[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55761-55763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24310]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84522; File No. SR-ISE-2018-89]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Relocate the
Exchange's Pricing Schedule
November 1, 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 October 23, 2018, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed
with the Securities and Exchange Commission (``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been prepared by the Exchange. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to (a) relocate the ISE Schedule of Fees and
current Rule 213 to the Exchange's rulebook's (``Rulebook'') shell
structure,\3\ and (b) make conforming cross-reference changes
throughout the Rulebook.
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\3\ In 2017, the Exchange added a shell structure to its
Rulebook with the purpose of improving efficiency and readability
and to align its rules closer to those of its five sister exchanges,
The Nasdaq Stock Market LLC; Nasdaq BX, Inc.; Nasdaq PHLX LLC;
Nasdaq GEMX, LLC; and Nasdaq MRX, LLC (``Affiliated Exchanges'').
See Securities Exchange Act Release No. 82173 (November 29, 2017),
82 FR 57505 (December 5, 2017) (SR-ISE-2017-102).
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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 proposes to relocate the entire ISE Schedule of Fees
and Rule 213 to the Exchange's shell structure; specifically, the
Exchange will relocate the aforementioned rules to the Options 7
(``Pricing Schedule'') section of the shell. In addition, the Exchange
will make conforming cross-reference changes throughout the Rulebook.
(a) Relocation of Rules
As indicated, the Exchange, as part of its continued effort to
promote efficiency and the conformity of its processes with those of
the Affiliated Exchanges, and the goal of harmonizing and uniformizing
its rules, proposes to relocate the Schedule of Fees and ISE Rule 213
under Options 7, Pricing Schedule, of the shell structure.
[[Page 55762]]
Therefore, to improve the readability of the relocated Pricing
Schedule rules, the Exchange proposes to update their current
``Preface'' section and rename it ``Section 1. General Provisions.''
Next, the Exchange proposes to mark current ISE Rule 213 as
``Reserved'' and relocate its contents and title (``Collection of
Exchange Fees and Other Claims'') under Section 2 of the Options 7,
Pricing Schedule.
ISE Rule 213 was added to the Rulebook to permit the Exchange the
collection of undisputed or final fees, fines, charges and/or other
monetary sanctions or other monies due and owing to the Exchange or
other charges related to Rules 205, 206, 207, 208, 209, and 210.\4\ The
Exchange believes that, unlike other rules in Chapter 2 (``Organization
and Administration'') of the Rulebook, which generally refer to the
powers of the Board of Directors and the authority it delegates to
Senior Management of the Exchange, the direct debit process established
in Rule 213 will be better situated among the relocated rules of the
Pricing Schedule.
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\4\ See Securities Exchange Act Release No. 79014 (September 30,
2016), 81 FR 69560 (October 6, 2016) (SR-ISE-2016-24).
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The Exchange is also proposing to move all the remaining sections,
I thorough IX, in the current Schedule of Fees, renumber them as
provided in the table below, and add the word ``Section'' to each of
their titles. Relatedly, the Exchange will update all references to the
``Schedule of Fees'' or ``Fee Schedule'' in the proposed rule text and
replace them with the term ``Pricing Schedule'' where appropriate.
Finally, the Exchange will update all references to ``NASDAQ'' in
proposed Section 8, I., of the Pricing Schedule with the word
``Nasdaq,'' to keep the proposed rule text consistent with changes to
the names of the Affiliated Exchanges.\5\
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\5\ See Securities Exchange Act Releases No. 81917 (October 23,
2017), 82 FR 49879 (October 27, 2017) (SR-NASDAQ-2017-111) and No.
81948 (October 25, 2017), 82 FR 50468 (October 31, 2017) (SR-BX-
2017-046).
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Options 7--Pricing schedule (proposed) Schedule of fees (current)
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Section 1. General Provisions............. PREFACE
Section 2. Collection of Exchange Fees and Rule 213. Collection of
Other Claims. Exchange Fees and Other
Claims.
Section 3. Regular Order Fees and Rebates. I. Regular Order Fees and
Rebates.
Section 4. Complex Order Fees and Rebates. II. Complex Order Fees and
Rebates.
Section 5. Index Options Fees and Rebates. III. Index Options Fees and
Rebates.
Section 6. Other Options Fees and Rebates. IV. Other Options Fees and
Rebates.
Section 7. Connectivity Fees.............. V. Connectivity Fees.
Section 8. Access Services................ VI. Access Services.
Section 9. Legal & Regulatory............. VII. Legal & Regulatory.
Section 10. Market Data................... VIII. Market Data.
Section 11. Other Services................ IX. Other Services.
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The relocation of the Pricing Schedule rules will facilitate the
use of the Rulebook by Members \6\ of the Exchange, including those who
are members of other Affiliated Exchanges, and other market
participants. Moreover, the proposed changes are of a non-substantive
nature and will not amend the relocated rules, other than make the
updates previously explained.
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\6\ Exchange Rule 100(a)(30).
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(b) Cross-Reference Updates
In connection with the changes described above, the Exchange
proposes to update all cross-references in the Rulebook that direct the
reader to the current location of the Pricing Schedule rules and/or any
of their subsections.
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 Section
6(b)(5) of the Act,\8\ 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 promoting efficiency and structural conformity of the Exchange's
processes with those of the Affiliated Exchanges and to make the
Exchange's Rulebook easier to read and more accessible to its Members
and market participants. The Exchange believes that the relocation of
the Pricing Schedule rules, updating the name ``NASDAQ'' to ``Nasdaq,''
and related cross-reference updates are of a non-substantive nature.
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\7\ 15 U.S.C. 78f(b).
\8\ 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 proposed changes do not
impose a burden on competition because, as previously stated, they (i)
are of a non-substantive nature, (ii) are intended to harmonize the
structure of the Exchange's rules with those of its Affiliated
Exchanges, and (iii) are intended to organize the Rulebook in a way
that it will ease the Members' and market participants' navigation and
reading of the rules.
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 \9\ and Rule 19b-
4(f)(6) thereunder.\10\
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \11\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \12\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has requested that the Commission waive the 30-day operative delay so
that the proposed rule change may become operative upon filing. Waiver
of the operative delay would allow the Exchange to promptly relocate
the Pricing Schedule rules, which the Exchange believes will improve
the
[[Page 55763]]
organization and readability of the Exchange's Rulebook. The Commission
believes that waiver of the 30-day operative delay is consistent with
the protection of investors and the public interest. Accordingly, the
Commission hereby waives the operative delay and designates the
proposed rule change operative upon filing.\13\
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\11\ 17 CFR 240.19b-4(f)(6).
\12\ 17 CFR 240.19b-4(f)(6)(iii).
\13\ 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).
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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 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-2018-89 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-2018-89. 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-2018-89, and should be submitted on
or before November 28, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Assistant Secretary.
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\14\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2018-24310 Filed 11-6-18; 8:45 am]
BILLING CODE 8011-01-P