82 FR 57505 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Shell Structure for the ISE Rulebook
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 232 (December 5, 2017)
Federal Register Volume 82, Issue 232 (December 5, 2017)
| Page Range | 57505-57506 | |
| FR Document | 2017-26127 |
[Federal Register Volume 82, Number 232 (Tuesday, December 5, 2017)] [Notices] [Pages 57505-57506] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-26127] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82173; File No. SR-ISE-2017-102] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a Shell Structure for the ISE Rulebook November 29, 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 November 17, 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 the Substance of the Proposed Rule Change The Exchange proposes to adopt a shell structure for the ISE rulebook (``Rulebook'') as part of its initiative to structure its Rulebook. The text of the proposed rule change is available on the Exchange's Web site at http://ise.cchwallstreet.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 On March 9, 2016, Nasdaq, Inc. acquired the capital stock of U.S. Exchange Holdings, thereby indirectly acquiring all of the interests of the International Securities Exchange, LLC (now ISE), ISE Gemini, LLC (now Nasdaq GEMX, LLC) (``GEMX'') and ISE Mercury, LLC (now Nasdaq MRX, LLC) (``MRX'').\3\ The acquisition resulted in a total of six self- regulatory organization licenses for Nasdaq, Inc. which, in addition to the three aforementioned exchanges, also include The Nasdaq Stock Market LLC (``Nasdaq''), Nasdaq PHLX LLC (``Phlx'') and Nasdaq BX, Inc. (``BX'') (collectively, ``Nasdaq Entities''). --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 78119 (June 21, 2016), 81 FR 41611 (June 27, 2016) (SR-ISE-2016-11; SR-ISE Gemini- 2016-05; SR-ISE Mercury-2016-10) (Order Granting Accelerated Approval of Proposed Rule Changes, Each as Modified by Amendment No. 1 Thereto, Relating to a Corporate Transaction in Which Nasdaq, Inc. Will Become the Indirect Parent of ISE, ISE Gemini, and ISE Mercury). --------------------------------------------------------------------------- The Exchange is planning to conform the chapters of the various Nasdaq Entity rulebooks for efficiency, and conformity of certain Nasdaq Entity processes. The Exchange believes that aligning the rules of the Nasdaq Entities will assist market participants in navigating the various rulebooks. Specifically, the Exchange proposes to add a shell structure which would reside alongside the current rulebook. The proposed shell would outline the various chapters of the future rulebook and contains new chapter numbering. A similar shell would be filed to add the same structure to each of the other Nasdaq Entities. The proposed chapters would be similar for each shell filed for each of the Nasdaq Entities. In subsequent rule changes, each of the Nasdaq Entities would file rule changes to move their current rules into the various chapters of the proposed shells for all six markets and delete the migrated rule from the current location in the Rulebook.\4\ The proposed shell would contain a general rule section and product specific section, in this case options, which would encompass all the rules of the Exchange. --------------------------------------------------------------------------- \4\ When relocating the current rule text into the new shell, the Exchange shall not amend the rule text but simply move existing rule text. --------------------------------------------------------------------------- The Exchange believes this new structure would align the Nasdaq Entities' rulebooks for ease of use by Members, who are members of more than one Nasdaq Entity. This proposal would not amend the current Rulebook and is therefore not a substantive change. A Member would continue to be able to view the current Rulebook alongside the proposed reorganized Rulebook. Subsequent rule changes will be filed to move the rule text into the shell Rulebook. 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\5\ in general, and furthers the objectives of Section 6(b)(5) of the Act,\6\ in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general to protect investors and the public interest, by starting the process of organizing its rules in a manner which is clear and consistent across the Nasdaq Entities. The Exchange believes that coordinating the chapters of the rulebooks among the Nasdaq Entities will provide Members, who are members of more than one Nasdaq Entity, with consistency and ease of reference in locating rules. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78f(b). \6\ 15 U.S.C. 78f(b)(5). --------------------------------------------------------------------------- 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. The proposed changes do not impose a burden on competition because the proposed amendments are non- substantive, are intended to start the process to organize the rules of the Exchange in a manner that will be more user-friendly to Nasdaq Entity members. 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 [[Page 57506]] 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\ --------------------------------------------------------------------------- \7\ 15 U.S.C. 78s(b)(3)(A)(iii). \8\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b- 4(f)(6)(iii), the Exchange provided the Commission with written notice of its 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. --------------------------------------------------------------------------- A proposed rule change filed under Rule 19b-4(f)(6) normally does not become operative for 30 days after the date of its filing. However, Rule 19b-4(f)(6)(iii) \9\ permits the Commission to designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the Commission waive the 30-day operative delay so that the proposed rule change will become operative upon filing. The Exchange states that such waiver will enable the Exchange to start the process to reorganize the rulebooks of the Nasdaq Entities. The Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest because the proposal does not raise any novel issues and waiver will allow the Exchange to begin the reorganization of its Rulebook without delay. Therefore, the Commission hereby waives the operative delay and designates the proposed rule change operative upon filing.\10\ --------------------------------------------------------------------------- \9\ 17 CFR 240.19b-4(f)(6)(iii). \10\ For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule's impact on efficiency, competition, and capital formation. See 15 U.S.C. 78c(f). --------------------------------------------------------------------------- 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 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-2017-102 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-2017-102. 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-2017-102, and should be submitted on or before December 26, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-26127 Filed 12-4-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Notices 57505
Rebuttal comments should be submitted Exchange has prepared summaries, set Entities’ rulebooks for ease of use by
by January 9, 2018. forth in sections A, B, and C below, of Members, who are members of more
For the Commission, by the Division of the most significant aspects of such than one Nasdaq Entity. This proposal
Trading and Markets, pursuant to delegated statements. would not amend the current Rulebook
authority.51 A. Self-Regulatory Organization’s and is therefore not a substantive
Eduardo A. Aleman, Statement of the Purpose of, and change. A Member would continue to be
Assistant Secretary. Statutory Basis for, the Proposed Rule able to view the current Rulebook
[FR Doc. 2017–26122 Filed 12–4–17; 8:45 am] Change alongside the proposed reorganized
Rulebook. Subsequent rule changes will
BILLING CODE 8011–01–P
1. Purpose be filed to move the rule text into the
On March 9, 2016, Nasdaq, Inc. shell Rulebook.
SECURITIES AND EXCHANGE acquired the capital stock of U.S. 2. Statutory Basis
COMMISSION Exchange Holdings, thereby indirectly
acquiring all of the interests of the The Exchange believes that its
[Release No. 34–82173; File No. SR–ISE–
International Securities Exchange, LLC proposal is consistent with Section 6(b)
2017–102] of the Act,5 in general, and furthers the
(now ISE), ISE Gemini, LLC (now
Nasdaq GEMX, LLC) (‘‘GEMX’’) and ISE objectives of Section 6(b)(5) of the Act,6
Self-Regulatory Organizations; Nasdaq in particular, in that it is designed to
ISE, LLC; Notice of Filing and Mercury, LLC (now Nasdaq MRX, LLC)
(‘‘MRX’’).3 The acquisition resulted in a promote just and equitable principles of
Immediate Effectiveness of Proposed trade, to remove impediments to and
Rule Change To Adopt a Shell total of six self-regulatory organization
licenses for Nasdaq, Inc. which, in perfect the mechanism of a free and
Structure for the ISE Rulebook open market and a national market
addition to the three aforementioned
November 29, 2017. exchanges, also include The Nasdaq system, and, in general to protect
Pursuant to Section 19(b)(1) of the Stock Market LLC (‘‘Nasdaq’’), Nasdaq investors and the public interest, by
Securities Exchange Act of 1934 PHLX LLC (‘‘Phlx’’) and Nasdaq BX, Inc. starting the process of organizing its
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 (‘‘BX’’) (collectively, ‘‘Nasdaq Entities’’). rules in a manner which is clear and
notice is hereby given that on November The Exchange is planning to conform consistent across the Nasdaq Entities.
17, 2017, Nasdaq ISE, LLC (‘‘ISE’’ or the chapters of the various Nasdaq The Exchange believes that coordinating
‘‘Exchange’’) filed with the Securities Entity rulebooks for efficiency, and the chapters of the rulebooks among the
and Exchange Commission conformity of certain Nasdaq Entity Nasdaq Entities will provide Members,
(‘‘Commission’’) the proposed rule processes. The Exchange believes that who are members of more than one
change as described in Items I and II aligning the rules of the Nasdaq Entities Nasdaq Entity, with consistency and
below, which Items have been prepared will assist market participants in ease of reference in locating rules.
by the Exchange. The Commission is navigating the various rulebooks. B. Self-Regulatory Organization’s
publishing this notice to solicit Specifically, the Exchange proposes to Statement on Burden on Competition
comments on the proposed rule change add a shell structure which would
from interested persons. reside alongside the current rulebook. The Exchange does not believe that
The proposed shell would outline the the proposed rule change will impose
I. Self-Regulatory Organization’s various chapters of the future rulebook any burden on competition not
Statement of the Terms of the Substance and contains new chapter numbering. A necessary or appropriate in furtherance
of the Proposed Rule Change similar shell would be filed to add the of the purposes of the Act. The
The Exchange proposes to adopt a same structure to each of the other proposed changes do not impose a
shell structure for the ISE rulebook Nasdaq Entities. The proposed chapters burden on competition because the
(‘‘Rulebook’’) as part of its initiative to would be similar for each shell filed for proposed amendments are non-
structure its Rulebook. each of the Nasdaq Entities. In substantive, are intended to start the
The text of the proposed rule change subsequent rule changes, each of the process to organize the rules of the
is available on the Exchange’s Web site Nasdaq Entities would file rule changes Exchange in a manner that will be more
at http://ise.cchwallstreet.com/, at the to move their current rules into the user-friendly to Nasdaq Entity members.
principal office of the Exchange, and at various chapters of the proposed shells C. Self-Regulatory Organization’s
the Commission’s Public Reference for all six markets and delete the Statement on Comments on the
Room. migrated rule from the current location Proposed Rule Change Received From
in the Rulebook.4 The proposed shell Members, Participants, or Others
II. Self-Regulatory Organization’s would contain a general rule section
Statement of the Purpose of, and and product specific section, in this No written comments were either
Statutory Basis for, the Proposed Rule case options, which would encompass solicited or received.
Change all the rules of the Exchange. III. Date of Effectiveness of the
In its filing with the Commission, the The Exchange believes this new Proposed Rule Change and Timing for
Exchange included statements structure would align the Nasdaq Commission Action
concerning the purpose of and basis for
the proposed rule change and discussed 3 See Securities Exchange Act Release No. 78119 Because the foregoing proposed rule
any comments it received on the (June 21, 2016), 81 FR 41611 (June 27, 2016) (SR– change does not: (i) Significantly affect
ISE–2016–11; SR–ISE Gemini–2016–05; SR–ISE
sradovich on DSK3GMQ082PROD with NOTICES
proposed rule change. The text of these the protection of investors or the public
Mercury–2016–10) (Order Granting Accelerated
statements may be examined at the Approval of Proposed Rule Changes, Each as interest; (ii) impose any significant
places specified in Item IV below. The Modified by Amendment No. 1 Thereto, Relating to burden on competition; and (iii) become
a Corporate Transaction in Which Nasdaq, Inc. Will operative for 30 days from the date on
Become the Indirect Parent of ISE, ISE Gemini, and
51 17 CFR 200.30–3(a)(12); 17 CFR 200.30–
ISE Mercury).
which it was filed, or such shorter time
3(a)(57). 4 When relocating the current rule text into the
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b).
new shell, the Exchange shall not amend the rule
2 17 CFR 240.19b–4. text but simply move existing rule text. 6 15 U.S.C. 78f(b)(5).
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![57506 Federal Register / Vol. 82, No. 232 / Tuesday, December 5, 2017 / Notices
as the Commission may designate, it has Electronic Comments SECURITIES AND EXCHANGE
become effective pursuant to Section COMMISSION
19(b)(3)(A)(iii) of the Act 7 and • Use the Commission’s Internet
comment form (http://www.sec.gov/ [Investment Company Act Release No.
subparagraph (f)(6) of Rule 19b–4 32928; 812–14794]
thereunder.8 rules/sro.shtml); or
A proposed rule change filed under • Send an email to rule-comments@ American Century ETF Trust and
Rule 19b–4(f)(6) normally does not sec.gov. Please include File Number SR– American Century Investment
become operative for 30 days after the ISE–2017–102 on the subject line. Management, Inc.
date of its filing. However, Rule 19b–
Paper Comments November 29, 2017.
4(f)(6)(iii) 9 permits the Commission to
AGENCY: Securities and Exchange
designate a shorter time if such action • Send paper comments in triplicate Commission (‘‘Commission’’).
is consistent with the protection of to Secretary, Securities and Exchange
investors and the public interest. The ACTION: Notice.
Commission, 100 F Street NE.,
Exchange has requested that the Washington, DC 20549–1090. Notice of an application for an order
Commission waive the 30-day operative under section 6(c) of the Investment
delay so that the proposed rule change All submissions should refer to File Company Act of 1940 (the ‘‘Act’’) for an
will become operative upon filing. The Number SR–ISE–2017–102. This file exemption from sections 2(a)(32),
Exchange states that such waiver will number should be included on the 5(a)(1), 22(d), and 22(e) of the Act and
enable the Exchange to start the process subject line if email is used. To help the rule 22c–1 under the Act, under
to reorganize the rulebooks of the Commission process and review your sections 6(c) and 17(b) of the Act for an
Nasdaq Entities. The Commission comments more efficiently, please use exemption from sections 17(a)(1) and
believes that waiver of the 30-day only one method. The Commission will 17(a)(2) of the Act, and under section
operative delay is consistent with the post all comments on the Commission’s 12(d)(1)(J) for an exemption from
protection of investors and the public Internet Web site (http://www.sec.gov/ sections 12(d)(1)(A) and 12(d)(1)(B) of
interest because the proposal does not rules/sro.shtml). Copies of the the Act. The requested order would
raise any novel issues and waiver will submission, all subsequent permit (a) index-based series of certain
allow the Exchange to begin the amendments, all written statements open-end management investment
reorganization of its Rulebook without with respect to the proposed rule companies (‘‘Funds’’) to issue shares
delay. Therefore, the Commission change that are filed with the redeemable in large aggregations only
hereby waives the operative delay and (‘‘Creation Units’’); (b) secondary market
Commission, and all written
designates the proposed rule change transactions in Fund shares to occur at
communications relating to the
operative upon filing.10 negotiated market prices rather than at
proposed rule change between the
At any time within 60 days of the Commission and any person, other than net asset value (‘‘NAV’’); (c) certain
filing of the proposed rule change, the those that may be withheld from the Funds to pay redemption proceeds,
Commission summarily may under certain circumstances, more than
public in accordance with the
temporarily suspend such rule change if seven days after the tender of shares for
provisions of 5 U.S.C. 552, will be
it appears to the Commission that such redemption; (d) certain affiliated
available for Web site viewing and
action is: (i) Necessary or appropriate in persons of a Fund to deposit securities
the public interest; (ii) for the protection printing in the Commission’s Public into, and receive securities from, the
of investors; or (iii) otherwise in Reference Room, 100 F Street NE., Fund in connection with the purchase
furtherance of the purposes of the Act. Washington, DC 20549 on official and redemption of Creation Units; (e)
If the Commission takes such action, the business days between the hours of certain registered management
Commission shall institute proceedings 10:00 a.m. and 3:00 p.m. Copies of the investment companies and unit
to determine whether the proposed rule filing also will be available for investment trusts outside of the same
should be approved or disapproved. inspection and copying at the principal group of investment companies as the
office of the Exchange. All comments Funds (‘‘Funds of Funds’’) to acquire
IV. Solicitation of Comments received will be posted without change. shares of the Funds; and (f) certain
Interested persons are invited to Persons submitting comments are Funds (‘‘Feeder Funds’’) to create and
submit written data, views, and cautioned that we do not redact or edit redeem Creation Units in-kind in a
arguments concerning the foregoing, personal identifying information from master-feeder structure.
including whether the proposed rule comment submissions. You should Applicants: American Century ETF
change is consistent with the Act. submit only information that you wish Trust (‘‘Trust’’), a Delaware statutory
Comments may be submitted by any of to make available publicly. All trust registered under the Act as an
the following methods: submissions should refer to File open-end management investment
Number SR–ISE–2017–102, and should company with multiple series, and
7 15 U.S.C. 78s(b)(3)(A)(iii). be submitted on or before December 26, American Century Investment
8 17 CFR 240.19b–4(f)(6). As required under Rule 2017. Management, Inc. (‘‘Initial Adviser’’),
19b–4(f)(6)(iii), the Exchange provided the Delaware corporation registered as an
Commission with written notice of its intent to file For the Commission, by the Division of investment adviser under the
the proposed rule change, along with a brief Trading and Markets, pursuant to delegated
description and the text of the proposed rule
Investment Advisers Act of 1940.
authority.11
sradovich on DSK3GMQ082PROD with NOTICES
change, at least five business days prior to the date Filing Dates: The application was
of filing of the proposed rule change, or such Eduardo A. Aleman, filed on June 30, 2017, and amended on
shorter time as designated by the Commission. Assistant Secretary. October 31, 2017.
9 17 CFR 240.19b–4(f)(6)(iii).
[FR Doc. 2017–26127 Filed 12–4–17; 8:45 am] Hearing or Notification of Hearing: An
10 For purposes only of waiving the 30-day
order granting the requested relief will
operative delay, the Commission also has BILLING CODE 8011–01–P
considered the proposed rule’s impact on
be issued unless the Commission orders
efficiency, competition, and capital formation. See a hearing. Interested persons may
15 U.S.C. 78c(f). 11 17 CFR 200.30–3(a)(12). request a hearing by writing to the
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Document Created: 2017-12-04 23:45:21
Document Modified: 2017-12-04 23:45:21
| 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 57505 |
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