5806 Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Market Makers’’ refers to 

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

Makers’’ collectively. See Rule 100(a)(25). 

4The fee is waived in FX Options, Flash Orders, 

and for Complex Orders in all symbols. The PFOF 

fee is rebated proportionately to the members that 

paid the fee such that on a monthly basis the PFOF 

fund balance administered by a Primary Market 

Maker for a Group of options established under 

Rule 802(b) does not exceed $100,000 and the PFOF 

fund balance administered by a preferenced 

Competitive Market Maker for such a Group does 

not exceed $100,000. A preferenced Competitive 

Market Maker that elects not to administer a fund 

will not be charged the PFOF fee. 

The Exchange assesses an administrative fee of 

0.45% on the total amount of the funds collected 

each month. 

5A ‘‘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 Rule 

100(a)(37A). 

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

symbols excluding Select Symbols. The Schedule of 

Fees currently states that PFOF is applicable to 

‘‘Non-Penny Pilot Symbols,’’ which is an outdated 

term. The Exchange therefore proposes to update 

the Schedule of Fees to refer instead to ‘‘Non-Select 

Symbols.’’ 

7 15 U.S.C. 78f(b). 

8 15 U.S.C. 78f(b)(5). 

9 15 U.S.C. 78f(b)(8). 

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– 

NYSEMKT–2016–12 and should be 

submitted on or before February 24, 

2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–01932 Filed 2–2–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–76990; File No. SR–ISE– 

2016–04] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Schedule of 

Fees 

January 28, 2016. 

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 January 

19, 2016 the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) filed with the Securities and 

Exchange 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 Substance of 

the Proposed Rule Change 

The ISE proposes to amend the 

Schedule of Fees to rename its Payment 

for Order Flow program. The text of the 

proposed rule change is available on the 

Exchange’s Web site (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 

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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange administers a payment 

for order flow (‘‘PFOF’’) program that 

helps Market Makers 3 establish PFOF 

arrangements with Electronic Access 

Members (‘‘EAMs’’) in exchange for 

those EAMs routing some or all of their 

order flow to the Market Maker. This 

PFOF program is funded through a fee 

of $0.70 per contract,4 which is paid by 

ISE Market Makers for each regular 

Priority Customer 5 contract executed in 

Non-Select Symbols.6 The Exchange 

now proposes to rename the PFOF fee 

to ‘‘marketing fee’’ to keep the name of 

this program consistent with usage on 

other options markets that have adopted 

this terminology. The Exchange is not 

proposing any substantive changes to 

this program. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change 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.7

In particular, the proposal is consistent 

with Section 6(b)(5) of the Act,8 because 

it is designed to promote just and 

equitable principles of trade, to 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. The proposed rule 

change makes a non-substantive change 

to the name of the PFOF program 

operated by the Exchange. The 

Exchange believes that this change will 

be beneficial for members and investors 

who already use this term with respect 

to trading on other options markets that 

have already adopted this terminology. 

The Exchange further notes that the 

marketing fee program will continue to 

operate exactly as it does today. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,9 the Exchange does not believe 

that the proposed rule change will 

impose any burden on intermarket or 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

proposed rule change is a nonsubstantive name change and is 

therefore not designed to have any 

competitive impact. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has not solicited, and 

does not intend to solicit, comments on 

this proposed rule change. The 

Exchange has not received any 

unsolicited written comments from 

members or other interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the 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 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 81, No. 22 / Wednesday, February 3, 2016 / Notices 5807 

10 15 U.S.C. 78s(b)(3)(A). 

11 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. 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). 

14See e.g., Chicago Board Options Exchange Fee 

Schedule, available at http://www.cboe.com/ 

publish/feeschedule/CBOEFeeSchedule.pdf. 

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. 

3See Securities Exchange Act Release No. 76277 

(October 27, 2015), 80 FR 67443. 

4See Securities Exchange Act Release No. 76666, 

80 FR 79644 (December 22, 2015). 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

A proposed rule change filed 

pursuant to Rule 19b–4(f)(6) under the 

Act 12 normally does not become 

operative for 30 days after the date of its 

filing. However, Rule 19b–4(f)(6)(iii) 13

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The proposed rule change 

modifies the name of the PFOF program 

operated by the Exchange in a manner 

that is consistent with terminology used 

on other options markets.14 Because the 

proposal does not raise any new or 

novel issues and only involves a nonmaterial change in terminology, the 

Commission believes the waiver of the 

operative delay is consistent with the 

protection of investors and the public 

interest. Therefore, the Commission 

hereby waives the operative delay and 

designates the proposal 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 

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 email to rulecomments@sec.gov. Please include File 

Number SR–ISE–2016–04 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–2016–04. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–ISE– 

2016–04, and should be submitted on or 

before February 24, 2016. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2016–01927 Filed 2–2–16; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–76983; File No. SR–NYSE– 

2015–48] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Order 

Approving a Proposed Rule Change 

Deleting Rule 410B Governing 

Reporting Requirements for OffExchange Transactions 

January 28, 2016. 

I. Introduction 

On October 16, 2015, New York Stock 

Exchange LLC (‘‘NYSE’’ or the 

‘‘Exchange’’) 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 

delete Rule 410B governing reporting 

requirements for off-Exchange 

transactions. The proposed rule change 

was published for comment in the 

Federal Register on November 2, 2015.3

The Commission received no comment 

letters on the proposed rule change. On 

December 16, 2015, the Commission 

designated a longer period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to approve or disapprove the 

proposed rule change.4 The Commission 

is approving the proposed rule change. 

II. Description of the Proposed Rule 

Change 

The Exchange proposes to delete Rule 

410B, which sets forth certain regulatory 

reporting requirements for member or 

member organizations effecting offExchange transactions in Exchange 

listed securities that are not reported to 

the Consolidated Tape, and to make 

conforming amendments to Rule 476A 

to delete a reference to Rule 410B. The 

Exchange represents that Rule 410B is 

no longer necessary in light of changes 

in trade reporting and regulatory 

requirements that have been put in 

place since the Exchange adopted Rule 

410B. 

Changes to Regulatory Landscape 

On July 30, 2007, the National 

Association of Securities Dealers, Inc. 

(‘‘NASD’’), NYSE, and NYSE 

Regulation, Inc. (‘‘NYSE Regulation’’) 

consolidated their member firm 

mstockstill on DSK4VPTVN1PROD with NOTICES