Document ID: SEC-2018-1712-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Nasdaq ISE, LLC
Posted Date: 2018-11-07T05:00Z

[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55771-55773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24304]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84516; File No. SR-ISE-2018-91]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing 
and Immediate Effectiveness of Proposed Rule Change To Delete ISE 
Section 22 of the Rulebook Entitled ``Rate-Modified Foreign Currency 
Options Rules''

November 1, 2018.
    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 25, 2018, 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, II, and III, below, 
which Items have been prepared 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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[[Page 55772]]

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to delete ISE Section 22 of the Rulebook 
entitled ``Rate-Modified Foreign Currency Options Rules.''
    The text of the proposed rule change is available on the Exchange's 
website at http://ise.cchwallstreet.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
    Today, the Exchange has a set of rules within ISE Section 22, 
titled ``Rate-Modified Foreign Currency Options Rules'' which governs 
the listing and trading of foreign currency options on ISE. The 
Exchange proposes to delete ISE Section 22.
Background
    In 2007, ISE received approval for the listing and trading of cash-
settled rate-modified foreign currency options (``FCOs'').\3\ The 
Exchange adopted rules for the listing and trading of FCOs on the 
following currencies: The euro, the British pound, the Australian 
dollar, the New Zealand dollar, the Japanese yen, the Canadian dollar, 
the Swiss franc, the Chinese renminbi, the Mexican peso, the Swedish 
krona, the Russian ruble, the South African rand, the Brazilian real, 
the Israeli shekel, the Norwegian krone, the Polish zloty, the 
Hungarian forint, the Czech koruna and the Korean won (collectively, 
the ``Currencies''). The Exchange currently has rules which permit it 
to list and trade FCOs that include, among other things, the U.S. 
Dollar on one side of the underlying currency pair, as well as certain 
cross-rate FCOs that include two of the aforementioned Currencies in 
the underlying currency pair.
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    \3\ Securities Exchange Act Release No. 55575 (April 3, 2007), 
72 FR 17963 (April 10, 2007) (SR-ISE-2006-59).
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Proposal
    The Exchange notes that it has not listed or traded any FCOs since 
January 2018.\4\ The Exchange does not desire to list or trade FCOs on 
ISE at this time. The Exchange proposes to eliminate the rules within 
ISE Section 22 and reserve this section. The Exchange would file rules 
with the Commission to list and trade FCOs if it determines to list and 
trade foreign currency options at a later date.
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    \4\ Specifically, the last expiration was for the Canadian 
dollar option with a symbol of ``CDD'' on January 19, 2018.
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2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section 
6(b) of the Act,\5\ in general, and furthers the objectives of Section 
6(b)(5) of the Act,\6\ in particular, in that it is designed to promote 
just and equitable principles of trade, to 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, 
by eliminating rules within its Rulebook which it no longer intends to 
utilize for listing and trading FCOs.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(5).
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    The Exchange notes that it has not listed or traded any FCOs since 
January 2018. The Exchange does not desire to list or trade FCOs on ISE 
at this time. The Exchange proposes to eliminate the rules within ISE 
Section 22 and reserve this section. The Exchange would file rules with 
the Commission to list and trade FCOs if it determines to list and 
trade foreign currency options at a later date.

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. The Exchange does not believe 
that eliminating the ISE Section 22 rules will create an undue burden 
on intra-market competition because no market participant on ISE would 
be able to trade FCOs. Further the Exchange notes that the deletion of 
the ISE Section 22 rules will not create an undue burden on inter-
market competition because other markets today such as Nasdaq Phlx LLC 
lists FCOs.\7\
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    \7\ See Phlx Rule 1009.
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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 \8\ and 
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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    \8\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \9\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires a self-regulatory organization to give the Commission 
written notice of its intent to file 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.
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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 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 [email protected]. Please include 
File Number SR-ISE-2018-91 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-2018-91. This file

[[Page 55773]]

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 website (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 website 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-2018-91 and should be submitted on 
or before November 28, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-24304 Filed 11-6-18; 8:45 am]
 BILLING CODE 8011-01-P