82 FR 3034 - Self-Regulatory Organizations; ISE Gemini, 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 6 (January 10, 2017)

Page Range		3034-3035
FR Document		2017-00225
Federal Register, Volume 82 Issue 6 (Tuesday, January 10, 2017)
[Federal Register Volume 82, Number 6 (Tuesday, January 10, 2017)]
[Notices]
[Pages 3034-3035]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00225]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79741; File No. SR-ISEGemini-2016-25]


Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Rules To 
Extend a Pilot Program

January 4, 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, ISE Gemini, LLC (``ISE Gemini'' 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.
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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 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 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.
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    \3\ See Exchange Act Release No. 78201 (June 30, 2016), 81 FR 
44393 (July 7, 2016) (SR-ISE Gemini-2016-06).
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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.
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    \4\ 15 U.S.C. 78f(b).
    \5\ 15 U.S.C. 78f(b)(5).
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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

[[Page 3035]]

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.
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    \6\ 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 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.
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6).
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    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\
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    \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).
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    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.
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    \13\ 15 U.S.C. 78s(b)(2)(B).
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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 No. SR-ISEGemini-2016-25 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-ISEGemini-2016-25. 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-ISEGemini-2016-25 and should be submitted by January 31, 
2017.
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    \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. 2017-00225 Filed 1-9-17; 8:45 am]
BILLING CODE 8011-01-P
3034 Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Notices

All submissions should refer to File notice is hereby given that on December and to provide a revised date for adding
Number SR–NSCC–2016–009. This file 23, 2016, ISE Gemini, LLC (‘‘ISE replacement issues to the Penny Pilot
number should be included on the Gemini’’ or ‘‘Exchange’’) filed with the Program. The Exchange proposes that
subject line if email is used. To help the Securities and Exchange Commission any Penny Pilot Program issues that
Commission process and review your (‘‘SEC’’ or ‘‘Commission’’) the proposed have been delisted may be replaced on
comments more efficiently, please use rule change as described in Items I and the second trading day following
only one method. The Commission will II, below, which Items have been January 1, 2017. The replacement issues
post all comments on the Commission’s prepared by the Exchange. The will be selected based on trading
Internet Web site (http://www.sec.gov/ Commission is publishing this notice to activity for the most recent six month
rules/sro.shtml). Copies of the solicit comments on the proposed rule period excluding the month
submission, all subsequent change from interested persons. immediately preceding the replacement
amendments, all written statements (i.e., beginning June 1, 2016, and ending
I. Self-Regulatory Organization’s
with respect to the proposed rule November 30, 2016). This filing does
Statement of the Terms of Substance of
change that are filed with the not propose any substantive changes to
the Proposed Rule Change
Commission, and all written the Penny Pilot Program: All classes
communications relating to the The Exchange proposes to amend its currently participating will remain the
proposed rule change between the rules to extend a pilot program to quote same and all minimum increments will
Commission and any person, other than and to trade certain options classes in remain unchanged. The Exchange
those that may be withheld from the penny increments. believes the benefits to public customers
public in accordance with the The text of the proposed rule change and other market participants who will
provisions of 5 U.S.C. 552, will be is available on the Exchange’s Web site be able to express their true prices to
available for Web site viewing and at www.ise.com, at the principal office buy and sell options have been
printing in the Commission’s Public of the Exchange, and at the demonstrated to outweigh any increase
Reference Room, 100 F Street NE., Commission’s Public Reference Room. in quote traffic.
Washington, DC 20549, on official II. Self-Regulatory Organization’s
business days between the hours of 2. Statutory Basis
Statement of the Purpose of, and
10:00 a.m. and 3:00 p.m. Copies of the Statutory Basis for, the Proposed Rule The Exchange believes that the
filing also will be available for Change proposed rule change is consistent with
inspection and copying at the principal the requirements of the Act and the
office of NSCC and on DTCC’s Web site In its filing with the Commission, the rules and regulations thereunder that
(http://dtcc.com/legal/sec-rule- Exchange included statements are applicable to a national securities
filings.aspx). All comments received concerning the purpose of and basis for exchange, and, in particular, with the
will be posted without change; the the proposed rule change and discussed requirements of Section 6(b) of the Act.4
Commission does not edit personal any comments it received on the Specifically, the proposed rule change is
identifying information from proposed rule change. The text of these consistent with Section 6(b)(5) of the
submissions. You should submit only statements may be examined at the Act,5 because it is designed to promote
information that you wish to make places specified in Item IV below. The just and equitable principles of trade,
available publicly. All submissions Exchange has prepared summaries, set remove impediments to and perfect the
should refer to File Number SR–NSCC– forth in sections A, B, and C below, of mechanisms of a free and open market
2016–009 and should be submitted on the most significant aspects of such and a national market system and, in
or before January 31, 2017. statements. general, to protect investors and the
For the Commission, by the Division of A. Self-Regulatory Organization’s public interest. In particular, the
Trading and Markets, pursuant to delegated Statement of the Purpose of, and proposed rule change, which extends
authority.14 Statutory Basis for, the Proposed Rule the Penny Pilot Program for an
Eduardo A. Aleman, Change additional six months, will enable
Assistant Secretary. public customers and other market
1. Purpose participants to express their true prices
[FR Doc. 2017–00223 Filed 1–9–17; 8:45 am]
BILLING CODE 8011–01–P
Under the Penny Pilot Program, the to buy and sell options to the benefit of
minimum price variation for all all market participants.
participating options classes, except for
B. Self-Regulatory Organization’s
SECURITIES AND EXCHANGE the Nasdaq–100 Index Tracking Stock
Statement on Burden on Competition
COMMISSION (‘‘QQQQ’’), the SPDR S&P 500 Exchange
Traded Fund (‘‘SPY’’) and the iShares In accordance with Section 6(b)(8) of
[Release No. 34–79741; File No. SR– the Act,6 the Exchange does not believe
Russell 2000 Index Fund (‘‘IWM’’), is
ISEGemini–2016–25] that the proposed rule change will
$0.01 for all quotations in options series
Self-Regulatory Organizations; ISE that are quoted at less than $3 per impose any burden on intermarket or
Gemini, LLC; Notice of Filing and contract and $0.05 for all quotations in intramarket competition that is not
Immediate Effectiveness of Proposed options series that are quoted at $3 per necessary or appropriate in furtherance
Rule Change To Amend Rules To contract or greater. QQQQ, SPY and of the purposes of the Act. Specifically,
Extend a Pilot Program IWM are quoted in $0.01 increments for the Exchange believes that, by extending
all options series. The Penny Pilot the expiration of the Penny Pilot
pmangrum on DSK3GDR082PROD with NOTICES

January 4, 2017. Program is currently scheduled to Program, the proposed rule change will
Pursuant to Section 19(b)(1) of the expire on December 31, 2016.3 The allow for further analysis of the Penny
Securities Exchange Act of 1934 Exchange proposes to extend the Penny Pilot Program and a determination of
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Pilot Program through June 30, 2017, how the Penny Pilot Program should be
14 17 CFR 200.30–3(a)(12). 3 See Exchange Act Release No. 78201 (June 30, 4 15 U.S.C. 78f(b).
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b)(5).
2016), 81 FR 44393 (July 7, 2016) (SR–ISE Gemini–
2 17 CFR 240.19b–4. 2016–06). 6 15 U.S.C. 78f(b)(8).

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Federal Register / Vol. 82, No. 6 / Tuesday, January 10, 2017 / Notices 3035

structured in the future. In doing so, the Exchange and the Commission public in accordance with the
proposed rule change will also serve to additional time to analyze the impact of provisions of 5 U.S.C. 552, will be
promote regulatory clarity and the Pilot Program. Accordingly, the available for Web site viewing and
consistency, thereby reducing burdens Commission designates the proposed printing in the Commission’s Public
on the marketplace and facilitating rule change as operative upon filing Reference Room. Copies of such filing
investor protection. with the Commission.12 also will be available for inspection and
At any time within 60 days of the copying at the principal office of the
C. Self-Regulatory Organization’s filing of such proposed rule change, the
Statement on Comments on the ISE. All comments received will be
Commission summarily may
Proposed Rule Change Received From posted without change; the Commission
temporarily suspend such rule change if
Members, Participants, or Others does not edit personal identifying
it appears to the Commission that such
No written comments were either action is necessary or appropriate in the information from submissions. You
solicited or received. public interest, for the protection of should submit only information that
investors, or otherwise in furtherance of you wish to make available publicly. All
III. Date of Effectiveness of the submissions should refer to File
Proposed Rule Change and Timing for the purposes of the Act. If the
Commission takes such action, the Number SR–ISEGemini–2016–25 and
Commission Action should be submitted by January 31,
Commission shall institute proceedings
The Exchange has filed the proposed under Section 19(b)(2)(B) 13 of the Act to 2017.
rule change pursuant to Section determine whether the proposed rule For the Commission, by the Division of
19(b)(3)(A)(iii) of the Act 7 and Rule change should be approved or Trading and Markets, pursuant to delegated
19b–4(f)(6) thereunder.8 Because the disapproved. authority.14
proposed rule change does not: (i)
Significantly affect the protection of IV. Solicitation of Comments Eduardo A. Aleman,
investors or the public interest; (ii) Interested persons are invited to Assistant Secretary.
impose any significant burden on submit written data, views, and [FR Doc. 2017–00225 Filed 1–9–17; 8:45 am]
competition; and (iii) become operative arguments concerning the foregoing, BILLING CODE 8011–01–P
prior to 30 days from the date on which including whether the proposed rule
it was filed, or such shorter time as the change is consistent with the Act.
Commission may designate, if Comments may be submitted by any of SECURITIES AND EXCHANGE
consistent with the protection of the following methods: COMMISSION
investors and the public interest, the
proposed rule change has become Electronic Comments
[Release No. 34–79728; File No. SR–
effective pursuant to Section 19(b)(3)(A) • Use the Commission’s Internet
NYSEMKT–2016–126]
of the Act and Rule 19b–4(f)(6)(iii) comment form http://www.sec.gov/
thereunder. rules/sro.shtml); or Self-Regulatory Organizations; NYSE
A proposed rule change filed under • Send an Email to rule-comments@
MKT LLC; Notice of Filing and
Rule 19b–4(f)(6) 9 normally does not sec.gov. Please include File No. SR–
Immediate Effectiveness of Proposed
become operative prior to 30 days after ISEGemini–2016–25 on the subject line.
Rule Change Amending the NYSE MKT
the date of the filing.10 However,
Paper Comments Equities Price List and the NYSE Amex
pursuant to Rule 19b–4(f)(6)(iii),11 the
Commission may designate a shorter • Send paper comments in triplicate Options Fee Schedule Related to Co-
time if such action is consistent with the to Secretary, Securities and Exchange Location Services To Increase LCN
protection of investors and the public Commission, 100 F Street NE., and IP Network Fees and Add a
interest. The Exchange has asked the Washington, DC 20549–1090. Description of Access to Trading and
Commission to waive the 30-day All submissions should refer to File Execution Services and Connectivity
operative delay so that the proposal may Number SR–ISEGemini–2016–25. This to Included Data Products
become operative immediately upon file number should be included on the
subject line if email is used. To help the January 4, 2017.
filing. The Commission believes that
waiving the 30-day operative delay is Commission process and review your Pursuant to Section 19(b)(1) 1 of the
consistent with the protection of comments more efficiently, please use Securities Exchange Act of 1934 (the
investors and the public interest only one method. The Commission will ‘‘Act’’) 2 and Rule 19b–4 thereunder,3
because doing so will allow the Pilot post all comments on the Commission’s notice is hereby given that, on December
Program to continue without Internet Web site (http://www.sec.gov/ 22, 2016, NYSE MKT LLC (the
interruption in a manner that is rules/sro.shtml). Copies of the ‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
consistent with the Commission’s prior submission, all subsequent the Securities and Exchange
approval of the extension and expansion amendments, all written statements Commission (the ‘‘Commission’’) the
of the Pilot Program and will allow the with respect to the proposed rule proposed rule change as described in
change that are filed with the Items I, II, and III below, which Items
7 15 U.S.C. 78s(b)(3)(A)(iii). Commission, and all written have been prepared by the self-
8 17 CFR 240.19b–4(f)(6). communications relating to the
9 17 CFR 240.19b–4(f)(6). regulatory organization. The
proposed rule change between the
10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– Commission is publishing this notice To
pmangrum on DSK3GDR082PROD with NOTICES

Commission and any person, other than
4(f)(6)(iii) requires the Exchange to give the solicit comments on the proposed rule
Commission written notice of the Exchange’s intent those that may be withheld from the
change from interested persons.
to file the proposed rule change along with a brief
description and the text of the proposed rule 12 For purposes only of waiving the operative

change, at least five business days prior to the date delay for this proposal, the Commission has 14 17 CFR 200.30–3(a)(12).
of filing of the proposed rule change, or such considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1).
shorter time as designated by the Commission. The efficiency, competition, and capital formation. See
2 15 U.S.C. 78a.
Exchange has satisfied this pre-filing requirement. 15 U.S.C. 78c(f).
11 17 CFR 240.19b–4(f)(6)(iii). 13 15 U.S.C. 78s(b)(2)(B). 3 17 CFR 240.19b–4.

VerDate Sep<11>2014 14:59 Jan 09, 2017 Jkt 241001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 E:\FR\FM\10JAN1.SGM 10JAN1
Document Created: 2018-02-01 14:53:51
Document Modified: 2018-02-01 14:53:51
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 3034