73652 Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Notices 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 72278 (May 29, 

2014), 79 FR 32353 (June 4, 2014) (SR–ISE Gemini– 

2014–14). 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73756; File No. SR– 

ISEGemini–2014–29] 

Self-Regulatory Organizations; ISE 

Gemini, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Extend the Penny 

Pilot Program 

December 5, 2014. 

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

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’),1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on December 1, 2014, ISE Gemini, LLC 

(the ‘‘Exchange’’ or ‘‘ISE Gemini’’) filed 

with the Securities and Exchange 

Commission the proposed rule change 

as described in Items I, II, and III 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 

ISE Gemini proposes to amend its 

rules relating to a pilot program to quote 

and to trade certain options in pennies 

(‘‘Penny Pilot Program’’). The text of the 

proposed rule change is available on the 

Exchange’s Web site 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 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Under the Penny Pilot Program, the 

minimum price variation for all 

participating options classes, except for 

the Nasdaq-100 Index Tracking Stock 

(‘‘QQQQ’’), the SPDR S&P 500 Exchange 

Traded Fund (‘‘SPY’’) and the iShares 

Russell 2000 Index Fund (‘‘IWM’’), is 

$0.01 for all quotations in options series 

that are quoted at less than $3 per 

contract and $0.05 for all quotations in 

options series that are quoted at $3 per 

contract or greater. QQQQ, SPY and 

IWM are quoted in $0.01 increments for 

all options series. The Penny Pilot 

Program is currently scheduled to 

expire on December 31, 2014.3 The 

Exchange proposes to extend the time 

period of the Penny Pilot Program 

through June 30, 2015, and to provide 

revised dates for adding replacement 

issues to the Penny Pilot Program. The 

Exchange proposes that any Penny Pilot 

Program issues that have been delisted 

may be replaced on the second trading 

day following January 1, 2015. The 

replacement issues will be selected 

based on trading activity for the six 

month period beginning June 1, 2014, 

and ending November 30, 2014. This 

filing does not propose any substantive 

changes to the Penny Pilot Program: All 

classes currently participating will 

remain the same and all minimum 

increments will remain unchanged. The 

Exchange believes the benefits to public 

customers and other market participants 

who will be able to express their true 

prices to buy and sell options have been 

demonstrated to outweigh the increase 

in quote traffic. 

2. Statutory Basis 

The basis under the Securities 

Exchange Act of 1934 (the ‘‘Exchange 

Act’’) for this proposed rule change is 

found in Section 6(b)(5), in that the 

proposed rule change is designed to 

promote just and equitable principles of 

trade, 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. In 

particular, the proposed rule change, 

which extends the Penny Pilot Program 

for an additional six months, will enable 

public customers and other market 

participants to express their true prices 

to buy and sell options for the benefit 

of all market participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

This proposed rule change does not 

impose any burden on competition. 

Specifically, the Exchange believes that, 

by extending the expiration of the 

Penny Pilot Program, the proposed rule 

change will allow for further analysis of 

the Penny Pilot Program and a 

determination of how the Penny Pilot 

Program should 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 

Exchange has not received any written 

comments from members or other 

interested parties. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not 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 4 and Rule 19b– 

4(f)(6) thereunder.5 The Exchange 

provided the Commission with written 

notice of its intent to file the proposed 

rule change, along with a brief 

description and text of the proposed 

rule change, at least five business days 

prior to the date of filing the proposed 

rule change as required by Rule 19b– 

4(f)(6). 

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 Exchange 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 Exchange 

Act. Comments may be submitted by 

any of the following methods: 

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Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Notices 73653 

6 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(6)(iii). 

5The Exchange currently offers logical ports 

through which order are submitted to the Exchange, 

receive drop copies of orders and execution 

messages, and receive transmission of depth of book 

data (‘‘Logical Ports’’). Each Logical Port is assigned 

an access gateway that performs order validations 

and manages the cycle of a submitted order’s flow 

of information back to the Member. The access 

gateway performs functions such as message 

validation, acknowledgement messaging, risk 

checks, matching engine routing and execution 

messaging. The Exchange currently assigns 

Members’ and non-Members’ Logical Ports to the 

access gateways through a standard method that 

accounts for the relative message traffic expected 

over the Logical Port as well as redundancy 

requirements, where an access gateway contains 

assigned Logical Ports for a number of firms. The 

Exchange assigns Member and non-Member 

sessions to multiple access gateways so that the 

failure of one gateway may not result in the loss of 

access. 

6See Securities Exchange Act Release No. 69856 

(June 25, 2013), 78 FR 39395 (SR–EDGA–2013–16) 

(Notice of Filing and Immediate Effectiveness of 

Proposed Rule Change to Offer and Establish Fees 

for a New Exchange Service, EdgeRisk Gateways). 

7See Securities Exchange Act Release No. 71449 

(January 30, 2014), 79 FR 6961 (February 5, 2014) 

(SR–EDGX–2013–43; SR–EDGA–2013–34). 

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 No. SR–ISE 

Gemini–2014–29 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–ISE Gemini–2014–29. 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 Commissions 

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 Topaz. 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 

Gemini–2014–29 and should be 

submitted by January 2, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Brent J. Fields, 

Secretary. 

[FR Doc. 2014–29011 Filed 12–10–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73761; File No. SR–EDGA– 

2014–29] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Eliminate Reference to 

the EdgeRisk Gateway in Rule 13.10 of 

EDGA Exchange, Inc. 

December 5, 2014. 

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 November 

25, 2014, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) 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 Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it effective 

upon filing with the Commission. 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 is proposing to 

eliminate reference in Rule 13.10 to the 

EdgeRisk GatewaySM, which is a risk 

management tool that is to be 

discontinued by the Exchange. The 

Exchange also proposes to delete the 

fees related to EdgeRisk GatewaySM

from its fee schedule. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.directedge.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 parts 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 delete 

reference to the EdgeRisk GatewaySM in 

Rule 13.10 as well as its related fees 

from the Exchange’s fee schedule. In 

sum, the EdgeRisk GatewaySM is an 

optional fee-based risk management tool 

that provides Members and nonMembers the option to obtain dedicated 

primary and backup access gateways 5

in addition to, or in place of, a shared 

access gateway.6 The tool was intended 

to assist subscribers’ efforts to mitigate 

the risks associated with disruptions 

caused by excessive message traffic or 

programming mistakes experienced via 

a shared access gateway because the 

subscriber’s order flow on its dedicated 

access gateways would be insulated 

from such external disruptions. 

Earlier this year, the Exchange and its 

affiliate EDGX Exchange, Inc. (‘‘EDGX’’) 

received approval to effect a merger (the 

‘‘Merger’’) of the Exchange’s parent 

company, Direct Edge Holdings LLC, 

with BATS Global Markets, Inc., the 

parent of BATS Exchange, Inc. 

(‘‘BATS’’) and BATS Y-Exchange, Inc. 

(‘‘BYX’’, together with BATS, BYX, 

EDGA and EDGX, the ‘‘BGM Affiliated 

Exchanges’’).7 In the context of the 

Merger, the BGM Affiliated Exchanges 

are assessing certain system 

functionality, retaining only intended 

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