83 FR 26724 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend and Reorganize Chapter V of the ISE Schedule of Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 111 (June 8, 2018)

[Federal Register Volume 83, Number 111 (Friday, June 8, 2018)]
[Notices]
[Pages 26724-26726]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12322]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83370; File No. SR-ISE-2018-48]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend and 
Reorganize Chapter V of the ISE Schedule of Fees

June 4, 2018.
    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 May 22, 2018, 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 and reorganize Chapter V of the ISE 
Schedule of Fees.
    The text of the proposed rule change is available on the Exchange's 
website 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
    The Exchange proposes to amend Chapter V of the ISE Schedule of 
Fees to: (i) Eliminate the Table of Contents; (ii) retitle Section V, 
currently titled ``Trading Application;'' (iii) retitle Parts A, B and 
C of Chapter V which are currently titled ``Installation,'' ``Software 
License & Maintenance'' and ``Reserved'' respectively; and (iv) 
eliminate the Part D title, ``INET Port Fees'' and amend and reorganize 
the current port fees. Each change will be described in more detail 
below. The Exchange believes that the proposed amendments to the 
Schedule of Fees will provide more clarity as to the current fees. The 
Exchange notes that no fee changes are being introduced with this rule 
change. The Exchange is simply reorganizing its rules to conform to 
other Nasdaq affiliate markets by aligning the location and description 
of its rules on each market.

[[Page 26725]]

Table of Contents
    The Exchange proposes to eliminate the Table of Contents in the ISE 
Schedule of Fees. The Table Contents are unnecessary. The website where 
the ISE rules are listed \3\ contains hyperlinks and a skeleton of the 
available rules within the site and enables market participants to view 
all rules in that section.
---------------------------------------------------------------------------

    \3\ ISE rules are located at: http://ise.cchwallstreet.demo.cch.com/.
---------------------------------------------------------------------------

Section V, Trading Application
    The Exchange proposes to retitle Section V, currently titled 
``Trading Application'' as ``Connectivity Fees.'' The Exchange believes 
that this title more accurately describes the types of fees contained 
in this chapter. No other changes are being made to this section.
Chapter V, Parts A, B and C
    The Exchange proposes to amend Chapter V, Part A to retitle this 
section from ``Installation'' to ``Trading Application.'' The Exchange 
propose to amend Chapter V, Part B to retitle this section from 
``Software License & Maintenance'' to ``Trading Application.'' The 
Exchange proposes to retitle Chapter V, Part C, which is currently 
``Reserved'' as ``Ports and Other Services.'' The Exchange believes 
that these titles more accurately describes the types of fees contained 
in Chapter V by section. The Exchange is not otherwise amending Parts A 
and B. The Exchange is proposing to relocate from current Part D, 
titled ``INET Port Fees'' into Part C.
INET Port Fees
    The Exchange proposes to eliminate the title to Chapter V, Part D, 
titled ``INET Port Fees.'' The Exchange is proposing to restructure the 
port fees currently in Part D into newly retitled Part C.
    The Exchange proposes to add language at the beginning of new Part 
C which provides, ``The below charges are assessed by ISE for 
connectivity to ISE.'' The Exchange believes that this sentence makes 
clear that the fees apply to ISE. The Exchange proposes to define a 
port as ``a logical connection or session that enables a market 
participant to send inbound messages and/or receive outbound messages 
from the Exchange using various communication protocols.'' The Exchange 
believes this definition will assist members in distinguishing ports 
from other offerings.
    The Exchange proposes to relocate the current port fees within Part 
D to Part C and restructure the port fees into 4 categories. The 
Exchange proposes to list order and quote protocols first, order and 
execution offerings next, followed by data ports and other ports as the 
last section. The Exchange proposes to list data offerings that are 
offered at no cost. The Exchange believes that aligning its offerings, 
where relevant, with other affiliated markets \4\ will provide more 
transparency as to the offerings for market participants.
---------------------------------------------------------------------------

    \4\ The Exchange offers various services across its 6 affiliated 
options markets, ISE, Nasdaq Phlx LLC, Nasdaq BX, Inc., The Nasdaq 
Options Market LLC, Nasdaq GEMX, LLC and Nasdaq MRX, LLC (``Nasdaq 
Affiliated Markets'').
---------------------------------------------------------------------------

    The Exchange proposes to add a new section (i) and include the 
following introductory sentence, ``The following order and quote 
protocols are available on ISE.'' The Exchange proposes to list the 
order entry protocol port fees for FIX, SQF and OTTO in this section. 
The fees are not being amended, the existing fees are being relocated 
into new section (i).
    The Exchange proposes to add a new section (ii) and include the 
following introductory sentence, ``The following order and execution 
information is available to Members.'' The Exchange intends to list 
other port or interface information into this section that are 
available to ISE Members. The Exchange is relocating the CTI and FIX 
DROP port fees. No changes are being made to those fees. The Exchange 
also proposes to list TradeInfo ISE Interface into this section. The 
Exchange has recently filed to establish this Interface within the ISE 
rules.\5\ The Exchange proposes to note this interface is available on 
ISE at no cost.
---------------------------------------------------------------------------

    \5\ See SR-ISE-2018-47 (not yet published).
---------------------------------------------------------------------------

    The Exchange proposes to add a new section (iii) and include the 
following language, ``The following data port fees apply in connection 
with data subscriptions pursuant to ISE Rules at Chapter VIII. These 
ports are available to non-ISE Members and ISE Members.'' Today, ISE 
does not assess a fee for these ports outlined in new section (iii). 
Similar to other Nasdaq Affiliated Markets the Exchange proposes to 
list all of the ports that Members and Non-Members obtain today at no 
cost. The Exchange believes that listing these ports in addition to the 
data subscriptions will bring more transparency to the Schedule of 
Fees.
    The Exchange proposes to add a new section (iv) entitled ``Other 
ports'' and relocate the Disaster Recovery Ports into this section. The 
Exchange also proposes to make clear that a Disaster Recovery Port is 
available for any port listed in proposed sections (i)-(iii).
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Securities Exchange Act of 1934 (the 
``Act''),\6\ in general, and furthers the objectives of Section 6(b)(5) 
of the Act,\7\ in particular, in that it is designed to promote just 
and equitable principles of trade, to remove impediments to and perfect 
the mechanism for a free and open market and a national market system, 
and, in general, to protect investors and the public interest, by 
providing greater transparency as to the ports offered on ISE.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange's proposal to remove the Table of Contents and retitle 
the various parts of Chapter V are administrative. These changes are 
consistent with the protection of investor and the public interest 
because the amendments are intended to bring greater clarity to the 
Rulebook. The Exchange's proposal to reorganize the port fees into 
sections and include pricing for ports that are offered at no cost is 
also consistent with the protection of investor and the public interest 
because it will bring greater transparency to the Exchange's current 
offerings.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\8\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intra-market competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange's 
proposal does not impose an undue burden on competition, rather the 
Exchange is seeking to provide greater transparency within its rules 
with respect to the various ports offered on ISE.
---------------------------------------------------------------------------

    \8\ 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

    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

[[Page 26726]]

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 \9\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\10\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file the proposed rule change at 
least five business days prior to the date of filing of the proposed 
rule change, or such shorter time as designated by the Commission. 
The Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \11\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \12\ 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 asked 
the Commission to waive the 30-day operative delay so that the proposed 
rule change may become effective and operative immediately upon filing. 
The Exchange states that it believes the waiver will further the 
protection of investors and the public interest because it will provide 
greater transparency as to various ports available to market 
participants. The Exchange further states that the proposed rule change 
will bring greater clarity to the Schedule of Fees. The Commission 
believes that waiver of the 30-day operative delay is consistent with 
the protection of investors and the public interest. Therefore, the 
Commission hereby waives the 30-day operative delay and designates the 
proposed rule change as operative upon filing.\13\
---------------------------------------------------------------------------

    \11\ 17 CFR 240.19b-4(f)(6).
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
    \13\ For purposes only of waiving the 30-day operative delay, 
the Commission has also 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 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-2018-48 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-2018-48. 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 website (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 website 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-2018-48 and should be submitted on 
or before June 29, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12322 Filed 6-7-18; 8:45 am]
BILLING CODE 8011-01-P