82 FR 29354 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Section III of the Schedule of Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 123 (June 28, 2017)

Page Range		29354-29355
FR Document		2017-13475
Federal Register, Volume 82 Issue 123 (Wednesday, June 28, 2017)
[Federal Register Volume 82, Number 123 (Wednesday, June 28, 2017)]
[Notices]
[Pages 29354-29355]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13475]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80999; File No. SR-ISE-2017-59]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Section 
III of the Schedule of Fees

June 22, 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 June 19, 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.
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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

    The Exchange proposes to amend Section III of the Schedule of Fees 
to eliminate FX Option fees and rebates for trades executed on June 12-
30, 2017.
    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 Section III of 
the Schedule of Fees to eliminate FX Option fees and rebates for trades 
executed on June 12-30, 2017 in connection with the migration of the 
Exchange's trading system to the Nasdaq INET technology, which is 
scheduled to begin on June 12, 2017.\3\ The Exchange will launch its 
re-platformed INET trading system beginning with FX Options on June 12, 
2017. The Exchange proposes to eliminate fees and rebates for trades in 
FX Options executed on the INET trading system from June 12-30, 2017. 
Because the Exchange is eliminating fees and rebates for trades in 
these products, during this period trades in FX Options will not be 
counted towards a member's tier for June activity. The proposed change 
would allow the Exchange to bill June fees solely based on activity 
traded on the current T7 trading system,\4\ and is an inducement for 
members to trade the first symbols launched on the INET trading system 
as there would be no transaction fees for doing so.
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    \3\ See Securities Exchange Act Release No. 80432 (April 11, 
2017), 82 FR 18191 (April 17, 2017) (SR-ISE-2017-03).
    \4\ Additional symbols may be rolled out on the INET trading 
system later in June. The Exchange intends to eliminate fees and 
rebates for those symbols in a later proposed rule change to be 
filed prior to their introduction on INET.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\5\ in general, and Section 
6(b)(4) of the Act,\6\ in particular, in that it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members and other persons using its facilities.
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    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that it is reasonable and equitable to 
eliminate fees and rebates for FX Options during the initial launch of 
the Exchange's re-platformed trading system. Eliminating FX Option fees 
and rebates during this period will simplify the Exchange's billing and 
serve as an inducement for members to trade the first symbols migrated 
to the INET trading system. Because the Exchange is offering free 
executions in these symbols, volume executed in FX Options on June 12-
30, 2017 will not be counted towards any volume based tiers. Similar 
treatment was afforded to the first symbol launched on the Nasdaq GEMX, 
LLC INET trading system.\7\ The Exchange believes that these two 
changes will be attractive to members that trade on the new INET 
trading system. The Exchange also believes that this proposed change is 
not unfairly discriminatory as it will apply to FX Options trades that 
are executed by all members. As noted above, FX Options were selected 
for this treatment as those products will be the first symbols traded 
on the INET trading system.
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    \7\ See Securities Exchange Act Release No. 80184 (March 9, 
2017), 82 FR 13893 (March 15, 2017) (SR-ISEGemini-2017-09)
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B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\8\ 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 
change is intended to ease members' transition to the re-platformed 
INET trading system and is not designed to have any significant 
competitive impact. 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.
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    \8\ 15 U.S.C. 78f(b)(8).
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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,\9\ and Rule 19b-4(f)(2) \10\ 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

[[Page 29355]]

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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \10\ 17 CFR 240.19b-4(f)(2).
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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-ISE-2017-59 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-2017-59. 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-2017-59 and should be 
submitted on or before July 19, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-13475 Filed 6-27-17; 8:45 am]
BILLING CODE 8011-01-P
29354 Federal Register / Vol. 82, No. 123 / Wednesday, June 28, 2017 / Notices

For the Commission, by the Division of A. Self-Regulatory Organization’s volume based tiers. Similar treatment
Trading and Markets, pursuant to delegated Statement of the Purpose of, and was afforded to the first symbol
authority.29 Statutory Basis for, the Proposed Rule launched on the Nasdaq GEMX, LLC
Eduardo A. Aleman, Change INET trading system.7 The Exchange
Assistant Secretary. believes that these two changes will be
1. Purpose
[FR Doc. 2017–13489 Filed 6–27–17; 8:45 am] attractive to members that trade on the
BILLING CODE 8011–01–P The purpose of the proposed rule new INET trading system. The Exchange
change is to amend Section III of the also believes that this proposed change
Schedule of Fees to eliminate FX Option is not unfairly discriminatory as it will
SECURITIES AND EXCHANGE fees and rebates for trades executed on apply to FX Options trades that are
COMMISSION June 12–30, 2017 in connection with the executed by all members. As noted
migration of the Exchange’s trading above, FX Options were selected for this
[Release No. 34–80999; File No. SR–ISE–
2017–59] system to the Nasdaq INET technology, treatment as those products will be the
which is scheduled to begin on June 12, first symbols traded on the INET trading
Self-Regulatory Organizations; Nasdaq 2017.3 The Exchange will launch its re- system.
ISE, LLC; Notice of Filing and platformed INET trading system B. Self-Regulatory Organization’s
Immediate Effectiveness of Proposed beginning with FX Options on June 12, Statement on Burden on Competition
Rule Change To Amend Section III of 2017. The Exchange proposes to
the Schedule of Fees eliminate fees and rebates for trades in In accordance with Section 6(b)(8) of
FX Options executed on the INET the Act,8 the Exchange does not believe
June 22, 2017. trading system from June 12–30, 2017. that the proposed rule change will
Pursuant to Section 19(b)(1) of the Because the Exchange is eliminating impose any burden on intermarket or
Securities Exchange Act of 1934 fees and rebates for trades in these intramarket competition that is not
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 products, during this period trades in necessary or appropriate in furtherance
notice is hereby given that on June 19, FX Options will not be counted towards of the purposes of the Act. The
2017, Nasdaq ISE, LLC (‘‘ISE’’ or a member’s tier for June activity. The proposed change is intended to ease
‘‘Exchange’’) filed with the Securities proposed change would allow the members’ transition to the re-platformed
and Exchange Commission Exchange to bill June fees solely based INET trading system and is not designed
(‘‘Commission’’) the proposed rule on activity traded on the current T7 to have any significant competitive
change as described in Items I and II trading system,4 and is an inducement impact. The Exchange operates in a
below, which Items have been prepared for members to trade the first symbols highly competitive market in which
by the Exchange. The Commission is launched on the INET trading system as market participants can readily direct
publishing this notice to solicit there would be no transaction fees for their order flow to competing venues. In
comments on the proposed rule change doing so. such an environment, the Exchange
from interested persons. must continually review, and consider
2. Statutory Basis adjusting, its fees and rebates to remain
I. Self-Regulatory Organization’s competitive with other exchanges. For
Statement of the Terms of Substance of The Exchange believes that the
proposed rule change is consistent with the reasons described above, the
the Proposed Rule Change Exchange believes that the proposed fee
the provisions of Section 6 of the Act,5
The Exchange proposes to amend in general, and Section 6(b)(4) of the changes reflect this competitive
Section III of the Schedule of Fees to Act,6 in particular, in that it is designed environment.
eliminate FX Option fees and rebates for to provide for the equitable allocation of C. Self-Regulatory Organization’s
trades executed on June 12–30, 2017. reasonable dues, fees, and other charges Statement on Comments on the
The text of the proposed rule change among its members and other persons Proposed Rule Change Received From
is available on the Exchange’s Web site using its facilities. Members, Participants, or Others
at www.ise.com, at the principal office The Exchange believes that it is
of the Exchange, and at the No written comments were either
reasonable and equitable to eliminate solicited or received.
Commission’s Public Reference Room. fees and rebates for FX Options during
II. Self-Regulatory Organization’s the initial launch of the Exchange’s re- III. Date of Effectiveness of the
Statement of the Purpose of, and platformed trading system. Eliminating Proposed Rule Change and Timing for
Statutory Basis for, the Proposed Rule FX Option fees and rebates during this Commission Action
Change period will simplify the Exchange’s The foregoing rule change has become
billing and serve as an inducement for effective pursuant to Section
In its filing with the Commission, the members to trade the first symbols 19(b)(3)(A)(ii) of the Act,9 and Rule
Exchange included statements migrated to the INET trading system. 19b–4(f)(2) 10 thereunder. At any time
concerning the purpose of and basis for Because the Exchange is offering free within 60 days of the filing of the
the proposed rule change and discussed executions in these symbols, volume proposed rule change, the Commission
any comments it received on the executed in FX Options on June 12–30, summarily may temporarily suspend
proposed rule change. The text of these 2017 will not be counted towards any such rule change if it appears to the
statements may be examined at the
Commission that such action is: (i)
asabaliauskas on DSKBBXCHB2PROD with NOTICES

places specified in Item IV below. The 3 See Securities Exchange Act Release No. 80432
Necessary or appropriate in the public
Exchange has prepared summaries, set (April 11, 2017), 82 FR 18191 (April 17, 2017) (SR–
ISE–2017–03). interest; (ii) for the protection of
forth in sections A, B, and C below, of
4 Additional symbols may be rolled out on the
the most significant aspects of such 7 See Securities Exchange Act Release No. 80184
INET trading system later in June. The Exchange
statements. intends to eliminate fees and rebates for those (March 9, 2017), 82 FR 13893 (March 15, 2017) (SR–
symbols in a later proposed rule change to be filed ISEGemini–2017–09)
29 17 CFR 200.30–3(a)(12). prior to their introduction on INET. 8 15 U.S.C. 78f(b)(8).
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f. 9 15 U.S.C. 78s(b)(3)(A)(ii).
2 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b)(4). 10 17 CFR 240.19b–4(f)(2).

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Federal Register / Vol. 82, No. 123 / Wednesday, June 28, 2017 / Notices 29355

investors; or (iii) otherwise in 2017–59 and should be submitted on or reasons for so finding or as to which the
furtherance of the purposes of the Act. before July 19, 2017. self-regulatory organization consents,
If the Commission takes such action, the For the Commission, by the Division of the Commission shall either approve the
Commission shall institute proceedings Trading and Markets, pursuant to delegated proposed rule change, disapprove the
to determine whether the proposed rule authority.11 proposed rule change, or institute
should be approved or disapproved. Eduardo A. Aleman, proceedings to determine whether the
Assistant Secretary. proposed rule change should be
IV. Solicitation of Comments disapproved. The 45th day after
[FR Doc. 2017–13475 Filed 6–27–17; 8:45 am]
Interested persons are invited to publication of the notice for this
BILLING CODE 8011–01–P
proposed rule change is June 23, 2017.
submit written data, views, and
The Commission is extending this 45-
arguments concerning the foregoing,
SECURITIES AND EXCHANGE day time period for Commission action
including whether the proposed rule
on the proposed rule change.
change is consistent with the Act. COMMISSION
The Commission finds that it is
Comments may be submitted by any of [Release No. 34–80998; File No. SR–IEX– appropriate to designate a longer period
the following methods: 2017–10] within which to take action on the
Electronic Comments proposed rule change so that it has
Self-Regulatory Organizations; sufficient time to consider the proposed
• Use the Commission’s Internet Investors Exchange LLC; Notice of rule change. Accordingly, the
comment form (http://www.sec.gov/ Designation of a Longer Period for Commission, pursuant to Section
rules/sro.shtml); or Commission Action on a Proposed 19(b)(2) of the Act,7 designates August
Rule Change Related to Auctions in 7, 2017, as the date by which the
• Send an email to rule-comments@ IEX-Listed Securities, Dissemination of
sec.gov. Please include File Number SR– Commission shall either approve or
Auction-Related Market Data, and disapprove, or institute proceedings to
ISE–2017–59 on the subject line. Provisions Governing Trading Halts determine whether to disapprove, the
Paper Comments and Pauses proposed rule change (File No. SR–IEX–
2017–10).
• Send paper comments in triplicate June 22, 2017.
On April 20, 2017, the Investors For the Commission, by the Division of
to Secretary, Securities and Exchange
Exchange LLC (‘‘IEX’’ or the Trading and Markets, pursuant to delegated
Commission, 100 F Street NE., authority.8
Washington, DC 20549–1090. ‘‘Exchange’’) filed with the Securities
and Exchange Commission Eduardo A. Aleman,
All submissions should refer to File (‘‘Commission’’), pursuant to Section Assistant Secretary.
Number SR–ISE–2017–59. This file 19(b)(1) of the Securities Exchange Act [FR Doc. 2017–13474 Filed 6–27–17; 8:45 am]
number should be included on the of 1934 (‘‘Act’’) 1 and Rule 19b–4 BILLING CODE 8011–01–P
subject line if email is used. To help the thereunder,2 a proposed rule change to
Commission process and review your adopt rules governing auctions
comments more efficiently, please use conducted on the Exchange for IEX- SECURITIES AND EXCHANGE
only one method. The Commission will listed securities, provide for the COMMISSION
post all comments on the Commission’s dissemination of auction-related market [Release No. 34–81002; File No. SR–FICC–
Internet Web site (http://www.sec.gov/ data, and add rule provisions governing 2017–015]
rules/sro.shtml). Copies of the trading halts and trading pauses in IEX-
submission, all subsequent listed securities pursuant to the Limit Self-Regulatory Organizations; Fixed
amendments, all written statements Up-Limit Down Plan. The proposed rule Income Clearing Corporation; Notice of
with respect to the proposed rule change was published for comment in Filing and Immediate Effectiveness of
change that are filed with the the Federal Register on May 9, 2017.3 a Proposed Rule Change To Make
Commission, and all written The Commission received one comment Clarifications and Corrections to the
communications relating to the regarding the proposed rule change.4 Government Securities Division
proposed rule change between the The Exchange responded to the Rulebook, the Mortgage-Backed
Commission and any person, other than comment on June 5, 2017.5 Securities Division Clearing Rules and
those that may be withheld from the Section 19(b)(2) of the Act 6 provides the Mortgage-Backed Securities
public in accordance with the that within 45 days of the publication of Division EPN Rules
provisions of 5 U.S.C. 552, will be notice of the filing of a proposed rule
June 22, 2017.
available for Web site viewing and change, or within such longer period up
printing in the Commission’s Public Pursuant to Section 19(b)(1) of the
to 90 days as the Commission may
Reference Room, 100 F Street NE., Securities Exchange Act of 1934
designate if it finds such longer period
Washington, DC 20549, on official (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
to be appropriate and publishes its
business days between the hours of notice is hereby given that on June 16,
10:00 a.m. and 3:00 p.m. Copies of the 11 17 CFR 200.30–3(a)(12).
2017, Fixed Income Clearing
filing also will be available for 1 15 U.S.C. 78s(b)(1). Corporation (‘‘FICC’’) filed with the
inspection and copying at the principal 2 17 CFR 240.19b–4. Securities and Exchange Commission
asabaliauskas on DSKBBXCHB2PROD with NOTICES

office of the Exchange. All comments
3 See Securities Exchange Act Release No. 80583 (‘‘Commission’’) the proposed rule
received will be posted without change;
(May 3, 2017), 82 FR 21634. change as described in Items I, II and III
4 See letter to Brent J. Fields, Secretary,
the Commission does not edit personal below, which Items have been prepared
Commission, from Joan C. Conley, Senior Vice
identifying information from President and Corporate Secretary, The NASDAQ
by the clearing agency. FICC filed the
submissions. You should submit only Stock Market LLC, dated May 30, 2017.
5 See letter to Brent J. Fields, Secretary, 7 15 U.S.C. 78s(b)(2).
information that you wish to make 8 17 CFR 200.30–3(a)(31).
Commission, from Sophia Lee, General Counsel,
available publicly. All submissions IEX, dated June 5, 2017. 1 15 U.S.C. 78s(b)(1).
should refer to File Number SR–ISE– 6 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4.

VerDate Sep<11>2014 17:22 Jun 27, 2017 Jkt 241001 PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 E:\FR\FM\28JNN1.SGM 28JNN1
Document Created: 2017-06-28 01:10:25
Document Modified: 2017-06-28 01:10:25
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 29354