83 FR 6069 - 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 Modify Complex Order Fees and Rebates
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 29 (February 12, 2018)
Federal Register Volume 83, Issue 29 (February 12, 2018)
| Page Range | 6069-6071 | |
| FR Document | 2018-02727 |
[Federal Register Volume 83, Number 29 (Monday, February 12, 2018)] [Notices] [Pages 6069-6071] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-02727] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82644; File No. SR-ISE-2018-10] 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 Modify Complex Order Fees and Rebates February 6, 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 30, 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. 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 purpose of the proposed rule change is to amend the Exchange's Schedule of Fees to modify certain complex order fees and rebates in Section II, and to make a number of non-substantive changes to update certain section headings. Each change is described below.\3\ --------------------------------------------------------------------------- \3\ The Exchange initially filed the proposed pricing changes on January 2, 2018 (SR-ISE-2018-02). On January 11, 2018, the Exchange withdrew that filing and submitted SR-ISE-2018-05. On January 22, 2018, the Exchange withdrew SR-ISE-2018-05 and submitted SR-ISE- 2018-08. On January 30, 2018, the Exchange withdrew SR-ISE-2018-08 and submitted this filing. --------------------------------------------------------------------------- Priority Customer Complex Order Rebate for Select Symbols Currently as set forth in Section II of the Schedule of Fees, the Exchange provides rebates to Priority Customer \4\ complex orders that trade with Non-Priority Customer \5\ complex orders in the complex order book or trade with quotes and orders on the regular order book. Rebates are tiered based on a member's average daily volume (``ADV'') executed during a given month as follows: 0 to 14,999 contracts (``Tier 1''), 15,000 to 44,999 contracts (``Tier 2''), 45,000 to 59,999 contracts (``Tier 3''), 60,000 to 74,999 contracts (``Tier 4''), 75,000 to 99,999 contracts (``Tier 5''), 100,000 to 124,999 contracts (``Tier 6''), 125,000 to 224,999 contracts (``Tier 7''), and 225,000 or more contracts (``Tier 8''). In Select Symbols,\6\ the rebate is $0.26 per contract for Tier 1, $0.30 per contract for Tier 2, $0.36 per contract for Tier 3, $0.41 per contract for Tier 4, $0.42 per contract for Tier 5, $0.44 per contract for Tier 6, $0.46 per contract for Tier 7, and $0.49 per contract for Tier 8. The Exchange now proposes to increase the rebate amounts to $0.45 in Tier 6 and $0.50 in Tier 8. --------------------------------------------------------------------------- \4\ 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 ISE Rule 100(a)(37A). \5\ Non-Priority Customer includes Market Maker, Non-Nasdaq GEMX Market Maker, Firm Proprietary, Broker-Dealer, and Professional Customer. \6\ ``Select Symbols'' are options overlying all symbols listed on ISE that are in the Penny Pilot Program. --------------------------------------------------------------------------- Non-Priority Customer Complex Order Taker Fee for Select Symbols Currently, the Exchange charges a complex order taker fee for Select Symbols that is $0.47 per contract for Market Maker \7\ orders (or $0.44 per contract for Market Makers with total affiliated Priority Customer Complex ADV of 150,000 or more contracts),\8\ and $0.48 per contract for Non-Nasdaq ISE Market Maker,\9\ Firm Proprietary \10\/ Broker-Dealer,\11\ and Professional Customer \12\ orders. Priority Customer orders are not charged a complex order taker fee for Select Symbols. The Exchange now proposes to increase the complex order taker fee to $0.50 per contract for Non-Priority Customer orders in Select Symbols. As proposed, Market Makers with total affiliated Priority Customer Complex ADV of [[Page 6070]] 150,000 or more contracts will continue to receive the discounted fee of $0.44. Additionally, preferenced Market Makers will continue to receive the applicable discount of $0.02 per contract when trading against Priority Customer order preferenced to them in the complex order book.\13\ --------------------------------------------------------------------------- \7\ The term ``Market Makers'' refers to ``Competitive Market Makers'' and ``Primary Market Makers'' collectively. \8\ Nasdaq ISE Market Makers making or taking liquidity receive a discount of $0.02 when trading against Priority Customer orders preferenced to them in the Complex Order Book in equity options that are able to be listed and traded on more than one options exchange. This discount does not apply to FX Options Symbols or to option classes designated by the Exchange to receive a guaranteed allocation pursuant to Nasdaq ISE Rule 722(b)(3)(i)(B). \9\ 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. \10\ A ``Firm Proprietary'' order is an order submitted by a member for its own proprietary account. \11\ A ``Broker-Dealer'' order is an order submitted by a member for a broker-dealer account that is not its own proprietary account. \12\ A ``Professional Customer'' is a person or entity that is not a broker/dealer and is not a Priority Customer. \13\ See note 8 above. --------------------------------------------------------------------------- Non-Priority Customer Complex Surcharge for Non-Select Symbols The Exchange proposes to amend Section II of the Schedule of Fees to adopt a surcharge of $0.03 per contract on Non-Priority Customer complex orders in Non-Select Symbols \14\ that take liquidity from the complex order book. For clarification, the proposed Non-Priority Customer complex surcharge will not apply to orders executed or submitted in the Exchange's various auction mechanisms.\15\ --------------------------------------------------------------------------- \14\ ``Non-Select Symbols'' are options overlying all symbols excluding Select Symbols. \15\ Today, the complex order auctions consist of the Facilitation Mechanism, Solicited Order Mechanism, Price Improvement Mechanism and ``exposure'' auctions pursuant to ISE Rule 722(b)(3)(iii). --------------------------------------------------------------------------- Update Fee Schedule Headings Currently, the Exchange's Schedule of Fees contains a number of section headings that are not currently reflected in the Table of Contents. The Exchange added or eliminated these headings as parts of previous rule changes, and inadvertently did not make the corresponding updates to the Table of Contents.\16\ Accordingly, the Exchange proposes to update the Table of Contents to make its Schedule of Fees easier to read. The Exchange also proposes to renumber Section VIII.J to Section VIII.K in connection with these clean-up changes. --------------------------------------------------------------------------- \16\ In particular, the Exchange deleted Sections V.C, VI.B, and VII.D, and added Sections V.D, VI.C, VI.E-VI.I, and VIII.J as parts of previous rule changes to amend ISE's Schedule of Fees. See Securities Exchange Release No. 68324 (November 30, 2012), 77 FR 72901 (December 6, 2012) (SR-ISE-2012-89); Securities Exchange Release No. 81095 (July 7, 2017), 82 FR 32409 (July 13, 2017) (SR- ISE-2017-62); Securities Exchange Release No. 81903 (October 19, 2017), 82 FR 49450 (October 25, 2017) (SR-ISE-2017-91); and Securities Exchange Release No. 82446 (January 5, 2018), 83 FR 1446 (January 11, 2018) (SR-ISE-2017-112). --------------------------------------------------------------------------- 2. Statutory Basis The Exchange believes that its proposal is consistent with Section 6(b) of the Act,\17\ in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,\18\ 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. --------------------------------------------------------------------------- \17\ 15 U.S.C. 78f(b). \18\ 15 U.S.C. 78f(b)(4) and (5). --------------------------------------------------------------------------- Priority Customer Complex Order Rebate for Select Symbols The Exchange believes that it is reasonable to increase the rebates provided to Priority Customer complex orders in the manner discussed above, as these proposed rebates are designed to attract additional Priority Customer complex order volume to the Exchange. The Exchange already provides volume-based tiered rebates for Priority Customer complex orders, and believes that increasing the rebates will incentivize members to send additional order flow to ISE in order to achieve these rebates for their Priority Customer complex order volume, creating additional liquidity to the benefit of all members that trade complex orders on the Exchange. The Exchange notes that Priority Customer orders will continue to receive complex order rebates,\19\ while other market participants will continue to pay a fee. The Exchange does not believe that this is unfairly discriminatory as a Priority Customer is by definition not a broker or 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). This limitation does not apply to participants whose behavior is substantially similar to that of market professionals, including Professional Customers, who will generally submit a higher number of orders (many of which do not result in executions) than Priority Customers. --------------------------------------------------------------------------- \19\ With the exception of responses to complex crossing orders, including complex PIM orders, where Priority Customers are charged a fee like other market participants. --------------------------------------------------------------------------- Non-Priority Customer Complex Order Taker Fee for Select Symbols The Exchange believes that it is reasonable to increase the complex order taker fee to $0.50 per contract for Non-Priority Customer orders in Select Symbols because the increased taker fees are designed to offset the enhanced Priority Customer rebates discussed above. Furthermore, the proposed taker fees are set at levels that the Exchange believes will continue to be attractive to market participants that trade on ISE. As noted above, Market Makers with total affiliated Priority Customer Complex ADV of 150,000 or more contracts will continue to receive the discounted fee of $0.44 under this proposal. Additionally, preferenced Market Makers will continue to receive the applicable discount of $0.02 per contract when trading against Priority Customer order preferenced to them in the complex order book.\20\ --------------------------------------------------------------------------- \20\ See note 8 above. --------------------------------------------------------------------------- The Exchange's proposal to increase the Non-Priority Customer complex order taker fee is equitable and not unfairly discriminatory because the increased fee will apply to all similarly-situated market participants. As noted above, Priority Customers will continue to receive complex order rebates, while other market participants will continue to pay a fee. The Exchange does not believe that this is unfairly discriminatory for the reasons discussed above. The Exchange also notes that Market Maker orders will continue to be eligible for lower fees than other non-Priority Customer orders. The Exchange does not believe that it is unfairly discriminatory provide lower fees to Market Maker orders as Market Makers are subject to additional requirements and obligations (such as quoting requirements) that other market participants are not. Non-Priority Customer Complex Surcharge for Non-Select Symbols The Exchange believes that its proposal to adopt a surcharge of $0.03 per contract on Non-Priority Customer complex orders in Non- Select Symbols that take liquidity from the complex order book is reasonable, equitable and not unfairly discriminatory. Assessing this surcharge to only those orders that take liquidity from the market is reasonable because the Exchange wants to continue to encourage market participation for those participants that seek to add liquidity on ISE. In addition, the Exchange believes that excluding complex orders executed in the Exchange's various auction mechanisms from the proposed Non-Priority Customer complex surcharge is reasonable for the reasons that follow. The proposed complex surcharge will not apply to complex orders executed in the Facilitation Mechanism, Solicited Order Mechanism and Price Improvement Mechanism as such orders have separate pricing in Section II of the Schedule of Fees, and the Exchange wants to continue to encourage participation within these auction mechanisms. The Exchange also believes that the exclusion of ``exposure'' auctions pursuant to ISE Rule 722(b)(3)(iii) from the Non-Priority Customer complex surcharge is reasonable because the Exchange wants to encourage participation in this auction and have it continue to be attractive to market participants who [[Page 6071]] will be assessed the lower fee. The Exchange believes that the complex fee structure as proposed will remain attractive to market participants, who will continue to be charged lower fees for adding liquidity to the complex order book than for removing liquidity. ISE notes that other options exchanges assess similar surcharges on complex orders that remove liquidity from the complex order book.\21\ --------------------------------------------------------------------------- \21\ Nasdaq PHLX (``Phlx''), CBOE Options (``CBOE''), and MIAX Options (``MIAX'') assess similar surcharges for complex order executions that remove liquidity from the complex order book for non-penny classes. See Phlx Pricing Schedule, Section II, note 7; CBOE Fees Schedule, Complex Surcharge, and note 35; and MIAX Fee Schedule, Sections (1)(a)(i) and (ii). --------------------------------------------------------------------------- The Exchange's proposal to adopt the $0.03 per contract Non- Priority Customer complex order surcharge in the manner discussed above is equitable and not unfairly discriminatory because the surcharge will apply to all similarly-situated market participants. Update Fee Schedule Headings The Exchange believes that the clean-up changes to update the section headings in its Schedule of Fees is reasonable, equitable and not unfairly discriminatory because these are non-substantive changes intended to make the Schedule of Fees more transparent to members and investors. B. Self-Regulatory Organization's Statement on Burden on Competition The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed fees and rebates are designed to attract additional order flow to ISE, and the Exchange believes that its complex order pricing remains attractive to market participants. The Exchange 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. 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,\22\ and Rule 19b-4(f)(2) \23\ 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. --------------------------------------------------------------------------- \22\ 15 U.S.C. 78s(b)(3)(A)(ii). \23\ 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-2018-10 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-2018-10. 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-2018-10 and should be submitted on or before March 5, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\24\ --------------------------------------------------------------------------- \24\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2018-02727 Filed 2-9-18; 8:45 am] BILLING CODE 8011-01-P
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communications relating to the I. Self-Regulatory Organization’s book. Rebates are tiered based on a
proposed rule change between the Statement of the Terms of Substance of member’s average daily volume
Commission and any person, other than the Proposed Rule Change (‘‘ADV’’) executed during a given month
those that may be withheld from the The Exchange proposes to amend the as follows: 0 to 14,999 contracts (‘‘Tier
public in accordance with the Exchange’s Schedule of Fees. 1’’), 15,000 to 44,999 contracts (‘‘Tier
provisions of 5 U.S.C. 552, will be The text of the proposed rule change 2’’), 45,000 to 59,999 contracts (‘‘Tier
available for website viewing and is available on the Exchange’s website at 3’’), 60,000 to 74,999 contracts (‘‘Tier
printing in the Commission’s Public http://ise.cchwallstreet.com/, at the 4’’), 75,000 to 99,999 contracts (‘‘Tier
Reference Room, 100 F Street NE, principal office of the Exchange, and at 5’’), 100,000 to 124,999 contracts (‘‘Tier
Washington, DC 20549, on official the Commission’s Public Reference 6’’), 125,000 to 224,999 contracts (‘‘Tier
business days between the hours of Room. 7’’), and 225,000 or more contracts
10:00 a.m. and 3:00 p.m. Copies of the (‘‘Tier 8’’). In Select Symbols,6 the
filing also will be available for II. Self-Regulatory Organization’s rebate is $0.26 per contract for Tier 1,
inspection and copying at the principal Statement of the Purpose of, and $0.30 per contract for Tier 2, $0.36 per
office of the Exchange. All comments Statutory Basis for, the Proposed Rule contract for Tier 3, $0.41 per contract for
received will be posted without change. Change Tier 4, $0.42 per contract for Tier 5,
Persons submitting comments are In its filing with the Commission, the $0.44 per contract for Tier 6, $0.46 per
cautioned that we do not redact or edit Exchange included statements contract for Tier 7, and $0.49 per
personal identifying information from concerning the purpose of and basis for contract for Tier 8. The Exchange now
comment submissions. You should the proposed rule change and discussed proposes to increase the rebate amounts
submit only information that you wish any comments it received on the to $0.45 in Tier 6 and $0.50 in Tier 8.
to make available publicly. All proposed rule change. The text of these Non-Priority Customer Complex Order
submissions should refer to File statements may be examined at the Taker Fee for Select Symbols
Number SR–IEX–2018–02, and should places specified in Item IV below. The
be submitted on or before March 5, Currently, the Exchange charges a
Exchange has prepared summaries, set complex order taker fee for Select
2018. forth in sections A, B, and C below, of Symbols that is $0.47 per contract for
For the Commission, by the Division of the most significant aspects of such Market Maker 7 orders (or $0.44 per
Trading and Markets, pursuant to delegated statements. contract for Market Makers with total
authority.52
A. Self-Regulatory Organization’s affiliated Priority Customer Complex
Eduardo A. Aleman, ADV of 150,000 or more contracts),8 and
Statement of the Purpose of, and
Assistant Secretary. Statutory Basis for, the Proposed Rule $0.48 per contract for Non-Nasdaq ISE
[FR Doc. 2018–02720 Filed 2–9–18; 8:45 am] Change Market Maker,9 Firm Proprietary 10/
BILLING CODE 8011–01–P Broker-Dealer,11 and Professional
1. Purpose Customer 12 orders. Priority Customer
The purpose of the proposed rule orders are not charged a complex order
SECURITIES AND EXCHANGE change is to amend the Exchange’s taker fee for Select Symbols. The
COMMISSION Schedule of Fees to modify certain Exchange now proposes to increase the
complex order fees and rebates in complex order taker fee to $0.50 per
[Release No. 34–82644; File No. SR–ISE– Section II, and to make a number of contract for Non-Priority Customer
2018–10] non-substantive changes to update orders in Select Symbols. As proposed,
certain section headings. Each change is Market Makers with total affiliated
Self-Regulatory Organizations; Nasdaq described below.3 Priority Customer Complex ADV of
ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed Priority Customer Complex Order 6 ‘‘Select Symbols’’ are options overlying all
Rule Change To Amend the Rebate for Select Symbols symbols listed on ISE that are in the Penny Pilot
Exchange’s Schedule of Fees To Program.
Currently as set forth in Section II of 7 The term ‘‘Market Makers’’ refers to
Modify Complex Order Fees and the Schedule of Fees, the Exchange ‘‘Competitive Market Makers’’ and ‘‘Primary Market
Rebates provides rebates to Priority Customer 4 Makers’’ collectively.
February 6, 2018.
complex orders that trade with Non- 8 Nasdaq ISE Market Makers making or taking
Priority Customer 5 complex orders in liquidity receive a discount of $0.02 when trading
Pursuant to Section 19(b)(1) of the against Priority Customer orders preferenced to
the complex order book or trade with them in the Complex Order Book in equity options
Securities Exchange Act of 1934 quotes and orders on the regular order that are able to be listed and traded on more than
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 one options exchange. This discount does not apply
notice is hereby given that on January 3 The Exchange initially filed the proposed to FX Options Symbols or to option classes
30, 2018, Nasdaq ISE, LLC (‘‘ISE’’ or pricing changes on January 2, 2018 (SR–ISE–2018– designated by the Exchange to receive a guaranteed
02). On January 11, 2018, the Exchange withdrew allocation pursuant to Nasdaq ISE Rule
‘‘Exchange’’) filed with the Securities 722(b)(3)(i)(B).
that filing and submitted SR–ISE–2018–05. On
and Exchange Commission January 22, 2018, the Exchange withdrew SR–ISE– 9 A ‘‘Non-Nasdaq ISE Market Maker’’ is a market
(‘‘Commission’’) the proposed rule 2018–05 and submitted SR–ISE–2018–08. On maker as defined in Section 3(a)(38) of the
change as described in Items I and II January 30, 2018, the Exchange withdrew SR–ISE– Securities Exchange Act of 1934, as amended,
2018–08 and submitted this filing. registered in the same options class on another
below, which Items have been prepared 4 A ‘‘Priority Customer’’ is a person or entity that options exchange.
by the Exchange. The Commission is
daltland on DSKBBV9HB2PROD with NOTICES
10 A ‘‘Firm Proprietary’’ order is an order
is not a broker/dealer in securities, and does not
publishing this notice to solicit place more than 390 orders in listed options per day submitted by a member for its own proprietary
comments on the proposed rule change on average during a calendar month for its own account.
from interested persons. beneficial account(s), as defined in ISE Rule 11 A ‘‘Broker-Dealer’’ order is an order submitted
100(a)(37A). by a member for a broker-dealer account that is not
5 Non-Priority Customer includes Market Maker, its own proprietary account.
52 17 CFR 200.30–3(a)(12). Non-Nasdaq GEMX Market Maker, Firm 12 A ‘‘Professional Customer’’ is a person or entity
1 15 U.S.C. 78s(b)(1). Proprietary, Broker-Dealer, and Professional that is not a broker/dealer and is not a Priority
2 17 CFR 240.19b–4. Customer. Customer.
VerDate Sep<11>2014 19:23 Feb 09, 2018 Jkt 244001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\12FEN1.SGM 12FEN1](https://thefederalregister.org/doc/83_FR_6098/page/1.svg)
![Federal Register / Vol. 83, No. 29 / Monday, February 12, 2018 / Notices 6071
will be assessed the lower fee. The C. Self-Regulatory Organization’s proposed rule change between the
Exchange believes that the complex fee Statement on Comments on the Commission and any person, other than
structure as proposed will remain Proposed Rule Change Received From those that may be withheld from the
attractive to market participants, who Members, Participants, or Others public in accordance with the
will continue to be charged lower fees No written comments were either provisions of 5 U.S.C. 552, will be
for adding liquidity to the complex solicited or received. available for website viewing and
order book than for removing liquidity. printing in the Commission’s Public
ISE notes that other options exchanges III. Date of Effectiveness of the Reference Room, 100 F Street NE,
assess similar surcharges on complex Proposed Rule Change and Timing for Washington, DC 20549, on official
orders that remove liquidity from the Commission Action business days between the hours of
complex order book.21 The foregoing rule change has become 10:00 a.m. and 3:00 p.m. Copies of the
The Exchange’s proposal to adopt the effective pursuant to Section filing also will be available for
19(b)(3)(A)(ii) of the Act,22 and Rule inspection and copying at the principal
$0.03 per contract Non-Priority
19b–4(f)(2) 23 thereunder. At any time office of the Exchange. All comments
Customer complex order surcharge in
within 60 days of the filing of the received will be posted without change.
the manner discussed above is equitable
proposed rule change, the Commission Persons submitting comments are
and not unfairly discriminatory because
summarily may temporarily suspend cautioned that we do not redact or edit
the surcharge will apply to all similarly-
such rule change if it appears to the personal identifying information from
situated market participants. Commission that such action is: (i) comment submissions. You should
Update Fee Schedule Headings Necessary or appropriate in the public submit only information that you wish
interest; (ii) for the protection of to make available publicly. All
The Exchange believes that the clean- investors; or (iii) otherwise in submissions should refer to File
up changes to update the section furtherance of the purposes of the Act. Number SR–ISE–2018–10 and should be
headings in its Schedule of Fees is If the Commission takes such action, the submitted on or before March 5, 2018.
reasonable, equitable and not unfairly Commission shall institute proceedings
discriminatory because these are non- to determine whether the proposed rule For the Commission, by the Division of
substantive changes intended to make should be approved or disapproved. Trading and Markets, pursuant to delegated
the Schedule of Fees more transparent authority.24
IV. Solicitation of Comments Eduardo A. Aleman,
to members and investors.
Interested persons are invited to Assistant Secretary.
B. Self-Regulatory Organization’s submit written data, views, and [FR Doc. 2018–02727 Filed 2–9–18; 8:45 am]
Statement on Burden on Competition arguments concerning the foregoing,
BILLING CODE 8011–01–P
including whether the proposed rule
The Exchange does not believe that
change is consistent with the Act.
the proposed rule change will impose
Comments may be submitted by any of SECURITIES AND EXCHANGE
any burden on competition not
the following methods: COMMISSION
necessary or appropriate in furtherance
of the purposes of the Act. The Electronic Comments
proposed fees and rebates are designed • Use the Commission’s internet [Release No. 34–82643; File No. SR–
to attract additional order flow to ISE, comment form (http://www.sec.gov/ CboeBZX–2017–012]
and the Exchange believes that its rules/sro.shtml); or
complex order pricing remains • Send an email to rule-comments@ Self-Regulatory Organizations; Cboe
attractive to market participants. The sec.gov. Please include File Number SR– BZX Exchange, Inc.; Notice of
Exchange operates in a highly ISE–2018–10 on the subject line. Designation of a Longer Period for
competitive market in which market Commission Action on a Proposed
participants can readily favor competing Paper Comments Rule Change, as Modified by
venues if they deem fee levels at a • Send paper comments in triplicate Amendment No. 1, To List and Trade
particular venue to be excessive, or to Secretary, Securities and Exchange Shares of the LHA Market State®
rebate opportunities available at other Commission, 100 F Street NE, Tactical U.S. Equity ETF, a Series of
venues to be more favorable. In such an Washington, DC 20549–1090. the ETF Series Solutions, Under Rule
environment, the Exchange must All submissions should refer to File 14.11(i), Managed Fund Shares
continually adjust its fees to remain Number SR–ISE–2018–10. This file
February 6, 2018.
competitive with other exchanges. number should be included on the
Because competitors are free to modify subject line if email is used. To help the On December 7, 2017, Cboe BZX
their own fees in response, and because Commission process and review your Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’)
market participants may readily adjust comments more efficiently, please use filed with the Securities and Exchange
their order routing practices, the only one method. The Commission will Commission (‘‘Commission’’), pursuant
Exchange believes that the degree to post all comments on the Commission’s to Section 19(b)(1) of the Securities
which fee changes in this market may internet website (http://www.sec.gov/ Exchange Act of 1934 (‘‘Act’’) 1 and Rule
impose any burden on competition is rules/sro.shtml). Copies of the 19b–4 thereunder,2 a proposed rule
extremely limited. submission, all subsequent change to list and trade the shares of the
amendments, all written statements LHA Market State® Tactical U.S. Equity
daltland on DSKBBV9HB2PROD with NOTICES
21 Nasdaq PHLX (‘‘Phlx’’), CBOE Options with respect to the proposed rule ETF (‘‘Fund’’) under BZX Rule 14.11(i).
(‘‘CBOE’’), and MIAX Options (‘‘MIAX’’) assess change that are filed with the The proposed rule change was
similar surcharges for complex order executions Commission, and all written published for comment in the Federal
that remove liquidity from the complex order book
for non-penny classes. See Phlx Pricing Schedule,
communications relating to the
24 17 CFR 200.30–3(a)(12).
Section II, note 7; CBOE Fees Schedule, Complex
22 15 U.S.C. 78s(b)(3)(A)(ii). 1 15 U.S.C. 78s(b)(1).
Surcharge, and note 35; and MIAX Fee Schedule,
Sections (1)(a)(i) and (ii). 23 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.
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Document Created: 2018-11-01 08:42:31
Document Modified: 2018-11-01 08:42:31
| 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 6069 |
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