[Federal Register Volume 79, Number 134 (Monday, July 14, 2014)]
[Notices]
[Pages 40813-40818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16362]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72553; File No. SR-ISEGemini-2014-19]
Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Related to the
Price Improvement Mechanism
July 8, 2014.
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 June 26, 2014, ISE Gemini, LLC (``Exchange'' or ``ISE Gemini'')
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 amend its rules regarding the Price
Improvement Mechanism (``PIM'').
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 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 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 purpose of this proposed rule change is to amend the Exchange's
rules regarding the PIM functionality. The Exchange proposes to make
two changes
[[Page 40814]]
to its PIM rules. The first change is based on a proposal recently
submitted by NASDAQ OMX PHLX LLC (``PHLX''), and approved by the
Commission,\3\ pursuant to which orders of any size may initiate the
price improvement auction (``PIXL'') on PHLX at a price which is at or
better than the national best bid or offer (``NBBO''), even in
instances where PHLX has resting interest on the opposite side and thus
not at least one cent better than PHLX's own best bid or offer as
required in the past. The second change proposed in this filing relates
to how responses are addressed in the PIM. With this proposed change,
the manner in which response messages are treated will be similar to
how they are treated in the price improvement auctions operated at
other exchanges.\4\
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\3\ See Securities Exchange Act Release No. 70654 (October 10,
2013), 78 FR 62891 (October 22, 2013) (SR-PHLX-2013-76).
\4\ See Securities Exchange Act Release No. 72009 (April 23,
2014), 79 FR 24032 (April 29, 2014) (Notice of Filing of Amendment
No. 1 and Order Granting Accelerated Approval of a Proposed Rule
Change, as Modified by Amendment No. 1, To Adopt the MIAX PRIME
Price Improvement Mechanism and the MIAX PRIME Solicitation
Mechanism) (``MIAX Filing''). See also PHLX Rule 1080(n)(ii)(A)(6).
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The PIM is a process that allows Electronic Access Members
(``EAM'') to provide price improvement opportunities for a transaction
wherein the Member seeks to execute an agency order as principal or
execute an agency order against a solicited order (a ``Crossing
Transaction'').\5\ A Crossing Transaction is comprised of the order the
EAM represents as agent (the ``Agency Order'') and a counter-side order
for the full size of the Agency Order (the ``Counter-Side Order''). The
Counter-Side Order may represent interest for the Member's own account,
or interest the Member has solicited from one or more other parties, or
a combination of both.
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\5\ See Securities Exchange Act Release Nos. 70050 (July 26,
2013), 78 FR 46622 (August 1, 2013) (Order Granting the Application
of Topaz Exchange, LLC for Registration as a National Securities
Exchange).
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Currently under Rule 723, a Crossing Transaction must be entered
only at a price that is better than the ISE Gemini best bid or offer
(``ISE Gemini BBO'') and equal to or better than the national best bid
or offer (``NBBO''). Under Supplementary Material .08 to Rule 723, when
the ISE Gemini BBO is equal to the NBBO, a Crossing Transaction may be
entered where the price of the Crossing Transaction is equal to the ISE
Gemini BBO if the Agency Order is on the opposite side of the market
from the ISE Gemini BBO. In this case, the Agency Order is
automatically executed against the ISE Gemini BBO. If the Agency Order
is not fully executed after the ISE Gemini BBO is fully exhausted and
is no longer at a price equal to the Crossing Transaction, the PIM is
initiated for the balance of the order as provided in Rule 723.
The Exchange now proposes to modify PIM so that Members may enter a
Crossing Transaction at a price that is at or better than the NBBO on
either side of the Agency Order and better than the limit order or
quote on the ISE Gemini order book on the same side of the Agency
Order. Members are not required to improve the ISE Gemini BBO on the
opposite side of the Agency Order to initiate a PIM. Any resting
interest on the ISE Gemini order book on the opposite side of the
Agency Order will participate at the end of the auction in accordance
with Rule 723(d). With this proposed rule change, PIM will now operate
similar to the PIXL functionality at PHLX in terms of the price at
which a PIM can be initiated.\6\ The proposed change to the start price
of a PIM will not impact the current execution priority. However, as
discussed in detail below, the Exchange is also proposing to make PIM
auctions blind. In addition, the Exchange is proposing that Member
orders will no longer yield priority to non-Member orders.\7\
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\6\ See PHLX Rule 1080(n).
\7\ Priority Customer interest will continue to be executed
first followed by Professional Orders and Member interest. See
proposed Rule 723(d)(2).
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The Exchange believes the proposed rule change will allow a greater
number of orders to receive price improvement that might not currently
be afforded any price improvement. By auctioning the entire quantity in
the PIM, the opportunity for price improvement over the prevailing NBBO
is extended to the whole order, rather than only the portion that does
not interact with the resting liquidity at the auction price level. As
before, Priority Customers will continue to have priority at each price
level in accordance with Rule 723(d). At each given price point, ISE
Gemini will execute Priority Customer interest in a price/time fashion
such that all Priority Customer interest which was resting on the order
book is satisfied before any other interest that arrived after the PIM
was initiated. After Priority Customer interest at a given price point
has been satisfied, remaining contracts will be allocated among all
Exchange quotes and orders in accordance with the execution rules set
forth in Rule 723(d). Interest, whether resting prior to the
commencement of the auction or arriving during the auction process,
will continue to be executed in accordance with Rule 723(d).
The Exchange believes using the allocation method that it currently
does is a fair distribution because the Counter-Side Order provides
significant value to the market. The EAM guarantees the Crossing
Transaction price improvement, and is subject to market risk while the
order is exposed to other market participants. The EAM may only improve
the price where it stopped the agency side, and may not cancel its
order once the PIM commences. Other market participants are free to
modify or cancel their quotes and orders at any time during the
auction. The Exchange believes that the EAM provides an important role
in facilitating the price improvement opportunity for market
participants.
The following examples illustrate how the proposed rule change
would operate:
Example 1
ISE Gemini BBO is 2.48-2.51 (60x30) (10 of the 30 on the offer is a
Priority Customer; 20 of the 30 on the offer is a market maker (MM1);
all 60 on the bid is a MM). NBBO is 2.48-2.51 (100x100). Under the
proposed rule change, an Agency Order to buy may be entered into the
PIM at any price between and including 2.49 and 2.51.
Assume a Priority Customer or non-Priority Customer order to buy
100 contracts is submitted into the PIM with a stop price of 2.51. The
PIM auction will commence with a notification being sent to market
participants. Assume, during the auction, two market makers (MM2 and
MM3) respond. MM2 responds to sell 10 contracts at 2.50 and MM3
responds to sell 20 contracts at 2.51. At the end of the auction, the
agency side of the order will buy 10 contracts from MM2 at 2.50,
leaving 90 to be allocated at the original order limit of 2.51. The
allocation process would continue and 10 contracts will be allocated to
the Priority Customer on the book at 2.51, leaving 80 contracts to be
allocated among the Counter-Side Order at 2.51 and the two market
makers offering at 2.51. The remaining 80 contracts will be allocated
at a price of 2.51 with 40 contracts (40% of the original order
quantity) being allocated to the Counter-Side Order, 20 contracts
allocated to MM1 and 20 contracts allocated to MM3.
The Exchange believes the proposed rule change will attract new
order flow that might not currently be afforded any price improvement
opportunity. Moreover, the Exchange notes that the Boston Options
Exchange (``BOX'') currently has rules that allow it to
[[Page 40815]]
commence its price improvement auction, called the Price Improvement
Period (``PIP''), at a price equal to the NBBO.\8\ When a PIP is
initiated at a price equal to the NBBO, regardless of size, the resting
quotes and orders on BOX are considered for allocation at the end of
the auction. BOX executes interest that existed on the BOX order book
prior to the commencement of a PIP before executing any interest which
joined during the auction. This behavior aligns with the BOX standard
trade allocation rules as they employ a price/time allocation
algorithm.
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\8\ See BOX Rules Chapter V, Section 18(e).
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Similar to BOX, the ISE Gemini proposed rule change will allow
orders of any size to initiate an auction at a price which is equal to
or better than the NBBO where ISE Gemini may have resting interest. ISE
Gemini will execute a Crossing Transaction against any interest,
resting prior to the commencement of an auction or interest which
arrived during the auction, in accordance with the rules as stated and
illustrated with the example above. While this is different than the
allocation algorithm that BOX employs, this behavior is consistent with
the ISE Gemini PIM rules in place today. This proposal will continue to
afford the same price improvement opportunities for Priority Customer
and non-Priority Customer Crossing Transactions as is in operation
today, but with the ability to initiate such price improving auctions
at a price that is equal to the NBBO, and therefore permitting more of
such orders to receive price improvement.
Further, as noted above, under Supplementary Material .08 to Rule
723, when the ISE Gemini BBO is equal to the NBBO, a Crossing
Transaction may currently be entered where the price of the Crossing
Transaction is equal to the ISE Gemini BBO if the Agency Order is on
the opposite side of the market from the ISE Gemini BBO. However, with
this proposed rule change, if a Crossing Transaction is entered at a
price equal to the ISE Gemini BBO on the opposite side of the market,
the Agency Order will no longer automatically execute and the Agency
Order will trade against any interest, resting prior to the
commencement of an auction or interest which arrived during the
auction, in accordance with rule 723(d). The Exchange, therefore,
proposes to delete Supplementary Material .08 to Rule 723.
The second change proposed in this filing is to modify the PIM
functionality so responses sent by Members during a PIM auction are not
visible to other auction participants. With this proposed change,
responses will be treated in the same way they are treated in price
improvement auctions operated by other exchanges.\9\
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\9\ See supra note 4.
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Currently, upon entry of a Crossing Transaction into the PIM, a
broadcast message that includes the series, price and size of the
Agency Order, and whether it is to buy or sell, is sent to all Members.
Members are then given 500 milliseconds to indicate the size and price
at which they want to participate in the execution of the Agency Order
(``Improvement Orders''). Improvement Orders may be entered by all
Members for their own account or for the account of a Public Customer
in one-cent increments at the same price as the Crossing Transaction or
at an improved price for the Agency Order, and for any size up to the
size of the Agency Order. During the exposure period, Improvement
Orders cannot be canceled, but can be modified to (1) increase the size
at the same price, or (2) improve the price of the Improvement Order
for any size up to the size of the Agency Order. During the exposure
period, the aggregate size of the best prices (including the Counter-
Side Order, Improvement Orders, and any changes to either) are
continually updated and broadcast to all Members.
Because the PIM permits Members to continually receive broadcast
messages, the Exchange adopted rules pursuant to which EAMs and
Exchange Market Makers are required to yield priority to all non-Member
orders \10\ which the Commission found to be consistent with the
requirements in Section 11(a) of the Act. At the time PIM on ISE Gemini
was approved, although the ``effect versus execute'' exemption under
Section 11(a) existed and was available to ISE Gemini Members, because
of the manner in which the PIM was designed, ISE Gemini Members were
not able to comply with that exemption. Instead, the PIM was designed
to rely on yielding by Members to non-Member orders to be consistent
with Section 11(a) of the Act. The Exchange notes the options markets
have evolved and some options exchanges that have adopted a price
improvement auction rely now on the ``effect versus execute'' exemption
under Section 11(a) and yield execution priority to Priority Customers
only. As a competitive response, the Exchange now proposes to delete
relevant parts of Rule 723 to modify the PIM functionality so that
responses submitted during a PIM auction will no longer be continually
updated and broadcast to all Members.\11\ Doing so will allow ISE
Gemini Members to rely on the ``effect versus execute'' exemption under
Section 11(a) of the Act when utilizing the PIM.
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\10\ See Securities Exchange Act Release Nos. 70050 (July 26,
2013), 78 FR 46622 (August 1, 2013). In connection with the current
proposal to make PIM auctions blind, the Exchange proposes to delete
reference to non-Member Professional Orders from its rules.
\11\ A number of exchanges currently operate price improvement
auctions where responses submitted by a member are blind, i.e., not
visible to other auction participants. For example, MIAX Rule
515A(a)(2)(i)(E) notes that ``responses shall not be visible to
other Auction participants.'' See Securities Exchange Act Release
No. 72009 (April 23, 2014), 79 FR 24032 (April 29, 2014).
Additionally, PHLX Rule 1080(n)(ii)(A)(6) similarly provides that
``responses will not be visible to Auction participants.'' See PHLX
Rule 1080(n)(ii)(A)(6).
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Section 11(a) of the Exchange Act prohibits any member of a
national securities exchange from effecting transactions on that
exchange for its own account, the account of an associated person, or
an account over which it or its associated persons exercises discretion
(``covered accounts''), unless an exception applies.\12\ Section
11(a)(1) contains a number of exceptions for principal transactions by
members and their associated persons. As set forth below, the Exchange
believes that with the proposed change, the PIM rules are now
consistent with the requirements in Section 11(a) and the rules
thereunder.
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\12\ 15 U.S.C. 78k(a)(1).
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In this regard, Section 11(a)(1)(A) provides an exception from the
prohibitions in Section 11(a) for dealers acting in the capacity of
market makers. With respect to Market Makers on the Exchange, the
Exchange believes that orders sent by them for covered accounts to the
proposed PIM would qualify for this exception from Section 11(a).
In addition to this Market Maker exception, Rule 11a2-2(T) under
the Exchange Act, known as the ``effect versus execute'' rule, provides
exchange members with an exception from Section 11(a) by permitting
them, subject to certain conditions, to effect transactions for covered
accounts by arranging for an unaffiliated member to execute the
transactions on the exchange.\13\ To comply with the ``effect versus
execute'' rule's conditions, a member: (i) Must transmit the order from
off the exchange floor; (ii) may not participate in the execution of
the transaction once it has been transmitted to the member performing
the execution;\14\ (iii) may not be affiliated
[[Page 40816]]
with the member executing the transaction on the floor through the
facilities of the Exchange; and (iv) with respect to an account over
which the member has investment discretion, neither the member nor its
associated person may retain any compensation in connection with
effecting the transaction except as provided in the rule.\15\
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\13\ 17 CFR 240.11a2-2(T).
\14\ The member, however, may participate in clearing and
settling the transaction. See Securities Exchange Act Release No.
14563 (March 14, 1978), 43 FR 11542 (March 17, 1978).
\15\ 17 CFR 240.11a2-2(T).
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The Exchange believes that orders sent by Members for covered
accounts to the proposed PIM would qualify for this ``effect versus
execute'' exception from Section 11(a), as described below. In this
regard, the first condition of Rule 11a2-2(T) is that orders for
covered accounts be transmitted from off the exchange floor. The ISE
Gemini trading system and the PIM receives all orders electronically
through remote terminals or computer-to-computer interfaces. The
Exchange represents that orders for covered accounts from Members will
be transmitted from a remote location directly to the PIM auction by
electronic means. In the context of other automated trading systems,
the Commission has found that the off-floor transmission requirement is
met if a covered account order is transmitted from a remote location
directly to an exchange's floor by electronic means.\16\ The second
condition of Rule 11a2-2(T) requires that the member not participate in
the execution of its order once the order is transmitted to the floor
for execution.\17\ The Exchange represents that, upon submission to the
PIM, an order will be executed automatically pursuant to the rules set
forth for the mechanism. In particular, execution of an order sent to
the mechanism depends not on the Member entering the order, but rather
on what other orders are present and the priority of those orders.
Thus, at no time following the submission of an order is a Member able
to acquire control or influence over the result or timing of order
execution.\18\ Rule 11a2-2(T)'s third condition requires that the order
be executed by an exchange member who is unaffiliated with the member
initiating the order. The Commission has stated that the requirement is
satisfied when automated exchange facilities, such as the PIM, are
used, as long as the design of these systems ensures that members do
not possess any special or unique trading advantages in handling their
orders after transmitting them to the exchange.\19\ The Exchange
represents that the PIM is designed so that no Member has any special
or unique trading advantage in the handling of its orders after
transmitting its orders to the mechanism. Rule 11a2-2(T)'s fourth
condition requires that, in the case of a transaction effected for an
account with respect to which the initiating member or an associated
person thereof exercises investment discretion, neither the initiating
member nor any associated person thereof may retain any compensation in
connection with effecting the transaction, unless the person authorized
to transact business for the account has expressly provided otherwise
by written contract referring to Section 11(a) of the Act and Rule
11a2-2(T) thereunder.\20\ The Exchange recognizes that Members relying
on Rule 11a2-2(T) for transactions effected through the PIM must comply
with this condition of the Rule.
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\16\ See, e.g., Securities Exchange Act Release Nos. 59154
(December 23, 2008), 73 FR 80468 (December 31, 2008) (SR-BSE-2008-
48); 57478 (March 12, 2008), 73 FR 14521 (March 18, 2008) (SR-
NASDAQ-2007-004 and SR-NASDAQ-2007-080); 49068 (January 13, 2004),
69 FR 2775 (January 20, 2004) (SR-BSE-2002-15); 15533 (January 29,
1979), 44 FR 6084 (January 31, 1979) (``1979 Release''); 14563
(March 14, 1978), 43 FR 11542 (March 17, 1978) (``1978 Release'').
\17\ The description above covers the universe of the types of
Members (i.e., Market Makers, EAMs).
\18\ The Exchange notes that a Member may cancel or modify the
order, or modify the instructions for executing the order, but that
such instructions would be transmitted from off the floor of the
Exchange. The Commission has stated that the non-participation
requirement is satisfied under such circumstances so long as such
modifications or cancellations are also transmitted from off the
floor. See 1978 Release (stating that the ``non-participation
requirement does not prevent initiating members from canceling or
modifying orders (or the instructions pursuant to which the
initiating member wishes to be executed) after the orders have been
transmitted to the executing member, provided that any such
instructions are also transmitted from off the floor'').
\19\ In considering the operation of automated execution systems
operated by an exchange, the Commission noted that, while there is
not an independent executing exchange member, the execution of an
order is automatic once it has been transmitted into the system.
Because the design of these systems ensures that members do not
possess any special or unique trading advantages in handling their
orders after transmitting them to the exchange, the Commission has
stated that executions obtained through these systems satisfy the
independent execution requirement of Rule 11a2-2(T). See 1979
Release.
\20\ See 17 CFR 240.11a2-2(T)(a)(2)(iv). In addition, Rule 11a2-
2(T)(d) requires a member or associated person authorized by written
contract to retain compensation, in connection with effecting
transactions for covered accounts over which such member or
associated persons thereof exercises investment discretion, to
furnish at least annually to the person authorized to transact
business for the account a statement setting forth the total amount
of compensation retained by the member in connection with effecting
transactions for the account during the period covered by the
statement which amount must be exclusive of all amounts paid to
others during that period for services rendered to effect such
transactions. See also 1978 Release (stating ``[t]he contractual and
disclosure requirements are designed to assure that accounts
electing to permit transaction-related compensation do so only after
deciding that such arrangements are suitable to their interests'').
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2. Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act'') \21\ in
general, and furthers the objectives of Section 6(b)(5) of the Act \22\
in particular, in that it is designed 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 by creating
positive, beneficial incentives for EAMs to provide price improvement
opportunities to market participants. With the proposed change to the
start price of a PIM auction, Members will not be required to improve
the ISE Gemini BBO on the opposite side of the Agency Order to initiate
a PIM. Further, any resting interest on the ISE Gemini order book on
the opposite side of the Agency Order will now participate at the end
of the auction. As a result, the proposed rule change will remove
impediments to and perfect the mechanism for a free and open market and
will result in more orders being executed in the PIM, thus providing an
increased probability of price improvement for all orders, regardless
of their size. With this proposed rule change, market participants
would be incentivized to introduce more orders to the PIM for the
opportunity to receive price improvement. Furthermore, Priority
Customers will continue to have priority at each price level in
accordance with ISE Gemini Rule 723(d). While currently non-Member
Professional Orders are executed after Priority Customer interest and
before Member interest, with this proposal, which in part amends ISE
Gemini rules to make PIM a blind auction, all Professional Orders will
now be at par with Member interest and will be executed after Priority
Customer orders are executed. The Exchange believes it is appropriate
to give Professionals Orders the same priority that is given to broker-
dealer orders because professional customers and broker-dealers
essentially behave the same, i.e., the type of trading professional
customers engage in largely resembles that of a broker-dealer. The
Exchange believes it is appropriate to treat these market participants
at par with one another.
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\21\ 15 U.S.C. 78f(b).
\22\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes that using the same allocation
process as
[[Page 40817]]
is used today for Crossing Transactions is fair and equitable because
of the value the EAM brings to the marketplace. Specifically, by
stopping the Crossing Transaction at or better than the NBBO, the EAM
facilitates a process that protects investors and is in the public
interest by providing an opportunity for price improvement. The
Exchange believes the proposed rule change generally will benefit
investors by offering more opportunities for orders to receive price
improvement. For these reasons, the Exchange believes that the proposal
is fair, reasonable and equitable for all market participants.
The Exchange believes its proposal to amend the manner in which
responses in the PIM auction are addressed is consistent with Section
6(b) of the Act. The proposal to make responses in the PIM blind to
other auction participants and the corresponding change to the priority
rules for the PIM are similar to existing priority rules that
distinguish between Priority Customers, Market Makers, and Professional
interest in a manner that will help ensure a fair and orderly market by
maintaining priority of orders and quotes while still affording the
opportunity for price improvement is both reasonable and appropriate.
The Exchange believes the proposed rule change is appropriate in
the [sic] price improvement auctions are widely recognized by market
participants as invaluable, both as a tool to access liquidity, and a
mechanism to help meet their best execution obligations. The proposed
rule change will further the ability of market participants to carry
out these strategies. Finally, as noted above, the proposed changes are
a competitive response to how price improvement auctions on other
exchanges currently operate and with this proposal, the Exchange will
be on a more equal footing to compete with other exchanges for orders
to be executed in the PIM.
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's proposal to
amend its rules regarding the start price of a PIM auction will not
impose a burden on competition because it will increase the number of
orders that may be executed in the PIM and thereby receive price
improvement opportunities that were not previously available to them.
Further, the Exchange's proposal to make PIM a blind auction will allow
ISE Gemini to compete with other options exchanges that already have
blind auctions which most options exchanges that operate a price
improvement auction do. Finally, the Exchange's proposal to amend the
execution priority rules will not be a burden on competition because
the proposed change will allow the Exchange to compete with other
options exchanges that operate a price improvement auction and whose
rules already permit its members to rely on the ``effect versus
execute'' exemption when utilizing the price improvement auction of
those markets. The changes proposed to Rule 723 will offer
opportunities found on other options exchanges and create systems that
embolden market participants to seek out price improvement
opportunities for customers. Accordingly, the proposed rule change will
have no impact on competition other than to strengthen competition
among the options exchanges that provide price improvement
opportunities.
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: (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)(ii) of the Act \23\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\24\
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\23\ 15 U.S.C. 78s(b)(3)(a)(ii).
\24\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires the Exchange to give the Commission written notice of the
Exchange's 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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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-ISEGemini-2014-19 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-ISEGemini-2014-19. 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 ISE. 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-ISEGemini-2014-19 and should
be submitted on or before August 4, 2014.
[[Page 40818]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-16362 Filed 7-11-14; 8:45 am]
BILLING CODE 8011-01-P