Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10175 

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

14 17 CFR 240.19b–4(f)(6). As required under Rule 

19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

15For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

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, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 13 and Rule 19b–4(f)(6) 

thereunder.14

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Exchange stated that waiver 

of this requirement will allow the 

Exchange to compete with other 

exchanges with similar provisions 

without putting the Exchange at a 

competitive disadvantage. For this 

reason, the Commission believes that 

the proposed rule change presents no 

novel issues and that waiver of the 30- 

day operative delay is consistent with 

the protection of investors and the 

public interest; and will allow the 

Exchange to remain competitive with 

other exchanges. Therefore, the 

Commission designates the proposed 

rule change to be operative upon 

filing.15

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 rule-comments@

sec.gov. Please include File Number SR– 

MIAX–2015–10 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–MIAX–2015–10. 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–MIAX– 

2015–10 and should be submitted on or 

before March 18, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03810 Filed 2–24–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74311; File No. SR– 

ISEGemini–2015–05] 

Self-Regulatory Organizations; ISE 

Gemini, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change to Extend the Limit UpLimit Down Obvious Error Pilot 

February 19, 2015. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

19, 2015, ISE Gemini, LLC (the 

‘‘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 self-regulatory 

organization. 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 the Substance 

of the Proposed Rule Change 

ISE Gemini proposes to extend a pilot 

program under Rule 703A(d) that 

suspends Rule 720 regarding obvious 

errors during Limit and Straddle States 

in securities that underlie options 

traded on the Exchange. 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. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
10176 Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 

3The Securities and Exchange Commission 

granted the Exchange’s application for registration 

as a national securities exchange on July 26, 2013. 

See Securities Exchange Act Release No. Release 

No. 70050 (July 26, 2013), 78 FR 46622 (Aug. 1, 

2013). 

4See Securities Exchange Act Release No. 67091 

(May 31, 2012), 77 FR 33498 (June 6, 2012) (the 

‘‘Limit Up-Limit Down Release’’). 

5The term ‘‘Limit State’’ means the condition 

when the national best bid or national best offer for 

an underlying security equals an applicable price 

band, as determined by the primary listing 

exchange for the underlying security. See Rule 

703A. 

6The term ‘‘Straddle State’’ means the condition 

when the national best bid or national best offer for 

an underlying security is non-executable, as 

determined by the primary listing exchange for the 

underlying security, but the security is not in a 

Limit State. See Rule 703A. 

7See Exchange Act Release No. 74110 (January 

21, 2015), 80 FR 4321 (January 27, 2015) (Eighth 

Amendment to the Limit-Up Limit-Down Plan). The 

Exchange notes that the current text of Rule 703A 

mistakenly states a pilot period end date of April 

8, 2014, which was the prior end date selected by 

the options exchanges for this industry wide 

initiative. The Exchange has maintained 

compliance with Rule 703A, including by 

submitting applicable pilot reports subsequent to 

this date. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 10 Id. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Rule 703A(d), which was adopted as 

part of the Exchange’s Form 1 

application for registration as a national 

securities exchange,3 is designed to 

address certain issues related to the Plan 

to Address Extraordinary Market 

Volatility Pursuant to Rule 608 of 

Regulation NMS under the Act (the 

‘‘Limit Up-Limit Down Plan’’ or the 

‘‘Plan’’).4 Specifically, pursuant to a 

pilot program adopted under Rule 

703A(d), the Exchange excludes 

transactions executed during a Limit 

State 5 or Straddle State 6 from the 

obvious error provisions of Rule 720. 

The purpose of this filing is to extend 

the effectiveness of the pilot program to 

coincide with the proposed extension of 

the Limit Up-Limit Down Plan to 

October 23, 2015.7

The Exchange believes the benefits to 

market participants from this provision 

should continue on a pilot basis. The 

Exchange continues to believe that 

adding certainty to the execution of 

orders in Limit or Straddle States will 

encourage market participants to 

continue to provide liquidity to the 

Exchange, and, thus, promote a fair and 

orderly market during these periods. 

Barring this provision, the obvious error 

provisions of Rule 720 would likely 

apply in many instances during Limit 

and Straddle States. The Exchange 

believes that continuing the pilot will 

protect against any unanticipated 

consequences in the options markets 

during a Limit or Straddle State. Thus, 

the Exchange believes that the 

protections of current rule should 

continue while the industry gains 

further experience operating the Plan. 

In connection with this proposed 

extension, each month the Exchange 

shall provide to the Commission, and 

the public, a dataset containing the data 

for each Straddle and Limit State in 

optionable stocks that had at least one 

trade on the Exchange. For each trade 

on the Exchange, the Exchange will 

provide (a) the stock symbol, option 

symbol, time at the start of the Straddle 

or Limit State, an indicator for whether 

it is a Straddle or Limit State, and (b) 

for the trades on the Exchange, the 

executed volume, time-weighted quoted 

bid-ask spread, time-weighted average 

quoted depth at the bid, time-weighted 

average quoted depth at the offer, high 

execution price, low execution price, 

number of trades for which a request for 

review for error was received during 

Straddle and Limit States, an indicator 

variable for whether those options 

outlined above have a price change 

exceeding 30% during the underlying 

stock’s Limit or Straddle State compared 

to the last available option price as 

reported by OPRA before the start of the 

Limit or Straddle State (1 if observe 

30% and 0 otherwise), and another 

indicator variable for whether the 

option price within five minutes of the 

underlying stock leaving the Limit or 

Straddle State (or halt if applicable) is 

30% away from the price before the start 

of the Limit or Straddle State. 

In addition, the Exchange will 

provide to the Commission, and the 

public, no later than May 29, 2015, 

assessments relating to the impact of the 

operation of the obvious error rules 

during Limit and Straddle States 

including: (1) An evaluation of the 

statistical and economic impact of Limit 

and Straddle States on liquidity and 

market quality in the options markets, 

and (2) an assessment of whether the 

lack of obvious error rules in effect 

during the Straddle and Limit States are 

problematic. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with the 

requirements of the Act and the rules 

and regulations thereunder that are 

applicable to a national securities 

exchange, and, in particular, with the 

requirements of Section 6(b) of the Act.8

In particular, the proposal is consistent 

with Section 6(b)(5) of the Act,9 because 

it is designed to promote just and 

equitable principles of trade, remove 

impediments to and perfect the 

mechanisms of a free and open market 

and a national market system and, in 

general, to protect investors and the 

public interest. Additionally, the 

Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 10 requirement that the rules of 

an exchange not be designed to permit 

unfair discrimination between 

customers, issuers, brokers, or dealers. 

In particular, the Exchange further 

believes that it is necessary and 

appropriate in the interest of promoting 

fair and orderly markets to exclude 

transactions executed during a Limit or 

Straddle State from certain aspects of 

Rule 720. The Exchange believes the 

application of the current rule will be 

impracticable given the lack of a reliable 

national best bid or offer in the options 

market during Limit and Straddle 

States, and that the resulting actions 

(i.e., nullified trades or adjusted prices) 

may not be appropriate given market 

conditions. Extension of this pilot 

would ensure that limit orders that are 

filled during a Limit or Straddle State 

would have certainty of execution in a 

manner that promotes just and equitable 

principles of trade, removes 

impediments to, and perfects the 

mechanism of a free and open market 

and a national market system. Thus, the 

Exchange believes that the protections 

of the pilot should continue while the 

industry gains further experience 

operating the Plan. 

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. Specifically, 

the Exchange believes that, by extending 

the expiration of the pilot, the proposed 

rule change will allow for further 

analysis of the pilot and a determination 

of how the pilot shall be structured in 

the future. In doing so, the proposed 

rule change will also serve to promote 

regulatory clarity and consistency, 

thereby reducing burdens on the 

marketplace and facilitating investor 

protection. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 37 / Wednesday, February 25, 2015 / Notices 10177 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6)(iii). As required under 

Rule 19b–4(f)(6)(iii), the Exchange provided the 

Commission with written notice of its intent to file 

the proposed rule change, along with a brief 

description and the 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. 

13For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 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 if 

consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 11 and Rule 19b–4(f)(6)(iii) 

thereunder.12

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest, as it 

will allow the obvious error pilot 

program to continue uninterrupted 

while the industry gains further 

experience operating under the Plan, 

and avoid any investor confusion that 

could result from a temporary 

interruption in the pilot program. For 

this reason, the Commission designates 

the proposed rule change to be operative 

upon filing.13

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 rulecomments@sec.gov. Please include File 

Number SR–ISEGemini–2015–05 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISEGemini–2015–05. 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 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; 

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–2015–05, and should be 

submitted on or before March 18, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03822 Filed 2–24–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74306; File No. SR–BOX– 

2015–13] 

Self-Regulatory Organizations; BOX 

Options Exchange LLC; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Extend 

the Pilot Program That Suspends 

Certain Obvious Error Provisions 

During Limit Up-Limit Down States in 

Securities That Underlie Options 

Traded on the Exchange 

February 19, 2015. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

18, 2015, BOX Options Exchange LLC 

(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 self-regulatory organization. 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 the Substance 

of the Proposed Rule Change 

The Exchange proposes to amend 

Interpretive Material 1 to Rule 7080 to 

extend, through October 23, 2015, the 

pilot program that suspends certain 

obvious error provisions during limit 

up-limit down states in securities that 

underlie options traded on the 

Exchange. The text of the proposed rule 

change is available from the principal 

office of the Exchange, at the 

Commission’s Public Reference Room 

and also on the Exchange’s Internet Web 

site at http://boxexchange.com. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

Sections A, B, and C below, of the most 

significant aspects of such statements. 


asabaliauskas on DSK5VPTVN1PROD with NOTICES