Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 29583 

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

2 17 CFR 240.19b–4. 

3A complex order is any order involving the 

simultaneous purchase and/or sale of two or more 

different options series in the same underlying 

security, for the same account, in a ratio that is 

equal to or greater than one-to-three (.333) and less 

than or equal to three-to-one (3.00) and for the 

purpose of executing a particular investment 

strategy. See ISE Rule 722(a)(1). 

4This rule change is similar to Phlx Rule 1098(i) 

and (j). 

5This strategy utilizes a combination of either all 

calls or all puts of the same expiration date in the 

same underlying to limit risk. 

6This strategy utilizes a combination of put/call 

pairs of options with the same expiration date in 

the same underlying to limit risk. 

7See Supplementary Material .07(c) to ISE Rule 

722. 

8Allowing sell orders to trade by legging into the 

simple market at prices above the Maximum Value 

(buy orders below the Minimum Value) offers an 

opportunity for sellers/buyers to receive a premium 

beyond the potential intrinsic value of the spread 

without creating risk for the Complex Order Book. 

9 Id. 

FOR FURTHER INFORMATION CONTACT: 

David Dimitrious, Senior Special 

Counsel, at (202) 551–5131, or Benjamin 

Bernstein, Attorney-Adviser, at (202) 

551–5354, Division of Trading and 

Markets, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–7010. 

SUPPLEMENTARY INFORMATION: In 

accordance with Section 10(a) of the 

Federal Advisory Committee Act, 5 

U.S.C.-App. 1, and the regulations 

thereunder, Brett Redfearn, Designated 

Federal Officer of the Committee, has 

ordered publication of this notice. 

Dated: June 20, 2018. 

Brent J. Fields, 

Committee Management Officer. 

[FR Doc. 2018–13539 Filed 6–22–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83464; File No. SR–ISE– 

2018–55] 

Self-Regulatory Organizations; Nasdaq 

ISE, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Box and 

Butterfly Spread Protections 

June 19, 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 7, 

2018, Nasdaq ISE, LLC (‘‘ISE’’ or the 

‘‘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 adopt new 

order type protections, Butterfly and 

Box Spread protections, for Complex 

Order 3 strategy trades. 

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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to: (i) Adopt 

Complex Order protections for Butterfly 

and Box Spread protections for Complex 

Order strategies; and (ii) reorganize and 

amend the existing Complex Order 

protections currently contained within 

.07 of Supplementary Material to Rule 

722 and Rule 714. These amendments 

will be described in greater detail 

below. This rule change is similar to 

protections, which exist today on 

Nasdaq Phlx LLC (‘‘Phlx’’).4

Adopt Butterfly and Box Spread 

Protections 

Today, ISE members may submit 

Butterfly and Box spreads into the 

System. ISE proposes to define a 

Butterfly spread as a three legged 

Complex Order with certain 

characteristics.5 The Exchange is 

proposing to reject Butterfly spreads 

which are outside of certain parameters 

to avoid potential executions at prices 

that exceed the minimum and 

maximum possible intrinsic value of the 

spread by a specified amount. 

Additionally, ISE proposes to define a 

Box spread as a four legged Complex 

Order with certain characteristics.6 The 

Exchange is proposing to reject Box 

spreads which are outside of certain 

parameters to avoid potential executions 

at prices that exceed the minimum and 

maximum possible intrinsic value of the 

spread by a specified amount. Today, 

the Exchange offers similar order 

protection features for Complex Orders 

such as Vertical and Calendar Spread 

Protections 7 to avoid erroneous trades. 

Butterfly Spread Protection 

As noted above, the Exchange 

proposes to adopt a Butterfly Spread 

Protection. A Butterfly Spread is a three 

legged Complex Order with the 

following: (1) Two legs to buy (sell) the 

same number of calls (puts); (2) one leg 

to sell (buy) twice the number of calls 

(puts) with a strike price at mid-point of 

the two legs to buy (sell); (3) all legs 

have the same expiration; and (4) each 

leg strike price is equidistant from the 

next sequential strike price. With this 

protection, a Butterfly Spread Limit 

Order that is priced higher than the 

Maximum Value (defined below) or 

lower than the Minimum Value (defined 

below) will be rejected. A Butterfly 

Spread Market Order (or Butterfly 

Spread Limit Order entered with a net 

price inside the Butterfly Spread 

Protection Range) to Buy (Sell) will be 

restricted from executing by legging into 

the single leg market with a net price 

higher (lower) than the Maximum 

(Minimum) Value. The Butterfly Spread 

Protection Range is the absolute 

difference between the Minimum Value 

and the Maximum Value. 

ISE’s proposal continues to protect 

Butterfly Spreads from legging into the 

single leg market(s), similar to Phlx Rule 

1098(i), at a price higher than the 

Maximum Value for buy orders and 

lower than the Minimum Value for sell 

orders. ISE’s proposal differs from Phlx 

in that ISE allows legging below the 

Minimum Value for buys and above the 

Maximum Value for sells at a price 

made available by the synthetic (cIBBO) 

market outside of the Butterfly Spread 

Protection Range.8

The Exchange believes that these 

limitations, which exist today for ISE 

Vertical and Calendar Spreads,9 are 

consistent with the Act because the 

limits permit buying below the 

minimum and selling above the 

maximum thereby allowing buyers and 

sellers to achieve better prices without 

taking on additional risk. The intrinsic 

value for the Butterfly Spread that could 

be achieved when closing the position 

would not be negatively impacted in 


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29584 Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 

10A small incremental allowance outside of the 

Minimum/Maximum Value allows for a small 

premium to offset commissions associated with 

trading and may incentivize participants to take the 

other side of spreads trading at or slightly outside 

of the intrinsic value. For the participant looking to 

close out their position, it may be financially 

beneficial to pay a small premium and close out the 

position rather than carry such position to 

expiration and take delivery. The purpose of this 

rule change is not to impede current order handling 

but to ensure execution prices are within a 

reasonable range of minimum and maximum 

values. 

11For example, market participants who desire to 

trade out of positions at intrinsic value may not find 

a contra-side willing to trade without a premium. 

A small incremental allowance outside of the 

minimum/maximum value allows for a small 

premium to offset commissions associated with 

trading and may incentivize participants to take the 

other side of spreads trading at intrinsic value. For 

the participant looking to close out their position, 

it may be financially beneficial to pay a small 

premium and close out the position rather than 

carry such position to expiration and take delivery. 

12See ISE Rule 722 at Supplementary Material 

.07(c). 

13A Customer Cross Order is comprised of a 

Priority Customer Order to buy and a Priority 

Customer Order to sell at the same price and for the 

same quantity. See ISE Rule 715(i). 

14The cIBBO is calculated by deriving the 

synthetic bid and offer available in the simple 

market with the ratio of each option leg of the 

spread considered. The 6.30 number is arrived at 

by multiplying (1 * 33.70) then subtracting (2 * 

27.90) and adding (1 * 28.40). The 10.10 number 

is derived by multiplying (1 * 34.60) then 

subtracting (2 * 27.00) and adding (1 * 29.50). 

15The cIBBO is calculated by deriving the 

synthetic bid and offer available in the simple 

market with the ratio of each option leg of the 

spread considered. 

this case because the limitation permits 

price improvement. The Exchange 

notes, however, that in certain 

situations, market participants willingly 

want to execute certain trading 

strategies even if such trades occur 

outside their intrinsic value or at 

seemingly erroneous prices (e.g., 

negative price).10 The Exchange believes 

it is appropriate to provide market 

participants flexibility to allow them to 

execute these trading strategies and 

therefore to adopt a buffer to permit the 

execution of such trading strategies. The 

Exchange believes it is reasonable to 

adopt a buffer to give the Exchange the 

ability to adjust the pre-set value 

uniformly across all options classes in 

the event the Exchange believes a 

different pre-set value is more 

appropriate. Finally, the Exchange notes 

that it provides these protections for the 

benefit of, and in consultation with, its 

Members. The Exchange believes the 

proposed rule change will help the 

Exchange to maintain a fair and orderly 

market, and provide a valuable service 

to investors. 

The Initial Maximum Value shall be 

the distance between the strike price of 

the leg with the mid-point strike price 

and either of the outer leg strike prices. 

The Maximum Value Buffer is the lesser 

of a configurable absolute dollar value 

or percentage of the Initial Maximum 

Value set by the Exchange and 

announced via a notice to members. The 

Exchange intends to set the Maximum 

Value Buffer at zero initially. The 

Maximum Value is calculated by adding 

the Initial Maximum Value and 

Maximum Value Buffer. 

The Initial Minimum Value shall be 

zero. The Minimum Value Buffer is a 

configurable absolute dollar value set by 

the Exchange and announced via a 

notice to members. The Exchange 

intends to set the Minimum Value 

Buffer at zero initially. The Exchange 

would monitor the zero value, including 

feedback from market participants, in 

determining whether the value is set at 

the appropriate level. The decision to 

change the buffer could stem from 

participant concern for their ability to 

close out positions. The Minimum 

Value is calculated by subtracting the 

Minimum Value Buffer from the Initial 

Minimum Value of zero. There are 

circumstances where the Minimum 

Value may be less than zero.11

The Butterfly Spread Protection 

would apply throughout the trading 

day, including pre-market, during the 

Opening Process and during a trading 

halt. Unlike Phlx, but similar to ISE 

Vertical and Calendar spreads,12 these 

protections will not apply to Complex 

Orders being auctioned in the 

Facilitation, Solicitation, Price 

Improvement mechanism and 

associated auction responses. Also, 

today, the Vertical and Calendar spreads 

do not apply to Customer Cross 

Orders.13 The Exchange is adding 

Customer Cross Orders to the list of 

excluded order types that are not 

protected by the Vertical, Calendar, Box 

or Butterfly spread protections. 

Complex orders executed in these 

mechanisms are two-sided orders where 

the contra-side order is willing to trade 

with the agency order at an agreed upon 

price thus removing the risk that the 

order was executed erroneously outside 

its intrinsic value. Similarly, a Customer 

Cross Order is a two-sided order where 

the contra-side order is willing to trade 

with the agency order at an agreed upon 

price. The Exchange believes that 

because paired orders are negotiated in 

advance by both parties it is unlikely 

that the parties would agree to transact 

at prices that would necessitate the 

protections proposed within the 

Butterfly Spread Protection. 

Below is an example of the 

application of this protection. 

Example 1 

Assume the following Complex Order 

legs for a Butterfly Spread: 

1. Buy 1 NDX 6960 Jan 26 Call (33.70 

× 34.60) 

2. Sell 2 NDX 6970 Jan 26 Calls (27.00 

× 27.90) 

3. Buy 1 NDX 6980 Jan 26 Call (28.40 

× 29.50) 

The derived net ISE Complex Order 

market (‘‘cIBBO’’) is 6.30 × 10.10 14

Assume both the Maximum Value 

Buffer and Minimum Value Buffer 

are 0.00 

Minimum Value = 0.00 

• Initial Minimum Value: 0.00 

• Minimum Value Buffer: 0.00 

• Minimum Value: 0.00¥0.00 = 0.00 

Maximum Value = 10 

• Initial Maximum Value: 6970 

(middle leg strike price)¥6960 

(outer leg strike price) = 10.00 

• Maximum Value Buffer: 0.00 

• Maximum Value: 10.00 (Initial 

Maximum Value) + 0.00 (Maximum 

Value Buffer) = 10.00 

An incoming order to buy the spread 

defined above for 10.10 will be rejected 

because the purchase price of 10.10 is 

greater than the Maximum Value of 

10.00. 

Example 2 

Assume the following Complex Order 

legs for a Butterfly Spread: 

1. Buy 1 NDX 6960 Jan 26 Call (33.70 

× 34.60) 

2. Sell 2 NDX 6970 Jan 26 Calls (27.00 

× 27.90) 

3. Buy 1 NDX 6980 Jan 26 Call (28.40 

× 29.45) 

The derived net ISE Complex Order 

market (‘‘cIBBO’’) is 6.30 × 10.05 15

Assume both the Maximum Value 

Buffer and Minimum Value Buffer 

are 0.05 

Minimum Value = ¥0.05 

• Initial Minimum Value: 0.00 

• Minimum Value Buffer: 0.05 

• Minimum Value: 0.00¥0.05 = 

¥0.05 

Maximum Value = 10.05 

• Initial Maximum Value: 6970 

(middle leg strike price)¥6960 

(outer leg strike price) = 10.00 

• Maximum Value Buffer: 0.05 

• Maximum Value: 10.00 (Initial 

Maximum Value) + 0.05 (Maximum 

Value Buffer) = 10.05 

An incoming order to buy the spread 

defined above for 10.05 will be accepted 

and executed against the simple market 

because the purchase price of 10.05 is 

equal to the Maximum Value 10.05. 


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16See Securities and Exchange Act Release No. 

83033 (April 11, 2018), 83 FR 16907 (April 17, 

2018) (SR–Phlx–2018–14). 

17Allowing sell orders to trade by legging into the 

simple market at prices above the Maximum Value 

(buy orders below the Minimum Value) offers an 

opportunity for sellers/buyers to receive a premium 

beyond the potential intrinsic value of the spread 

without creating risk for the Complex Order Book. 

18See Supplementary Material .07(c) to ISE Rule 

722. 19 Id. 

20The cIBBO is calculated by deriving the 

synthetic bid and offer available in the simple 

market with the ratio of each option leg of the 

spread considered. 

21The cIBBO is calculated by deriving the 

synthetic bid and offer available in the simple 

market with the ratio of each option leg of the 

spread considered. 

Phlx has a similar protection in place 

today.16

Box Spread Protection 

As noted above, the Exchange 

proposes to adopt a Box Spread 

Protection. A Box Spread is a four 

legged Complex Order with the 

following: (1) One pair of legs with the 

same strike price with one leg to buy a 

call (put) and one leg to sell a put (call); 

(2) a second pair of legs with a different 

strike price from the pair described in 

(1) with one leg to sell a call (put) and 

one leg to buy a put (call); (3) all legs 

have the same expiration; and (4) all 

legs have equal volume. With this 

protection, a Box Spread Limit Order 

that is priced higher than the Maximum 

Value or lower than the Minimum Value 

will be rejected. A Box Spread Market 

Order (or Box Spread Limit Order 

entered with a net price inside the Box 

Spread Protection Range) to Buy (Sell) 

will be restricted from executing by 

legging into the single leg market with 

a net price higher (lower) than the 

Maximum (Minimum) Value. The Box 

Spread Protection Range is the absolute 

difference between the Minimum Value 

and the Maximum Value. 

ISE’s proposal continues to protect 

Box Spreads from legging into the single 

leg market(s), similar to Phlx Rule 

1098(j), at a price higher than the 

Maximum Value for buy orders and 

lower than the Minimum Value for sell 

orders. ISE’s proposal differs from Phlx 

in that ISE allows legging below the 

Minimum Value for buys and above the 

Maximum Value for sells at a price 

made available by the synthetic (cIBBO) 

market outside of the Box Spread 

Protection Range.17

The Exchange believes that these 

limitations, which exist today for ISE 

Vertical and Calendar Spreads,18 are 

consistent with the Act because the 

limits permit buying below the 

minimum and selling above the 

maximum thereby allowing buyers and 

sellers to achieve better prices without 

taking on additional risk. The intrinsic 

value for the Box Spread that could be 

achieved when closing the position 

would not be negatively impacted in 

this case because the limitation permits 

price improvement as noted above for 

Butterfly Spreads. 

The Initial Maximum Value shall be 

the distance between the strike prices of 

each pair of leg strike prices. The 

Maximum Value Buffer is the lesser of 

a configurable absolute dollar value or 

percentage of the Initial Maximum 

Value set by the Exchange and 

announced via a notice to members. The 

Exchange intends to set the Maximum 

Value Buffer at zero initially. The 

Maximum Value is calculated by adding 

the Initial Maximum Value and 

Maximum Value Buffer. 

The Initial Minimum Value shall be 

zero. The Minimum Value Buffer is a 

configurable absolute dollar value set by 

the Exchange and announced via a 

notice to members. The Exchange 

intends to set the Minimum Value 

Buffer at zero initially. The Minimum 

Value is calculated by subtracting the 

Minimum Value Buffer from the Initial 

Minimum Value of zero. 

The Box Spread Protection would 

apply throughout the trading day, 

including pre-market, during the 

Opening Process and during a trading 

halt. The protections will not apply to 

Complex Orders in the Facilitation, 

Solicitation, Price Improvement 

mechanism and associated auction 

responses. The Box Spread Protection 

will also not apply to Customer Cross 

Orders. Unlike Phlx, but similar to ISE 

Vertical and Calendar spreads,19 these 

protections will not apply to Complex 

Orders being auctioned in the 

Facilitation, Solicitation, Price 

Improvement mechanism and 

associated auction responses. Also, 

today, the Vertical and Calendar spreads 

do not apply to Customer Cross Orders. 

The Exchange is adding Customer Cross 

Orders to the list of excluded order 

types that are not protected by the 

Vertical, Calendar, Box or Butterfly 

spread protections. Complex orders 

executed in these mechanisms are twosided orders where the contra-side order 

is willing to trade with the agency order 

at an agreed upon price thus removing 

the risk that the order was executed 

erroneously outside its intrinsic value. 

Similarly, a Customer Cross Order is a 

two-sided order where the contra-side 

order is willing to trade with the agency 

order at an agreed upon price. The 

Exchange believes that because paired 

orders are negotiated in advance by both 

parties it is unlikely that the parties 

would agree to transact at prices that 

would necessitate the protections 

proposed within the Box Spread 

Protections. 

Example 1 

Assume the following Complex Order 

pairs for a Box Spread: 

1. Pair A 

a. Buy 1 NDX 6960 Jan 26 Call (30.80 

× 34.05) 

b. Sell 1 NDX 6960 Jan 26 Put (33.50 

× 36.00) 

2. Pair B 

a. Sell 1 NDX 6970 Jan 26 Call (27.50 

× 29.00) 

b. Buy 1 NDX 6970 Jan 26 Put (36.40 

× 37.05) 

The derived net ISE Complex Order 

market (‘‘cIBBO’’) is 2.20 × 10.10 20

Assume both Maximum Value Buffer 

and Minimum Value Buffer are 0.00 

Minimum Value = 0.00 

• Initial Minimum Value: 0.00 

• Minimum Value Buffer: 0.00 

• Minimum Value: 0.00¥0.00 = 0.00 

Maximum Value = 10.00 

• Initial Maximum Value: 6970 (Pair 

A strike price)¥6960 (Pair B strike 

price) = 10.00 

• Maximum Value Buffer: 0.00 

• Maximum Value: 10.00 (Initial 

Maximum Value) + 0.00 (Maximum 

Value Buffer) = 10.00 

An incoming order to buy the spread 

defined above for 10.10 will be rejected 

because the purchase price of 10.10 is 

greater than the Maximum Value of 

10.00. 

Example 2 

Assume the following Complex Order 

pairs for a Box Spread: 

1. Pair A 

a. Buy 1 NDX 6960 Jan 26 Call (30.80 

× 34.05) 

b. Sell 1 NDX 6960 Jan 26 Put (33.50 

× 36.50) 

2. Pair B 

a. Sell 1 NDX 6970 Jan 26 Call (27.50 

× 30.75) 

b. Buy 1 NDX 6970 Jan 26 Put (36.40 

× 37.05) 

The derived net ISE Complex Order 

market (‘‘cIBBO’’) is ¥0.05 × 

10.10 21

Assume both Maximum Value Buffer 

and Minimum Value Buffer are 0.05 

Minimum Value = ¥0.05 

• Initial Minimum Value: 0.00 

• Minimum Value Buffer: 0.05 

• Minimum Value: 0.00¥0.05 = 

¥0.05 

Maximum Value = 10.05 

• Initial Maximum Value: 6970 (Pair 


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29586 Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 

22See note 4 above. 

23The current rule text does not include 

Customer Cross Orders, however, today, the 

Vertical and Calendar spread protections do not 

apply to Customer Cross Orders. 

24Rule 722 at Supplementary Material .07(c)(4)(i) 

provides, ‘‘For purposes of the price protections set 

forth in paragraphs (c)(1) and (c)(3), the Exchange 

will set a common pre-set value not to exceed $1.00 

to be applied uniformly across all classes.’’ 

25Rule 722 at Supplementary Material .07(c)(5) 

provides ‘‘The Exchange may change the pre-set 

values established in paragraph (c)(4) in accordance 

with the parameters set forth therein from time to 

time uniformly across all classes.’’ 

26The words, ‘‘For purposes of the price 

protections set forth in paragraphs (c)(1) and (c)(3)’’ 

and ‘‘established in paragraph (c)(4) in accordance 

with the parameters set forth therein from time to 

time’’ are not being carried into the rule text as they 

are no longer necessary. 

27 ISE Rule 722 at Supplementary Material 

.07(c)(4)(ii) provides ‘‘For purposes of the price 

protections set forth in paragraph (c)(2), the 

Exchange will set common pre-set values of (1) an 

amount not to exceed $1.00 and (2) a percentage of 

the difference between strike prices not to exceed 

10% to be applied uniformly across all classes.’’ 

28 ISE Rule 722 at Supplementary Material 

.07(c)(5) provides, ‘‘The Exchange may change the 

pre-set values established in paragraph (c)(4) in 

accordance with the parameters set forth therein 

from time to time uniformly across all classes.’’ 

A strike price)¥6960 (Pair B strike 

price) = 10.00 

• Maximum Value Buffer: 0.05 

• Maximum Value: 10.00 (Initial 

Maximum Value) + 0.05 (Maximum 

Value Buffer) = 10.05 

An incoming order to sell the spread 

defined above for ¥0.05 will be 

accepted and executed against the 

simple market because the purchase 

price of -0.05 is equal than the 

Minimum Value of ¥0.05. Phlx has a 

similar protection in place today.22

Reorganize and Amend Supplementary 

Material .07 to Rule 722 

The Exchange proposes to reorganize 

and amend Supplementary Material .07 

to Rule 722 which is entitled ‘‘Price 

limits for complex order and quotes.’’ 

The Exchange proposes to rename .07 as 

‘‘Complex Order Protections.’’ The 

Exchange proposes to list all available 

Complex Order protections on ISE 

within Supplementary Material .07 to 

Rule 722. 

Universal Changes 

The Exchange proposes to reorder the 

rule and title subsection ‘‘a’’ as ‘‘Price 

limits for Complex Orders and quotes.’’ 

The Exchange is proposing to capitalize 

defined terms throughout this section 

for consistency. The Exchange removed 

cross-references that are no longer 

necessary with the reorganization. The 

Exchange proposes to re-letter and 

renumber this section to accommodate 

all the price protections. The Exchange 

also proposes adding titles throughout 

.07 to add more context to the rules. 

Proposed Supplementary Material to 

Rule 722 at .07(b) shall be titled, 

‘‘Strategy Protections.’’ Proposed 

Supplementary Material to Rule 722 at 

.07(c) shall be titled, ‘‘Other Price 

Protections which apply to Complex 

Orders.’’ 

Price Limits 

With respect to the price limits 

specified in proposed Rule 722 at 

Supplementary Material .07(a)(1) the 

Exchange proposes a substantive 

amendment to revise the second 

sentence which currently provides, 

‘‘Notwithstanding, the System will not 

permit any leg of a complex order to 

trade through the NBBO for the series by 

a configurable amount calculated as the 

lesser of (i) an absolute amount not to 

exceed $0.10, and (ii) a percentage of 

the NBBO not to exceed 500%, as 

determined by the Exchange on a class 

or series basis.’’ The Exchange originally 

filed this rule to permit ISE to configure 

settings for this protection on a class or 

series basis. The Exchange proposes to 

amend the ability to configure settings. 

Similar to the proposed Butterfly and 

Box Spread protections, the Exchange 

proposes to apply the settings uniformly 

across all classes. 

Strategy Protections 

The Exchange proposes introducing 

ISE Rule 722 at Supplementary Material 

.07(b) with the following text, ‘‘The 

following protections will apply 

throughout the trading day, including 

pre-market, during the Opening Process 

and during a trading halt.’’ Today, the 

Vertical and Calendar Spread 

Protections apply throughout the 

trading day, including pre-market, 

during the Opening Process and during 

a trading halt. The Exchange provides 

for no limitations in the Vertical and 

Calendar Spread Protections with 

respect to any limitations during 

specific trading sessions. The Exchange 

also does not intend for such limitations 

to apply for Box and Butterfly Spread 

Protections. The Exchange believes that 

adding this affirmative language will 

simply serve to remove any confusion 

on whether the protections do not apply 

during a specific trading session. 

The Exchange also proposes to add 

another sentence to the introduction of 

new section (b) which provides ‘‘The 

protections will not apply to Complex 

Orders being auctioned and auction 

responses in the Facilitation 

Mechanism, Solicited Order 

Mechanism, and Price Improvement 

Mechanism and will not apply to 

Customer Cross Orders.’’ Today, the 

protections for Vertical Spread 

Protection and Calendar Spread 

Protections do not apply to Complex 

Orders being auctioned and auction 

responses in the Facilitation 

Mechanism, Solicited Order 

Mechanism, and Price Improvement 

Mechanism and Customer Cross 

Orders.23 The Exchange is proposing 

these same limitations for Box and 

Butterfly Spreads. Complex orders 

executed in these mechanisms are twosided orders where the contra-side order 

is willing to trade with the agency order 

at an agreed upon price thus removing 

the risk that the order was executed 

erroneously outside its intrinsic value. 

Vertical Spread Protections 

The Exchange proposes amending ISE 

Rule 722 at Supplementary Material 

.07(b)(1), similar to the Box and 

Butterfly Spread protections, to begin 

the section with the same conforming 

language indicating which strategy the 

Vertical Spread Protection applies to 

and also relocating the definition of a 

Vertical Spread to the initial paragraph. 

The Exchange is amending proposed 

ISE Rule 722 at Supplementary Material 

.07(b)(1)(A) to relocate the language in 

current Rule 722 at Supplementary 

Material .07(c)(4)(i) 24 and .07(c)(5) 25

into the actual paragraph rather than 

referring back to the paragraph.26 The 

Exchange proposes the following rule 

text, ‘‘The Exchange will set a common 

pre-set value not to exceed $1.00 to be 

applied uniformly across all classes. 

The Exchange may amend the pre-set 

value uniformly across all classes’’ at 

proposed ISE Rule 722 at 

Supplementary Material .07(b)(1)(A). 

The Exchange notes that proposed ISE 

Rule 722 at Supplementary Material 

.07(b)(1)(B) already has a sentence 

which states, ‘‘The pre-set value is the 

lesser of an absolute amount and a 

percentage of the difference between the 

strike prices.’’ Instead of also relocating 

ISE Rule 722 at Supplementary Material 

.07(c)(4)(ii) and (c)(5) into the actual 

paragraph, the Exchange proposes to 

remove the current sentence, ‘‘The preset value is the lesser of an absolute 

amount and a percentage of the 

difference between the strike prices’’ 

and instead combine ISE Rule 722 at 

Supplementary Material .07(c)(4)(ii) 27

and (c)(5).28 The Exchange proposes to 

state ‘‘The pre-set value used by the 

vertical spread check will be the lesser 

of (1) an absolute amount not to exceed 

$1.00 and (2) a percentage of the 

difference between the strike prices not 

to exceed 10% to be applied uniformly 

across all classes. The Exchange may 

amend the pre-set value uniformly 

across all classes.’’ The Exchange 


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Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 29587 

29The words, ‘‘For purposes of the price 

protections set forth in paragraphs (c)(1) and (c)(3)’’ 

are not being carried into the rule text as they are 

no longer necessary. 

30Currently, the rule text provides ‘‘The 

Exchange may change the pre-set values established 

in paragraph (c)(4) in accordance with the 

parameters set forth therein from time to time 

uniformly across all classes.’’ The Exchange 

proposes to state ‘‘The Exchange may amend the 

pre-set value uniformly across all classes.’’ 

31Limit Order Price Protection is currently at ISE 

Rule 722 at Supplementary Material .07(d). 

32Size Limitation is currently at ISE Rule 722 at 

Supplementary Material .07(e). 

33As noted above the Price Level Protection rule 

is being relocated to ISE Rule 722 at Supplementary 

Material .07(c)(3). 34 15 U.S.C. 78f(b). 35 15 U.S.C. 78f(b)(5). 

36See Phlx Rule 1098(i) and (j). 

37See Supplementary Material .07(c) to ISE Rule 

722. 

believes that this proposed rule text 

more efficiently explains the relevant 

provisions and removes unnecessary 

text. 

Calendar Spread Protections 

The Exchange proposes amending ISE 

Rule 722 at Supplementary Material 

.07(b)(2), similar to the Box and 

Butterfly Spread protections, to begin 

the section with the same conforming 

language indicating which strategy the 

Calendar Spread Protection applies to 

and also relocating the definition of a 

Calendar Spread to the initial 

paragraph. The Exchange is also 

relocating language in current Rule 722 

at Supplementary Material .07(c)(4)(i) 

into the actual paragraph rather than 

referring back to the paragraph.29 The 

Exchange also proposes to relocate 

current Rule 722 at Supplementary 

Material .07(c)(5) into proposed ISE 

Rule 722 at Supplementary Material 

.07(b)(2) and amending the language to 

conform to the text in the remainder of 

the rule.30 The Exchange proposes to 

eliminate the remainder of the rule text 

currently in Supplementary Material to 

Rule 722 at .07(c)(4)(i) and (ii) and 

.07(c)(5) because the language has been 

relocated within the proposed text as 

described herein. 

Other Price Protections 

The Exchange proposes to add to ISE 

Rule 722 new Supplementary Material 

.07(c) entitled ‘‘Other Price Protections 

which apply to Complex Orders’’ and 

relocate Limit Order Price Protection to 

.07(c)(1).31 The Exchange proposes to 

relocate Size Limitation to ISE Rule 722 

at Supplementary Material .07(c)(2).32

Finally, the Exchange proposes to 

relocate Price Level Protection from 

Rule 714(b)(4) to Rule 722 at 

Supplementary Material .07(c)(3). The 

Exchange proposes to remove the first 

sentence which provides, ‘‘This 

protection shall apply to Complex 

Orders’’ because this rule is not within 

a Complex Order rule currently and will 

not need that indication once the rule 

text is relocated to Rule 722. The 

Exchange also proposes to amend the 

last sentence of that rule which 

currently provides, ‘‘The number of 

price levels for the component leg, 

which may be between one (1) and ten 

(10), is determined by the Exchange 

from time-to-time on a class-by-class 

basis.’’ The Exchange believes 

indicating between one and ten could be 

misleading because the setting could be 

numbers 1 and 10 so ‘‘from one (1) to 

ten (10)’’ is being proposed to make that 

more clear. 

Rule 714 

Finally, the Exchange proposes to 

amend Rule 714(b) to make clear that 

the protections in that rule apply to 

single leg orders. The Exchange is 

placing protections for Complex Orders 

into Rule 722 and relocating the Price 

Level Protection rule 33 related to 

Complex Orders. The additional 

clarifying language to single leg and 

cross-reference to Supplementary 

Material .07 to ISE Rule 722 should 

make clear to Members where the 

various price protections are located. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,34 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,35

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 

offering protections for certain Complex 

Orders which restrict executions that 

exceed the intrinsic value of the spread 

by a specified (or configurable) amount. 

Further, the Exchange believes that its 

proposal will mitigate risks to market 

participants. Specifically, ISE believes 

that the change, which is responsive to 

member input, will facilitate 

transactions in securities and perfect the 

mechanism of a free and open market by 

providing its Members with additional 

functionality that will assist them with 

managing their risk by checking each 

Complex Order that is either a Butterfly 

or Box spread against certain parameters 

described within the filing before 

accepting the Complex Orders into the 

order book. 

The Exchange believes that the 

parameters described herein, including 

parameters which will be configured by 

the Exchange, will protect members 

from executing orders too far outside the 

Minimum Value and Maximum Value 

which considers the intrinsic value of 

the strategy, thereby promoting fair and 

orderly markets and the protection of 

investors. The Exchange intends to offer 

a buffer allowance from the minimum/ 

maximum values permitted for the 

execution of these strategy orders to 

allow market participants flexibility to 

manage their business and 

accommodate executions outside of this 

range. The Exchange would monitor the 

zero value, including feedback from 

market participants, in determining 

whether the value is set at the 

appropriate level. The decision to 

change the buffer could stem from 

participants’ concern for their ability to 

close out positions. There are 

circumstances where the Minimum 

Value may be less than zero. For 

example, market participants who 

desire to trade out of positions at 

intrinsic value may not find a contraside willing to trade without a premium. 

A small incremental allowance outside 

of the minimum/maximum value allows 

for a small premium to offset 

commissions associated with trading 

and may incentivize participants to take 

the other side of spreads trading at 

intrinsic value. For the participant 

looking to close out their position, it 

may be financially beneficial to pay a 

small premium and close out the 

position rather than carry such position 

to expiration and take delivery. The 

purpose of this rule change is not to 

impede current order handling but to 

ensure execution prices are within a 

reasonable range of minimum and 

maximum values. 

These protections are very similar to 

protections on Phlx.36 ISE’s proposal 

continues to protect Butterfly and Box 

Spreads from legging into the single leg 

market(s), similar to Phlx Rule 1098(i) 

and (j), at a price higher than the 

Maximum Value for buy orders and 

lower than the Minimum Value for sell 

orders. Further, ISE’s proposal differs 

from Phlx in that ISE allows legging 

below the Minimum Value for buys and 

above the Maximum Value for sells at a 

price made available by the synthetic 

(cIBBO) market outside of the Butterfly 

and Box Spread Ranges, The Exchange 

believes that these limitations, which 

exist today for ISE Vertical and Calendar 

Spreads,37 are consistent with the Act 

because the limits permit buying below 

the minimum and selling above the 

maximum thereby allowing buyers and 

sellers to achieve better prices without 


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29588 Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 

38Allowing sell orders to trade by legging into the 

simple market at prices above the Maximum Value 

(buy orders below the Minimum Value) offers an 

opportunity for sellers/buyers to receive a premium 

beyond the potential intrinsic value of the spread 

without creating risk for the Complex Order Book. 

39 Id. 

40Proposed Supplementary Material .07(a)(1) to 

ISE Rule 722 provides that the System will not 

permit any leg of a complex order to trade through 

the NBBO for the series by a configurable amount 

calculated as the lesser of (i) an absolute amount 

not to exceed $0.10, and (ii) a percentage of the 

NBBO not to exceed 500%, as determined by the 

Exchange. 

41See Phlx Rule 1098(i) and (j). 

42 15 U.S.C. 78s(b)(3)(A)(iii). 43 17 CFR 240.19b–4(f)(6). 44 In addition, Rule 19b–4(f)(6)(iii) requires a selfregulatory 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. 

45 17 CFR 240.19b–4(f)(6). 

46 17 CFR 240.19b–4(f)(6)(iii). 

taking on additional risk.38 The intrinsic 

value for the Box Spread and the 

Butterfly Spread that could be achieved 

when closing the position would not be 

negatively impacted in this case because 

the limitation permits price 

improvement as noted above for Box 

Spreads and Butterfly Spreads. 

The Exchange’s proposal to exclude 

the Butterfly and Box Spread 

Protections from Complex Orders being 

auctioned and auction responses in the 

Facilitation Mechanism, Solicited Order 

Mechanism, and Price Improvement 

Mechanism is consistent with the Act 

because it conforms to the behavior of 

other protections on ISE protection 

including the protections for Vertical 

Spread and Calendar Spreads. Complex 

Orders executed in these mechanisms 

are two-sided orders where the contraside order is willing to trade with the 

agency order at an agreed upon price 

thus removing the risk that the order 

was executed erroneously outside its 

intrinsic value. The Box and Butterfly 

Spread Protection will also not apply to 

Customer Cross Orders. Unlike Phlx, but 

similar to ISE Vertical and Calendar 

spreads,39 these protections will not 

apply to Complex Orders being 

auctioned in the Facilitation, 

Solicitation, Price Improvement 

mechanism and associated auction 

responses. Also, today, the Vertical and 

Calendar spreads do not apply to 

Customer Cross Orders. The Exchange is 

adding Customer Cross Orders to the list 

of excluded order types that are not 

protected by the Vertical, Calendar, Box 

or Butterfly Spread Protections. 

Complex orders executed in these 

mechanisms are two-sided orders where 

the contra-side order is willing to trade 

with the agency order at an agreed upon 

price thus removing the risk that the 

order was executed erroneously outside 

its intrinsic value. Similarly, a Customer 

Cross Order is a two-sided order where 

the contra-side order is willing to trade 

with the agency order at an agreed upon 

price. The Exchange believes that 

because paired orders are negotiated in 

advance by both parties it is unlikely 

that the parties would agree to transact 

at prices that would necessitate the 

protections proposed within the Box 

and Butterfly Spread Protections. 

The Exchange believes that the 

proposed amendments to 

Supplementary Material .07 to ISE Rule 

722 further clarify the existing rules and 

conform the structure of the rules to the 

proposed Butterfly and Box Spread 

protections. The Exchange believes that 

reorganizing Supplementary Material 

.07 to ISE Rule 722 by adding titles, 

capitalizing defined terms, reorganizing 

the letters and numbers and 

consolidating text will protect investors 

and the public interest by adding greater 

transparency to the rules. The Exchange 

also notes that it is adding clarifying 

language to the rule text and relocating 

the Price Level Protection from Rule 

714, which concerns single leg 

protections to Rule 722 at 

Supplementary Material .07, which 

concerns Complex Order protections. 

The Exchange believes that amending 

proposed Supplementary Material 

.07(a)(1) to ISE Rule 722 to apply the 

setting 40 uniformly across all markets 

rather than on a class or series basis will 

align this protection to the manner in 

which all other protections are applied 

for Complex Orders. The Exchange 

believes that uniformly applying the 

setting is consistent with the Act 

because it will apply the protection in 

the same manner regardless of class. 

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. Specifically, 

the proposal does not impose an intramarket burden on competition, because 

it will apply to all Complex Orders, 

which are either Butterfly or Box 

spreads entered by any ISE Member. 

Further, the proposal will not impose an 

undue burden on inter-market 

competition, rather the proposal will 

assist the Exchange in remaining 

competitive in light of protections 

offered by other options exchanges.41

The Exchange competes with many 

other options exchanges, which offer 

Complex Orders. In this highly 

competitive market, market participants 

can easily and readily direct order flow 

to competing venues. The Exchange 

believes that not applying the Box and 

Butterfly Spread Protections to 

Customer Cross Orders, in addition to 

Complex Orders being auctioned in the 

Facilitation, Solicitation, Price 

Improvement mechanism and 

associated auction responses, does not 

impose any significant burden on 

competition because it will not be 

applied to any of these orders for any 

market participant. 

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 Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act 42 and Rule 19b– 

4(f)(6) thereunder.43 Because the 

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 and Rule 19b– 

4(f)(6) thereunder.44

A proposed rule change filed under 

Rule 19b–4(f)(6) 45 normally does not 

become operative for 30 days after the 

date of the filing. However, pursuant to 

Rule 19b–4(f)(6)(iii),46 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. In 

its filing with the Commission, the 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing so that the 

Exchange may immediately offer the 

Box and Butterfly Spread protections, 

which are offered on Phlx, and remain 

competitive with other markets. The 

Commission believes that waiver of the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because the Box and 

Butterfly Spread protections will help 

market participant mitigate risk by 

preventing the execution of Butterfly 

and Box Spreads at prices that are 

outside of specified minimum and 

maximum values. The Commission 

notes that the Box and Butterfly Spread 


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Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 29589 

47For purpose only of waiving the operative 

delay, the Commission has considered the proposed 

rule’s impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

48 15 U.S.C. 78s(b)(2)(B). 49 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 82881 

(March 15, 2018), 83 FR 12449. 

4Amendment No. 1 replaced and superseded the 

original rule filing in its entirety. Amendment 

No. 1 is available at https://www.sec.gov/comments/ 

sr-cboebzx-2018-019/cboebzx2018019-3551361- 

162325.pdf. Amendment No. 1 was subsequently 

replaced and superseded in its entirety by 

Amendment No. 2. See note 7, infra. 

5 15 U.S.C. 78s(b)(2). 

protections are substantially similar to 

protections offered on Phlx. Therefore, 

the Commission designates the 

proposed rule change operative upon 

filing.47

At any time within 60 days of the 

filing of such 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 

under Section 19(b)(2)(B) of the Act 48 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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–ISE–2018–55 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–2018–55. This file 

number should be included on the 

subject line if e-mail 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 such 

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–2018–55, and should 

be submitted on or before July 16, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.49

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–13505 Filed 6–22–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83463] 

Draft 2018–2022 Strategic Plan for 

Securities and Exchange Commission 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Request for comment. 

SUMMARY: The Securities and Exchange 

Commission (SEC) is providing notice 

that it is seeking comments on its draft 

2018–2022 Strategic Plan. The draft 

Strategic Plan includes a draft of the 

SEC’s mission, vision, values, strategic 

goals, and planned initiatives. 

DATES: Comments should be received on 

or before July 25, 2018. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

Send an email to 

PerformancePlanning@sec.gov. 

Paper Comments 

Send paper comments to Nicole 

Puccio, Branch Chief, Securities and 

Exchange Commission, 100 F Street NE, 

Washington, DC 20549–2521. 

FOR FURTHER INFORMATION CONTACT: 

Nicole Puccio, Branch Chief, Office of 

Financial Management, at (202) 551– 

6638, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–2521. 

SUPPLEMENTARY INFORMATION: The draft 

strategic plan is available at the 

Commission’s website at https://

www.sec.gov/files/sec-strategic-plan2018-2022.pdf or by contacting Nicole 

Puccio, Branch Chief, Office of 

Financial Management, at (202) 551– 

6638, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–2521. 

By the Commission. 

Dated: June 19, 2018. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2018–13484 Filed 6–22–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83467; File No. SR– 

CboeBZX–2018–019] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Order Instituting 

Proceedings To Determine Whether To 

Approve or Disapprove a Proposed 

Rule Change, as Modified by 

Amendment No. 2 Thereto, To List and 

Trade Shares of Eighteen ADRPLUS 

Funds of the Precidian ETFs Trust 

Under Rule 14.11(i), Managed Fund 

Shares 

June 19, 2018. 

I. Introduction 

On March 5, 2018, Cboe BZX 

Exchange, Inc. filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade shares (‘‘Shares’’) of 

eighteen ADRPLUS Funds (‘‘Funds’’) of 

the Precidian ETFs Trust (‘‘Trust’’). The 

proposed rule change was published for 

comment in the Federal Register on 

March 21, 2018.3 On April 25, 2018, the 

Exchange filed Amendment No. 1 to the 

proposed rule change,4 and the 

Commission, pursuant to Section 

19(b)(2) of the Act,5 designated a longer 


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