83 FR 3199 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Market Maker Orders

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 15 (January 23, 2018)

Page Range		3199-3203
FR Document		2018-01092
Federal Register, Volume 83 Issue 15 (Tuesday, January 23, 2018)
[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Notices]
[Pages 3199-3203]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-01092]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82521; File No. SR-ISE-2018-04]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change Relating to Market 
Maker Orders

January 17, 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 January 5, 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 amend ISE Rule 805 to permit Market Makers 
\3\ to enter additional order types in the options classes to which 
they are appointed.
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    \3\ Market Makers refers to ``Competitive Market Makers'' and 
``Primary Market Makers'' collectively. See ISE Rule 100(a)(25).
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    The text of the proposed rule change is set forth below. Proposed 
new language is italicized; deleted text is in brackets.
* * * * *

Nasdaq ISE Rulebook

* * * * *

Rule 805. Market Maker Orders

    (a) Options Classes to Which Appointed. Market makers may enter all 
order types defined in Rule 715 in the options classes to which they 
are appointed under Rule 802, except Stopped Orders, Reserve Orders and 
Customer Cross Orders.[not place principal orders to buy or sell 
options in the options classes to which they are appointed under Rule 
802, other than opening only orders, immediate-or-cancel orders, market 
orders, fill-or-kill orders, sweep orders, complex orders, and block-
size orders executed through the Block Order Mechanism pursuant to Rule 
716(c).] Competitive Market Makers shall comply with the provisions of 
Rule 804(e)(2)(iii) upon

[[Page 3200]]

the entry of such orders if they were not previously quoting in the 
series.
    (b) Options Classes Other Than Those to Which Appointed.
    (1) A market maker may enter all order types permitted to be 
entered by non-customer participants under the Rules to buy or sell 
options in classes of options listed on the Exchange to which the 
market maker is not appointed under Rule 802, except for Reserve 
Orders, provided that:
    (i) and (ii) No change.
    (2) and (3) No change.
* * * * *

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 this rule change is to permit Market Makers to enter 
principal orders to buy or sell options in the options classes to which 
they are appointed under Rule 802 \4\ for all order types listed in 
Rule 715 except for Stopped Orders,\5\ Reserve Orders \6\ and Customer 
Cross Orders.\7\ This filing is intended to permit Market Makers to 
execute most of the same order types, which today they are permitted to 
enter on other options markets.\8\ In addition, this filing is intended 
to amend ISE Rule 805(b)(1) to indicate that Reserve Orders are not 
permitted to be entered by ISE Market Makers in non-appointed options 
classes. Today, ISE Market Makers may not enter Reserve Orders in 
either appointed or non-appointed options classes. Today, while the 
System prohibits ISE Market Makers from entering Reserve Orders, ISE 
Rule 805(b)(1) does not indicate the restriction.
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    \4\ ISE Rule 802 concerns the appointment of Market Makers.
    \5\ A stopped order is a limit order that meets the requirements 
of Rule 1901(b)(8). To execute stopped orders, Members must enter 
them into the Facilitation Mechanism or Solicited Order Mechanism 
pursuant to Rule 716. See ISE Rule 715(b)(6).
    \6\ A Reserve Order is a limit order that contains both a 
displayed portion and a non-displayed portion. Both the displayed 
and non-displayed portions of a Reserve Order are available for 
potential execution against incoming marketable orders. A non-
marketable Reserve Order will rest on the order book. The displayed 
portion of a Reserve Order shall be ranked at the specified limit 
price and the time of order entry. The displayed portion of a 
Reserve Order will trade in accordance with Rule 713(c) and (d) for 
Priority Customer Orders, and Rule 713(e) and Supplementary Material 
.01, for Professional Orders. When the displayed portion of a 
Reserve Order is decremented, either in full or in part, it shall be 
refreshed from the non-displayed portion of the resting Reserve 
Order. If the displayed portion is refreshed in part, the new 
displayed portion shall include the previously displayed portion. 
Upon any refresh, the entire displayed portion shall be ranked at 
the specified limit price and obtain a new time stamp, i.e., the 
time that the new displayed portion of the order was refreshed. The 
new displayed portion will trade in accordance with Rule 713(c) and 
(d) for Priority Customer Orders, and Rule 713(e) and Supplementary 
Material .01, for Professional Orders. The initial non-displayed 
portion of a Reserve Order rests on the order book and is ranked 
based on the specified limit price and time of order entry. 
Thereafter, non-displayed portions, if any, always obtain the same 
time stamp as that of the new displayed portion in subparagraph 4 
above. The non-displayed portion of any Reserve Order is available 
for execution only after all displayed interest has been executed. 
The non-displayed portion of any Reserve Order will trade in 
accordance with Rule 713(c) and (d) for Priority Customer Orders, 
and Rule 713(e) and Supplementary Material .01, for Professional 
Orders. See ISE Rule 715(g).
    \7\ A Customer Cross Order is comprised of a Priority Customer 
Order to buy and a Priority Customer Order to sell at the same price 
and for the same quantity. See ISE Rule 715(i).
    \8\ NYSE Arca, Inc. (``NYSE Arca'') and NYSE American LLC 
(``NYSE American'') do not limit the types of orders that can be 
entered by market makers. See NYSE Arca Rule 6.37C-O and NYSE 
American Rule 925.2NY.
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Appointed Options Classes
    Today, as noted in ISE Rule 805(a), a Market Maker may not place 
principal orders to buy or sell options in the options classes to which 
they are appointed under Rule 802, other than opening only orders,\9\ 
immediate-or-cancel orders,\10\ market orders, fill-or-kill orders,\11\ 
sweep orders,\12\ complex orders,\13\ and block-size orders \14\ 
executed through the Block Order Mechanism \15\ pursuant to Rule 
716(c). At this time, the Exchange proposes to expand the order types 
which Market Makers are permitted to enter on ISE.\16\ The Exchange is 
amending ISE Rule 805(a) to make clear which order types a Market Maker 
in an appointed options class may submit. Additionally, ISO Orders, 
All-Or-None Orders, Stop Orders, Qualified Contingent Cross Orders, 
Attributable Orders, Do-Not-Route Orders, QCC with Stock Orders, 
Opening Sweep Orders, Cancel and Replace Orders,\17\ and Add Liquidity 
Orders are accepted on ISE today from Market Makers as principal orders 
as modifiers of the allowable non-resting order types, although they 
are not specifically detailed in the rule. This rule change will 
further detail and align the rule text with the system functionality by 
making clear that Maker Makers may enter all order types defined in 
Rule 715 in the options classes to which they are appointed under Rule 
802, except Stopped Orders, Reserve Orders and Customer Cross Orders.
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    \9\ An Opening Only order is a limit order that can be entered 
for the opening rotation only. Any portion of the order that is not 
executed during the opening rotation is cancelled. See ISE Rules 
717(o).
    \10\ An immediate-or-cancel order is a limit order that is to be 
executed in whole or in part upon receipt. Any portion not so 
executed is to be treated as cancelled. An immediate-or-cancel order 
entered by a Market Maker through the Specialized Quote Feed 
protocol will not be subject to the (i) Limit Order Price Protection 
and Size Limitation Protection as defined in ISE Rule 714(b)(2) and 
(3); or (ii) Limit Order Price Protection as defined in 
Supplementary Material .07(d) to ISE Rule 722. See ISE Rule 
715(b)(2).
    \11\ A fill-or-kill order is a limit order that is to be 
executed in its entirety as soon as it is received and, if not so 
executed, treated as cancelled. See ISE Rule 715(b)(2).
    \12\ A Sweep Order is a limit order that is to be executed in 
whole or in part on the Exchange and the portion not so executed 
shall be routed pursuant to Supplementary Material .05 to Rule 1901 
to Eligible Exchange(s) for immediate execution as soon as the order 
is received by the Eligible Exchange(s). Any portion not immediately 
executed by the Eligible Exchange(s) shall be canceled. If a Sweep 
Order is not marketable when it is submitted to the Exchange, it 
shall be canceled. See ISE Rule 715(s).
    \13\ A complex order is any order involving the simultaneous 
purchase and/or sale of two or more different options series in the 
same underlying security, for the same account, in a ratio that is 
equal to or greater than one-to-three (.333) and less than or equal 
to three-to-one (3.00) and for the purpose of executing a particular 
investment strategy. See ISE Rule 722(a)(1).
    \14\ Block-size orders are orders for fifty (50) contracts or 
more. See ISE Rule 716(a).
    \15\ The Block Order Mechanism is a process by which a Member 
can obtain liquidity for the execution of block-size orders. See ISE 
Rule 716(c).
    \16\ This expansion would include Good-Till-Date Orders, GTC 
Orders, Limit Orders, and Stop Limit Orders as new acceptable order 
types.
    \17\ Cancel and Replace Orders shall mean a single message for 
the immediate cancellation of a previously received order and the 
replacement of that order with a new order. If the previously placed 
order is already filled partially or in its entirety, the 
replacement order is automatically canceled or reduced by the number 
of contracts that were executed. The replacement order will retain 
the priority of the cancelled order, if the order posts to the Order 
Book, provided the price is not amended, size is not increased, or 
in the case of Reserve Orders, size is not changed. If the 
replacement portion of a Cancel and Replace order does not satisfy 
the system's price or other reasonability checks (e.g., ISE Rule 
710; ISE Rule 711(c); ISE Rule 714(b)(2); and ISE Rule 722(b)(1) and 
Supplementary Material .07 (b), (c) and (d) to Rule 722) the 
existing order shall be cancelled and not replaced. See 
Supplementary Material .02 to ISE Rule 715.

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[[Page 3201]]

    Today, ISE Market Makers, who are appointed and non-appointed in a 
particular options class, may submit orders without limitation, unless 
otherwise restricted by the order type as discussed herein. The 
Exchange proposes to permit Market Makers to enter all order types, 
which are listed in ISE Rule 715, except for Stopped Orders, Reserve 
Orders and Customer Cross Orders. The Exchange notes that today Market 
Makers are not eligible to execute either Customer Cross Orders, which 
are Customer orders, or Stopped Orders, which are intended for the 
account of a customer.\18\ With respect to Reserve Orders, the Exchange 
proposes to continue to restrict Market Makers from entering Reserve 
Orders in their appointed options class. The Exchange believes that 
Market Maker liquidity should be displayed liquidity. For these 
reasons, and to remain competitive with other markets, the Exchange 
proposes to permit Market Makers to enter all orders they are eligible 
to submit in their appointed class with the exception of Reserve Orders 
and also restrict Reserve Orders in the non-appointed classes.
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    \18\ ISE Rule 1901(b)(8) states, ``The transaction that 
constituted the Trade-Through was the execution of an order for 
which, at the time of receipt of the order, a Member had guaranteed 
an execution at no worse than a specified price (a ``stopped 
order''), where: (i) The stopped order was for the account of a 
Customer; (ii) the Customer agreed to the specified price on an 
order-by-order basis; and (iii) the price of the Trade-Through was, 
for a stopped buy order, lower than the national Best Bid in the 
options series at the time of execution, or, for a stopped sell 
order, higher than the national Best Offer in the options series at 
the time of execution . . .''
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Non-Appointed Options Classes
    Today, for the reasons noted above, the Exchange does not permit 
Market Makers to enter Reserve Orders in non-appointed options classes. 
However, the current rule text does not provide this limitation. The 
Exchange proposes to amend the current rule text at ISE Rule 805(b)(1) 
to codify this limitation.
2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\19\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\20\ 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 providing Market Makers access to trade order types which 
are currently permissible to be traded in on other options exchanges 
today.\21\ The Exchange believes that permitting Market Makers to enter 
all eligible order types, except Reserve Orders, in both appointed and 
non-appointed options classes offers no advantage to Market Makers 
under the Exchange's market structure, including, but not limited to, 
under the priority and trade allocation rules in ISE Rule 713 and 
various risk protection mechanism rules applicable to Market Makers in 
ISE Rule 804.\22\ Today, other non-Market Maker participants may submit 
these order types on ISE.
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    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
    \21\ See note 8 above.
    \22\ Today, Market Makers are not eligible to execute either 
Customer Cross Orders, which are Customer orders, or Stopped Orders, 
which are intended for the account of a customer.
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    The Exchange notes that previously, ISE prohibited non-customer 
trading by Electronic Access Members (``EAMs'') for principal or agent 
transactions.\23\ At that time, ISE represented that, in an electronic 
market, non-customer market orders have the potential to create market 
volatility by trading at different price levels until their order is 
fully executed. ISE further noted that, without this restriction, non-
customers would be able to use large-size orders to quickly take out 
ISE's entire order book without giving other market participants an 
opportunity to react.\24\ When the restriction was adopted, there were 
various limitations imposed on non-customer trading. For example, 
displayed quotes were firm only for public customer orders. Since that 
time, electronic options trading has evolved. With the adoption of 
trade-through protection under the intermarket linkage, every order 
must be executed at the best quoted price. Further, ISE has also 
removed restrictions on non-customer trading. For example, EAMs may now 
submit non-customer limit orders regardless of the size of the order 
where previously EAMs were prohibited from submitting orders for non-
customers that caused ISE's best bid and offer to be for less than 10 
contracts.\25\
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    \23\ See Securities Exchange Act Release No. 42455 (February 24, 
2000), 65 FR 11388 (March 2, 2000) (File No. 10-127) (In the Matter 
of the Application of The International Securities Exchange LLC for 
Registration as a National Securities Exchange; Findings and Opinion 
of the Commission).
    \24\ Id.
    \25\ See Securities Exchange Act Release No. 49602 (April 22, 
2004), 69 FR 23841 (April 30, 2004) (SR-ISE-2003-26).
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    The Exchange does not believe there is any reason to restrict 
Market Makers in entering order types, except for the restriction 
related to Reserve Orders, in options classes in which they are 
appointed. Unlike other order types, the Reserve Order is a limit order 
that contains both a displayed portion and a non-displayed portion.\26\ 
Both the displayed and non-displayed portions of a Reserve Order are 
available for potential execution against incoming marketable orders. 
When the displayed portion of a Reserve Order is decremented, either in 
full or in part, it shall be refreshed from the non-displayed portion 
of the resting Reserve Order. The Exchange believes that because a 
Reserve Order contains a non-displayed potion, Market Makers should not 
be permitted to enter this order. Market Makers are required to make 
markets that, absent changed market conditions, will be honored for the 
number of contracts entered into the Exchange's System in all series of 
options classes to which the market maker is appointed.\27\ The 
Exchange believes that these markets should be transparent. Today, ISE 
Market Makers are not permitted to enter Reserve Orders in either 
appointed or non-appointed options classes. The Exchange proposes to 
specifically note this limitation in both Rule 805(a) and (b) as an 
exception. The Exchange notes that this limitation is specifically not 
noted in Rule 805(b) today despite the fact that the limitation exists 
in the System today.
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    \26\ See ISE Rule 715(g).
    \27\ See ISE Rule 803(b)(2).
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    The Exchange is also amending ISE Rule 805(a) to detail the types 
of non-resting order types and their modifiers with respect to ISO 
Orders, All-Or-None Orders, Stop Orders, Qualified Contingent Cross 
Orders, Attributable Orders, Do-Not-Route Orders, QCC with Stock 
Orders, Opening Sweep Orders, Cancel and Replace Orders, and Add 
Liquidity Orders. This rule change will detail and align the rule text 
with the system functionality and make clear which order types a Market 
Maker may submit in appointed options classes.
    ISE Market Makers continue to be obligated to add liquidity on ISE. 
The Exchange also notes that ISE Rule 805(b)(2) and (3) restricts the 
number of contracts that a Market Maker may enter in an options class 
to which the Market Maker is not appointed.\28\ The Exchange

[[Page 3202]]

notes that it also requires Market Makers to abide by certain quoting 
requirements, in the options classes in which they are appointed 
pursuant to ISE Rule 802, in order to maintain the status of a Market 
Maker.\29\ The Exchange believes that permitting a Market Maker to 
enter additional order types, except Reserve Orders, in their appointed 
options class will permit Market Makers additional latitude to conduct 
business on ISE and effectively compete with other market makers on 
other options exchanges. Quotes and orders entered by a Market Maker 
may not interact against quotes and orders entered on the opposite side 
of the market by the same Market Maker.\30\
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    \28\ The total number of contracts executed during a quarter by 
a Competitive Market Maker in options classes to which it is not 
appointed may not exceed twenty-five percent (25%) of the total 
number of contracts traded by such Competitive Market Maker in 
classes to which it is appointed and with respect to which it was 
quoting pursuant to Rule 804(e)(2). See ISE Rule 805(b)(2).
    The total number of contracts executed during a quarter by a 
Primary Market Maker in options classes to which it is not appointed 
may not exceed ten percent (10%) of the total number of contracts 
traded per each Primary Market Maker Membership. See ISE Rule 
805(b)(3).
    \29\ See ISE Rule 804(e) and Supplementary Material .01 to Rule 
804. Orders do not count toward meeting continuous quoting 
obligations.
    \30\ See ISE Rule 804(b).
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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. Today, NYSE Arca and NYSE 
American place no limitation on the types of orders that can be entered 
by market makers in their appointed class.\31\ Accordingly, the 
Exchange believes that this proposal does not impose an undue burden on 
inter-market competition because each options exchange generally 
determines permissible order types for market makers in its trading 
environment based on the exchange's individual business policy, 
objectives, and trading system. The Exchange's proposal reflects its 
policy and objectives, and does not impose an undue burden on intra-
market competition because it treats all market makers uniformly with 
respect to permissible order types. Further, this rule change will 
align the system functionality with the rule text to reflect the types 
of orders a Market Maker in both appointed and non-appointed options 
class may submit. The current rule text is not accurate. This rule 
filing is intended to detail and align the rule text with the system 
functionality in the current text of Rule 805(a) and (b). This proposal 
will make clear which order types a Market Maker may submit in both 
appointed and non-appointed options classes.
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    \31\ See note 8 above.
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    Further, Market Makers, unlike other market participants, are 
required to abide by certain quoting requirements, in the options 
classes in which they are appointed pursuant to ISE Rule 802, in order 
to maintain the status of a Market Maker.\32\ The Exchange also notes 
that ISE Rule 805(b)(2) and (3) restricts the number of orders that a 
Market Maker may enter in an options class to which the Market Maker is 
not appointed.\33\ The Exchange believes that permitting a Market Maker 
to enter additional order types, except Reserve Orders, in their 
appointed options class will permit Market Makers additional latitude 
to conduct business on ISE and effectively compete with other market 
makers on other options exchanges.
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    \32\ See note 29 above.
    \33\ See note 28 above.
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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 \34\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\35\
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    \34\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \35\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires a self-regulatory organization to give the Commission 
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. The Exchange has satisfied this requirement.
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    A proposed rule change filed under Rule 19b-4(f)(6) \36\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, Rule 19b-4(f)(6)(iii) \37\ 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 proposal 
may become operative immediately upon filing. The Exchange states that 
the proposed rule change will permit Market Makers additional latitude 
to conduct business on ISE and effectively compete with other market 
makers on other options exchanges. The Exchange further states that the 
proposed rule will detail and align the rule text with the system 
functionality. The Commission believes that waiver of the 30-day 
operative delay is consistent with the protection of investors and the 
public interest. Accordingly, the Commission hereby waives the 
operative delay and designates the proposed rule change as operative 
upon filing.\38\
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    \36\ 17 CFR 240.19b-4(f)(6).
    \37\ 17 CFR 240.19b-4(f)(6)(iii).
    \38\ 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).
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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-2018-04 on the subject line.

Paper Comments

     Send paper comments in triplicate to Brent J. Fields, 
Secretary, Securities and Exchange Commission, 100 F Street NE, 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2018-04. 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

[[Page 3203]]

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-2018-04 and should be 
submitted on or before February 13, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\39\
Eduardo A. Aleman,
Assistant Secretary.
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    \39\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-01092 Filed 1-22-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices 3199

A proposed rule change filed under • Send an email to rule-comments@ SECURITIES AND EXCHANGE
Rule 19b–4(f)(6) 35 normally does not sec.gov. Please include File Number SR– COMMISSION
become operative prior to 30 days after MRX–2018–02 on the subject line.
[Release No. 34–82521; File No. SR–ISE–
the date of the filing. However, Rule
Paper Comments 2018–04]
19b–4(f)(6)(iii) 36 permits the
Commission to designate a shorter time • Send paper comments in triplicate Self-Regulatory Organizations; Nasdaq
if such action is consistent with the to Brent J. Fields, Secretary, Securities ISE, LLC; Notice of Filing and
protection of investors and the public Immediate Effectiveness of Proposed
and Exchange Commission, 100 F Street
interest. The Exchange has asked the Rule Change Relating to Market Maker
NE, Washington, DC 20549–1090.
Commission to waive the 30-day Orders
operative delay so that the proposal may All submissions should refer to File
become operative immediately upon Number SR–MRX–2018–02. This file January 17, 2018.
filing. The Exchange states that the number should be included on the Pursuant to Section 19(b)(1) of the
proposed rule change will permit subject line if email is used. To help the Securities Exchange Act of 1934
Market Makers additional latitude to Commission process and review your (‘‘Act’’),1 and Rule 19b–4 thereunder,2
conduct business on MRX and comments more efficiently, please use notice is hereby given that on January 5,
effectively compete with other market only one method. The Commission will 2018, Nasdaq ISE, LLC (‘‘ISE’’ or
makers on other options exchanges. The post all comments on the Commission’s ‘‘Exchange’’) filed with the Securities
Exchange further states that the internet website (http://www.sec.gov/ and Exchange Commission
proposed rule will detail and align the rules/sro.shtml). Copies of the (‘‘Commission’’) the proposed rule
rule text with the system functionality. change as described in Items I and II
submission, all subsequent
The Commission believes that waiver of below, which Items have been prepared
amendments, all written statements
the 30-day operative delay is consistent by the Exchange. The Commission is
with respect to the proposed rule publishing this notice to solicit
with the protection of investors and the
change that are filed with the comments on the proposed rule change
public interest. Accordingly, the
Commission hereby waives the Commission, and all written from interested persons.
operative delay and designates the communications relating to the
proposed rule change between the I. Self-Regulatory Organization’s
proposed rule change as operative upon
Commission and any person, other than Statement of the Terms of Substance of
filing.37
those that may be withheld from the the Proposed Rule Change
At any time within 60 days of the
filing of the proposed rule change, the public in accordance with the The Exchange proposes to amend ISE
Commission summarily may provisions of 5 U.S.C. 552, will be Rule 805 to permit Market Makers 3 to
temporarily suspend such rule change if available for website viewing and enter additional order types in the
it appears to the Commission that such printing in the Commission’s Public options classes to which they are
action is: (i) Necessary or appropriate in Reference Room, 100 F Street NE, appointed.
the public interest; (ii) for the protection Washington, DC 20549, on official The text of the proposed rule change
of investors; or (iii) otherwise in business days between the hours of is set forth below. Proposed new
furtherance of the purposes of the Act. 10:00 a.m. and 3:00 p.m. Copies of the language is italicized; deleted text is in
If the Commission takes such action, the filing also will be available for brackets.
Commission shall institute proceedings inspection and copying at the principal * * * * *
to determine whether the proposed rule office of the Exchange. All comments
should be approved or disapproved. Nasdaq ISE Rulebook
received will be posted without change.
Persons submitting comments are * * * * *
IV. Solicitation of Comments
Interested persons are invited to cautioned that we do not redact or edit Rule 805. Market Maker Orders
submit written data, views, and personal identifying information from
(a) Options Classes to Which
arguments concerning the foregoing, comment submissions. You should
Appointed. Market makers may enter all
including whether the proposed rule submit only information that you wish order types defined in Rule 715 in the
change is consistent with the Act. to make available publicly. All options classes to which they are
Comments may be submitted by any of submissions should refer to File appointed under Rule 802, except
the following methods: Number SR–MRX–2018–02 and should Stopped Orders, Reserve Orders and
be submitted on or before February 13, Customer Cross Orders.[not place
Electronic Comments 2018. principal orders to buy or sell options
• Use the Commission’s internet in the options classes to which they are
For the Commission, by the Division of
comment form (http://www.sec.gov/ Trading and Markets, pursuant to delegated appointed under Rule 802, other than
rules/sro.shtml); or authority.38 opening only orders, immediate-or-
Eduardo A. Aleman, cancel orders, market orders, fill-or-kill
give the Commission written notice of its intent to
orders, sweep orders, complex orders,
file the proposed rule change, along with a brief Assistant Secretary.
description and the text of the proposed rule and block-size orders executed through
[FR Doc. 2018–01094 Filed 1–22–18; 8:45 am]
change, at least five business days prior to the date the Block Order Mechanism pursuant to
of filing of the proposed rule change, or such BILLING CODE 8011–01–P Rule 716(c).] Competitive Market
sradovich on DSK3GMQ082PROD with NOTICES

shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
Makers shall comply with the
35 17 CFR 240.19b–4(f)(6). provisions of Rule 804(e)(2)(iii) upon
36 17 CFR 240.19b–4(f)(6)(iii).
37 For purposes only of waiving the 30-day 1 15
U.S.C. 78s(b)(1).
2 17
CFR 240.19b–4.
operative delay, the Commission has also
considered the proposed rule’s impact on 3 Market Makers refers to ‘‘Competitive Market

efficiency, competition, and capital formation. See Makers’’ and ‘‘Primary Market Makers’’ collectively.
15 U.S.C. 78c(f). 38 17 CFR 200.30–3(a)(12). See ISE Rule 100(a)(25).

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Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices 3201

Today, ISE Market Makers, who are options exchanges today.21 The contains both a displayed portion and a
appointed and non-appointed in a Exchange believes that permitting non-displayed portion.26 Both the
particular options class, may submit Market Makers to enter all eligible order displayed and non-displayed portions of
orders without limitation, unless types, except Reserve Orders, in both a Reserve Order are available for
otherwise restricted by the order type as appointed and non-appointed options potential execution against incoming
discussed herein. The Exchange classes offers no advantage to Market marketable orders. When the displayed
proposes to permit Market Makers to Makers under the Exchange’s market portion of a Reserve Order is
enter all order types, which are listed in structure, including, but not limited to, decremented, either in full or in part, it
ISE Rule 715, except for Stopped under the priority and trade allocation shall be refreshed from the non-
Orders, Reserve Orders and Customer rules in ISE Rule 713 and various risk displayed portion of the resting Reserve
Cross Orders. The Exchange notes that protection mechanism rules applicable Order. The Exchange believes that
today Market Makers are not eligible to to Market Makers in ISE Rule 804.22 because a Reserve Order contains a non-
execute either Customer Cross Orders, Today, other non-Market Maker displayed potion, Market Makers should
which are Customer orders, or Stopped participants may submit these order not be permitted to enter this order.
Orders, which are intended for the types on ISE. Market Makers are required to make
account of a customer.18 With respect to The Exchange notes that previously, markets that, absent changed market
Reserve Orders, the Exchange proposes ISE prohibited non-customer trading by conditions, will be honored for the
to continue to restrict Market Makers Electronic Access Members (‘‘EAMs’’) number of contracts entered into the
from entering Reserve Orders in their for principal or agent transactions.23 At Exchange’s System in all series of
appointed options class. The Exchange that time, ISE represented that, in an options classes to which the market
believes that Market Maker liquidity electronic market, non-customer market maker is appointed.27 The Exchange
should be displayed liquidity. For these orders have the potential to create believes that these markets should be
reasons, and to remain competitive with market volatility by trading at different transparent. Today, ISE Market Makers
other markets, the Exchange proposes to price levels until their order is fully are not permitted to enter Reserve
permit Market Makers to enter all orders executed. ISE further noted that, Orders in either appointed or non-
they are eligible to submit in their without this restriction, non-customers appointed options classes. The
appointed class with the exception of would be able to use large-size orders to Exchange proposes to specifically note
Reserve Orders and also restrict Reserve quickly take out ISE’s entire order book this limitation in both Rule 805(a) and
Orders in the non-appointed classes. without giving other market participants (b) as an exception. The Exchange notes
an opportunity to react.24 When the that this limitation is specifically not
Non-Appointed Options Classes
restriction was adopted, there were noted in Rule 805(b) today despite the
Today, for the reasons noted above, various limitations imposed on non- fact that the limitation exists in the
the Exchange does not permit Market customer trading. For example, System today.
Makers to enter Reserve Orders in non- displayed quotes were firm only for The Exchange is also amending ISE
appointed options classes. However, the public customer orders. Since that time, Rule 805(a) to detail the types of non-
current rule text does not provide this electronic options trading has evolved. resting order types and their modifiers
limitation. The Exchange proposes to With the adoption of trade-through with respect to ISO Orders, All-Or-None
amend the current rule text at ISE Rule protection under the intermarket Orders, Stop Orders, Qualified
805(b)(1) to codify this limitation. linkage, every order must be executed at Contingent Cross Orders, Attributable
2. Statutory Basis the best quoted price. Further, ISE has Orders, Do-Not-Route Orders, QCC with
also removed restrictions on non- Stock Orders, Opening Sweep Orders,
The Exchange believes that its
customer trading. For example, EAMs Cancel and Replace Orders, and Add
proposal is consistent with Section 6(b)
may now submit non-customer limit Liquidity Orders. This rule change will
of the Act,19 in general, and furthers the
orders regardless of the size of the order detail and align the rule text with the
objectives of Section 6(b)(5) of the Act,20
where previously EAMs were prohibited system functionality and make clear
in particular, in that it is designed to
from submitting orders for non- which order types a Market Maker may
promote just and equitable principles of
customers that caused ISE’s best bid and submit in appointed options classes.
trade, to remove impediments to and
offer to be for less than 10 contracts.25 ISE Market Makers continue to be
perfect the mechanism of a free and
The Exchange does not believe there obligated to add liquidity on ISE. The
open market and a national market
is any reason to restrict Market Makers Exchange also notes that ISE Rule
system, and, in general to protect
in entering order types, except for the 805(b)(2) and (3) restricts the number of
investors and the public interest, by
restriction related to Reserve Orders, in contracts that a Market Maker may enter
providing Market Makers access to trade
options classes in which they are in an options class to which the Market
order types which are currently
appointed. Unlike other order types, the Maker is not appointed.28 The Exchange
permissible to be traded in on other
Reserve Order is a limit order that
18 ISE Rule 1901(b)(8) states, ‘‘The transaction 26 See ISE Rule 715(g).
21 See note 8 above. 27 See
that constituted the Trade-Through was the ISE Rule 803(b)(2).
22 Today, Market Makers are not eligible to
execution of an order for which, at the time of 28 The total number of contracts executed during

receipt of the order, a Member had guaranteed an execute either Customer Cross Orders, which are a quarter by a Competitive Market Maker in options
execution at no worse than a specified price (a Customer orders, or Stopped Orders, which are classes to which it is not appointed may not exceed
‘‘stopped order’’), where: (i) The stopped order was intended for the account of a customer. twenty-five percent (25%) of the total number of
for the account of a Customer; (ii) the Customer 23 See Securities Exchange Act Release No. 42455
contracts traded by such Competitive Market Maker
sradovich on DSK3GMQ082PROD with NOTICES

agreed to the specified price on an order-by-order (February 24, 2000), 65 FR 11388 (March 2, 2000) in classes to which it is appointed and with respect
basis; and (iii) the price of the Trade-Through was, (File No. 10–127) (In the Matter of the Application to which it was quoting pursuant to Rule 804(e)(2).
for a stopped buy order, lower than the national of The International Securities Exchange LLC for See ISE Rule 805(b)(2).
Best Bid in the options series at the time of Registration as a National Securities Exchange; The total number of contracts executed during a
execution, or, for a stopped sell order, higher than Findings and Opinion of the Commission). quarter by a Primary Market Maker in options
the national Best Offer in the options series at the 24 Id.
classes to which it is not appointed may not exceed
time of execution . . .’’ 25 See Securities Exchange Act Release No. 49602 ten percent (10%) of the total number of contracts
19 15 U.S.C. 78f(b).
(April 22, 2004), 69 FR 23841 (April 30, 2004) (SR– traded per each Primary Market Maker
20 15 U.S.C. 78f(b)(5). ISE–2003–26). Membership. See ISE Rule 805(b)(3).

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3202 Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices

notes that it also requires Market Makers Maker.32 The Exchange also notes that system functionality. The Commission
to abide by certain quoting ISE Rule 805(b)(2) and (3) restricts the believes that waiver of the 30-day
requirements, in the options classes in number of orders that a Market Maker operative delay is consistent with the
which they are appointed pursuant to may enter in an options class to which protection of investors and the public
ISE Rule 802, in order to maintain the the Market Maker is not appointed.33 interest. Accordingly, the Commission
status of a Market Maker.29 The The Exchange believes that permitting a hereby waives the operative delay and
Exchange believes that permitting a Market Maker to enter additional order designates the proposed rule change as
Market Maker to enter additional order types, except Reserve Orders, in their operative upon filing.38
types, except Reserve Orders, in their appointed options class will permit At any time within 60 days of the
appointed options class will permit Market Makers additional latitude to filing of the proposed rule change, the
Market Makers additional latitude to conduct business on ISE and effectively Commission summarily may
conduct business on ISE and effectively compete with other market makers on temporarily suspend such rule change if
compete with other market makers on other options exchanges. it appears to the Commission that such
other options exchanges. Quotes and action is: (i) Necessary or appropriate in
C. Self-Regulatory Organization’s the public interest; (ii) for the protection
orders entered by a Market Maker may Statement on Comments on the
not interact against quotes and orders of investors; or (iii) otherwise in
Proposed Rule Change Received From furtherance of the purposes of the Act.
entered on the opposite side of the Members, Participants, or Others
market by the same Market Maker.30 If the Commission takes such action, the
No written comments were either Commission shall institute proceedings
B. Self-Regulatory Organization’s solicited or received. to determine whether the proposed rule
Statement on Burden on Competition should be approved or disapproved.
III. Date of Effectiveness of the
The Exchange does not believe that Proposed Rule Change and Timing for IV. Solicitation of Comments
the proposed rule change will impose Commission Action
any burden on competition not Interested persons are invited to
Because the foregoing proposed rule submit written data, views, and
necessary or appropriate in furtherance
change does not: (i) Significantly affect arguments concerning the foregoing,
of the purposes of the Act. Today, NYSE
the protection of investors or the public including whether the proposed rule
Arca and NYSE American place no
interest; (ii) impose any significant change is consistent with the Act.
limitation on the types of orders that
burden on competition; and (iii) become Comments may be submitted by any of
can be entered by market makers in
operative for 30 days from the date on the following methods:
their appointed class.31 Accordingly,
which it was filed, or such shorter time
the Exchange believes that this proposal Electronic Comments
as the Commission may designate, it has
does not impose an undue burden on • Use the Commission’s internet
become effective pursuant to Section
inter-market competition because each comment form (http://www.sec.gov/
19(b)(3)(A)(iii) of the Act 34 and
options exchange generally determines rules/sro.shtml); or
subparagraph (f)(6) of Rule 19b–4
permissible order types for market • Send an email to rule-comments@
thereunder.35
makers in its trading environment based sec.gov. Please include File Number SR–
A proposed rule change filed under
on the exchange’s individual business ISE–2018–04 on the subject line.
Rule 19b–4(f)(6) 36 normally does not
policy, objectives, and trading system.
become operative prior to 30 days after Paper Comments
The Exchange’s proposal reflects its
the date of the filing. However, Rule
policy and objectives, and does not
19b–4(f)(6)(iii) 37 permits the • Send paper comments in triplicate
impose an undue burden on intra- to Brent J. Fields, Secretary, Securities
Commission to designate a shorter time
market competition because it treats all and Exchange Commission, 100 F Street
if such action is consistent with the
market makers uniformly with respect NE, Washington, DC 20549–1090.
protection of investors and the public
to permissible order types. Further, this All submissions should refer to File
interest. The Exchange has asked the
rule change will align the system Number SR–ISE–2018–04. This file
Commission to waive the 30-day
functionality with the rule text to reflect number should be included on the
operative delay so that the proposal may
the types of orders a Market Maker in subject line if email is used. To help the
become operative immediately upon
both appointed and non-appointed Commission process and review your
filing. The Exchange states that the
options class may submit. The current comments more efficiently, please use
proposed rule change will permit
rule text is not accurate. This rule filing only one method. The Commission will
Market Makers additional latitude to
is intended to detail and align the rule post all comments on the Commission’s
conduct business on ISE and effectively
text with the system functionality in the internet website (http://www.sec.gov/
compete with other market makers on
current text of Rule 805(a) and (b). This rules/sro.shtml). Copies of the
other options exchanges. The Exchange
proposal will make clear which order submission, all subsequent
further states that the proposed rule will
types a Market Maker may submit in amendments, all written statements
detail and align the rule text with the
both appointed and non-appointed with respect to the proposed rule
options classes. 32 See note 29 above. change that are filed with the
Further, Market Makers, unlike other 33 See note 28 above. Commission, and all written
market participants, are required to 34 15 U.S.C. 78s(b)(3)(A)(iii). communications relating to the
abide by certain quoting requirements, 35 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
proposed rule change between the
in the options classes in which they are 4(f)(6)(iii) requires a self-regulatory organization to Commission and any person, other than
sradovich on DSK3GMQ082PROD with NOTICES

appointed pursuant to ISE Rule 802, in give the Commission written notice of its intent to
file the proposed rule change, along with a brief those that may be withheld from the
order to maintain the status of a Market description and the text of the proposed rule public in accordance with the
change, at least five business days prior to the date
29 See ISE Rule 804(e) and Supplementary of filing of the proposed rule change, or such 38 For purposes only of waiving the 30-day
Material .01 to Rule 804. Orders do not count shorter time as designated by the Commission. The operative delay, the Commission has also
toward meeting continuous quoting obligations. Exchange has satisfied this requirement. considered the proposed rule’s impact on
30 See ISE Rule 804(b). 36 17 CFR 240.19b–4(f)(6).
efficiency, competition, and capital formation. See
31 See note 8 above. 37 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f).

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Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Notices 3203

provisions of 5 U.S.C. 552, will be solicit comments on the proposed rule The EDGX Option’s fee schedule
available for website viewing and change from interested persons. currently defines ‘‘Non-Professional
printing in the Commission’s Public User’’ as:
I. Self-Regulatory Organization’s
Reference Room, 100 F Street NE, a natural person who is not: (i) Registered or
Statement of the Terms of Substance of
Washington, DC 20549, on official qualified in any capacity with the
the Proposed Rule Change
business days between the hours of Commission, the Commodity Futures
10:00 a.m. and 3:00 p.m. Copies of the The Exchange filed a proposal to Trading Commission, any state securities
filing also will be available for amend the Market Data section of its fee agency, any securities exchange or
inspection and copying at the principal schedule to harmonize the definition of association, or any commodities or futures
office of the Exchange. All comments contract market or association; (ii) engaged as
‘‘Non-Professional User’’ with that of its an ‘‘investment adviser’’ as that term is
received will be posted without change. affiliates, Cboe Exchange, Inc. (‘‘Cboe’’) defined in Section 202(a)(11) of the
Persons submitting comments are and Cboe C2 Exchange, Inc. (‘‘C2’’). Investment Advisers Act of 1940 (whether or
cautioned that we do not redact or edit The text of the proposed rule change not registered or qualified under that Act); or
personal identifying information from is available at the Exchange’s website at (iii) employed by a bank or other
comment submissions. You should www.markets.cboe.com, at the principal organization exempt from registration under
submit only information that you wish federal or state securities laws to perform
office of the Exchange, and at the
to make available publicly. All functions that would require registration or
Commission’s Public Reference Room. qualification if such functions were
submissions should refer to File
II. Self-Regulatory Organization’s performed for an organization not so exempt.
Number SR–ISE–2018–04 and should be
submitted on or before February 13, Statement of the Purpose of, and As amended, ‘‘Non-Professional User’’
2018. Statutory Basis for, the Proposed Rule would be defined as:
Change a natural person or qualifying trust that uses
For the Commission, by the Division of
Trading and Markets, pursuant to delegated In its filing with the Commission, the Data only for personal purposes and not for
authority.39 any commercial purpose and, for a natural
Exchange included statements
Eduardo A. Aleman, person who works in the United States, is
concerning the purpose of and basis for not: (i) Registered or qualified in any capacity
Assistant Secretary. the proposed rule change and discussed with the Securities and Exchange
[FR Doc. 2018–01092 Filed 1–22–18; 8:45 am] any comments it received on the Commission, the Commodities Futures
BILLING CODE 8011–01–P proposed rule change. The text of these Trading Commission, any state securities
statements may be examined at the agency, any securities exchange or
places specified in Item IV below. The association, or any commodities or futures
SECURITIES AND EXCHANGE Exchange has prepared summaries, set contract market or association; (ii) engaged as
an ‘‘investment adviser’’ as that term is
COMMISSION forth in Sections A, B, and C below, of
defined in Section 202(a)(11) of the
the most significant parts of such Investment Advisors Act of 1940 (whether or
[Release No. 34–82518; File No. SR– statements.
CboeEDGA–2018–001] not registered or qualified under that Act); or
A. Self-Regulatory Organization’s (iii) employed by a bank or other
Self-Regulatory Organizations; Cboe organization exempt from registration under
Statement of the Purpose of, and
federal or state securities laws to perform
EDGA Exchange, Inc.; Notice of Filing Statutory Basis for, the Proposed Rule functions that would require registration or
and Immediate Effectiveness of a Change qualification if such functions were
Proposed Rule Change To Harmonize performed for an organization not so exempt;
1. Purpose
the Definition of Non-Professional User or, for a natural person who works outside
in Its Fee Schedule With That of Its The Exchange proposes to amend the of the United States, does not perform the
Affiliates Market Data section of its fee schedule same functions as would disqualify such
to harmonize the definition of ‘‘Non- person as a Non-Professional User if he or
January 17, 2018. she worked in the United States.
Professional User’’ with that of its
Pursuant to Section 19(b)(1) of the affiliates, Cboe and C2. In late 2016, the The revised definition is substantially
Securities Exchange Act of 1934 (the Exchange and its affiliates Cboe EDGX identical to the definition of ‘‘Non-
‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange, Inc. (‘‘EDGX’’), Cboe BYX Professional User’ included within the
notice is hereby given that on January 8, Exchange, Inc. (‘‘BYX’’), and Cboe BZX Cboe and C2 fee schedules.6 The
2018, Cboe EDGA Exchange, Inc. (the Exchange, Inc. (‘‘BZX’’) received Exchange’s current definition of ‘‘Non-
‘‘Exchange’’ or ‘‘EDGA’’) filed with the approval to effect a merger (the Professional User’’ does differ from that
Securities and Exchange Commission ‘‘Merger’’) of the Exchange’s parent contained in the Cboe and C2 fee
(the ‘‘Commission’’) the proposed rule company, Bats Global Markets, Inc., the schedules in following minor, non-
change as described in Items I and II parent of EDGA, EDGX, BYX, and BZX substantive ways. First, the harmonized
below, which Items have been prepared with CBOE Holding, Inc. (now known as definition will make clear that a Non-
by the Exchange. The Exchange has Cboe Global Markets, Inc.) the parent Professional User may be a natural
designated this proposal as a ‘‘non- company of Cboe and C2.5 In order to person or qualifying trust that uses Data
controversial’’ proposed rule change provide consistent rules and only for personal purposes and not for
pursuant to Section 19(b)(3)(A) of the terminology amongst the Exchange, any commercial purpose. To date, the
Act 3 and Rule 19b–4(f)(6)(iii) Cboe, and C2, the Exchange proposes to Exchange is not aware of any entity that
thereunder,4 which renders it effective amend the definition of ‘‘Non-
sradovich on DSK3GMQ082PROD with NOTICES

upon filing with the Commission. The Professional User’’ to harmonize it with 6 See the Cboe fee schedule available at https://
Commission is publishing this notice to that of its affiliates, Cboe and C2. www.cboe.org/general-info/pdfframed?content=/
publish/mdxfees/cboe-cds-fees-schedule-for-cboe-
39 17 datafeeds.pdf&section=SEC_MDX_CSM&title=
CFR 200.30–3(a)(12). 5 See Securities Exchange Act Release No. 79585
1 15
Cboe%20CDS%20Fees%20Schedule and the C2 fee
U.S.C. 78s(b)(1). (December 16, 2016), 82 FR 6961 (December 22, schedule available at https://www.cboe.org/general-
2 17 CFR 240.19b–4.
2016) (SR–BatsEDGX–2016–60; SR–BatsEDGA– info/pdfframed?content=/publish/mdxfees/c2-cds-
3 15 U.S.C. 78s(b)(3)(A).
2016–24; SR–BatsBYX–2017–29; and SR–BatsBYX– fees-schedule.pdf&section=SEC_MDX_CSM&title=
4 17 CFR 240.19b–4(f)(6)(iii). 2016–68). C2%20CDS%20Fees%20Schedule.

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Document Created: 2018-01-23 01:08:35
Document Modified: 2018-01-23 01:08:35
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 3199