[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)]
[Notices]
[Pages 16460-16461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06561]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80326; File No. SR-ISEMercury-2017-05]


Self-Regulatory Organizations; ISE Mercury, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Rename the 
Exchange as Nasdaq MRX, LLC

March 29, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on March 17, 2017, ISE Mercury, LLC (``ISE Mercury'' or 
``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.
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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 its Constitution, Limited Liability 
Company Agreement, Rule Book and Fee Schedule to rename itself Nasdaq 
MRX, LLC. In addition this rule change proposes to amend references to 
the names of certain affiliated markets within the ISE Mercury 
Rulebook.\3\
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    \3\ The affiliated markets are the International Securities 
Exchange, LLC and ISE Gemini, LLC.
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    The text of the proposed rule change is available on the Exchange's 
Web site at www.ise.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 rename the Exchange 
to reflect its new placement within the Nasdaq, Inc. corporate 
structure in connection with the March 9, 2016 acquisition by Nasdaq of 
the capital stock of U.S. Exchange Holdings, and the thereby indirectly 
acquiring all of the interests of the International Securities 
Exchange, LLC, ISE Gemini, LLC, and ISE Mercury, LLC.\4\
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    \4\ See Securities Exchange Act Release No. 78119 (June 27, 
2016), 81 FR 41611 (SR-ISE-2016-11; SR-ISE Gemini-2016-05; SR-ISE 
Mercury-2016-10) (Order Granting Accelerated Approval of Proposed 
Rule Changes, Each as Modified by Amendment No. 1 Thereto, Relating 
to a Corporate Transaction in Which Nasdaq, Inc. Will Become the 
Indirect Parent of ISE, ISE Gemini, and ISE Mercury).
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    Specifically, all references in the Exchange's Constitution, 
Limited Liability Company Agreement, Rule Book and Fee Schedule to 
``ISE Mercury, LLC'' or references to ``Mercury'' shall be amended to 
``Nasdaq MRX, LLC'' or ``Nasdaq MRX.'' Moreover, consistent with 
changes already filed for ISE Gemini, LLC, the rule change proposes to 
amend references to ``ISE Gemini'' to ``Nasdaq GEMX,'' and references 
to the ``International Securities Exchange'' and ``ISE'' to ``Nasdaq 
ISE.'' \5\ The Exchange also proposes minor grammatical changes which 
are necessary as a result of the name change, i.e., amending ``a'' to 
``an.'' The Exchange proposes to amend its name for ISE Mercury on 
April 3, 2017.
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    \5\ See Securities Exchange Act Release No. 80248 (March 15, 
2017) (SR-ISEGemini-2017-13). See also SR-ISE-2017-25.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\6\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\7\ 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 
renaming the Exchange and updating the names of certain affiliated 
markets to reflect its current ownership.
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    \6\ 15 U.S.C. 78f(b).
    \7\ 15 U.S.C. 78f(b)(5).
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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. The Exchange does not believe 
that the proposed rule change will impact the intense competition that 
exists in the options market. The name change will reflect the current 
ownership structure and unify the options markets operated by Nasdaq, 
Inc.

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 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 \8\ and Rule 19b-4(f)(6) thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with 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.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the 
Act \10\ normally does not become operative for 30 days after the date 
of its filing. However, Rule 19b-4(f)(6)(iii) \11\ permits the 
Commission to designate a shorter time if such action is consistent 
with the protection of investors and the

[[Page 16461]]

public interest. The Exchange has asked the Commission to waive the 30-
day operative delay so that the Exchange may amend its name as of April 
3, 2017. The Exchange stated that it intends to announce the name 
change for ISE Mercury and certain of its affiliated markets on the 
same date to reflect the unified ownership of these markets by Nasdaq, 
Inc.\12\ The Exchange believes that changing the names of all three 
affiliated markets at the same time is consistent with the protection 
of investors and the public interest because it will avoid any 
confusion that may arise with respect to the ownership by Nasdaq of the 
three markets, and will relieve various administrative burdens 
associated with the name changes.\13\ The Commission believes the 
waiver of the 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 
operative upon filing.\14\
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    \10\ 17 CFR 240.19b-4(f)(6).
    \11\ 17 CFR 240.19b-4(f)(6)(iii).
    \12\ The International Securities Exchange, LLC and ISE Gemini, 
LLC have proposed in separate rule changes to amend their names as 
of April 3, 2017. See Securities Exchange Act Release No. 80248 
(March 15, 2017), 82 FR 14547 (March 21, 2017) (SR-ISEGemini-2017-
13) (``Nasdaq GEMX Proposal''). See also Securities Exchange Act 
Release No. 34-80325 (March 29, 2017) (SR-ISE-2017-25) (``Nasdaq ISE 
Proposal'').
    \13\ For example, the Exchange states that it is notifying a 
number of parties of the name change along with members of all three 
of the markets; the Exchange and members may have to update 
contractual agreements or forms as a result of the name change; and 
administrative changes can be accomplished at the same time if the 
operative dates of all three of the entities are aligned. The 
Exchange believes that it is in the interest of the members of ISE 
and the members of other markets, as well as the public, to change 
the names of the three markets at the same time to avoid additional 
administrative burdens if it were to change the names of the three 
markets on different dates. See Item 7 of SR-ISEMercury-2017-05, 
Form 19b-4. The Exchange further states that it will provide 
notification of the name changes to the members of all three 
affiliated markets. Id.
    \14\ The Commission notes that it has also waived the operative 
delay for the proposed rule changes associated with the renaming of 
ISE Gemini, LLC to Nasdaq GEMX, LLC, and ISE Mercury, LLC to Nasdaq 
MRX, LLC. See Nasdaq GEMX Proposal, supra note 12; and Nasdaq MRX 
Proposal, supra note 12. 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 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 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-ISEMercury-2017-05 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-ISEMercury-2017-05. 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 Web site (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 Web site 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 such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ISEMercury-2017-05, and 
should be submitted on or before April 25, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-06561 Filed 4-3-17; 8:45 am]
 BILLING CODE 8011-01-P