82 FR 32893 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate Fees and Rebates for Trades Executed on June 30, 2017 in INET Launch Symbols
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 136 (July 18, 2017)
Federal Register Volume 82, Issue 136 (July 18, 2017)
| Page Range | 32893-32895 | |
| FR Document | 2017-14981 |
[Federal Register Volume 82, Number 136 (Tuesday, July 18, 2017)] [Notices] [Pages 32893-32895] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-14981] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81128; File No. SR-ISE-2017-66] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Eliminate Fees and Rebates for Trades Executed on June 30, 2017 in INET Launch Symbols July 12, 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 30, 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 the Schedule of Fees to eliminate fees and rebates for trades executed on June 30, 2017 in INET Launch Symbols. 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 executed on June 30, 2017 in the following symbols: ACN, ACOR, AEO, AFSI, AMJ, AOBC, BKD, BTE, BV, CBI, CCL, CLR, CME, CNQ, ADM, ADSK, AGNC, ASHR, BBT, BK, BSX, CIEN, and IBM (``INET Launch Symbols'').\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\ On June 9, 2017, the Exchange filed a proposed rule change that eliminated fees and rebates for trades in FX Options that began trading on INET with the launch of the re-platformed trading system.\5\ In addition, on June 27, 2017 the Exchange filed another proposed rule change that eliminated fees and rebates for trades in symbol KANG that began trading on INET on that date.\6\ The Exchange now proposes to similarly eliminate fees and rebates for trades in INET Launch Symbols executed on the INET trading system on June 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 these products, trades in INET Launch Symbols executed on June 30, 2017 will not be counted towards a member's tier for June activity. In addition, activity in the following INET Launch Symbols that are Select Symbols \7\ will not be counted for purposes of determining Market Maker Plus \8\ tiers: ADM, ADSK, [[Page 32894]] AGNC, ASHR, BBT, BK, BSX, CIEN, and IBM. 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. --------------------------------------------------------------------------- \3\ The INET Launch Symbols will begin trading on INET on June 30, 2017. \4\ See Securities Exchange Act Release No. 80432 (April 11, 2017), 82 FR 18191 (April 17, 2017) (SR-ISE-2017-03). \5\ See Securities Exchange Act Release No. 80999 (June 22, 2017) 82 FR 29354 (June 28, 2017) (SR-ISE-2017-59). \6\ See SR-ISE-2017-63 (publication pending). \7\ ``Select Symbols'' are options overlying all symbols listed on the Nasdaq ISE that are in the Penny Pilot Program. \8\ A Market Maker Plus is a Market Maker who is on the National Best Bid or National Best Offer a specified percentage of the time for series trading between $0.03 and $3.00 (for options whose underlying stock's previous trading day's last sale price was less than or equal to $100) and between $0.10 and $3.00 (for options whose underlying stock's previous trading day's last sale price was greater than $100) in premium in each of the front two expiration months. The specified percentage is at least 80% but lower than 85% of the time for Tier 1, at least 85% but lower than 95% of the time for Tier 2, and at least 95% of the time for Tier 3. A Market Maker's single best and single worst quoting days each month based on the front two expiration months, on a per symbol basis, will be excluded in calculating whether a Market Maker qualifies for this rebate, if doing so will qualify a Market Maker for the rebate. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,\9\ in general, and Section 6(b)(4) of the Act,\10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78f. \10\ 15 U.S.C. 78f(b)(4). --------------------------------------------------------------------------- The Exchange believes that it is reasonable and equitable to eliminate fees and rebates for INET Launch Symbols during the initial launch of the Exchange's re-platformed trading system. Eliminating fees and rebates in the INET Launch System 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 these symbols, volume executed in INET Launch Symbols on June 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,\11\ and also to other symbols traded on ISE INET during the launch.\12\ For the same reason, activity in the following INET Launch Symbols that are Select Symbols will not be counted for purposes of determining Market Maker Plus tiers. The Exchange believes that these 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 INET Launch Symbols that are executed by all members. As noted above, the INET Launch Symbols were selected for this treatment as those products, together with the Exchange's proprietary FX Options and KANG, will be the first symbols traded on the INET trading system. --------------------------------------------------------------------------- \11\ See Securities Exchange Act Release No. 80184 (March 9, 2017), 82 FR 13893 (March 15, 2017) (SR-ISEGemini-2017-09) \12\ See supra notes 5 and 6. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,\13\ 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. --------------------------------------------------------------------------- \13\ 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,\14\ and Rule 19b-4(f)(2) \15\ 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. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A)(ii). \15\ 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. 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-2017-66 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-2017-66. 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-2017-66 and should be submitted on or before August 8, 2017. [[Page 32895]] For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2017-14981 Filed 7-17-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 136 / Tuesday, July 18, 2017 / Notices 32893
radiation exposure; (iv) there is no authorize that the suspension of security the proposed rule change and discussed
significant construction impact; (v) measures at FCS must be approved as a any comments it received on the
there is no significant increase in the minimum by either a licensed senior proposed rule change. The text of these
potential for or consequences from operator or a certified fuel handler. statements may be examined at the
radiological accidents; and (vi) the The exemption is effective upon places specified in Item IV below. The
requirements from which an exemption receipt. Exchange has prepared summaries, set
is sought are in one of several Dated at Rockville, Maryland, this 7th day forth in sections A, B, and C below, of
categories, including requirements of July 2017. the most significant aspects of such
involving safeguard plans, and materials For the Nuclear Regulatory Commission. statements.
control and accounting inventory
Kathryn M. Brock, A. Self-Regulatory Organization’s
scheduling requirements; and
Acting Director, Division of Operating Reactor Statement of the Purpose of, and
requirements of an administrative,
Licensing, Office of Nuclear Reactor Statutory Basis for, the Proposed Rule
managerial, or organizational nature.
The Director, Division of Operating
Regulation. Change
[FR Doc. 2017–15069 Filed 7–17–17; 8:45 am]
Reactor Licensing, Office of Nuclear 1. Purpose
Reactor Regulation, has determined that BILLING CODE 7590–01–P
The purpose of the proposed rule
approval of the exemption request in change is to amend the Schedule of Fees
accordance with § 51.22(c)(25), involves to eliminate fees and rebates for trades
no significant hazards consideration SECURITIES AND EXCHANGE
executed on June 30, 2017 in the
because permitting a CFH, in addition to COMMISSION
following symbols: ACN, ACOR, AEO,
a licensed senior operator, to approve [Release No. 34–81128; File No. SR–ISE– AFSI, AMJ, AOBC, BKD, BTE, BV, CBI,
the suspension of security requirements 2017–66] CCL, CLR, CME, CNQ, ADM, ADSK,
at a defueled shutdown power plant AGNC, ASHR, BBT, BK, BSX, CIEN, and
does not (1) involve a significant Self-Regulatory Organizations; Nasdaq IBM (‘‘INET Launch Symbols’’).3 This
increase in the probability or ISE, LLC; Notice of Filing and change is being made in connection
consequences of an accident previously Immediate Effectiveness of Proposed with the migration of the Exchange’s
evaluated; or (2) create the possibility of Rule Change To Eliminate Fees and trading system to the Nasdaq INET
a new or different kind of accident from Rebates for Trades Executed on June technology, which began on June 12,
any accident previously evaluated; or 30, 2017 in INET Launch Symbols 2017.4 On June 9, 2017, the Exchange
(3) involve a significant reduction in a filed a proposed rule change that
margin of safety. Also there will be no July 12, 2017.
eliminated fees and rebates for trades in
significant change in the types or a Pursuant to Section 19(b)(1) of the
FX Options that began trading on INET
significant increase in the amounts of Securities Exchange Act of 1934
with the launch of the re-platformed
any effluents that may be released (‘‘Act’’),1 and Rule 19b–4 thereunder,2 trading system.5 In addition, on June 27,
offsite as well as no significant increase notice is hereby given that on June 30, 2017 the Exchange filed another
in individual or cumulative public or 2017, Nasdaq ISE, LLC (‘‘ISE’’ or proposed rule change that eliminated
occupational radiation exposure. The ‘‘Exchange’’) filed with the Securities fees and rebates for trades in symbol
exempted regulation is not associated and Exchange Commission KANG that began trading on INET on
with construction, so there is no (‘‘Commission’’) the proposed rule that date.6 The Exchange now proposes
significant construction impact. The change as described in Items I and II to similarly eliminate fees and rebates
exempted regulation neither concerns below, which Items have been prepared for trades in INET Launch Symbols
the source term (i.e., potential amount by the Exchange. The Commission is executed on the INET trading system on
of radiation in an accident), nor publishing this notice to solicit June 30, 2017. With this change, no fees
accident mitigation measures. Thus, comments on the proposed rule change or rebates will be charged for executions
there is no significant increase in the from interested persons. on INET during the month of June.
potential for, or consequences of, a Because the Exchange is eliminating
radiological accident. The requirement I. Self-Regulatory Organization’s
Statement of the Terms of Substance of fees and rebates for trades in these
to have a licensed senior operator products, trades in INET Launch
approve departures from security the Proposed Rule Change
Symbols executed on June 30, 2017 will
requirements involves safeguards plans, The Exchange proposes to amend the not be counted towards a member’s tier
materials control, and managerial and Schedule of Fees to eliminate fees and for June activity. In addition, activity in
organizational matters. rebates for trades executed on June 30, the following INET Launch Symbols
Therefore, pursuant to § 51.22(b) and 2017 in INET Launch Symbols. that are Select Symbols 7 will not be
(c)(25), no environmental impact The text of the proposed rule change counted for purposes of determining
statement or environmental assessment is available on the Exchange’s Web site Market Maker Plus 8 tiers: ADM, ADSK,
need be prepared in connection with the at www.ise.com, at the principal office
approval of this exemption request. of the Exchange, and at the 3 The INET Launch Symbols will begin trading on
IV. Conclusions Commission’s Public Reference Room. INET on June 30, 2017.
4 See Securities Exchange Act Release No. 80432
Accordingly, the Commission has II. Self-Regulatory Organization’s (April 11, 2017), 82 FR 18191 (April 17, 2017) (SR–
determined that, pursuant to 10 CFR Statement of the Purpose of, and ISE–2017–03).
73.5, the exemption is authorized by Statutory Basis for, the Proposed Rule 5 See Securities Exchange Act Release No. 80999
sradovich on DSK3GMQ082PROD with NOTICES
Change (June 22, 2017) 82 FR 29354 (June 28, 2017) (SR–
law and will not endanger life or ISE–2017–59).
property or the common defense and In its filing with the Commission, the 6 See SR–ISE–2017–63 (publication pending).
security, and is otherwise in the public Exchange included statements 7 ‘‘Select Symbols’’ are options overlying all
interest. Therefore, the Commission symbols listed on the Nasdaq ISE that are in the
concerning the purpose of and basis for Penny Pilot Program.
hereby grants the licensee’s request for 8 A Market Maker Plus is a Market Maker who is
an exemption from the requirements of 1 15 U.S.C. 78s(b)(1). on the National Best Bid or National Best Offer a
10 CFR 73.55(p)(1)(i) and (ii), to 2 17 CFR 240.19b–4. Continued
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![Federal Register / Vol. 82, No. 136 / Tuesday, July 18, 2017 / Notices 32895
For the Commission, by the Division of (A) Clearing Agency’s Statement of the behalf of themselves and/or their
Trading and Markets, pursuant to delegated Purpose of, and Statutory Basis for, the clients) to meet currency-specific Initial
authority.16 Proposed Rule Change Margin (‘‘IM’’) and GF requirements, to
Jill M. Peterson, ensure ICC has sufficient total resources
(a) Purpose
Assistant Secretary. in the required currencies of
ICC proposes revisions to its Liquidity denomination.
[FR Doc. 2017–14981 Filed 7–17–17; 8:45 am]
Risk Management Framework and to its
BILLING CODE 8011–01–P
Stress Testing Framework. ICC believes Acceptable Collateral
such revisions will facilitate the prompt The ‘acceptable collateral’ section
and accurate clearance and settlement of remains the same, and notes that CPs
SECURITIES AND EXCHANGE securities transactions and derivative may post IM and GF deposits that meet
COMMISSION agreements, contracts, and transactions ICC’s acceptable collateral criteria as
for which it is responsible. The described in ICC’s Treasury Operations
[Release No. 34–81132; File No. SR–ICC– proposed revisions are described in Policies and Procedures and Schedule
2017–011] detail as follows. 401 of the ICC Rules.
Self-Regulatory Organizations; ICE Liquidity Risk Management Framework Liquidity Requirements
Clear Credit LLC; Notice of Filing of ICC proposes to revise its Liquidity The ‘liquidity requirements’ section
Proposed Rule Change, Security- Risk Management Framework in order sets forth ICC’s liquidity requirements
Based Swap Submission, or Advance to make revisions to its liquidity for house/proprietary accounts and
Notice Relating to ICC’s Liquidity Risk monitoring program in order to enhance client-related accounts. Such
Management Framework and ICC’s compliance with U.S. Commodity requirements are also set forth in ICC’s
Stress Testing Framework Futures Trading Commission (‘‘CFTC’’) Treasury Operations Policies and
regulations including 17 CFR 39.11, 17 Procedures and Schedule 401 of the ICC
July 12, 2017. CFR 39.33 and 17 CFR 39.36. Rules. The ‘liquidity requirements’
Pursuant to Section 19(b)(1) of the ICC proposes to reorganize the format section will reflect the changes to ICC’s
Securities Exchange Act of 1934 of the Liquidity Risk Management liquidity thresholds for Euro (‘‘EUR’’)
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Framework to consist of three elements: denominated products set forth in filing
notice is hereby given that on June 28, Liquidity Risk Management Model; SR–ICC–2017–002.3 ICC revised the
2017, ICE Clear Credit LLC (‘‘ICC’’) filed Measurement and Monitoring; and ‘liquidity requirements’ section to cross
with the Securities and Exchange Governance. The ‘‘Regulatory reference ICC’s minimum U.S. Dollar
Commission the proposed rule change Requirements’’ section, previously (‘‘USD’’) contribution to the Guaranty
as described in Items I, II, and III below, included as an element of the Fund (‘‘GF’’) of $20 million required
which Items have been prepared framework, will be deleted; however, from every CP. This is not a change, but
primarily by ICC. The Commission is the regulatory requirements applicable rather a statement of current policy.4
publishing this notice to solicit to liquidity risk management are still ICC proposes revisions to the ‘liquidity
comments on the proposed rule change referenced in the framework. The requirements’ section to extend ICC’s
from interested persons. changes to each element of the Liquidity margin risk horizon up to 6-days, to
Risk Management Framework are account for the risk associated with
I. Clearing Agency’s Statement of the described below. clearing Asia Pacific products. This
Terms of Substance of the Proposed change will apply throughout the
Rule Change I. Liquidity Risk Management Model framework; the risk horizon is reflected
ICC proposes to enhance the as ‘‘N-day’’ where N≥5 is the margin risk
The principal purpose of the description of the components which horizon or Margin Period of Risk
proposed rule change is to revise the comprise its liquidity risk management (MPOR). The margin risk horizon is
ICC Liquidity Risk Management model. As revised, the liquidity risk based on the greatest MPOR (rounded
Framework and the ICC Stress Testing management model now includes, but is up to the nearest integer) for the CDS
Framework. These revisions do not not limited to, the following instruments currently eligible for
require any changes to the ICC Clearing components: Currency-specific risk clearing in order to capture the risk
Rules (‘‘Rules’’). requirements; acceptable collateral; associated with clearing products across
II. Clearing Agency’s Statement of the liquidity requirements; collateral multiple time zones (i.e., if an
Purpose of, and Statutory Basis for, the valuation methodology; investment instrument is subject to 5.5 day MPOR
Proposed Rule Change strategy; Clearing Participant (‘‘CP’’) estimations, then the scenarios will
deposits as a liquidity pool; liquidity reflect N=6).
In its filing with the Commission, ICC facilities (including committed repo Collateral Valuation Methodology
included statements concerning the facilities and committed foreign
purpose of and basis for the proposed exchange (‘‘FX’’) facilities); and The ‘collateral valuation
rule change and discussed any liquidity waterfall. Each of these methodology’ section remains
comments it received on the proposed components are described thoroughly substantially the same, and sets forth
rule change. The text of these statements within the Liquidity Risk Management the method by which ICC prices the
may be examined at the places specified Framework, and changes to each 3 See Securities Exchange Act Release No. 34–
sradovich on DSK3GMQ082PROD with NOTICES
in Item IV below. ICC has prepared component are described below. 79988 (February 8, 2017), 82 FR 10611 (February
summaries, set forth in sections (A), (B), 14, 2017). This rule change has been approved by
and (C) below, of the most significant Currency-Specific Risk Requirements the Commission. See Securities Exchange Act
aspects of these statements. ICC proposes to add language to the Release No. 34–80324 (March 28, 2017), 82 FR
‘currency-specific risk requirements’ 16244 (April 3, 2017). The text of the proposed rule
change for rule filing SR–ICC–2017–002 can also be
16 17 CFR 200.30–3(a)(12). section to cross reference ICC’s current found on ICC’s Web site at https://www.theice.com/
1 15 U.S.C. 78s(b)(1). policy of maintaining cash and clear-credit/regulation.
2 17 CFR 240.19b–4. collateral assets posted by CPs (on 4 Set forth in Schedule 401 of the ICC Rulebook.
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Document Created: 2018-10-24 11:23:53
Document Modified: 2018-10-24 11:23:53
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 32893 |
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