Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28705 

11 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

Exchange, which would benefit all 

market participants. 

The Exchange believes that the 

proposed changes to Setter Priority are 

designed to operate consistently with 

the existing functionality, which is why 

multiple orders that reprice would not 

be eligible for Setter Priority, unless one 

order is equal to a round lot or more and 

the sum of all other orders at that price 

equal less than a round lot. Similarly, 

the Exchange believes that it would 

remove impediments to and perfect the 

mechanism of a free and open market 

and a national market system for a 

Reserve Order to be eligible for Setter 

Priority at only one price, and therefore, 

during a Short Sale Period, if a Reserve 

Order is replenished at a Permitted 

Price, it would not be eligible for Setter 

Priority at a second price level. 

Finally, the Exchange believes that 

the proposed amendment to Rule 

7.37(h)(3)(C) to add that an order would 

lose Setter Priority if it is less than a 

round lot and assigned a new working 

time pursuant to proposed Rule 

7.31(d)(1)(B)(i) is consistent with 

current behavior that an odd-lot sized 

order would lose Setter Priority if it is 

assigned a new working time. The 

Exchange believes that it would remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system for a 

Reserve Order to lose Setter Priority in 

such circumstances because when it is 

assigned a new working time, it would 

be eligible to be reevaluated for Setter 

Priority. 

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 that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is not designed to 

address any competitive issues. Rather, 

the proposed rule change to Reserve 

Orders is designed to reduce the 

potential for market participants to 

identify that a child order is related to 

a Reserve Order. The changes to Setter 

Priority are designed to promote the 

aggressive display of liquidity on the 

Exchange to provide additional 

circumstances when an order would be 

eligible for Setter Priority, consistent 

with current rules. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or up to 90 days (i) as the 

Commission may designate if it finds 

such longer period to be appropriate 

and publishes its reasons for so finding 

or (ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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 rule-comments@

sec.gov. Please include File Number SR– 

NYSE–2018–26 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–NYSE–2018–26. 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–NYSE–2018–26 and should 

be submitted on or before July 11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13162 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83446; File No. SR–ISE– 

2018–52] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Increase Certain 

Route-Out Fees Set Forth in Section 

IV.F of the Schedule of Fees 

June 14, 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 June 1, 

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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to increase 

certain route-out fees set forth in 

Section IV.F of the Schedule of Fees, as 

described further below. 

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. 


sradovich on DSK3GMQ082PROD with NOTICES
28706 Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 

3The term ‘‘Market Makers’’ refers to 

‘‘Competitive Market Makers’’ and ‘‘Primary Market 

Makers’’ collectively. See Rule 100(a)(28). 

4A ‘‘Non-Nasdaq ISE Market Maker’’ is a market 

maker as defined in Section 3(a)(38) of the 

Securities Exchange Act of 1934, as amended, 

registered in the same options class on another 

options exchange. 

5A ‘‘Firm Proprietary’’ order is an order 

submitted by a member for its own proprietary 

account. 

6A ‘‘Broker-Dealer’’ order is an order submitted 

by a member for a broker-dealer account that is not 

its own proprietary account. 

7A ‘‘Professional Customer’’ is a person or entity 

that is not a broker/dealer and is not a Priority 

Customer. 

8 ‘‘Non-Select Symbols’’ are options overlying all 

symbols that are not in the Penny Pilot Program. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4) and (5). 

11For example, CBOE C2 Exchange, Inc. (‘‘C2’’) 

charges $1.63 per routed contract for non-public 

customer, non-C2 market-maker orders in nonpenny classes. See C2 Fees Schedule, Section 1.A 

(Transaction Fees) and Section 2 (Linkage Routing). 

12A ‘‘Priority Customer’’ is a person or entity that 

is not a broker/dealer in securities, and does not 

place more than 390 orders in listed options per day 

on average during a calendar month for its own 

beneficial account(s), as defined in Nasdaq ISE Rule 

100(a)(37A). 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 240.19b–4(f)(2). 

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 increase certain route-out 

fees set forth in Section IV.F of the 

Schedule of Fees. Today, the Exchange 

charges Non-Priority Customers (i.e., 

Market Maker,3 Non-Nasdaq ISE Market 

Maker,4 Firm Proprietary 5/BrokerDealer,6 and Professional Customer 7) 

route-out fees of $0.95 per contract for 

orders in Non-Select Symbols 8 that are 

routed to away exchanges in connection 

with the Options Order Protection and 

Locked/Crossed Market Plan (the 

‘‘Plan’’). The Exchange now proposes to 

increase this fee to $1.09 per contract for 

all Non-Priority Customer orders in 

Non-Select Symbols that are routed to 

away exchanges in connection with the 

Plan. The Exchange believes that the 

proposed increase will help offset the 

costs associated with routing orders 

through the Plan, such as paying the 

transaction fees for such executions at 

other exchanges. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,9 in general, and furthers the 

objectives of Sections 6(b)(4) and 6(b)(5) 

of the Act,10 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees, and other charges 

among members and issuers and other 

persons using any facility, and is not 

designed to permit unfair 

discrimination between customers, 

issuers, brokers, or dealers. 

The Exchange believes that proposed 

increase in the Non-Priority Customer 

route-out fees from $0.95 to $1.09 per 

contract for orders in Non-Select 

Symbols is reasonable because it is 

designed to help recoup costs associated 

with routing orders to away exchanges 

in connection with the Plan, such as 

paying the transaction fees for such 

executions at other exchanges. 

Furthermore, the Exchange notes that 

the proposed fees remain competitive 

with the fees of other options exchanges 

which, in addition to a fixed routing fee, 

assess the actual transaction fees.11

The Exchange believes that proposed 

increase in the Non-Priority Customer 

route-out fees is an equitable allocation 

and is not unfairly discriminatory 

because the Exchange will apply the 

same fee to all similarly situated 

members. The Exchange believes it is 

equitable and not unfairly 

discriminatory to increase the route-out 

fees for all market participants other 

than Priority Customers 12 because the 

Exchange seeks to encourage Priority 

Customer order flow and the liquidity 

that such order flow brings to the 

marketplace, which in turn benefits all 

market participants. 

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. In particular, 

the proposed increase to the route-out 

fees will apply equally to all NonPriority Customer orders that are routed 

to away exchanges in connection with 

the Plan, and will help offset costs 

associated with routing orders via the 

Plan. Furthermore as noted above, the 

Exchange believes that its proposed fees 

remain competitive with another 

options exchange. 

The Exchange notes that it operates in 

a highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, the 

Exchange must continually adjust its 

fees to remain competitive with other 

exchanges and with alternative trading 

systems that have been exempted from 

compliance with the statutory standards 

applicable to exchanges. Because 

competitors are free to modify their own 

fees in response, and because market 

participants may readily adjust their 

order routing practices, the Exchange 

believes that the degree to which fee 

changes in this market may impose any 

burden on competition is extremely 

limited. In sum, if the changes proposed 

herein are unattractive to market 

participants, it is likely that the 

Exchange will lose market share as a 

result. Accordingly, the Exchange does 

not believe that the proposed changes 

will impair the ability of members or 

competing order execution venues to 

maintain their competitive standing in 

the financial markets. 

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 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act,13 and Rule 

19b–4(f)(2) 14 thereunder. 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 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, 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 119 / Wednesday, June 20, 2018 / Notices 28707 

15 17 CFR 200.30–3(a)(12). 

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 rule-comments@

sec.gov. Please include File Number SR– 

ISE–2018–52 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–2018–52. 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–2018–52 and should be 

submitted on or before July 11, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13171 Filed 6–19–18; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 10448] 

Privacy Act of 1974; System of 

Records 

AGENCY: Department of State. 

ACTION: Notice of a modified System of 

Records. 

SUMMARY: Information in the Legal 

Adviser’s Case Management Records is 

used to provide or facilitate the 

provision of legal advice and opinion to 

the offices of the Department of State 

and to facilitate defense or 

representation of the Department in 

litigation and in other legal proceedings. 

Information may also be used to reply 

to requests from federal, state, local, or 

international courts, agencies, 

commissions, organizations, or 

mechanisms. 

DATES: In accordance with 5 U.S.C. 

552a(e)(4) and (11), this system of 

records notice is effective upon 

publication, with the exception of the 

routine uses (c), (e), (g), (h) and (k), 

which are subject to a 30-day period 

during which interested persons may 

submit comments to the Department. 

Please submit any comments by July 20, 

2018. 

ADDRESSES: Questions can be submitted 

by mail or email. If mail, please write to: 

U.S Department of State; Office of 

Global Information Systems, Privacy 

Staff; A/GIS/PRV; SA–2, Suite 8100; 

Washington, DC 20522–0208. If email, 

please address the email to the Senior 

Agency Official for Privacy, Mary R. 

Avery, at Privacy@state.gov. Please 

write ‘‘Legal Case Management Records, 

State-21’’ on the envelope or the subject 

line of your email. 

FOR FURTHER INFORMATION CONTACT: 

Mary R. Avery, Senior Agency Official 

for Privacy; U.S. Department of State; 

Office of Global Information Services, 

A/GIS/PRV; SA–2, Suite 8100; 

Washington, DC 20522–0208 or at 

(202)663–2215. 

SUPPLEMENTARY INFORMATION: The 

purpose of this modification is to make 

substantive and administrative changes 

to the previously published notice. This 

notice modifies the following sections of 

State-21, Legal Case Management 

Records: Categories of Individuals, 

Categories of Records, Purpose, Routine 

Uses, and Record Source Categories. In 

addition, this notice makes 

administrative updates to the following 

sections: Safeguards, Record Access 

Procedures, Contesting Record 

Procedures, Notification Procedures, 

and History. These changes reflect new 

OMB guidance, additional types of 

records, additional routine uses of 

records, updated contact information, 

and a notice publication history. 

SYSTEM NAME AND NUMBER 

Legal Case Management Records, 

State-21. 

SECURITY CLASSIFICATION: 

Unclassified and Classified. 

SYSTEM LOCATION: 

Department of State (‘‘Department’’), 

located at 2201 C Street NW, 

Washington, DC 20520; Department of 

State annexes, U.S. Embassies, U.S. 

Consulates General, and U.S. 

Consulates. 

SYSTEM MANAGER(S): 

Executive Director, Office of the Legal 

Adviser and Bureau of Legislative 

Affairs, Department of State, 600 19th 

Street NW, Suite 5.600, Washington, DC 

20522 and can be reached at Legalprivacy@state.gov. 

AUTHORITY FOR MAINTENANCE OF THE SYSTEM: 

5 U.S.C. 301; 22 U.S.C. 2651a; 22 

U.S.C. 2656; 42 U.S.C. 659; 42 U.S.C. 

666; 5 CFR part 581. 

PURPOSE(S) OF THE SYSTEM: 

Information in the Legal Adviser’s 

Case Management Records is used to 

provide or facilitate the provision of 

legal advice and opinion to the offices 

of the Department of State and to 

facilitate defense or representation of 

the Department in litigation and in other 

legal proceedings. Information may also 

be used to reply to requests from 

federal, state, local, or international 

courts, agencies, commissions, 

organizations, or mechanisms. 

CATEGORIES OF INDIVIDUALS COVERED BY THE

SYSTEM: 

Individuals who have filed or are the 

subject of administrative grievances or 

proceedings and Equal Employment 

Opportunity complaints; individuals 

involved in disciplinary proceedings; 

individuals involved in alleged criminal 

activity or activity in violation of 

regulations; individuals who have filed 

claims against the United States; 

individuals who have sued the 

Department of State or any officials; 

individuals whose records may be 

relevant to legal proceedings involving 

the Department of State; individuals 

who are the subjects of inquiries from 

federal, state, and local agencies; 

individuals who are the subjects of 

inquiries by international commissions, 

organizations, or mechanisms; 

individuals who are the subjects of 

income withholding orders, 

garnishment orders, bankruptcy orders, 


sradovich on DSK3GMQ082PROD with NOTICES