[Federal Register Volume 82, Number 112 (Tuesday, June 13, 2017)]
[Notices]
[Pages 27094-27096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12152]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80873; File No. SR-ISE-2017-51]
Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Remove Chapter
21 From the ISE Rulebook
June 7, 2017.
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 5, 2017, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, 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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[[Page 27095]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to remove Chapter 21, entitled ``ISE Stock
Exchange, LLC Trading Rules'' from the ISE Rulebook.
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 this rule change is to remove Chapter 21, entitled
``ISE Stock Exchange, LLC Trading Rules'' from the ISE Rulebook. The
Exchange is not currently operating an equities market on ISE. At this
time, the Exchange proposes to remove Chapter 21 rules related to an
equities market and reserve that section. The Exchange also proposes to
remove any cross-references to Chapter 21 within the ISE Rules.\3\
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\3\ See ISE Rules 100(a)(4), (7), (29), (34), Rule 500 and Rule
702.
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In 2006, ISE received approval to adopt rules to govern its
electronic trading system for equity securities.\4\ The rules in
Chapter 21 were adopted at that time. These rules govern the operation
of the ISE Stock Exchange, LLC (``ISE Stock Exchange''),\5\ an
electronic trading system for equity securities. In addition, certain
options rules are incorporated into Chapter 21 by reference to those
rules for the trading of equity securities on the ISE Stock Exchange.
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\4\ See Securities and Exchange Act Release No. 54528 (September
28, 2006), 71 FR 58650 (October 4, 2006) (Order Approving Proposed
Rule Change and Notice of Filing and Order Granting Accelerated
Approval of Amendment No. 1 Thereto Relating to the Adoption of
Rules To Govern Its Electronic Trading System for Equities) (SR-ISE-
2006-48).
\5\ On September 1, 2006, the Commission approved a proposed
rule change establishing the ISE Stock Exchange as a ``facility,''
as defined in Section 3(a)(2) of the Act, of the Exchange. See
Securities Exchange Act Release No. 54399, 71 FR 53728 (September
12, 2006) (SR-ISE-2006-45).
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ISE Stock Exchange operated until December 23, 2008, at which time,
ISE merged ISE Stock Exchange with a wholly-owned subsidiary of Direct
Edge Holdings LLC (``Direct Edge'').\6\ For a period of time after
which ISE ceased operating the equities business, ISE, pursuant to a
regulatory services agreement, conducted various regulatory services on
behalf of EDGX Exchange, Inc. until such time as EDGX received its
registration in 2010.\7\
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\6\ See Securities and Exchange Act Release No. 59135 (December
22, 2008); 73 FR 79954 (December 30, 2008) (SR-ISE-2008-85).
\7\ See Securities and Exchange Act Release No. 61698 (March 12,
2010); 75 FR 13151 (March 18, 2010) (File Nos. 10-194 and 10-196)
(In the Matter of the Applications of EDGX Exchange, Inc., and EDGA
Exchange, Inc. for Registration as National Securities Exchanges;
Findings, Opinion, and Order of the Commission.)
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At this time, ISE is proposing to remove all rules in Chapter 21
from the ISE Rulebook, along with the references to Chapter 21 in other
ISE rules. The Exchange would file a proposed rule change to adopt new
rules if it determines to operate an equities market in the future.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\8\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\9\ 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
for the reasons stated below. The Exchange is currently not operating
an equities market and has not operated an equities market since
December 2008. The Exchange desires to remove the rules relating to an
equities market from its Rulebook at this time as well as references to
Chapter 21 in other ISE rules. The Exchange believes that the removal
of the rules and cross-references are consistent with the Act to
perfect the mechanism of a free and open market and a national market
system, and, in general to protect investors and the public interest in
avoiding any confusion the operation of these rules.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
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Today, ISE operates an options market which will not be impacted by
the removal of the Chapter 21 rules and cross-references to Chapter 21.
The remainder of the Rulebook concerns the operation of the options
product.
The Exchange does not believe that the remove of Chapter 21 and
cross-references to Chapter 21 will materially impact members on ISE as
such trading has not occurred since late 2008.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any undue burden on competition not necessary or appropriate in
furtherance of the purposes of the Act. The proposal would eliminate
confusion with respect to ISE's offerings. The Exchange does not
believe that this proposal imposes any burden on competition because
there are many venues today which offer trading in equities products.
The Exchange does not believe that the removal of Chapter 21 and cross-
references to Chapter 21 will materially impact members on ISE as such
trading has not occurred since December 2008. Also, the options market
will not be impacted by the removal of the Chapter 21 rules and cross-
references to Chapter 21.
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)(iii) of the Act \10\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\11\
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\10\ 15 U.S.C. 78s(b)(3)(A)(iii).
\11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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: (i)
Necessary or appropriate in the public interest; (ii) for the
protection
[[Page 27096]]
of investors; or (iii) 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-ISE-2017-51 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-2017-51. 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-ISE-2017-51 and should be
submitted on or before July 5, 2017.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-12152 Filed 6-12-17; 8:45 am]
BILLING CODE 8011-01-P