82 FR 51453 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1614

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 213 (November 6, 2017)

Page Range		51453-51455
FR Document		2017-24050
Federal Register, Volume 82 Issue 213 (Monday, November 6, 2017)
[Federal Register Volume 82, Number 213 (Monday, November 6, 2017)]
[Notices]
[Pages 51453-51455]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24050]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81991; File No. SR-ISE-2017-96]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1614

October 31, 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 October 27, 2017, Nasdaq ISE, LLC (``ISE'' 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

[[Page 51454]]

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 the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Rule 1614, entitled ``Imposition of 
Fines for Minor Rule Violations,'' to make a non-substantive, 
clarifying change to the rule. [sic]
    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 Exchange is proposing to amend Rule 1614, entitled ``Imposition 
of Fines for Minor Rule Violations,'' to make a non-substantive, 
clarifying change to the rule.\3\ [sic] Rule 1614(d)(2) currently sets 
forth the fine schedule for the failure to file annual Financial and 
Operational Combined Uniform Single (``FOCUS'') Reports on Form X-17A-5 
in accordance with Rule 17a-10 \4\ under the Act. The existing schedule 
in the Rule does not clearly reflect how a FOCUS Report that is 
received on the ninetieth day would be handled for purposes of 
assessing a fine. The Exchange therefore proposes to clarify in Rule 
1614(d)(2) that FOCUS Reports received by the Exchange over ninety 
calendar days late will subject the member to formal disciplinary 
action. As such, the Exchange is proposing to change the reference to 
``90 or more'' days in the sanction schedule to ``over 90'' days.
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    \3\ The Exchange notes that Chapter 16 of the ISE Rulebook, 
including Rule 1614, is incorporated by reference into the rulebooks 
of Nasdaq GEMX (``GEMX'') and Nasdaq MRX (``MRX''). As such, the 
amendment to ISE Rule 1614 as proposed herein will also impact GEMX 
and MRX Rules 1614.
    \4\ 17 CFR 240.17a-10.
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2. Statutory Basis
    The Exchange is proposing to amend Rule 1614, entitled ``Imposition 
of Fines for Minor Rule Violations,'' to make a non-substantive, 
clarifying change to the rule.\5\ [sic] Rule 1614(d)(2) currently sets 
forth the fine schedule for the failure to file annual Financial and 
Operational Combined Uniform Single (``FOCUS'') Reports on Form X-17A-5 
in accordance with Rule 17a-10 \6\ under the Act. The existing schedule 
in the Rule does not clearly reflect how a FOCUS Report that is 
received on the ninetieth day would be handled for purposes of 
assessing a fine. The Exchange therefore proposes to clarify in Rule 
1614(d)(2) that FOCUS Reports received by the Exchange over ninety 
calendar days late will subject the member to formal disciplinary 
action. As such, the Exchange is proposing to change the reference to 
``90 or more'' days in the sanction schedule to ``over 90'' days.
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    \5\ The Exchange notes that Chapter 16 of the ISE Rulebook, 
including Rule 1614, is incorporated by reference into the rulebooks 
of Nasdaq GEMX (``GEMX'') and Nasdaq MRX (``MRX''). As such, the 
amendment to ISE Rule 1614 as proposed herein will also impact GEMX 
and MRX Rules 1614.
    \6\ 17 CFR 240.17a-10.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will 
impose any burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act. As discussed above, the 
Exchange's proposal is a non-substantive, technical amendment to Rule 
1614(d)(2), and is merely intended to add further clarification to the 
Exchange's rules and alleviate potential confusion.

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

    Because the foregoing 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 for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \7\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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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) normally does 
not become operative before 30 days from the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\9\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \9\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest. 
Clarification of how a FOCUS Report will be handled for purposes of 
assessing a fine that is 90 calendar days late will reduce confusion 
caused by the ambiguity of the Rule as written before the Exchange 
filed this proposed rule change. The Commission believes no purpose is 
served in delaying such clarification. Therefore, the Commission hereby 
waives the 30-day operative delay and designates the proposed rule 
change to be operative upon filing with the Commission.\10\
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    \10\ 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 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.

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-2017-96 on the subject line.

[[Page 51455]]

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-2017-96. 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. Persons submitting 
comments are cautioned that we do not redact or edit personal 
identifying information from comment submissions. You should submit 
only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ISE-2017-96, and should be 
submitted on or before November 27, 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. 2017-24050 Filed 11-3-17; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51453

to the Commission’s issuance of the trader for Transaction Data other than Section 19(b)(2) of the Act 4 provides
Phase Three Extension Order, FIF and execution time. that, within 45 days of the publication
SIFMA requested a permanent of notice of the filing of a proposed rule
IV. Conclusion
exemption or alternatively a five year change, or within such longer period up
deferment of the compliance date for It is hereby ordered, pursuant to to 90 days as the Commission may
Phase Three.53 In the Phase Three Section 13(h)(6) of the Exchange Act designate if it finds such longer period
Extension Order, the Commission and Rule 13h–1(g) thereunder, that to be appropriate and publishes its
provided a two year exemption, until broker-dealers are exempted temporarily reasons for so finding or as to which the
November 1, 2017. At that time, the until November 15, 2018 from the self-regulatory organization consents,
Commission stated its belief that ‘‘two recordkeeping and reporting the Commission shall either approve the
years will give the Commission enough requirements of Rule 13h–1(d) and (e) proposed rule change, disapprove the
time to evaluate future developments, except for: (1) Clearing broker-dealers proposed rule change, or institute
including any investment in or progress for large traders with respect to (a) proceedings to determine whether the
on a CAT.’’ Further, FIF and SIFMA proprietary transactions by a large trader proposed rule change should be
now have requested a permanent broker-dealer, (b) transactions effected disapproved. The 45th day after
exemption, or alternatively a three or pursuant to a ‘‘sponsored access’’ publication of the notice for this
five year deferment of the compliance arrangement, and (c) transactions proposed rule change is November 2,
date for Phase Three.54 The Commission effected pursuant to a ‘‘direct market 2017. The Commission is extending this
believes at this time that an extension to access’’ arrangement; and, for other 45-day time period.
November 15, 2018 responds to requests types of transactions, (2) broker-dealers The Commission finds that it is
from FIF and SIFMA to extend the that carry an account for a large trader appropriate to designate a longer period
Phase Three compliance date, but for Transaction Data other than within which to take action on the
having a short exemption instead will execution time. proposed rule change so that it has
allow broker-dealers to focus on sufficient time to consider the proposed
implementing the CAT in the near term By the Commission. rule change. Accordingly, the
and will allow the Commission to Jill M. Peterson, Commission, pursuant to Section
revisit the implementation of Phase Assistant Secretary. 19(b)(2) of the Act,5 designates
Three as it evaluates future [FR Doc. 2017–24056 Filed 11–3–17; 8:45 am] December 17, 2017, as the date by
developments during this period, BILLING CODE 8011–01–P which the Commission shall either
including progress in implementing the approve or disapprove or institute
CAT.55 During that time, the proceedings to determine whether to
Commission will consider progress in SECURITIES AND EXCHANGE disapprove the proposed rule change
implementing the CAT as it determines COMMISSION (File Number SR–NASDAQ–2017–088).
implementation of Phase Three. For the Commission, by the Division of
Accordingly, the Commission finds [Release No. 34–81986; File No. SR– Trading and Markets, pursuant to delegated
that it is consistent with the purposes of NASDAQ–2017–088] authority.6
the Exchange Act to extend the Eduardo A. Aleman,
compliance date for Phase Three by Self-Regulatory Organizations; The Assistant Secretary.
temporarily exempting broker-dealers Nasdaq Stock Market LLC; Notice of
[FR Doc. 2017–24046 Filed 11–3–17; 8:45 am]
until November 15, 2018 from Designation of a Longer Period for
BILLING CODE 8011–01–P
compliance with specified provisions of Commission Action on a Proposed
the Rule. Thus, the Recordkeeping and Rule Change To Amend Rule 4703(a)
Reporting Responsibilities under Rule To Allow Members To Designate When SECURITIES AND EXCHANGE
13h–1 will continue to apply with an Order With a RTFY or SCAN COMMISSION
respect to: (1) The clearing broker-dealer Routing Order Attribute Will Be
for a large trader, with respect to (a) Activated [Release No. 34–81991; File No. SR–ISE–
proprietary transactions by a large trader 2017–96]
broker-dealer; (b) transactions effected October 31, 2017.
pursuant to a ‘‘sponsored access’’ On August 30, 2017, The Nasdaq Self-Regulatory Organizations; Nasdaq
arrangement; and (c) transactions Stock Market LLC (‘‘Nasdaq’’) filed with ISE, LLC; Notice of Filing and
effected pursuant to a ‘‘direct market the Securities and Exchange Immediate Effectiveness of Proposed
access’’ arrangement; and (2) broker- Commission (‘‘Commission’’), pursuant Rule Change To Amend Rule 1614
dealers that carry an account for a large to Section 19(b)(1) of the Securities October 31, 2017.
Exchange Act of 1934 (‘‘Act’’) 1 and Rule Pursuant to Section 19(b)(1) of the
53 See Phase Three Extension Order at note 62 19b–4 thereunder,2 a proposed rule Securities Exchange Act of 1934
(citing Letter from Mary Lou VonKaenel, Managing change to amend Nasdaq Rule 4703(a) to
Director, FIF, to Stephen Luparello, Director, (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Division, Commission, dated March 27, 2015, allow members to designate when an notice is hereby given that on October
available at http://www.sec.gov/comments/s7-10- Order with a RTFY or SCAN routing 27, 2017, Nasdaq ISE, LLC (‘‘ISE’’ or
10/s71010.shtml and Letter from Theodore R. Lazo, Order Attribute will be activated. The ‘‘Exchange’’) filed with the Securities
Managing Director and Associate General Counsel, proposed rule change was published for
SIFMA to Stephen Luparello, Director, Division, and Exchange Commission (‘‘SEC’’ or
Commission, dated April 9, 2015, available at comment in the Federal Register on ‘‘Commission’’) the proposed rule
Pmangrum on DSK3GDR082PROD with NOTICES

http://www.sec.gov/comments/s7-10-10/ September 18, 2017.3 The Commission change as described in Items I and II
s71010.shtml). has received no comment letters on the below, which Items have been prepared
54 See supra note 7 (citing to the SIFMA and FIF
proposed rule change.
letters). 4 15
55 The Commission notes that November 15, 2018 U.S.C. 78s(b)(2).
1 15 5 15 U.S.C. 78s(b)(2).
currently is the date by which large industry SRO U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4. 6 17 CFR 200.30–3(a)(31).
members are required to begin reporting to the CAT
1 15 U.S.C. 78s(b)(1).
central repository. See CAT NMS Plan Order, supra 3 See Securities Exchange Act Release No. 81579

note 8, at Ex. A, Sec. 6.7(a)(v), 81 FR at 84963. (September 12, 2017), 82 FR 43584. 2 17 CFR 240.19b–4.

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Federal Register / Vol. 82, No. 213 / Monday, November 6, 2017 / Notices 51455

Paper Comments SECURITIES AND EXCHANGE of these statement may be examined at
COMMISSION the places specified in Item IV below.
• Send paper comments in triplicate The self-regulatory organization has
to Secretary, Securities and Exchange [Release No. 34–81988; File No. SR–IEX–
prepared summaries, set forth in
Commission, 100 F Street NE., 2017–38]
Sections A, B, and C below, of the most
Washington, DC 20549–1090. Self-Regulatory Organizations; significant aspects of such statements.
All submissions should refer to File Investors Exchange LLC; Notice of A. Self-Regulatory Organization’s
Number SR–ISE–2017–96. This file Filing and Immediate Effectiveness of Statement of the Purpose of, and the
number should be included on the Proposed Rule Change To Adopt New Statutory Basis for, the Proposed Rule
subject line if email is used. To help the Rule 6.210 Related to Ex-Dates for Change
Commission process and review your Securities Listed or Traded on the
Exchange 1. Purpose
comments more efficiently, please use
only one method. The Commission will On June 17, 2016 the Commission
October 31, 2017.
post all comments on the Commission’s granted IEX’s application for registration
Pursuant to Section 19(b)(1) 1 of the as a national securities exchange under
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934
rules/sro.shtml). Copies of the Section 6 of the Act including approval
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3 of rules applicable to the qualification,
submission, all subsequent notice is hereby given that, on October listing and delisting of companies on
amendments, all written statements 27, 2017, the Investors Exchange LLC the Exchange. The Exchange plans to
with respect to the proposed rule (‘‘IEX’’ or ‘‘Exchange’’) filed with the begin a listing program in early 2018
change that are filed with the Securities and Exchange Commission and is proposing to adopt Rule 6.210
Commission, and all written (‘‘Commission’’) the proposed rule related to ex-dates for securities listed
communications relating to the change as described in Items I and II on IEX.
proposed rule change between the below, which Items have been prepared IEX Rule 2.160(c)(4) requires in
Commission and any person, other than by the self-regulatory organization. The substance that an Exchange Member
those that may be withheld from the Commission is publishing this notice to must be a Member of a registered
public in accordance with the solicit comments on the proposed rule clearing agency registered with the
provisions of 5 U.S.C. 552, will be change from interested persons. Commission pursuant to Section 17A of
available for Web site viewing and I. Self-Regulatory Organization’s the Act or clear transactions executed
printing in the Commission’s Public Statement of the Terms of Substance of on the Exchange through another
Reference Room, 100 F Street NE., the Proposed Rule Change Member that is a Member of a registered
Washington, DC 20549 on official clearing agency. In addition, IEX Rule
Pursuant to the provisions of Section 6.110(a) provides that every Exchange
business days between the hours of
19(b)(1) under the Securities Exchange Member who is a Member of a registered
10:00 a.m. and 3:00 p.m. Copies of the Act of 1934 (‘‘Act’’),4 and Rule 19b–4
filing also will be available for clearing agency shall implement
thereunder,5 Investors Exchange LLC comparison and settlement procedures
inspection and copying at the principal (‘‘IEX’’ or ‘‘Exchange’’) is filing with the
office of the Exchange. All comments under the rules of such entity. Further,
Commission a proposed rule change to IEX Rule 11.250(a) provides that the
received will be posted without change. adopt new Rule 6.210 (Ex-Dividend or
Persons submitting comments are Exchange maintains connectivity and
Ex-Right Dates) related to ex-dates for access to the Universal Trade Capture of
cautioned that we do not redact or edit securities listed or traded on the
personal identifying information from the National Securities Clearing
Exchange. The Exchange has designated Corporation (‘‘NSCC’’) for the
comment submissions. You should this proposal as ‘‘non-controversial’’ transmission of executed transactions.
submit only information that you wish and provided the Commission with the Pursuant to these provisions, all IEX
to make available publicly. All notice required by Rule 19b–4(f)(6)(iii) Members are either Members of the
submissions should refer to File under the Act.6 NSCC or clear transactions executed on
Number SR–ISE–2017–96, and should The text of the proposed rule change the Exchange through another Member
be submitted on or before November 27, is available at the Exchange’s Web site that is a Member of NSCC. Thus, IEX
2017. at www.iextrading.com, at the principal Members must comply with NSCC
office of the Exchange, and at the comparison and settlement procedures
For the Commission, by the Division of
Commission’s Public Reference Room. for all transactions executed on the
Trading and Markets, pursuant to delegated
authority.11 II. Self-Regulatory Organization’s Exchange.
Eduardo A. Aleman, Statement of the Purpose of, and NSCC and other listing exchanges
Assistant Secretary. Statutory Basis for, the Proposed Rule have rules related to securities
Change settlement which specify the
[FR Doc. 2017–24050 Filed 11–3–17; 8:45 am]
requirements and process for
BILLING CODE 8011–01–P In its filing with the Commission, the
designation of so-called ‘‘ex-dates’’ in
self-regulatory organization included
the event that the issuer of a security
statements concerning the purpose of
enters into certain types of corporate
and basis for the proposed rule change
actions, including declaration of a
and discussed any comments it received
Pmangrum on DSK3GDR082PROD with NOTICES

dividend, and issuance of rights or
on the proposed rule change. The text
warrants (i.e., the corporate action
1 15 U.S.C. 78s(b)(1).
consideration).7 Generally, an issuer of
2 15 U.S.C. 78a. securities will establish a record date to
3 17 CFR 240.19b–4. determine which security holders are
4 15 U.S.C. 78s(b)(1). entitled to the corporate action
5 17 CRF 240.19b–4.
11 17 CFR 200.30–3(a)(12). 6 17 CFR 240.19b–4(f)(6)(iii). 7 See, e.g., NYSE Arca Equities Rule 7.4.

VerDate Sep<11>2014 14:48 Nov 03, 2017 Jkt 244001 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\06NON1.SGM 06NON1
Document Created: 2017-11-07 10:31:01
Document Modified: 2017-11-07 10:31:01
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 51453