[Federal Register Volume 79, Number 5 (Wednesday, January 8, 2014)]
[Notices]
[Pages 1420-1422]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-00073]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71229; File No. SR-Topaz-2013-18]
Self-Regulatory Organizations; Topaz Exchange, LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Make Non-
Controversial Changes to Its Rules
January 2, 2014.
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 December 23, 2013, the Topaz Exchange, LLC (d/b/a ISE Gemini)
(the ``Exchange'' or ``Topaz'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II and III below, which items have been prepared by the self-
regulatory organization. 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 a number of non-controversial and technical
changes to its rules. Examples of such
[[Page 1421]]
corrections include updating Topaz rule number citations and cross
references, correcting typographical errors and deleting obsolete rule
text. The text of the proposed rule change is available on the
Exchange's Internet Web site at http://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 self-regulatory organization
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 self-regulatory organization
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 is proposing to make a number of non-controversial
changes and technical corrections to its rules. Examples of such
corrections include updating rule number citations and cross-
references, correcting typographical errors, and deleting obsolete rule
text. Following is a narrative description of each of the corrections:
[ssquf] Topaz Rule 701 (Trading Rotations) is being amended to make
a non-substantive change to correct a typographical error in paragraph
(b)(2) and to remove the first sentence in paragraph (c), which states
that trading in options will close 2 minutes after the primary market
on which the underlying stock trades closes for trading. This reference
to a 4:02 p.m. closing was imported from the International Securities
Exchange (``ISE'') rule book, but should have been removed when the
hours of trading on the ISE were amended,\3\ but was inadvertently
overlooked.
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\3\ See Securities Exchange Act Release No. 53248 (February 7,
2006), 71 FR 8015 (February 15, 2006) (SR-ISE-2005-58).
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[ssquf] Topaz Rule 705 (Limitation of Liability) is being amended
to change a non-substantive word to update the sentence structure of
paragraph (a).
[ssquf] Topaz Rule 715 (Types of Orders) is being amended to add
the defined terms of ``Day Order'' and ``Good-Till-Cancelled Order (GTC
Order).'' The addition of these two order types qualify for non-
controversial treatment as there is nothing new or novel with respect
to these types of orders. Additionally, the Chicago Board Options
Exchange has identical order types.\4\
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\4\ See CBOE Rule 43.2(5) and (7).
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[ssquf] Topaz Rules 803(c) is being amended to remove underlining
that does not belong. Topaz Rules 803, 810 and 811 are being amended to
remove cross-references to Rule 803(c)(2) and replace them with the
correct cross-references, where applicable. These cross-references were
imported from the ISE rule book, which were inadvertently missed when
paragraph 803(c)(2) was deleted from the ISE rules.\5\
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\5\ See Securities Exchange Act Release No. 69396 (April 18,
2013), 78 FR 24273 (April 24, 2013) (SR-ISE-2013-18).
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[ssquf] Topaz Rule 804(d)(3) is being deleted as this provision is
obsolete and no longer applicable, but was imported from the ISE rule
book and (e)(2)(ii) is being amended to delete rule text that was
incorrectly imported from the ISE rule book.\6\
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\6\ See Securities Exchange Act Release No. 69175 (March 19,
2013), 78 FR 17988 (March 25, 2013) (SR-ISE-2013-17).
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2. Statutory Basis
The basis under the Act for this proposed rule change is the
requirement under Section 6(b)(5) \7\ that an exchange have rules that
are designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to remove
impediments to and perfect the mechanism for a free and open market and
a national market system, and, in general, to protect investors and the
public interest. The Exchange believes it is appropriate to make these
technical corrections to its rules so that Exchange members and
investors have a clear and accurate understanding of the meaning of the
Exchange's rules. By removing obsolete rule text, the Exchange is
eliminating any potential for confusion about how its systems operate.
By updating cross-references in its rules, the Exchange is eliminating
any inaccuracies. The addition of a Day Order and a GTC Order qualifies
for non-controversial treatment as there is nothing new or novel with
respect to these order types. Day Orders and GTC Orders merely address
the time-in-force of an order and are standard, generic orders. In
addition, CBOE has both of these order types in its rules.\8\ The
Exchange further believes that the proposed rule change is not unfairly
discriminatory because it treats all market participants equally and
will not have an adverse impact on any market participant.
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\7\ 15 U.S.C. 78f(b)(5).
\8\ See note 4.
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B. Self-Regulatory Organization's Statement on Burden on Competition
Most of the proposed rule changes are non-substantive corrections
to the Exchange's rules and therefore do not implicate the competition
analysis. The change proposing to adopt two new order types is non-
controversial as they already exist on another exchange and merely
address the time-in-force of an order, and will therefore not impact
competition because these order types already exist. The proposed rule
changes will serve to promote regulatory clarity and consistency,
thereby reducing burdens on the marketplace and facilitating investor
protection.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not 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) \9\ of the Act and Rule 19b-
4(f)(6) \10\ thereunder. The Exchange provided the Commission with
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 the proposed rule
change.
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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f)(6).
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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.
[[Page 1422]]
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-Topaz-2013-18 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Topaz-2013-18. 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 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; 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-Topaz-2013-18 and should be
submitted on or before January 29, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-00073 Filed 1-7-14; 8:45 am]
BILLING CODE 8011-01-P