Document ID: SEC-2013-2198-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2013-12-23T05:00Z

[Federal Register Volume 78, Number 246 (Monday, December 23, 2013)]
[Notices]
[Pages 77519-77523]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30443]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71092; File No. SR-ISE-2013-61]

Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Back-Up Trading Arrangements

December 17, 2013.
    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 December 5, 2013, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') 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.
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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 Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt a rule that will permit ISE to enter 
into arrangements with one or more other exchanges that would provide 
trading facilities for ISE listed options at another exchange in the 
event that the functions of ISE are severely and adversely affected by 
an emergency or extraordinary circumstances (a ``Disabling Event''), 
and similarly provide trading facilities at ISE for another exchange to 
trade its listed options if that exchange's facility experiences a 
Disabling Event. The Exchange also proposes to adopt a rule addressing 
general Exchange procedures under emergency conditions.
    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 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
Introduction
    The Exchange proposes to adopt new Rule 508 (Back-Up Trading 
Arrangements), which would permit ISE to enter into arrangements with 
one or more other exchanges (each a ``Back-up Exchange'') to permit ISE 
and its members to use a portion of a Back-up Exchange's facilities to 
conduct the trading of ISE exclusively listed

[[Page 77520]]

options \3\ in the event of a Disabling Event, and similarly to will 
[sic] permit ISE to provide trading facilities at ISE for another 
exchange's exclusively listed options if that exchange (a ``Disabled 
Exchange'') is prevented from trading due to a Disabling Event. 
Proposed Rule 508 would also permit ISE to enter into arrangements with 
a Back-up Exchange to provide for the listing and trading of ISE singly 
listed options \4\ by the Back-up Exchange if ISE's facility becomes 
disabled, and conversely provide for the listing and trading by ISE of 
the singly listed options of a Disabled Exchange.
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    \3\ For purposes of ISE Rule 508, the term ``exclusively listed 
option'' means an option that is listed exclusively by an exchange 
(because the exchange has an exclusive license to use, or has 
proprietary rights in, the interest underlying the option).
    \4\ For purposes of proposed Rule 508, the term ``singly listed 
option'' means an option that is not an ``exclusively listed 
option'' but that is listed by an exchange and not by any other 
national securities exchange.
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    The Exchange also proposes an amendment to its Fee Schedule to 
address the fees that shall apply to transactions in options of a 
Disabled Exchange effected on a Back-up Exchange. Additionally, the 
Exchange proposes to adopt a new Rule 509, which addresses Exchange 
procedures under emergency conditions and is similar to rules that have 
been adopted by another exchange.\5\
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    \5\ See Chicago Board Options Exchange (``CBOE'') Rule 6.17.
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Background
    The back-up trading arrangements contemplated by proposed Rule 508 
represent ISE's immediate plan to ensure that ISE's exclusively listed 
and singly listed options will have a trading venue if a catastrophe 
renders its primary facility inaccessible or inoperable. The Commission 
has suggested measures that ISE should undertake to expedite reopening 
of ISE's exclusively listed securities if a catastrophic event prevents 
trading at ISE for an extended period of time. Proposed Rule 508 would 
permit ISE to enter into back-up trading arrangements with other 
exchanges that would address the measures suggested by the Commission.
    The ISE is currently working with the Philadelphia Stock Exchange 
(``Phlx'') to develop a bi-lateral back-up trading arrangement in the 
event that trading is prevented at one of the exchanges. Once the 
parties execute the finalized agreement governing the back-up trading 
arrangement, they will enter into an operational plan for those 
arrangements.
Proposed Rule 508
If ISE Is the Disabled Exchange
    The Exchange proposes to adopt Rule 508 to make effective its back-
up trading arrangement with another exchange. Section (a) of proposed 
Rule 508 describes the back-up trading arrangements that would apply if 
ISE were the Disabled Exchange. Under the proposed paragraph 
(a)(1)(ii), the facility of the Back-up Exchange used by ISE to trade 
some or all of ISE's exclusively listed options will be deemed to be a 
facility of ISE, and such option classes shall trade as listings of 
ISE. This approach of deeming a portion of the Back-up Exchange's 
facilities to be a facility of the Disabled Exchange is an approach 
previously approved by the Commission.\6\
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    \6\ See Securities and Exchange Commission Release Nos. 51717 
(May 19, 2005), 70 FR 30160 (May 25, 2005) (SR-CBOE-2004-59); 51926 
(June 27, 2005), 70 FR 38232 (July 1, 2005) (SR-PHLX-2004-65).
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    Since the trading of ISE exclusively listed options will be 
conducted using the systems of the Back-up Exchange, proposed paragraph 
(a)(1)(iii) provides that the trading of ISE listed options on ISE's 
facility at the Back-up Exchange shall be conducted in accordance with 
the rules of the Back-up Exchange, and proposed paragraph (a)(1)(iv) 
provides that the Back-up Exchange has agreed to perform the related 
regulatory functions with respect to such trading, in each case except 
as ISE and the Back-up Exchange may specifically agree otherwise.\7\ 
The Back-up Exchange rules that govern trading on ISE's facility at the 
Back-up Exchange shall be deemed to be ISE rules for purposes of such 
trading.
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    \7\ ISE's proposed back-up trading arrangements contemplate that 
the operation of the Disabled Exchange's facility at the Back-up 
Exchange will be conducted in accordance with the rules of the Back-
up Exchange except that (i) the rules of the Disabled Exchange will 
apply with respect to doing business with the public, margin 
requirements, net capital requirements and listing requirements, and 
(ii) the members of the Disabled Exchange that are trading on the 
facility of the Disabled Exchange at the Back-up Exchange (not 
including members of the Back-up Exchange who become temporary 
members of the Disabled Exchange) will be subject to the rules of 
the Disabled Exchange governing or applying to the maintenance of a 
person's or a firm's status as a member of the Disabled Exchange. 
The Commission approved a similar arrangement between CBOE and Phlx. 
See supra note 4.
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    Under proposed paragraph (a)(1)(v), ISE shall have the right to 
designate its members that will be authorized to trade ISE exclusively 
listed options on ISE's facility at the Back-up Exchange and, if 
applicable, its member(s) that will be a Primary Market Maker (``PMM'') 
or Competitive Market Maker (``CMM'') in those options. If the Back-up 
Exchange is unable to accommodate all ISE members that desire to trade 
on ISE's facility at the Back-up Exchange, ISE may determine which 
members shall be eligible to trade at that facility by considering 
factors such as whether the member is a PMM or CMM in the applicable 
product(s), the number of contracts traded by the member in the 
applicable product(s), market performance, and other factors relating 
to a member's contribution to the market in the applicable product(s).
    Under proposed paragraph (a)(1)(vi), members of the Back-up 
Exchange shall not be authorized to trade in any ISE exclusively listed 
options, except that (i) ISE may deputize willing brokers of the Back-
up Exchange as temporary ISE members to permit them to execute orders 
as Electronic Access Members (``EAMs'') in ISE exclusively listed 
options traded on ISE's facility at the Back-up Exchange,\8\ and (ii) 
the Back-up Exchange has agreed that it will, at the instruction of 
ISE, select members of the Back-up Exchange that are willing to be 
deputized by ISE as temporary ISE members authorized to trade ISE 
exclusively listed options on ISE's facility at the Back-up Exchange 
for such period of time following a Disabling Event as ISE determines 
to be appropriate, and ISE may deputize such members of the Back-up 
Exchange as temporary ISE members for that purpose. The foregoing 
exceptions would permit members of the Back-up Exchange to trade ISE 
exclusively listed options on the ISE facility on the Back-up Exchange, 
if, for example, circumstances surrounding a Disabling Event result in 
ISE members being delayed in connecting to the Back-up Exchange in time 
for prompt resumption of trading.
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    \8\ CBOE and Phlx received approval to deputize its brokers in 
this manner. See supra note 6.
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    Section (a)(2) of the proposed rule provides for the continued 
trading of ISE singly listed options at the Back-up Exchange in the 
event of a Disabling Event at ISE. Proposed paragraph (a)(2)(ii) 
provides that ISE may enter into arrangements with a Back-up Exchange 
under which the Back-up Exchange will agree, in the event of a 
Disabling Event, to list for trading option classes that are then 
singly listed only by ISE. Such option classes would trade on the Back-
up Exchange as listings of the Back-up Exchange and in accordance with 
the rules of the Back-up Exchange. Under proposed paragraph 
(a)(2)(iii), any such options class listed by the Back-up Exchange that 
does not satisfy the standard listing and maintenance criteria of the 
Back-up

[[Page 77521]]

Exchange will be subject, upon listing by the Back-up Exchange, to 
delisting (and, thus, restrictions on opening new series, and engaging 
in opening transactions in those series with open interest, as may be 
provided in the rules of the Back-up Exchange).
    ISE singly listed option classes would be traded by members of the 
Back-up Exchange and by ISE members selected by ISE to the extent the 
Back-up Exchange can accommodate ISE members in the capacity of 
temporary members of the Back-up Exchange. If the Back-up Exchange is 
unable to accommodate all ISE members that desire to trade ISE singly 
listed options at the Back-up Exchange, ISE may determine which members 
shall be eligible to trade such options at the Back-up Exchange by 
considering the same factors used to determine which ISE members are 
eligible to trade ISE exclusively listed options at the ISE facility at 
the Back-up Exchange.
    Proposed Section (a)(3) provides that ISE may enter into 
arrangements with a Back-up Exchange to permit ISE members to conduct 
trading on a Back-up Exchange of some or all of ISE's multiply listed 
options in the event of a Disabling Event. While continued trading of 
multiply listed options upon the occurrence of a Disabling Event is not 
likely to be as great a concern as the continued trading of exclusively 
and singly listed options, ISE nonetheless believes a provision for 
multiply listed options should be included in the rule so that the 
exchanges involved will have the option to permit members of the 
Disabled Exchange to trade multiply listed options on the Back-up 
Exchange. Such options shall trade as a listing of the Back-up Exchange 
in accordance with the rules of the Back-up Exchange.
If ISE is the Back-up Exchange
    Section (b) of proposed Rule 508 describes the back-up trading 
arrangements that would apply if ISE were the Back-up Exchange. In 
general, the provisions in Section (b) are the converse of the 
provisions in Section (a). With respect to the exclusively listed 
options of the Disabled Exchange, the facility of ISE used by the 
Disabled Exchange to trade some or all of the Disabled Exchange's 
exclusively listed options will be deemed to be a facility of the 
Disabled Exchange, and such option classes shall trade as listings of 
the Disabled Exchange. Trading of the Disabled Exchange's exclusively 
listed options on the Disabled Exchange's facility at ISE shall be 
conducted in accordance with ISE rules, and ISE will perform the 
related regulatory functions with respect to such trading, in each case 
except as the Disabled Exchange and ISE may specifically agree 
otherwise. ISE rules that govern trading on the Disabled Exchange's 
facility at ISE shall be deemed to be rules of the Disabled Exchange 
for purposes of such trading.
    Sections (b)(2) and (b)(3) describe the arrangements applicable to 
trading of the Disabled Exchange's singly and multiply listed options 
at ISE, and are the converse of Sections (a)(2) and (a)(3). One 
difference is in paragraph (b)(2)(i), which includes a provision that 
would permit ISE to allocate singly listed option classes of the 
Disabled Exchange to an ISE PMM in advance of a Disabling Event, 
without utilizing the allocation process under ISE Rule 802, to enable 
ISE to quickly list such option classes upon the occurrence of a 
Disabling Event.
Member Obligations
    Section (c) describes the obligations of members and member 
organizations with respect to the trading by ``temporary members'' on 
the facilities of another exchange pursuant to Rule 508. Section (c)(1) 
sets forth the obligations applicable to members of a Back-up Exchange 
who act in the capacity of temporary members of the Disabled Exchange 
on the facility of the Disabled Exchange at the Back-up Exchange.
    Section (c)(1) provides that a temporary member of the Disabled 
Exchange shall be subject to, and obligated to comply with, the rules 
that govern the operation of the facility of the Disabled Exchange at 
the Back-up Exchange. This would include the rules of the Disabled 
Exchange to the extent applicable during the period of such trading, 
including the rules of the Disabled Exchange limiting its liability for 
the use of its facilities that apply to members of the Disabled 
Exchange. Additionally, (i) such temporary member shall be deemed to 
have satisfied, and the Disabled Exchange has agreed to waive specific 
compliance with, rules governing or applying to the maintenance of a 
person's or a firm's status as a member of the Disabled Exchange, 
including all dues, fees and charges imposed generally upon members of 
the Disabled Exchange based on their status as such, (ii) such 
temporary member shall have none of the rights of a member of the 
Disabled Exchange except the right to conduct business on the facility 
of the Disabled Exchange at the Back-up Exchange to the extent 
described in the Rule, (iii) the member organization associated with 
such temporary member, if any, shall be responsible for all obligations 
arising out of that temporary member's activities on or relating to the 
Disabled Exchange, and (iv) the clearing member of such temporary 
member shall guarantee and clear the transactions of such temporary 
member on the Disabled Exchange.
    Section (c)(2) sets forth the obligations applicable to members of 
a Disabled Exchange who act in the capacity of temporary members of the 
Back-up Exchange for the purpose of trading singly listed and multiply 
listed options of the Disabled Exchange. Such temporary members shall 
be subject to, and obligated to comply with, the rules of the Back-up 
Exchange that are applicable to the Back-up Exchange's own members, 
including the rules of the Back-up Exchange limiting its liability for 
the use of its facilities that apply to members of the Back-up 
Exchange. Temporary members of the Back-up Exchange have the same 
obligations as those set forth in Section (c)(1) that apply to 
temporary members of the Disabled Exchange, except that, in addition, 
temporary members of the Back-up Exchange shall only be permitted (i) 
to act in those capacities on the Back-up Exchange that are authorized 
by the Back-up Exchange and that are comparable to capacities in which 
the temporary member has been authorized to act on the Disabled 
Exchange, and (ii) to trade in those option classes in which the 
temporary member is authorized to trade on the Disabled Exchange.
Member Proceedings
    As noted above, proposed Rule 508 provides that the rules of the 
Back-up Exchange shall apply to the trading of the singly and multiply 
listed options of the Disabled Exchange traded on the Back-up 
Exchange's facilities, and (with certain limited exceptions) the 
trading of exclusively listed options of the Disabled Exchange traded 
on the facility of the Disabled Exchange at the Back-up Exchange. The 
Back-up Exchange has agreed to perform the related regulatory functions 
with respect to such trading (except as the Back-up Exchange and the 
Disabled Exchange may specifically agree otherwise).
    Section (d) of proposed Rule 508 provides that if a Back-up 
Exchange initiates an enforcement proceeding with respect to the 
trading during a back-up period of singly or multiply listed options of 
the Disabled Exchange by a temporary member of the Back-up Exchange, or 
exclusively listed options of the Disabled Exchange by a member of the 
Disabled Exchange (other than a member of the Back-up Exchange who is a 
temporary member of the Disabled

[[Page 77522]]

Exchange), and such proceeding is in process upon the conclusion of the 
back-up period, the Back-up Exchange may transfer responsibility for 
such proceeding to the Disabled Exchange following the conclusion of 
the back-up period. This approach to the exercise of enforcement 
jurisdiction is also consistent with past precedent.\9\
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    \9\ CBOE and Phlx received approval to handle enforcement 
jurisdiction in this manner. See supra note 6.
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    With respect to arbitration jurisdiction, proposed Section (d) 
provides that arbitration of any disputes with respect to any trading 
during a back-up period of singly or multiply listed options of the 
Disabled Exchange or of exclusively listed options of the Disabled 
Exchange on the Disabled Exchange's facility at the Back-up Exchange 
will be conducted in accordance with the rules of the Back-up Exchange, 
unless the parties to an arbitration agree that it shall be conducted 
in accordance with the rules of the Disabled Exchange.
Member Preparations
    To ensure that members are prepared to implement ISE's back-up 
trading arrangements, proposed Section (e) requires ISE members to take 
appropriate actions as instructed by ISE to accommodate ISE's back-up 
trading arrangements with other exchanges and ISE's own back-up trading 
arrangements.
Supplementary Material
    Proposed Supplementary Material .01 to Rule 508 clarifies that to 
the extent Rule 508 provides that another exchange will take certain 
action, the Rule is reflecting what that exchange has agreed to do by 
contractual agreement with ISE, but Rule 508 is not binding on the 
other exchange.
Fee Schedule
    The Exchange proposes to add a new section to its fee schedule to 
inform its members regarding what fees will apply to transactions in 
the listed options of a Disabled Exchange effected on a Back-up 
Exchange under Rule 508. The new section provides that if ISE is the 
Disabled Exchange, the Back-up Exchange has agreed to apply the per 
contract and per contract side fees in the ISE fee schedule to 
transactions in ISE exclusively listed options trading on the ISE 
facility on the Back-up Exchange. If any other ISE listed options are 
traded on the Back-up Exchange (such as ISE singly listed options that 
are listed by the Back-up Exchange) pursuant to ISE Rule 508, the fee 
schedule of the Back-up Exchange shall apply to such trades. The new 
section contains a second paragraph stating the converse if ISE is the 
Back-up Exchange under Rule 508.
Proposed Rule 509
    The Exchange proposes to adopt a general emergency rule in proposed 
Rule 509. Although not directly required for the implementation of the 
back-up trading arrangements, the Exchange believes that it is 
appropriate to adopt such a rule in conjunction with implementing the 
back-up trading arrangements. Currently, there is no Exchange rule that 
grants specific authority in an emergency to any person or persons to 
take all actions necessary or appropriate for the maintenance of a fair 
and orderly market or the protection of investors.
 2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the Act and the rules and regulations thereunder, including the 
requirements of Section 6(b) of the Act. In particular, the Exchange 
believes the proposed rule change is consistent with the Section 
6(b)(5) of the Act,\10\ in that it is designed to perfect the mechanism 
of a free and open market and to protect investors and the public 
interest.
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    \10\ 15 U.S.C. 78f(b)(5).
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    The ISE believes that it is important that it develop back-up 
trading arrangements in order to minimize the potential disruption and 
market impact that a Disabling Event could cause. The proposed rule 
changes are designed to address the key elements necessary to mitigate 
the effects of a Disabling Event affecting the Exchange, minimize the 
impact of such an event on market participants, and provide for a 
liquid and orderly marketplace for securities listed and traded on the 
Exchange if a Disabling Event occurs. In particular, the proposed rule 
change is intended to ensure that ISE's exclusively listed and singly 
listed products will have a trading venue in the event that trading at 
ISE is prevented due to a Disabling Event. The Exchange believes that 
having these back-up trading arrangements in place will minimize 
potential disruptions to the markets and investors if a catastrophe 
occurs that requires the Exchange's primary facility to be closed for 
an extended period. Other options exchanges, such as the CBOE and Phlx, 
have similar arrangements in place,\11\ and the Exchange believes that 
it is important to the protection of investors and the public interest 
that it also adopt rules that allow ISE exclusively and singly listed 
options to continue to trade in the event of a Disabling Event. The 
proposed rule change also provides authority for the ISE to provide a 
back-up trading venue should another exchange be affected by a 
Disabling Event, which will benefit the markets and investors if a 
Disabling Event were to happen on another exchange that has entered 
into a back-up trading arrangement with the ISE. Finally, the proposed 
rule change grants authority to Exchange officials to take action under 
emergency conditions, which should enable key actions to be taken by 
ISE representatives in the event of a Disabling Event, and clarifies 
the fees that will apply if these back-up trading arrangements are 
invoked, which will reduce investor confusion and minimize the 
disruption to investors associated with a Disabling Event.
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    \11\ See supra notes 5 and 6.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose any burden on intermarket 
or intramarket competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. As explained above, the 
Exchange believes that it is important that it have back-up trading 
arrangements in place in order to minimize the potential disruption and 
market impact that a Disabling Event could cause. The proposed back-up 
trading arrangements are 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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \12\ and Rule 19b-4(f)(6) thereunder.\13\ 
Because the proposed rule change does not (i) significantly affect the 
protection of

[[Page 77523]]

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 and Rule 19b-4(f)(6) thereunder.\14\
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    \12\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \13\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange to give the Commission written notice of the 
Exchange's 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 of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
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    A proposed rule change filed under Rule 19b-4(f)(6)\15\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\16\ 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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    \15\ 17 CFR 240.19b-4(f)(6).
    \16\ 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 so that the proposal may become operative immediately upon 
filing. The Exchange stated that waiver of this requirement will allow 
it to immediately enter into a back-up trading arrangement with another 
exchange, which will enable market participants to continue to trade 
exclusively and singly listed options of the ISE in the event of a 
Disabling Event. The Exchange also stated that having this back-up 
trading arrangement in place is important for the protection of 
investors and the public interest because it will minimize potential 
disruptions to the markets and investors that might otherwise occur if 
the ISE experiences a Disabling Event. Based on the Exchange 
representations above, and since the proposal is based, in part, on a 
proposal submitted by the CBOE and approved by the Commission,\17\ the 
Commission waives the 30-day operative delay requirement and designates 
the proposed rule change as operative upon filing.\18\
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    \17\ See supra note 5 and 6.
    \18\ For 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).
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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 under Section 19(b)(2)(B) \19\ 
of the Act to determine whether the proposed rule should be approved or 
disapproved.
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    \19\ 15 U.S.C. 78s(b)(2)(B).
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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-ISE-2013-61 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ISE-2013-61. 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-2013-61 and should be 
submitted on or before January 13, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
Kevin M. O'Neill,
Deputy Secretary.
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    \20\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2013-30443 Filed 12-20-13; 8:45 am]
BILLING CODE 8011-01-P