Document ID: SEC-2017-1816-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq ISE, LLC
Posted Date: 2017-11-06T05:00Z

[Federal Register Volume 82, Number 213 (Monday, November 6, 2017)]
[Notices]
[Pages 51453-51455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24050]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81991; File No. SR-ISE-2017-96]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Amend Rule 1614

October 31, 2017.
    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 October 27, 2017, Nasdaq ISE, LLC (``ISE'' or ``Exchange'') filed 
with the Securities and Exchange Commission (``SEC'' or ``Commission'') 
the proposed rule change as described in Items I and II below, which 
Items have been prepared

[[Page 51454]]

by the Exchange. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the 
Substance of the Proposed Rule Change

    The Exchange proposes to amend Rule 1614, entitled ``Imposition of 
Fines for Minor Rule Violations,'' to make a non-substantive, 
clarifying change to the rule. [sic]
    The text of the proposed rule change is available on the Exchange's 
Web site at 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 Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange is proposing to amend Rule 1614, entitled ``Imposition 
of Fines for Minor Rule Violations,'' to make a non-substantive, 
clarifying change to the rule.\3\ [sic] Rule 1614(d)(2) currently sets 
forth the fine schedule for the failure to file annual Financial and 
Operational Combined Uniform Single (``FOCUS'') Reports on Form X-17A-5 
in accordance with Rule 17a-10 \4\ under the Act. The existing schedule 
in the Rule does not clearly reflect how a FOCUS Report that is 
received on the ninetieth day would be handled for purposes of 
assessing a fine. The Exchange therefore proposes to clarify in Rule 
1614(d)(2) that FOCUS Reports received by the Exchange over ninety 
calendar days late will subject the member to formal disciplinary 
action. As such, the Exchange is proposing to change the reference to 
``90 or more'' days in the sanction schedule to ``over 90'' days.
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    \3\ The Exchange notes that Chapter 16 of the ISE Rulebook, 
including Rule 1614, is incorporated by reference into the rulebooks 
of Nasdaq GEMX (``GEMX'') and Nasdaq MRX (``MRX''). As such, the 
amendment to ISE Rule 1614 as proposed herein will also impact GEMX 
and MRX Rules 1614.
    \4\ 17 CFR 240.17a-10.
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2. Statutory Basis
    The Exchange is proposing to amend Rule 1614, entitled ``Imposition 
of Fines for Minor Rule Violations,'' to make a non-substantive, 
clarifying change to the rule.\5\ [sic] Rule 1614(d)(2) currently sets 
forth the fine schedule for the failure to file annual Financial and 
Operational Combined Uniform Single (``FOCUS'') Reports on Form X-17A-5 
in accordance with Rule 17a-10 \6\ under the Act. The existing schedule 
in the Rule does not clearly reflect how a FOCUS Report that is 
received on the ninetieth day would be handled for purposes of 
assessing a fine. The Exchange therefore proposes to clarify in Rule 
1614(d)(2) that FOCUS Reports received by the Exchange over ninety 
calendar days late will subject the member to formal disciplinary 
action. As such, the Exchange is proposing to change the reference to 
``90 or more'' days in the sanction schedule to ``over 90'' days.
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    \5\ The Exchange notes that Chapter 16 of the ISE Rulebook, 
including Rule 1614, is incorporated by reference into the rulebooks 
of Nasdaq GEMX (``GEMX'') and Nasdaq MRX (``MRX''). As such, the 
amendment to ISE Rule 1614 as proposed herein will also impact GEMX 
and MRX Rules 1614.
    \6\ 17 CFR 240.17a-10.
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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. As discussed above, the 
Exchange's proposal is a non-substantive, technical amendment to Rule 
1614(d)(2), and is merely intended to add further clarification to the 
Exchange's rules and alleviate potential confusion.

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

    Because the foregoing 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)(iii) of the Act \7\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\8\
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    \7\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \8\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) normally does 
not become operative before 30 days from the date of the filing. 
However, pursuant to Rule 19b-4(f)(6)(iii),\9\ the Commission may 
designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \9\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay. The Commission believes that waiving the 30-day operative delay 
is consistent with the protection of investors and the public interest. 
Clarification of how a FOCUS Report will be handled for purposes of 
assessing a fine that is 90 calendar days late will reduce confusion 
caused by the ambiguity of the Rule as written before the Exchange 
filed this proposed rule change. The Commission believes no purpose is 
served in delaying such clarification. Therefore, the Commission hereby 
waives the 30-day operative delay and designates the proposed rule 
change to be operative upon filing with the Commission.\10\
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    \10\ For purposes only of waiving the operative delay for this 
proposal, the Commission has considered the proposed rule's impact 
on efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, 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 [email protected]. Please include 
File Number SR-ISE-2017-96 on the subject line.

[[Page 51455]]

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-2017-96. 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. 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-2017-96, and should be 
submitted on or before November 27, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-24050 Filed 11-3-17; 8:45 am]
BILLING CODE 8011-01-P