment No. 2 to the National Nasdaq MRX, LLC, NASDAQ PHLX
rules/sro.shtml); or
Market System Plan Governing the LLC, The NASDAQ Stock Market LLC,
• Send an email to rule-comments@ New York Stock Exchange LLC, NYSE
Consolidated Audit Trail by Bats BYX
sec.gov. Please include File Number SR– Arca, Inc., NYSE MKT LLC and NYSE
Exchange, Inc., Bats BZX Exchange,
ISE–2017–49 on the subject line. Inc., Bats EDGA Exchange, Inc., Bats National, Inc. (collectively, the
EDGX Exchange, Inc., BOX Options ‘‘Participants,’’ ‘‘self-regulatory
Paper Comments
Exchange LLC, C2 Options Exchange, organizations’’ or ‘‘SROs’’) filed with the
• Send paper comments in triplicate Incorporated, Chicago Board Options Securities and Exchange Commission
to Secretary, Securities and Exchange Exchange, Incorporated, Chicago (‘‘Commission’’ or ‘‘SEC’’) pursuant to
Commission, 100 F Street NE., Stock Exchange, Inc., Financial Section 11A(a)(3) of the Securities
Washington, DC 20549–1090. Industry Regulatory Authority, Inc., Exchange Act of 1934 (‘‘Exchange
Investors’ Exchange LLC, Miami Act’’) 2 and Rule 608 thereunder,3 a
All submissions should refer to File International Securities Exchange, proposal to amend the Plan
Number SR–ISE–2017–49. This file LLC, MIAX PEARL, LLC, NASDAQ BX, (‘‘Amendment No. 2’’).4 The proposed
number should be included on the Inc., Nasdaq GEMX, LLC, Nasdaq ISE, amendment would add a fee schedule to
subject line if email is used. To help the LLC, Nasdaq MRX, LLC, NASDAQ a new Exhibit B of the Plan which sets
Commission process and review your PHLX LLC, The NASDAQ Stock Market forth the CAT fees to be paid by the
comments more efficiently, please use LLC, New York Stock Exchange LLC, Participants. A copy of proposed Exhibit
only one method. The Commission will NYSE Arca, Inc., NYSE MKT LLC and B to the CAT NMS Plan is attached as
post all comments on the Commission’s NYSE National, Inc. Appendix A hereto. The Participants
Internet Web site (http://www.sec.gov/ have also included, and as attached
rules/sro.shtml). Copies of the June 14, 2017. hereto, an Appendix B containing two
submission, all subsequent I. Introduction charts, one listing the current Equity
Execution Venues, each with its rank
amendments, all written statements On May 9, 2017, the Operating and tier, and one listing the current
with respect to the proposed rule Committee for CAT NMS, LLC (the Options Execution Venues, each with its
change that are filed with the ‘‘Company’’), on behalf of the following rank and tier. The Commission is
Commission, and all written parties to the National Market System publishing this notice to solicit
communications relating to the Plan Governing the Consolidated Audit comments from interested persons on
proposed rule change between the Trail (the ‘‘CAT NMS Plan’’ or ‘‘Plan’’): 1 Amendment No. 2.5
Commission and any person, other than Bats BYX Exchange, Inc., Bats BZX
those that may be withheld from the Exchange, Inc., Bats EDGA Exchange, II. Description of the Plan
public in accordance with the Inc., Bats EDGX Exchange, Inc., BOX Set forth in this Section II is the
provisions of 5 U.S.C. 552, will be Options Exchange LLC, C2 Options statement of the purpose and summary
available for Web site viewing and Exchange, Incorporated, Chicago Board of Amendment No. 2, along with the
printing in the Commission’s Public Options Exchange, Incorporated, information required by Rule 608(a)(4)
Reference Room, 100 F Street NE., and (5) under the Exchange Act,6
Washington, DC 20549, on official
1 On February 27, 2015, BATS–Y Exchange, Inc. prepared and submitted by the
(n/k/a Bats BYX Exchange, Inc.), BATS Exchange, Participants to the Commission.7
business days between the hours of Inc. (n/k/a Bats BZX Exchange, Inc.), BOX Options
10:00 a.m. and 3:00 p.m. Copies of the Exchange LLC, C2 Options Exchange, Incorporated, A. Description of the Amendments to
filing also will be available for Chicago Board Options Exchange, Incorporated, the CAT NMS Plan
Chicago Stock Exchange, Inc., EDGA Exchange, Inc.
inspection and copying at the principal (n/k/a Bats EDGA Exchange, Inc.), EDGX Exchange, (1) Executive Summary
office of the Exchange. All comments Inc. (n/k/a Bats EDGX Exchange, Inc.), Financial
received will be posted without change; Industry Regulatory Authority, Inc., International The following provides an executive
the Commission does not edit personal Securities Exchange, LLC (n/k/a Nasdaq ISE LLC), summary of the CAT funding model
ISE Gemini, LLC (n/k/a Nasdaq GEMX, LLC), Miami approved by the Operating Committee,
identifying information from International Securities Exchange LLC, NASDAQ
submissions. You should submit only OMX BX, Inc. (n/k/a NASDAQ BX, Inc.), NASDAQ
as well as Participants’ obligations
information that you wish to make OMX PHLX LLC (n/k/a NASDAQ PHLX LLC), The related to the payment of CAT Fees
available publicly. All submissions NASDAQ Stock Market LLC, National Stock calculated pursuant to the CAT funding
Exchange, Inc. (n/k/a NYSE National, Inc.), New model. A detailed description of the
should refer to File Number SR–ISE– York Stock Exchange LLC, NYSE MKT LLC, and
CAT funding model and the CAT Fees
2017–49 and should be submitted on or NYSE Arca, Inc. filed with the Commission,
pursuant to Section 11A of the Exchange Act and follows this executive summary.
before July 11, 2017. • CAT Costs. The CAT funding model
Rule 608 of Regulation NMS thereunder, the CAT
For the Commission, by the Division of NMS Plan. 15 U.S.C. 78k–1; 17 CFR 242.608. The is designed to establish CAT-specific
Trading and Markets, pursuant to delegated Plan was published for comment in the Federal
Register on May 17, 2016, and approved by the
sradovich on DSK3GMQ082PROD with NOTICES
authority.17 Commission, as modified, on November 15, 2016.
2 15 U.S.C 78k–1(a)(3).
3 17 CFR 242.608.
Eduardo A. Aleman, See Securities Exchange Act Release Nos. 77724
4 See Letter from Michael Simon, CAT NMS Plan
(April 27, 2016), 81 FR 30614 (May 17, 2016); 79318
Assistant Secretary. (November 15, 2016), 81 FR 84696 (November 23, Operating Committee Chair, to Brent J. Fields,
[FR Doc. 2017–12763 Filed 6–19–17; 8:45 am] 2016). On January 30, 2017, the Commission Secretary, Commission, dated May 8, 2017
noticed for immediate effectiveness an amendment (‘‘Transmittal Letter’’).
BILLING CODE 8011–01–P 5 17 CFR 242.608.
to the Plan to add MIAX PEARL, LLC as a
6 See 17 CFR 242.608(a)(4) and (a)(5).
Participant. See Securities Exchange Act Release
17 17 CFR 200.30–3(a)(12). No. 79898, 82 FR 9250 (February 3, 2017). 7 See Transmittal Letter, supra note 4.
VerDate Sep<11>2014 18:01 Jun 19, 2017 Jkt 241001 PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 E:\FR\FM\20JNN1.SGM 20JNN1](https://thefederalregister.org/doc/82_FR_28295/page/3.svg)
Document Created: 2017-06-20 02:21:25
Document Modified: 2017-06-20 02:21:25
| 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 28178 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR