83 FR 62938 - Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Supplementary Material .07 to ISE Rule 722

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 234 (December 6, 2018)

Page Range		62938-62939
FR Document		2018-26405
Federal Register, Volume 83 Issue 234 (Thursday, December 6, 2018)
[Federal Register Volume 83, Number 234 (Thursday, December 6, 2018)]
[Notices]
[Pages 62938-62939]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26405]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84682; File No. SR-ISE-2018-95]


Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of a Proposed Rule Change To Amend 
Supplementary Material .07 to ISE Rule 722

November 29, 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 November 19, 2018, Nasdaq ISE, LLC (``ISE'' or the ``Exchange'') 
filed with the Securities and Exchange Commission (``SEC'' or 
``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 Supplementary Material .07 to ISE 
Rule 722, which relates to Complex Orders, to correct inadvertent 
errors in the rule text.
    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 filed a proposal to adopt certain Butterfly and Box 
Spread protections for complex order strategies and also reorganize and 
amend the existing Complex Order protections within Supplementary 
Material .07 to ISE Rule 722, among other things.\3\ Subsequent to SR-
ISE-2018-55 becoming effective, the Exchange received approval to make 
various revisions to Rule 722 to memorialize ISE's Complex Order 
functionality, among other things.\4\ SR-ISE-2018-56 did not properly 
mark the rule text for Supplementary Material .07 of ISE Rule 722 
against the Rulebook as amended by SR-ISE-2018-55. Specifically, SR-
ISE-2018-56 failed to note the changes that had become effective within 
SR-ISE-2018-55. This rule change seeks to amend the current rule text 
of Supplementary Material .07 to Rule 722 to reconcile the approved 
rule texts of both SR-ISE-2018-55 and SR-ISE-2018-56. The proposal 
makes no substantive changes to ISE's rules.
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 83464 (June 19, 2018), 
83 FR 29583 (June 25, 2018) (SR-ISE-2018-55).
    \4\ Securities Exchange Act Release No. 84373 (October, 2018), 
83 FR 31783 (July 9, 2018) (SR-ISE-2018-56) (Notice of Filing of 
Amendment No. 1 and Order Granting Accelerated Approval of a 
Proposed Rule Change, as Modified by Amendment No. 1, To Amend Its 
Rules Relating to Complex Orders).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\6\ in particular, in that it is designed to

[[Page 62939]]

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 correcting inadvertent errors within the rule text of 
Supplementary Material .07 to ISE Rule 722. Correcting this rule text 
error will help to ensure the accuracy of the current Rulebook. This 
rule change is not substantive.
---------------------------------------------------------------------------

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

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. Specifically, the proposal does 
not impose a burden on intra-market or inter-market competition, 
because the purpose of this rule change is to correct inadvertent rule 
text errors within Supplementary Material .07 to Rule 722. This rule 
change is not substantive.

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) of the Act \7\ and Rule 19b-
4(f)(6) thereunder.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 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 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.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \9\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \10\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the public interest. ISE has 
requested that the Commission waive the 30-day operative delay to allow 
the Exchange to immediately correct the errors in ISE Rule 722, 
Supplementary Material .07 and display Supplementary Material .07 to 
Rule 722 as intended. The Commission believes that waiver of the 30-day 
operative delay is consistent with the protection of investors and the 
public interest. As noted above, the proposal, which makes no 
substantive changes to ISE's rules, is designed to correct inadvertent 
errors in the text of ISE Rule 722, Supplementary Material .07 and to 
assure that Supplementary Material .07 accurately reflects the changes 
included in SR-ISE-2018-55 and SR-ISE-2018-56.\11\ Accordingly, the 
Commission waives the operative delay and designates the proposed rule 
change operative upon filing.\12\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.19b-4(f)(6).
    \10\ 17 CFR 240.19b-4(f)(6)(iii).
    \11\ See notes 3 and 4, supra.
    \12\ For purposes only of waiving the 30-day operative delay, 
the Commission also has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
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 change 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-2018-95 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-2018-95. 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-2018-95, and should be submitted on 
or before December 26, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-26405 Filed 12-4-18; 8:45 am]
 BILLING CODE 8011-01-P
62938 Federal Register / Vol. 83, No. 234 / Thursday, December 6, 2018 / Notices

Rulebook in a manner that improves business days between the hours of the Commission’s Public Reference
accessibility, readability and structural 10:00 a.m. and 3:00 p.m. Copies of the Room.
consistency with the rules of its filing also will be available for
II. Self-Regulatory Organization’s
Affiliated Exchanges. For this reason, inspection and copying at the principal
Statement of the Purpose of, and
the Commission designates the office of the Exchange. All comments
Statutory Basis for, the Proposed Rule
proposed rule change to be operative received will be posted without change.
Change
upon filing.10 Persons submitting comments are
At any time within 60 days of the cautioned that we do not redact or edit In its filing with the Commission, the
filing of the proposed rule change, the personal identifying information from Exchange included statements
Commission summarily may comment submissions. You should concerning the purpose of and basis for
temporarily suspend such rule change if submit only information that you wish the proposed rule change and discussed
it appears to the Commission that such to make available publicly. All any comments it received on the
action is necessary or appropriate in the submissions should refer to File proposed rule change. The text of these
public interest, for the protection of Number SR–NASDAQ–2018–098, and statements may be examined at the
investors, or otherwise in furtherance of should be submitted on or before places specified in Item IV below. The
the purposes of the Act. December 26, 2018. Exchange has prepared summaries, set
forth in sections A, B, and C below, of
IV. Solicitation of Comments For the Commission, by the Division of
Trading and Markets, pursuant to delegated the most significant aspects of such
Interested persons are invited to authority.11 statements.
submit written data, views, and Eduardo A. Aleman,
arguments concerning the foregoing, A. Self-Regulatory Organization’s
including whether the proposed rule
Assistant Secretary. Statement of the Purpose of, and
change is consistent with the Act. [FR Doc. 2018–26400 Filed 12–4–18; 8:45 am] Statutory Basis for, the Proposed Rule
Comments may be submitted by any of BILLING CODE 8011–01–P Change
the following methods: 1. Purpose
Electronic Comments SECURITIES AND EXCHANGE The Exchange filed a proposal to
• Use the Commission’s internet COMMISSION adopt certain Butterfly and Box Spread
comment form (http://www.sec.gov/ protections for complex order strategies
[Release No. 34–84682; File No. SR–ISE– and also reorganize and amend the
rules/sro.shtml); or 2018–95]
• Send an email to rule-comments@ existing Complex Order protections
sec.gov. Please include File Number SR– Self-Regulatory Organizations; Nasdaq within Supplementary Material .07 to
NASDAQ–2018–098 on the subject line. ISE, LLC; Notice of Filing and ISE Rule 722, among other things.3
Immediate Effectiveness of a Proposed Subsequent to SR–ISE–2018–55
Paper Comments Rule Change To Amend becoming effective, the Exchange
• Send paper comments in triplicate Supplementary Material .07 to ISE Rule received approval to make various
to Secretary, Securities and Exchange 722 revisions to Rule 722 to memorialize
Commission, 100 F Street NE, ISE’s Complex Order functionality,
Washington, DC 20549–1090. November 29, 2018. among other things.4 SR–ISE–2018–56
All submissions should refer to File Pursuant to Section 19(b)(1) of the did not properly mark the rule text for
Number SR–NASDAQ–2018–098. This Securities Exchange Act of 1934 Supplementary Material .07 of ISE Rule
file number should be included on the (‘‘Act’’),1 and Rule 19b–4 thereunder,2 722 against the Rulebook as amended by
subject line if email is used. To help the notice is hereby given that on November SR–ISE–2018–55. Specifically, SR–ISE–
Commission process and review your 19, 2018, Nasdaq ISE, LLC (‘‘ISE’’ or the 2018–56 failed to note the changes that
comments more efficiently, please use ‘‘Exchange’’) filed with the Securities had become effective within SR–ISE–
only one method. The Commission will and Exchange Commission (‘‘SEC’’ or 2018–55. This rule change seeks to
post all comments on the Commission’s ‘‘Commission’’) the proposed rule amend the current rule text of
internet website (http://www.sec.gov/ change as described in Items I and II Supplementary Material .07 to Rule 722
rules/sro.shtml). Copies of the below, which Items have been prepared to reconcile the approved rule texts of
submission, all subsequent by the Exchange. The Commission is both SR–ISE–2018–55 and SR–ISE–
amendments, all written statements publishing this notice to solicit 2018–56. The proposal makes no
with respect to the proposed rule comments on the proposed rule change substantive changes to ISE’s rules.
change that are filed with the from interested persons. 2. Statutory Basis
Commission, and all written I. Self-Regulatory Organization’s The Exchange believes that its
communications relating to the Statement of the Terms of Substance of proposal is consistent with Section 6(b)
proposed rule change between the the Proposed Rule Change of the Act,5 in general, and furthers the
Commission and any person, other than objectives of Section 6(b)(5) of the Act,6
The Exchange proposes to amend
those that may be withheld from the in particular, in that it is designed to
Supplementary Material .07 to ISE Rule
public in accordance with the
722, which relates to Complex Orders,
provisions of 5 U.S.C. 552, will be 3 Securities Exchange Act Release No. 83464
to correct inadvertent errors in the rule
available for website viewing and (June 19, 2018), 83 FR 29583 (June 25, 2018) (SR–
text. ISE–2018–55).
printing in the Commission’s Public
khammond on DSK30JT082PROD with NOTICES

The text of the proposed rule change 4 Securities Exchange Act Release No. 84373
Reference Room, 100 F Street NE, is available on the Exchange’s website at (October, 2018), 83 FR 31783 (July 9, 2018) (SR–
Washington, DC 20549, on official http://ise.cchwallstreet.com/, at the ISE–2018–56) (Notice of Filing of Amendment No.
1 and Order Granting Accelerated Approval of a
10 For purposes only of waiving the 30-day
principal office of the Exchange, and at Proposed Rule Change, as Modified by Amendment
operative delay, the Commission has also No. 1, To Amend Its Rules Relating to Complex
11 17 CFR 200.30–3(a)(12). Orders).
considered the proposed rule’s impact on
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78f(b).
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f). 2 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b)(5).

VerDate Sep<11>2014 20:35 Dec 04, 2018 Jkt 247001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\06DEN1.SGM 06DEN1
Federal Register / Vol. 83, No. 234 / Thursday, December 6, 2018 / Notices 62939

promote just and equitable principles of the Commission waive the 30-day comments more efficiently, please use
trade, to remove impediments to and operative delay to allow the Exchange to only one method. The Commission will
perfect the mechanism of a free and immediately correct the errors in ISE post all comments on the Commission’s
open market and a national market Rule 722, Supplementary Material .07 internet website (http://www.sec.gov/
system, and, in general to protect and display Supplementary Material .07 rules/sro.shtml). Copies of the
investors and the public interest, by to Rule 722 as intended. The submission, all subsequent
correcting inadvertent errors within the Commission believes that waiver of the amendments, all written statements
rule text of Supplementary Material .07 30-day operative delay is consistent with respect to the proposed rule
to ISE Rule 722. Correcting this rule text with the protection of investors and the change that are filed with the
error will help to ensure the accuracy of public interest. As noted above, the Commission, and all written
the current Rulebook. This rule change proposal, which makes no substantive communications relating to the
is not substantive. changes to ISE’s rules, is designed to proposed rule change between the
correct inadvertent errors in the text of Commission and any person, other than
B. Self-Regulatory Organization’s
ISE Rule 722, Supplementary Material those that may be withheld from the
Statement on Burden on Competition
.07 and to assure that Supplementary public in accordance with the
The Exchange does not believe that Material .07 accurately reflects the provisions of 5 U.S.C. 552, will be
the proposed rule change will impose changes included in SR–ISE–2018–55 available for website viewing and
any burden on competition not and SR–ISE–2018–56.11 Accordingly, printing in the Commission’s Public
necessary or appropriate in furtherance the Commission waives the operative Reference Room, 100 F Street NE,
of the purposes of the Act. Specifically, delay and designates the proposed rule Washington, DC 20549 on official
the proposal does not impose a burden change operative upon filing.12 business days between the hours of
on intra-market or inter-market At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the
competition, because the purpose of this filing of the proposed rule change, the filing also will be available for
rule change is to correct inadvertent rule Commission summarily may inspection and copying at the principal
text errors within Supplementary temporarily suspend such rule change if office of the Exchange. All comments
Material .07 to Rule 722. This rule it appears to the Commission that such received will be posted without change.
change is not substantive. action is necessary or appropriate in the Persons submitting comments are
C. Self-Regulatory Organization’s public interest, for the protection of cautioned that we do not redact or edit
Statement on Comments on the investors, or otherwise in furtherance of personal identifying information from
Proposed Rule Change Received From the purposes of the Act. If the comment submissions. You should
Members, Participants, or Others Commission takes such action, the submit only information that you wish
Commission shall institute proceedings to make available publicly. All
No written comments were either to determine whether the proposed rule
solicited or received. submissions should refer to File
change should be approved or Number SR–ISE–2018–95, and should
III. Date of Effectiveness of the disapproved. be submitted on or before December 26,
Proposed Rule Change and Timing for IV. Solicitation of Comments 2018.
Commission Action For the Commission, by the Division of
Interested persons are invited to
Because the foregoing proposed rule submit written data, views, and Trading and Markets, pursuant to delegated
change does not: (i) Significantly affect authority.13
arguments concerning the foregoing,
the protection of investors or the public including whether the proposed rule Eduardo A. Aleman,
interest; (ii) impose any significant change is consistent with the Act. Assistant Secretary.
burden on competition; and (iii) become Comments may be submitted by any of [FR Doc. 2018–26405 Filed 12–4–18; 8:45 am]
operative for 30 days from the date on the following methods: BILLING CODE 8011–01–P
which it was filed, or such shorter time
as the Commission may designate, it has Electronic Comments
become effective pursuant to Section • Use the Commission’s internet SECURITIES AND EXCHANGE
19(b)(3)(A) of the Act 7 and Rule 19b– comment form (http://www.sec.gov/ COMMISSION
4(f)(6) thereunder.8 rules/sro.shtml); or
A proposed rule change filed • Send an email to rule-comments@ [Securities Exchange Act of 1934; Release
pursuant to Rule 19b–4(f)(6) under the sec.gov. Please include File Number SR– No. 34–84676/November 29, 2018]
Act 9 normally does not become ISE–2018–95 on the subject line. In the Matter of the NYSE Arca, Inc.; for
operative for 30 days after the date of its
Paper Comments an Order Granting the Approval of
filing. However, Rule 19b–4(f)(6)(iii) 10
• Send paper comments in triplicate Proposed Rule Change To List and
permits the Commission to designate a
to Secretary, Securities and Exchange Trade Shares of the ForceShares Daily
shorter time if such action is consistent
Commission, 100 F Street NE, 4X US Market Futures Long Fund and
with the protection of investors and the
Washington, DC 20549–1090. ForceShares Daily 4X US Market
public interest. ISE has requested that
Futures Short Fund Under
All submissions should refer to File
Commentary .02 to NYSE Arca Equities
7 15 U.S.C. 78s(b)(3)(A). Number SR–ISE–2018–95. This file
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
Rule 8.200 (SR–NYSEArca–2016–120);
number should be included on the
4(f)(6)(iii) requires a self-regulatory organization to Request for Additional Comment
subject line if email is used. To help the
khammond on DSK30JT082PROD with NOTICES

give the Commission written notice of its intent to
file the proposed rule change, along with a brief Commission process and review your On October 17, 2016, NYSE Arca, Inc.
description and text of the proposed rule change, (‘‘NYSE Arca’’ or ‘‘Exchange’’) filed
at least five business days prior to the date of filing 11 See notes 3 and 4, supra. with the Securities and Exchange
of the proposed rule change, or such shorter time 12 For purposes only of waiving the 30-day
as designated by the Commission. The Exchange
Commission (‘‘Commission’’), pursuant
operative delay, the Commission also has
has satisfied this requirement. considered the proposed rule’s impact on
to Section 19(b)(1) of the Securities
9 17 CFR 240.19b–4(f)(6).
efficiency, competition, and capital formation. See
10 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 13 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 20:35 Dec 04, 2018 Jkt 247001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\06DEN1.SGM 06DEN1
Document Created: 2018-12-05 02:35:35
Document Modified: 2018-12-05 02:35:35
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 62938