82 FR 32597 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate Fees and Rebates for Trades in KANG Executed on June 27-30, 2017

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 134 (July 14, 2017)

Page Range		32597-32598
FR Document		2017-14753
Federal Register, Volume 82 Issue 134 (Friday, July 14, 2017)
[Federal Register Volume 82, Number 134 (Friday, July 14, 2017)]
[Notices]
[Pages 32597-32598]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14753]



[[Page 32597]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81106; File No. SR-ISE-2017-63]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Eliminate Fees 
and Rebates for Trades in KANG Executed on June 27-30, 2017

July 10, 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 27, 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 the Schedule of Fees to eliminate 
fees and rebates for trades in iKang Healthcare Group Inc (``KANG'') 
executed on June 27-30, 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 the Schedule of 
Fees to eliminate fees and rebates for trades in KANG executed on June 
27-30, 2017.\3\ This change is being made in connection with the 
migration of the Exchange's trading system to the Nasdaq INET 
technology, which began on June 12, 2017.\4\ Earlier this month, the 
Exchange filed a proposed rule change that eliminated fees and rebates 
during the initial launch period for trades in FX Options that began 
trading on INET with the launch of the re-platformed trading system.\5\ 
The Exchange now proposes to similarly eliminate fees and rebates for 
trades in KANG executed on the INET trading system from June 27-30, 
2017. With this change, no fees or rebates will be charged for 
executions on INET during the month of June. Because the Exchange is 
eliminating fees and rebates for trades in KANG, during this period 
trades in KANG 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, 
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\ KANG will begin trading on INET on June 27, 2017, and is a 
Non-Select Symbol. ``Non-Select Symbols'' are options overlying all 
symbols excluding Select Symbols.
    \4\ See Securities Exchange Act Release No. 80432 (April 11, 
2017), 82 FR 18191 (April 17, 2017) (SR-ISE-2017-03).
    \5\ See SR-ISE-2017-59 (publication pending).
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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,\6\ in general, and Section 
6(b)(4) of the Act,\7\ 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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    \6\ 15 U.S.C. 78f.
    \7\ 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 in KANG during the initial launch of the 
Exchange's re-platformed trading system. Eliminating fees and rebates 
in this symbol during the launch 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 this symbol, volume executed in KANG on June 27-30, 
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,\8\ and also to FX Options traded on ISE INET 
during the launch.\9\ 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 trades in KANG that are executed by 
all members. As noted above, KANG was selected for this treatment as 
this symbol, together with the Exchange's proprietary FX Options, will 
be the first symbols traded on the INET trading system.
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    \8\ See Securities Exchange Act Release No. 80184 (March 9, 
2017), 82 FR 13893 (March 15, 2017) (SR-ISEGemini-2017-09).
    \9\ See supra note 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,\10\ 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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    \10\ 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,\11\ and Rule 19b-4(f)(2) \12\ 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

[[Page 32598]]

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.
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    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 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-2017-63 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-2017-63. 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-2017-63 and should be 
submitted on or before August 4, 2017.
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    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14753 Filed 7-13-17; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 134 / Friday, July 14, 2017 / Notices 32597

SECURITIES AND EXCHANGE to eliminate fees and rebates for trades system,8 and also to FX Options traded
COMMISSION in KANG executed on June 27–30, on ISE INET during the launch.9 The
2017.3 This change is being made in Exchange believes that these two
[Release No. 34–81106; File No. SR–ISE–
2017–63]
connection with the migration of the changes will be attractive to members
Exchange’s trading system to the Nasdaq that trade on the new INET trading
Self-Regulatory Organizations; Nasdaq INET technology, which began on June system. The Exchange also believes that
ISE, LLC; Notice of Filing and 12, 2017.4 Earlier this month, the this proposed change is not unfairly
Immediate Effectiveness of Proposed Exchange filed a proposed rule change discriminatory as it will apply to trades
Rule Change To Eliminate Fees and that eliminated fees and rebates during in KANG that are executed by all
Rebates for Trades in KANG Executed the initial launch period for trades in FX members. As noted above, KANG was
on June 27–30, 2017 Options that began trading on INET selected for this treatment as this
with the launch of the re-platformed symbol, together with the Exchange’s
July 10, 2017. trading system.5 The Exchange now proprietary FX Options, will be the first
Pursuant to Section 19(b)(1) of the proposes to similarly eliminate fees and symbols traded on the INET trading
Securities Exchange Act of 1934 rebates for trades in KANG executed on system.
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 the INET trading system from June 27–
notice is hereby given that on June 27, B. Self-Regulatory Organization’s
30, 2017. With this change, no fees or Statement on Burden on Competition
2017, Nasdaq ISE, LLC (‘‘ISE’’ or rebates will be charged for executions
‘‘Exchange’’) filed with the Securities on INET during the month of June. In accordance with Section 6(b)(8) of
and Exchange Commission Because the Exchange is eliminating the Act,10 the Exchange does not believe
(‘‘Commission’’) the proposed rule fees and rebates for trades in KANG, that the proposed rule change will
change as described in Items I and II during this period trades in KANG will impose any burden on intermarket or
below, which Items have been prepared not be counted towards a member’s tier intramarket competition that is not
by the Exchange. The Commission is for June activity. The proposed change necessary or appropriate in furtherance
publishing this notice to solicit would allow the Exchange to bill June of the purposes of the Act. The
comments on the proposed rule change fees solely based on activity traded on proposed change is intended to ease
from interested persons. the current T7 trading system, and is an members’ transition to the re-platformed
inducement for members to trade the INET trading system and is not designed
I. Self-Regulatory Organization’s
first symbols launched on the INET to have any significant competitive
Statement of the Terms of Substance of
trading system as there would be no impact. The Exchange operates in a
the Proposed Rule Change
transaction fees for doing so. highly competitive market in which
The Exchange proposes to amend the market participants can readily direct
Schedule of Fees to eliminate fees and 2. Statutory Basis their order flow to competing venues. In
rebates for trades in iKang Healthcare The Exchange believes that the such an environment, the Exchange
Group Inc (‘‘KANG’’) executed on June proposed rule change is consistent with must continually review, and consider
27–30, 2017. the provisions of Section 6 of the Act,6 adjusting, its fees and rebates to remain
The text of the proposed rule change competitive with other exchanges. For
in general, and Section 6(b)(4) of the
is available on the Exchange’s Web site the reasons described above, the
Act,7 in particular, in that it is designed
at www.ise.com, at the principal office Exchange believes that the proposed fee
to provide for the equitable allocation of
of the Exchange, and at the changes reflect this competitive
reasonable dues, fees, and other charges
Commission’s Public Reference Room. environment.
among its members and other persons
II. Self-Regulatory Organization’s using its facilities. C. Self-Regulatory Organization’s
Statement of the Purpose of, and The Exchange believes that it is Statement on Comments on the
Statutory Basis for, the Proposed Rule reasonable and equitable to eliminate Proposed Rule Change Received From
Change fees and rebates in KANG during the Members, Participants, or Others
In its filing with the Commission, the initial launch of the Exchange’s re-
platformed trading system. Eliminating No written comments were either
Exchange included statements solicited or received.
concerning the purpose of and basis for fees and rebates in this symbol during
the proposed rule change and discussed the launch will simplify the Exchange’s III. Date of Effectiveness of the
any comments it received on the billing and serve as an inducement for Proposed Rule Change and Timing for
proposed rule change. The text of these members to trade the first symbols Commission Action
statements may be examined at the migrated to the INET trading system. The foregoing rule change has become
places specified in Item IV below. The Because the Exchange is offering free effective pursuant to Section
Exchange has prepared summaries, set executions in this symbol, volume 19(b)(3)(A)(ii) of the Act,11 and Rule
forth in sections A, B, and C below, of executed in KANG on June 27–30, 2017 19b–4(f)(2) 12 thereunder. At any time
the most significant aspects of such will not be counted towards any volume within 60 days of the filing of the
statements. based tiers. Similar treatment was proposed rule change, the Commission
afforded to the first symbol launched on summarily may temporarily suspend
A. Self-Regulatory Organization’s the Nasdaq GEMX, LLC INET trading such rule change if it appears to the
Statement of the Purpose of, and
Commission that such action is: (i)
Statutory Basis for, the Proposed Rule 3 KANG will begin trading on INET on June 27,
Necessary or appropriate in the public
mstockstill on DSK30JT082PROD with NOTICES

Change 2017, and is a Non-Select Symbol. ‘‘Non-Select
Symbols’’ are options overlying all symbols
1. Purpose excluding Select Symbols. 8 See Securities Exchange Act Release No. 80184
4 See Securities Exchange Act Release No. 80432 (March 9, 2017), 82 FR 13893 (March 15, 2017) (SR–
The purpose of the proposed rule (April 11, 2017), 82 FR 18191 (April 17, 2017) (SR– ISEGemini–2017–09).
change is to amend the Schedule of Fees ISE–2017–03). 9 See supra note 5.
5 See SR–ISE–2017–59 (publication pending). 10 15 U.S.C. 78f(b)(8).
1 15 U.S.C. 78s(b)(1). 6 15 U.S.C. 78f. 11 15 U.S.C. 78s(b)(3)(A)(ii).
2 17 CFR 240.19b–4. 7 15 U.S.C. 78f(b)(4). 12 17 CFR 240.19b–4(f)(2).

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32598 Federal Register / Vol. 82, No. 134 / Friday, July 14, 2017 / Notices

interest; (ii) for the protection of 2017–63 and should be submitted on or rule change. The proposed rule change
investors; or (iii) otherwise in before August 4, 2017. would establish the procedures for
furtherance of the purposes of the Act. For the Commission, by the Division of resolving potential disputes related to
If the Commission takes such action, the Trading and Markets, pursuant to delegated CAT Fees charged to Industry Members.
Commission shall institute proceedings authority.13 Accordingly, the Commission,
to determine whether the proposed rule Jill M. Peterson, pursuant to Section 19(b)(2) of the Act,5
should be approved or disapproved. Assistant Secretary. designates August 30, 2017, as the date
by which the Commission should either
IV. Solicitation of Comments [FR Doc. 2017–14753 Filed 7–13–17; 8:45 am]
approve or disapprove or institute
BILLING CODE 8011–01–P
Interested persons are invited to proceedings to determine whether to
submit written data, views, and disapprove the proposed rule change
arguments concerning the foregoing, SECURITIES AND EXCHANGE (File Number SR–NYSE–2017–24).
including whether the proposed rule COMMISSION For the Commission, by the Division of
change is consistent with the Act. Trading and Markets, pursuant to delegated
[Release No. 34–81110; File No. SR–NYSE–
Comments may be submitted by any of authority.6
2017–24]
the following methods: Jill M. Peterson,
Electronic Comments Self-Regulatory Organizations; New Assistant Secretary.
York Stock Exchange LLC; Notice of [FR Doc. 2017–14775 Filed 7–13–17; 8:45 am]
• Use the Commission’s Internet Designation of a Longer Period for BILLING CODE 8011–01–P
comment form (http://www.sec.gov/ Commission Action on a Proposed
rules/sro.shtml); or Rule Change To Adopt Rule 6900 To
• Send an email to rule-comments@ Establish the Procedures for Resolving SURFACE TRANSPORTATION BOARD
sec.gov. Please include File Number SR– Potential Disputes Related to CAT
Fees Charged to Industry Members [Docket No. FD 36132]
ISE–2017–63 on the subject line.
Paper Comments July 10, 2017. WRL, LLC—Change in Operator
On May 16, 2017, New York Stock Exemption—Western Washington
• Send paper comments in triplicate Exchange LLC (‘‘NYSE’’ or the Railroad, LLC
to Secretary, Securities and Exchange ‘‘Exchange’’) filed with the Securities
Commission, 100 F Street NE., WRL, LLC (WRL), a Class III rail
and Exchange Commission carrier, has filed a verified notice of
Washington, DC 20549–1090. (‘‘Commission’’), pursuant to Section exemption under 49 CFR 1150.41 to
All submissions should refer to File 19(b)(1) of the Securities Exchange Act assume operations over 34.6 miles of
Number SR–ISE–2017–63. This file of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and rail line (the Line) between milepost
number should be included on the Rule 19b–4 thereunder,2 a proposed rule 33C north of Rainier, Thurston County,
subject line if email is used. To help the change to adopt Rule 6900 Wash., and milepost 67.6 south of
Commission process and review your (Consolidated Audit Trail—Fee Dispute Chehalis, Lewis County, Wash.
comments more efficiently, please use Resolutions). The proposed rule change WRL states that Western Washington
only one method. The Commission will was published for comment in the Railroad, LLC (WWRR) currently
post all comments on the Commission’s Federal Register on June 1, 2017.3 The operates the Line pursuant to a lease.1
Internet Web site (http://www.sec.gov/ Commission received no comment WRL states that it acquired the Line
rules/sro.shtml). Copies of the letters on the proposed rule change. from City of Tacoma, Department of
submission, all subsequent Section 19(b)(2) of the Act 4 provides
Public Works d/b/a Tacoma Rail after
amendments, all written statements that, within 45 days of the publication WWRR began leasing the Line.2
with respect to the proposed rule of notice of the filing of a proposed rule WRL states that it has reached an
change that are filed with the change, or within such longer period up agreement with WWRR for WRL to
Commission, and all written to 90 days as the Commission may replace WWRR as the exclusive operator
communications relating to the designate if it finds such longer period of the Line upon the effective date of the
proposed rule change between the to be appropriate and publishes its notice.
Commission and any person, other than reasons for so finding or as to which the WRL states that the proposed change
those that may be withheld from the self-regulatory organization consents, in operator does not involve any
public in accordance with the the Commission shall either approve the provision or agreement that would limit
provisions of 5 U.S.C. 552, will be proposed rule change, disapprove the future interchange with a third-party
available for Web site viewing and proposed rule change, or institute connecting carrier. WRL certifies that its
printing in the Commission’s Public proceedings to determine whether the projected annual revenues as a result of
Reference Room, 100 F Street NE., proposed rule change should be this transaction will not result in the
Washington, DC 20549, on official disapproved. The Commission is creation of a Class II or Class I rail
business days between the hours of extending this 45-day time period. carrier.
10:00 a.m. and 3:00 p.m. Copies of the The Commission finds that it is
Under 49 CFR. 1150.42(b), a change in
filing also will be available for appropriate to designate a longer period
operator requires that notice be given to
inspection and copying at the principal within which to take action on the
shippers. WRL certifies that it has
office of the Exchange. All comments proposed rule change so that it has
mstockstill on DSK30JT082PROD with NOTICES

received will be posted without change; sufficient time to consider the proposed 5 15 U.S.C. 78s(b)(2).
the Commission does not edit personal 6 17 CFR 200.30–3(a)(31).
13 17
CFR 200.30–3(a)(12).
identifying information from 1 See W. Wash. R.R.—Lease & Operation
1 15
U.S.C. 78s(b)(1).
submissions. You should submit only 2 17 CFR 240.19b–4.
Exemption—City of Tacoma, Dep’t of Pub. Works,
information that you wish to make FD 35921 (STB served July 29, 2015).
3 Securities Exchange Act Release No. 80780 (May 2 See WRL, LLC—Acquis. Exemption—City of
available publicly. All submissions 26, 2017), 82 FR 25382 (‘‘Notice’’). Tacoma, Dep’t of Pub. Works, FD 36074 (STB
should refer to File Number SR–ISE– 4 15 U.S.C. 78s(b)(2). served Oct. 14, 2016).

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Document Created: 2018-10-24 11:17:16
Document Modified: 2018-10-24 11:17:16
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 32597