83 FR 35038 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Schedule of Fees To Waive Fees and Rebates for Trades in NQX Options
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 142 (July 24, 2018)
Federal Register Volume 83, Issue 142 (July 24, 2018)
| Page Range | 35038-35040 | |
| FR Document | 2018-15767 |
[Federal Register Volume 83, Number 142 (Tuesday, July 24, 2018)] [Notices] [Pages 35038-35040] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-15767] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83660; File No. SR-ISE-2018-63] Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Schedule of Fees To Waive Fees and Rebates for Trades in NQX Options July 18, 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 July 6, 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 the Exchange's Schedule of Fees, as further described 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. 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 recently received approval to list index options on the Nasdaq 100 Reduced Value Index (``NQX'') on a pilot basis.\3\ The NQX options contract will be the same in all respects as the current Nasdaq-100 Index (``NDX'') options contract listed on the Exchange, except that it will be based on \1/5\ of the value of the Nasdaq 100 Index, and will be P.M. settled with an exercise settlement value based on the closing index value of the Nasdaq 100 on the day of expiration.\4\ The [[Page 35039]] Exchange will begin to list NQX on June 26, 2018.\5\ --------------------------------------------------------------------------- \3\ See Securities Exchange Act Release No. 82911 (March 20, 2018), 83 FR 12966 (March 26, 2018) (SR-ISE-2017-106). \4\ Id. The Exchange notes that similar features are available with other index options contracts listed on the Exchange and other options exchanges, including P.M. settled options on the full value of the Nasdaq-100 Index (``NDXP''). \5\ The Exchange initially filed the proposed pricing changes on June 26, 2018 (SR-ISE-2018-58). On July 6, 2018, the Exchange withdrew that filing and submitted this filing. --------------------------------------------------------------------------- The Exchange now proposes to amend its Schedule of Fees to provide that there will be no fees or rebates for trades in NQX options executed from June 26-29, 2018. Volume executed in NQX options during this period will continue to be counted toward a member's tier for June activity. As such, NQX executions from June 26-29, 2018 will be included in the applicable volume tier calculations for a member's June activity, including those volume calculations specific to Non-Select Symbols (i.e., options overlying all symbols that are not in the Penny Pilot Program).\6\ The Exchange plans to adopt pricing for NQX as of July 2, 2018, and will do so through the SEC rulemaking process. The proposed changes would simplify the Exchange's billing by allowing the Exchange to bill for NQX activity traded as of July 2nd, and is an inducement for members to trade NQX options during the first week of listing as there would be no transaction fees for doing so. --------------------------------------------------------------------------- \6\ For example, the Exchange provides Market Makers discounted fees for regular orders in Non-Select Symbols if the Market Maker executes a monthly volume of 250,000 contracts or more. See Schedule of Fees, Section IV.D. As proposed, the Market Maker's executions in NQX between June 26-29, 2018 would not be entitled to any discounted fees given that no fees or rebates would be provided during the proposed period, but such executions would still be counted toward the monthly volume calculation (i.e., to reach the 250,000 contract threshold). NQX is a Non-Select Symbol. --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\7\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\8\ 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. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78f(b). \8\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- The Exchange believes that it is reasonable and equitable to assess no fees or rebates for executions in NQX from June 26-29, 2018 because it will simplify the Exchange's billing and promote members to trade in NQX during the first week of listing, as further discussed above. For the same foregoing reasons, the Exchange also believes that it is reasonable and equitable to provide that volume executed in NQX during this time period will continue to be counted toward a member's tier for June activity. The Exchange also believes that it is reasonable to include NQX volume in this manner because it would be more burdensome to make changes to the Exchange's billing system in the middle of the month rather than the start to exclude a new symbol from the applicable volume tier calculations, as described above. The Exchange further believes that its proposal is not unfairly discriminatory as it will apply to trades in NQX that are executed by all market participants. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. As discussed above, the proposed change to not assess any fees or rebates for executions of NQX orders from June 26-29, 2018 is merely intended to simplify the Exchange's billing, and promote members to trade in NQX during the first week of listing. Furthermore, the proposal will apply uniformly to all similarly situated market participants, as discussed above. For the foregoing reasons, the Exchange does not believe that its proposal will impose an undue burden on competition. 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. 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,\9\ and Rule 19b-4(f)(2) \10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A)(ii). \10\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. Please include File Number SR-ISE-2018-63 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-2018-63. 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 [[Page 35040]] 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- 2018-63 and should be submitted on or before August 14, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-15767 Filed 7-23-18; 8:45 am] BILLING CODE 8011-01-P
![35038 Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Notices
all market participants. Therefore, ICC internet website (http://www.sec.gov/ ‘‘Exchange’’) filed with the Securities
does not believe the proposed rule rules/sro.shtml). Copies of the and Exchange Commission
changes impose any burden on submission, all subsequent (‘‘Commission’’) the proposed rule
competition that is inappropriate in amendments, all written statements change as described in Items I and II
furtherance of the purposes of the Act. with respect to the proposed rule below, which Items have been prepared
change, security-based swap by the Exchange. The Commission is
(C) Clearing Agency’s Statement on submission, or advance notice that are
Comments on the Proposed Rule publishing this notice to solicit
filed with the Commission, and all comments on the proposed rule change
Change, Security-Based Swap written communications relating to the
Submission, or Advance Notice from interested persons.
proposed rule change, security-based
Received From Members, Participants or swap submission, or advance notice I. Self-Regulatory Organization’s
Others between the Commission and any Statement of the Terms of Substance of
Written comments relating to the person, other than those that may be the Proposed Rule Change
proposed rule change have not been withheld from the public in accordance
solicited or received. ICC will notify the with the provisions of 5 U.S.C. 552, will The Exchange proposes to amend the
Commission of any written comments be available for website viewing and Exchange’s Schedule of Fees, as further
received by ICC. printing in the Commission’s Public described below.
Reference Room, 100 F Street NE, The text of the proposed rule change
III. Date of Effectiveness of the
Washington, DC 20549, on official is available on the Exchange’s website at
Proposed Rule Change, Security-Based
business days between the hours of http://ise.cchwallstreet.com/, at the
Swap Submission, or Advance Notice
10:00 a.m. and 3:00 p.m. Copies the principal office of the Exchange, and at
and Timing for Commission Action filing also will be available for the Commission’s Public Reference
Within 45 days of the date of inspection and copying at the principal Room.
publication of this notice in the Federal office of ICE Clear Credit and on ICE
Register or within such longer period Clear Credit’s website at https:// II. Self-Regulatory Organization’s
up to 90 days (i) as the Commission may www.theice.com/clear-credit/regulation. Statement of the Purpose of, and
designate if it finds such longer period All comments received will be posted Statutory Basis for, the Proposed Rule
to be appropriate and publishes its without change. Persons submitting Change
reasons for so finding or (ii) as to which comments are cautioned that we do not
the self-regulatory organization In its filing with the Commission, the
redact or edit personal identifying
consents, the Commission will: information from comment submissions. Exchange included statements
(A) By order approve or disapprove You should submit only information concerning the purpose of and basis for
such proposed rule change, or that you wish to make available the proposed rule change and discussed
(B) institute proceedings to determine publicly. All submissions should refer any comments it received on the
whether the proposed rule change to File Number SR–ICC–2018–008 and proposed rule change. The text of these
should be disapproved. should be submitted on or before statements may be examined at the
August 14, 2018. places specified in Item IV below. The
IV. Solicitation of Comments Exchange has prepared summaries, set
For the Commission, by the Division of
Interested persons are invited to forth in sections A, B, and C below, of
Trading and Markets, pursuant to delegated
submit written data, views, and authority.12 the most significant aspects of such
arguments concerning the foregoing, Eduardo A. Aleman, statements.
including whether the proposed rule Assistant Secretary. A. Self-Regulatory Organization’s
change, security-based swap
submission, or advance notice is
[FR Doc. 2018–15771 Filed 7–23–18; 8:45 am] Statement of the Purpose of, and
consistent with the Act. Comments may BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
be submitted by any of the following Change
methods: SECURITIES AND EXCHANGE 1. Purpose
Electronic Comments COMMISSION
The Exchange recently received
• Use the Commission’s internet [Release No. 34–83660; File No. SR–ISE– approval to list index options on the
comment form (http://www.sec.gov/ 2018–63] Nasdaq 100 Reduced Value Index
rules/sro.shtml); or (‘‘NQX’’) on a pilot basis.3 The NQX
• Send an email to rule-comments@ Self-Regulatory Organizations; Nasdaq options contract will be the same in all
sec.gov. Please include File Number SR– ISE, LLC; Notice of Filing and respects as the current Nasdaq-100
ICC–2018–008 on the subject line. Immediate Effectiveness of Proposed Index (‘‘NDX’’) options contract listed
Rule Change To Amend the
Paper Comments on the Exchange, except that it will be
Exchange’s Schedule of Fees To
based on 1⁄5 of the value of the Nasdaq
Send paper comments in triplicate to Waive Fees and Rebates for Trades in
100 Index, and will be P.M. settled with
Secretary, Securities and Exchange NQX Options
an exercise settlement value based on
Commission, 100 F Street NE, July 18, 2018. the closing index value of the Nasdaq
Washington, DC 20549–1090. Pursuant to Section 19(b)(1) of the 100 on the day of expiration.4 The
All submissions should refer to File
jstallworth on DSKBBY8HB2PROD with NOTICES
Securities Exchange Act of 1934
Number SR–ICC–2018–008. This file (‘‘Act’’),1 and Rule 19b–4 thereunder,2 3 See Securities Exchange Act Release No. 82911
number should be included on the notice is hereby given that on July 6, (March 20, 2018), 83 FR 12966 (March 26, 2018)
subject line if email is used. To help the 2018, Nasdaq ISE, LLC (‘‘ISE’’ or (SR–ISE–2017–106).
4 Id. The Exchange notes that similar features are
Commission process and review your
available with other index options contracts listed
comments more efficiently, please use 12 17 CFR 200.30–3(a)(12). on the Exchange and other options exchanges,
only one method. The Commission will 1 15 U.S.C. 78s(b)(1). including P.M. settled options on the full value of
post all comments on the Commission’s 2 17 CFR 240.19b–4. the Nasdaq-100 Index (‘‘NDXP’’).
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![35040 Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Notices
Reference Room, 100 F Street NE, change, or within such longer period up exchange-traded products under NYSE
Washington, DC 20549, on official to 90 days as the Commission may Arca Rule 8.200–E, Commentary .02:
business days between the hours of designate if it finds such longer period Direxion Daily Bitcoin Bear 1X Shares,
10:00 a.m. and 3:00 p.m. Copies of the to be appropriate and publishes its Direxion Daily Bitcoin 1.25X Bull
filing also will be available for reasons for so finding or as to which the Shares, Direxion Daily Bitcoin 1.5X Bull
inspection and copying at the principal self-regulatory organization consents, Shares, Direxion Daily Bitcoin 2X Bull
office of the Exchange. All comments the Commission shall either approve the Shares, and Direxion Daily Bitcoin 2X
received will be posted without change. proposed rule change, disapprove the Bear Shares. The proposed rule change
Persons submitting comments are proposed rule change, or institute was published for comment in the
cautioned that we do not redact or edit proceedings to determine whether the
Federal Register on January 24, 2018.3
personal identifying information from proposed rule change should be
On March 1, 2018, pursuant to Section
comment submissions. You should disapproved. The Commission is
submit only information that you wish extending this 45-day time period. The 19(b)(2) of the Act,4 the Commission
to make available publicly. All Commission finds that it is appropriate designated a longer period within which
submissions should refer to File to designate a longer period within to approve the proposed rule change,
Number SR–ISE–2018–63 and should be which to take action on the proposed disapprove the proposed rule change, or
submitted on or before August 14, 2018. rule change so that it has sufficient time institute proceedings to determine
to consider the proposed rule change. whether to disapprove the proposed
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Accordingly, the Commission, rule change.5 On April 23, 2018, the
authority.11 pursuant to Section 19(b)(2) of the Act,6 Commission instituted proceedings
Eduardo A. Aleman, designates September 3, 2018, as the under Section 19(b)(2)(B) of the Act 6 to
Assistant Secretary. date by which the Commission shall determine whether to approve or
[FR Doc. 2018–15767 Filed 7–23–18; 8:45 am]
either approve or disapprove, or disapprove the proposed rule change.7
institute proceedings to determine The Commission has received two
BILLING CODE 8011–01–P
whether to disapprove, the proposed comments on the proposed rule
rule change (File No. SR–NYSEAMER– change.8
SECURITIES AND EXCHANGE 2018–22).
Section 19(b)(2) of the Act 9 provides
COMMISSION For the Commission, by the Division of that, after initiating disapproval
Trading and Markets, pursuant to delegated
[Release No. 34–83668; File No. SR– proceedings, the Commission shall issue
authority.7
NYSEAMER–2018–22] an order approving or disapproving the
Eduardo A. Aleman,
proposed rule change not later than 180
Self-Regulatory Organizations; NYSE Assistant Secretary.
days after the date of publication of
American LLC; Notice of Designation [FR Doc. 2018–15765 Filed 7–23–18; 8:45 am]
notice of filing of the proposed rule
of a Longer Period for Commission BILLING CODE 8011–01–P
change. The Commission may extend
Action on a Proposed Rule Change To the period for issuing an order
Amend Exchange Rule 7.35E Relating approving or disapproving the proposed
to the Auction Reference Price for a SECURITIES AND EXCHANGE
COMMISSION rule change, however, by not more than
Trading Halt Auction Following a
60 days if the Commission determines
Regulatory Halt [Release No. 34–83661; File No. SR– that a longer period is appropriate and
NYSEArca–2018–02]
July 18, 2018. publishes the reasons for such
On May 15, 2018, NYSE American Self-Regulatory Organizations; NYSE determination. The proposed rule
LLC (‘‘Exchange’’ or ‘‘NYSE American’’) Arca, Inc.; Notice of Designation of a change was published for notice and
filed with the Securities and Exchange Longer Period for Commission Action comment in the Federal Register on
Commission (‘‘Commission’’) pursuant on Proceedings To Determine Whether January 24, 2018. July 23, 2018, is 180
to Section 19(b)(1) of the Securities To Approve or Disapprove a Proposed
Exchange Act of 1934 (‘‘Act’’) 1 and Rule Rule Change Relating to Listing and 3 See Securities Exchange Act Release No. 82532
19b–4 thereunder,2 a proposed rule Trading of the Direxion Daily Bitcoin (Jan. 18, 2018), 83 FR 3380 (Jan. 24, 2018).
change to amend Exchange Rule 7.35E Bear 1X Shares, Direxion Daily Bitcoin
4 15 U.S.C. 78s(b)(2).
5 See Securities Exchange Act Release No. 82795
relating to the Auction Reference Price 1.25X Bull Shares, Direxion Daily (Mar. 1, 2018), 83 FR 9768 (Mar. 7, 2018).
for a Trading Halt Auction following a Bitcoin 1.5X Bull Shares, Direxion 6 15 U.S.C. 78s(b)(2)(B).
regulatory halt. The proposed rule Daily Bitcoin 2X Bull Shares and 7 See Securities Exchange Act Release No. 83094
change was published for comment in Direxion Daily Bitcoin 2X Bear Shares (Apr. 23, 2018), 83 FR 18603 (Apr. 27, 2018).
the Federal Register on June 5, 2018.3 Under NYSE Arca Rule 8.200–E Specifically, the Commission instituted proceedings
The Commission has received one to allow for additional analysis of the proposed rule
comment letter in response to the July 18, 2018. change’s consistency with Section 6(b)(5) of the
Act, which requires, among other things, that the
proposed rule change.4 On January 4, 2018, NYSE Arca, Inc. rules of a national securities exchange be ‘‘designed
Section 19(b)(2) of the Act 5 provides (‘‘NYSE Arca’’) filed with the Securities to prevent fraudulent and manipulative acts and
that within 45 days of the publication of and Exchange Commission practices, to promote just and equitable principles
notice of the filing of a proposed rule of trade,’’ and ‘‘to protect investors and the public
(‘‘Commission’’), pursuant to Section interest.’’ See id. at 18604 (citing 15 U.S.C.
19(b)(1) of the Securities Exchange Act 78f(b)(5)).
jstallworth on DSKBBY8HB2PROD with NOTICES
11 17 CFR 200.30–3(a)(12). of 1934 (‘‘Act’’) 1 and Rule 19b–4 8 See Letters from Steven Williams (May 17, 2018)
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
thereunder,2 a proposed rule change to and Sharon Brown-Hruska, Managing Director, and
list and trade shares of the following Trevor Wagener, Consultant, NERA Economic
3 See Securities Exchange Act Release No. 83341
Consulting (May 18, 2018). All comments on the
(May 30, 2018), 83 FR 2612 (June 5, 2018). proposed rule change are available on the
4 See Letter from Duane Fiedler, to Secretary, 6 Id.
Commission’s website at: https://www.sec.gov/
7 17 CFR 200.30–3(a)(31).
Securities and Exchange Commission (June 23, comments/sr-nysearca-2018-02/
2018). 1 15 U.S.C.78s(b)(1). nysearca201802.htm.
5 15 U.S.C. 78s(b)(2). 2 17 CFR 240.19b–4. 9 15 U.S.C. 78s(b)(2).
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Document Created: 2018-07-24 00:10:22
Document Modified: 2018-07-24 00:10:22
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 83 FR 35038 |
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