83 FR 28705 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Increase Certain Route-Out Fees Set Forth in Section IV.F of the Schedule of Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 119 (June 20, 2018)

Page Range		28705-28707
FR Document		2018-13171
Federal Register, Volume 83 Issue 119 (Wednesday, June 20, 2018)
[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Notices]
[Pages 28705-28707]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13171]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83446; File No. SR-ISE-2018-52]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Increase Certain 
Route-Out Fees Set Forth in Section IV.F of the Schedule of Fees

June 14, 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 June 1, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to increase certain route-out fees set forth 
in Section IV.F of the Schedule of Fees, as described further below.
    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.

[[Page 28706]]

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 increase certain 
route-out fees set forth in Section IV.F of the Schedule of Fees. 
Today, the Exchange charges Non-Priority Customers (i.e., Market 
Maker,\3\ Non-Nasdaq ISE Market Maker,\4\ Firm Proprietary \5\/Broker-
Dealer,\6\ and Professional Customer \7\) route-out fees of $0.95 per 
contract for orders in Non-Select Symbols \8\ that are routed to away 
exchanges in connection with the Options Order Protection and Locked/
Crossed Market Plan (the ``Plan''). The Exchange now proposes to 
increase this fee to $1.09 per contract for all Non-Priority Customer 
orders in Non-Select Symbols that are routed to away exchanges in 
connection with the Plan. The Exchange believes that the proposed 
increase will help offset the costs associated with routing orders 
through the Plan, such as paying the transaction fees for such 
executions at other exchanges.
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    \3\ The term ``Market Makers'' refers to ``Competitive Market 
Makers'' and ``Primary Market Makers'' collectively. See Rule 
100(a)(28).
    \4\ A ``Non-Nasdaq ISE Market Maker'' is a market maker as 
defined in Section 3(a)(38) of the Securities Exchange Act of 1934, 
as amended, registered in the same options class on another options 
exchange.
    \5\ A ``Firm Proprietary'' order is an order submitted by a 
member for its own proprietary account.
    \6\ A ``Broker-Dealer'' order is an order submitted by a member 
for a broker-dealer account that is not its own proprietary account.
    \7\ A ``Professional Customer'' is a person or entity that is 
not a broker/dealer and is not a Priority Customer.
    \8\ ``Non-Select Symbols'' are options overlying all symbols 
that are not in the Penny Pilot Program.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\9\ in general, and furthers the objectives of Sections 
6(b)(4) and 6(b)(5) of the Act,\10\ in particular, in that it provides 
for the equitable allocation of reasonable dues, fees, and other 
charges among members and issuers and other persons using any facility, 
and is not designed to permit unfair discrimination between customers, 
issuers, brokers, or dealers.
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    \9\ 15 U.S.C. 78f(b).
    \10\ 15 U.S.C. 78f(b)(4) and (5).
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    The Exchange believes that proposed increase in the Non-Priority 
Customer route-out fees from $0.95 to $1.09 per contract for orders in 
Non-Select Symbols is reasonable because it is designed to help recoup 
costs associated with routing orders to away exchanges in connection 
with the Plan, such as paying the transaction fees for such executions 
at other exchanges. Furthermore, the Exchange notes that the proposed 
fees remain competitive with the fees of other options exchanges which, 
in addition to a fixed routing fee, assess the actual transaction 
fees.\11\
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    \11\ For example, CBOE C2 Exchange, Inc. (``C2'') charges $1.63 
per routed contract for non-public customer, non-C2 market-maker 
orders in non-penny classes. See C2 Fees Schedule, Section 1.A 
(Transaction Fees) and Section 2 (Linkage Routing).
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    The Exchange believes that proposed increase in the Non-Priority 
Customer route-out fees is an equitable allocation and is not unfairly 
discriminatory because the Exchange will apply the same fee to all 
similarly situated members. The Exchange believes it is equitable and 
not unfairly discriminatory to increase the route-out fees for all 
market participants other than Priority Customers \12\ because the 
Exchange seeks to encourage Priority Customer order flow and the 
liquidity that such order flow brings to the marketplace, which in turn 
benefits all market participants.
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    \12\ A ``Priority Customer'' is a person or entity that is not a 
broker/dealer in securities, and does not place more than 390 orders 
in listed options per day on average during a calendar month for its 
own beneficial account(s), as defined in Nasdaq ISE Rule 
100(a)(37A).
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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. In particular, the proposed 
increase to the route-out fees will apply equally to all Non-Priority 
Customer orders that are routed to away exchanges in connection with 
the Plan, and will help offset costs associated with routing orders via 
the Plan. Furthermore as noted above, the Exchange believes that its 
proposed fees remain competitive with another options exchange.
    The Exchange notes that it operates in a highly competitive market 
in which market participants can readily favor competing venues if they 
deem fee levels at a particular venue to be excessive, or rebate 
opportunities available at other venues to be more favorable. In such 
an environment, the Exchange must continually adjust its fees to remain 
competitive with other exchanges and with alternative trading systems 
that have been exempted from compliance with the statutory standards 
applicable to exchanges. Because competitors are free to modify their 
own fees in response, and because market participants may readily 
adjust their order routing practices, the Exchange believes that the 
degree to which fee changes in this market may impose any burden on 
competition is extremely limited. In sum, if the changes proposed 
herein are unattractive to market participants, it is likely that the 
Exchange will lose market share as a result. Accordingly, the Exchange 
does not believe that the proposed changes will impair the ability of 
members or competing order execution venues to maintain their 
competitive standing in the financial markets.

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,\13\ and Rule 19b-4(f)(2) \14\ 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.
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    \13\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \14\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing,

[[Page 28707]]

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-2018-52 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-2018-52. 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-2018-52 and should be submitted on 
or before July 11, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13171 Filed 6-19-18; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28705

Exchange, which would benefit all III. Date of Effectiveness of the inspection and copying at the principal
market participants. Proposed Rule Change and Timing for office of the Exchange. All comments
The Exchange believes that the Commission Action received will be posted without change.
proposed changes to Setter Priority are Persons submitting comments are
Within 45 days of the date of
designed to operate consistently with cautioned that we do not redact or edit
publication of this notice in the Federal
the existing functionality, which is why personal identifying information from
Register or up to 90 days (i) as the
multiple orders that reprice would not comment submissions. You should
Commission may designate if it finds
be eligible for Setter Priority, unless one submit only information that you wish
such longer period to be appropriate
order is equal to a round lot or more and to make available publicly. All
and publishes its reasons for so finding
the sum of all other orders at that price submissions should refer to File
or (ii) as to which the self-regulatory
equal less than a round lot. Similarly, Number SR–NYSE–2018–26 and should
the Exchange believes that it would organization consents, the Commission
will: be submitted on or before July 11, 2018.
remove impediments to and perfect the
mechanism of a free and open market (A) By order approve or disapprove For the Commission, by the Division of
and a national market system for a the proposed rule change, or Trading and Markets, pursuant to delegated
(B) institute proceedings to determine authority.11
Reserve Order to be eligible for Setter
Priority at only one price, and therefore, whether the proposed rule change Eduardo A. Aleman,
during a Short Sale Period, if a Reserve should be disapproved. Assistant Secretary.
Order is replenished at a Permitted IV. Solicitation of Comments [FR Doc. 2018–13162 Filed 6–19–18; 8:45 am]
Price, it would not be eligible for Setter BILLING CODE 8011–01–P
Interested persons are invited to
Priority at a second price level.
Finally, the Exchange believes that submit written data, views, and
the proposed amendment to Rule arguments concerning the foregoing, SECURITIES AND EXCHANGE
7.37(h)(3)(C) to add that an order would including whether the proposed rule COMMISSION
lose Setter Priority if it is less than a change is consistent with the Act.
round lot and assigned a new working Comments may be submitted by any of
the following methods: [Release No. 34–83446; File No. SR–ISE–
time pursuant to proposed Rule 2018–52]
7.31(d)(1)(B)(i) is consistent with Electronic Comments
current behavior that an odd-lot sized Self-Regulatory Organizations; Nasdaq
• Use the Commission’s internet
order would lose Setter Priority if it is ISE, LLC; Notice of Filing and
comment form (http://www.sec.gov/
assigned a new working time. The Immediate Effectiveness of Proposed
rules/sro.shtml); or
Exchange believes that it would remove Rule Change To Increase Certain
• Send an email to rule-comments@
impediments to and perfect the Route-Out Fees Set Forth in Section
sec.gov. Please include File Number SR–
mechanism of a free and open market IV.F of the Schedule of Fees
NYSE–2018–26 on the subject line.
and a national market system for a
Reserve Order to lose Setter Priority in Paper Comments June 14, 2018.
such circumstances because when it is • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
assigned a new working time, it would to Secretary, Securities and Exchange Securities Exchange Act of 1934
be eligible to be reevaluated for Setter Commission, 100 F Street NE, (‘‘Act’’),1 and Rule 19b–4 thereunder,2
Priority. Washington, DC 20549–1090. notice is hereby given that on June 1,
B. Self-Regulatory Organization’s 2018, Nasdaq ISE, LLC (‘‘ISE’’ or
All submissions should refer to File
Statement on Burden on Competition ‘‘Exchange’’) filed with the Securities
Number SR–NYSE–2018–26. This file
and Exchange Commission
The Exchange does not believe that number should be included on the
(‘‘Commission’’) the proposed rule
the proposed rule change will impose subject line if email is used. To help the
change as described in Items I and II
any burden on competition that is not Commission process and review your
below, which Items have been prepared
necessary or appropriate in furtherance comments more efficiently, please use
by the Exchange. The Commission is
of the purposes of the Act. The only one method. The Commission will
publishing this notice to solicit
proposed rule change is not designed to post all comments on the Commission’s
comments on the proposed rule change
address any competitive issues. Rather, internet website (http://www.sec.gov/
from interested persons.
the proposed rule change to Reserve rules/sro.shtml). Copies of the
Orders is designed to reduce the submission, all subsequent I. Self-Regulatory Organization’s
potential for market participants to amendments, all written statements Statement of the Terms of Substance of
identify that a child order is related to with respect to the proposed rule the Proposed Rule Change
a Reserve Order. The changes to Setter change that are filed with the
Priority are designed to promote the Commission, and all written The Exchange proposes to increase
aggressive display of liquidity on the communications relating to the certain route-out fees set forth in
Exchange to provide additional proposed rule change between the Section IV.F of the Schedule of Fees, as
circumstances when an order would be Commission and any person, other than described further below.
eligible for Setter Priority, consistent those that may be withheld from the The text of the proposed rule change
with current rules. public in accordance with the is available on the Exchange’s website at
provisions of 5 U.S.C. 552, will be
sradovich on DSK3GMQ082PROD with NOTICES

http://ise.cchwallstreet.com/, at the
C. Self-Regulatory Organization’s available for website viewing and principal office of the Exchange, and at
Statement on Comments on the printing in the Commission’s Public the Commission’s Public Reference
Proposed Rule Change Received From Reference Room, 100 F Street NE, Room.
Members, Participants, or Others Washington, DC 20549, on official
No written comments were solicited business days between the hours of 11 17 CFR 200.30–3(a)(12).
or received with respect to the proposed 10:00 a.m. and 3:00 p.m. Copies of the 1 15 U.S.C. 78s(b)(1).
rule change. filing also will be available for 2 17 CFR 240.19b–4.

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Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28707

including whether the proposed rule DEPARTMENT OF STATE records, additional routine uses of
change is consistent with the Act. records, updated contact information,
[Public Notice: 10448]
Comments may be submitted by any of and a notice publication history.
the following methods: Privacy Act of 1974; System of SYSTEM NAME AND NUMBER
Electronic Comments Records
Legal Case Management Records,
• Use the Commission’s internet AGENCY: Department of State. State-21.
comment form (http://www.sec.gov/ ACTION: Notice of a modified System of
SECURITY CLASSIFICATION:
rules/sro.shtml); or Records.
Unclassified and Classified.
• Send an email to rule-comments@ SUMMARY: Information in the Legal
sec.gov. Please include File Number SR– Adviser’s Case Management Records is SYSTEM LOCATION:
ISE–2018–52 on the subject line. used to provide or facilitate the Department of State (‘‘Department’’),
Paper Comments provision of legal advice and opinion to located at 2201 C Street NW,
the offices of the Department of State Washington, DC 20520; Department of
• Send paper comments in triplicate and to facilitate defense or State annexes, U.S. Embassies, U.S.
to Secretary, Securities and Exchange representation of the Department in Consulates General, and U.S.
Commission, 100 F Street NE, litigation and in other legal proceedings. Consulates.
Washington, DC 20549–1090. Information may also be used to reply SYSTEM MANAGER(S):
All submissions should refer to File to requests from federal, state, local, or
international courts, agencies, Executive Director, Office of the Legal
Number SR–ISE–2018–52. This file
commissions, organizations, or Adviser and Bureau of Legislative
number should be included on the
mechanisms. Affairs, Department of State, 600 19th
subject line if email is used. To help the
Street NW, Suite 5.600, Washington, DC
Commission process and review your DATES: In accordance with 5 U.S.C. 20522 and can be reached at Legal-
comments more efficiently, please use 552a(e)(4) and (11), this system of privacy@state.gov.
only one method. The Commission will records notice is effective upon
post all comments on the Commission’s publication, with the exception of the AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
internet website (http://www.sec.gov/ routine uses (c), (e), (g), (h) and (k), 5 U.S.C. 301; 22 U.S.C. 2651a; 22
rules/sro.shtml). Copies of the which are subject to a 30-day period U.S.C. 2656; 42 U.S.C. 659; 42 U.S.C.
submission, all subsequent during which interested persons may 666; 5 CFR part 581.
amendments, all written statements submit comments to the Department.
with respect to the proposed rule PURPOSE(S) OF THE SYSTEM:
Please submit any comments by July 20,
change that are filed with the 2018. Information in the Legal Adviser’s
Commission, and all written ADDRESSES: Questions can be submitted
Case Management Records is used to
communications relating to the by mail or email. If mail, please write to: provide or facilitate the provision of
proposed rule change between the U.S Department of State; Office of legal advice and opinion to the offices
Commission and any person, other than Global Information Systems, Privacy of the Department of State and to
those that may be withheld from the Staff; A/GIS/PRV; SA–2, Suite 8100; facilitate defense or representation of
public in accordance with the Washington, DC 20522–0208. If email, the Department in litigation and in other
provisions of 5 U.S.C. 552, will be please address the email to the Senior legal proceedings. Information may also
available for website viewing and Agency Official for Privacy, Mary R. be used to reply to requests from
printing in the Commission’s Public Avery, at Privacy@state.gov. Please federal, state, local, or international
Reference Room, 100 F Street NE, write ‘‘Legal Case Management Records, courts, agencies, commissions,
Washington, DC 20549, on official State-21’’ on the envelope or the subject organizations, or mechanisms.
business days between the hours of line of your email. CATEGORIES OF INDIVIDUALS COVERED BY THE
10:00 a.m. and 3:00 p.m. Copies of the
FOR FURTHER INFORMATION CONTACT: SYSTEM:
filing also will be available for
Mary R. Avery, Senior Agency Official Individuals who have filed or are the
inspection and copying at the principal
for Privacy; U.S. Department of State; subject of administrative grievances or
office of the Exchange. All comments
Office of Global Information Services, proceedings and Equal Employment
received will be posted without change.
A/GIS/PRV; SA–2, Suite 8100; Opportunity complaints; individuals
Persons submitting comments are
Washington, DC 20522–0208 or at involved in disciplinary proceedings;
cautioned that we do not redact or edit
(202)663–2215. individuals involved in alleged criminal
personal identifying information from
SUPPLEMENTARY INFORMATION: The activity or activity in violation of
comment submissions. You should
submit only information that you wish purpose of this modification is to make regulations; individuals who have filed
to make available publicly. All substantive and administrative changes claims against the United States;
submissions should refer to File to the previously published notice. This individuals who have sued the
Number SR–ISE–2018–52 and should be notice modifies the following sections of Department of State or any officials;
submitted on or before July 11, 2018. State-21, Legal Case Management individuals whose records may be
Records: Categories of Individuals, relevant to legal proceedings involving
For the Commission, by the Division of Categories of Records, Purpose, Routine the Department of State; individuals
Trading and Markets, pursuant to delegated Uses, and Record Source Categories. In who are the subjects of inquiries from
sradovich on DSK3GMQ082PROD with NOTICES

authority.15
addition, this notice makes federal, state, and local agencies;
Eduardo A. Aleman, administrative updates to the following individuals who are the subjects of
Assistant Secretary. sections: Safeguards, Record Access inquiries by international commissions,
[FR Doc. 2018–13171 Filed 6–19–18; 8:45 am] Procedures, Contesting Record organizations, or mechanisms;
BILLING CODE 8011–01–P Procedures, Notification Procedures, individuals who are the subjects of
and History. These changes reflect new income withholding orders,
15 17 CFR 200.30–3(a)(12). OMB guidance, additional types of garnishment orders, bankruptcy orders,

VerDate Sep<11>2014 17:58 Jun 19, 2018 Jkt 244001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\20JNN1.SGM 20JNN1
Document Created: 2018-06-20 00:19:53
Document Modified: 2018-06-20 00:19:53
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		83 FR 28705