[Federal Register: December 17, 2007 (Volume 72, Number 241)]
[Notices]
[Page 71465-71467]
[DOCID:fr17de07-119]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-56937; File No. SR-CBOE-2007-127]

Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change and Amendment No. 1 Thereto Relating to Cancellation Fees

December 10, 2007.
    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 November 1, 2007, the Chicago Board Options Exchange, Incorporated
(the ``CBOE'' or the ``Exchange'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which Items have been substantially
prepared by the CBOE. On November 30, 2007, CBOE filed Amendment No. 1
to the proposed rule change. The CBOE has filed the proposed rule
change as one establishing or changing a due, fee, or other charge
imposed by the Exchange under Section 19(b)(3)(A)(ii) of the Act \3\
and Rule 19b-4(f)(2) thereunder,\4\ which renders the proposal
effective upon filing with the Commission. The Commission is publishing
this notice, as amended, 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.
    \3\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The CBOE proposes to (i) reduce the book execution fee in classes
trading on the ``Hybrid 3.0 Platform'', and (ii) amend its Order
Routing System (``ORS'') order cancellation fee. The text of the
proposed rule change is available at CBOE, the Commission's Public
Reference Room, and http://www.cboe.org/legal.

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 CBOE 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 CBOE 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 proposes to implement the following fee changes on
November 1, 2007.
Hybrid 3.0 Book Execution Fee
    On June 7, 2007, the Commission approved the Exchange's ``Hybrid
3.0'' trading platform.\5\ The remaining non-Hybrid classes trading on
the Exchange have moved to the Hybrid 3.0 platform.\6\ The new Hybrid
3.0 classes no longer utilize the services of an Exchange Order Book
Official (``OBO'') \7\. Pursuant to Section 7 of the CBOE Fees
Schedule, the Exchange assessed per contract fees on orders in non-
Hybrid index option classes resting in the electronic book that were
executed on the floor by the OBO (``OBO Execution Fees''). These OBO
Execution Fees are $.25 per contract excluding market orders and
certain limit orders entered prior to the opening rotation, and $.10
per contract for accommodation liquidations (cabinet trades).\8\
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    \5\ See Securities Exchange Act Release No. 55874 (June 7,
2007), 72 FR 32688 (June 13, 2007).
    \6\ The classes that trade on the Hybrid 3.0 platform are
options on the S&P 100 Index (``OEX''), options on the S&P 500 Index
(``SPX'') and options on the Morgan Stanley Retail Index (``MVR'').
    \7\ An ``Order Book Official'' is defined in CBOE Rule 7.1 as an
Exchange employee designated pursuant to CBOE Rule 7.3 who is
responsible for (i) maintaining the book with respect to the classes
of options assigned to him; (ii) effecting proper executions of
orders placed with him; (iii) displaying bids and offers pursuant to
CBOE Rule 7.7 of these Rules; and (iv) monitoring the market for the
classes of options assigned to him.
    \8\ An ``accommodation'' or ``cabinet'' trade refers to trades
in listed options on the Exchange that are worthless or not actively
traded. Cabinet trading is conducted in accordance with CBOE Rule
6.54.
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    The Exchange proposes to reduce the $.25 per contract fee to $.18
per contract, rename the fee ``Hybrid 3.0 Book Execution Fee'', and
eliminate the $.10 per contract fee for accommodation liquidations. The
fee would apply to book executions in Hybrid 3.0 classes (currently,
OEX, SPX and MVR). Specifically, orders in Hybrid 3.0 classes resting
in the electronic book that are executed would be assessed a fee of
$.18 per contract. This fee would not apply to orders in SPX options
resting in the SPX electronic book that are executed during opening
rotation on the final settlement date of CBOE Volatility Index
(``VIX'') options and futures, as orders entered to participate in such
opening rotation help to facilitate the calculation of a settlement
price for VIX options and futures.\9\
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    \9\ The opening rotation procedures in options series used to
calculate the final settlement price of volatility indexes are
described in CBOE Rule 6.2B.01.
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    The Hybrid 3.0 book execution system has helped to improve
execution time as well as service and efficiency. The Hybrid 3.0 Book
Execution Fee is designed to help the Exchange recover its costs of
developing the system and offset the cost of maintaining and enhancing
the system in the future.
ORS Order Cancellation Fee
    CBOE currently assesses an executing clearing member $1.50 for each
cancelled public customer ORS order in excess of the number of public
customer orders that the executing clearing member executes in a month
for itself or for a correspondent firm. The purpose of the fee is to
ease order backlogs on ORS and related systems. The fee is not charged
if less than 500 public customer orders are cancelled in a month by the
executing clearing member for itself or for a correspondent firm. The
Exchange aggregates and counts as one executed order for purposes of
the fee all public customer options orders from the same executing
clearing member for itself or for a correspondent firm that are
executed in the same series on the same side of the market at the same
price within a 30 second period. The following ORS order activity is
exempt from the fee: (i) Cancelled ORS orders that improve the
Exchange's prevailing bid-offer (BBO) market when received; and (ii)
fill and cancellation activity occurring within the first one minute of
trading following the opening of each option class.
    The Exchange proposes to amend the fee by additionally exempting
the following activity: (i) Complex order \10\ fills and cancels; (ii)
unfilled Fill-or-Kill (``FOK'') orders \11\, and (iii) unfilled
Immediate-or-Cancel (``IOC'') orders. \12\ Because this activity does
not contribute excessively to system congestion the Exchange believes
it is appropriate to exclude this activity from the calculation of the
fee.
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    \10\ ``Complex Order'' is defined in CBOE Rule 6.53C(a).
    \11\ ``Fill-or-Kill'' order is defined in CBOE Rule 6.53(j) as
an order which is to be executed in its entirety as soon as it is
represented in the trading crowd, and such order, if not so
executed, is to be treated as cancelled.
    \12\ ``Immediate-or-Cancel'' order is defined in CBOE Rule
6.53(k) as a market or limit order which is to be executed in whole
or in part as soon as such order is represented in the trading
crowd. Any portion not so executed is to be treated as cancelled.
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    Additionally, the Exchange proposes to exempt from the fee fill and
cancellation activity in Mini-SPX Index Options (XSP). CBOE intends to
undertake a marketing re-launch of the XSP product due in part to the
inclusion of XSP options in the expanded penny pilot program recently
approved by the Commission.\13\ In conjunction with the marketing re-
launch, CBOE has

determined to exclude activity in XSP options from the calculation of
the fee.
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    \13\ See Securities and Exchange Act Release No. 56565
(September 27, 2007), 72 FR 56403 (October 3, 2007).
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2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the Act
\14\, in general, and furthers the objectives of Section 6(b)(4) \15\
of the Act in particular, in that it is designed to provide for the
equitable allocation of reasonable dues, fees, and other charges among
CBOE members and other persons using its facilities.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change establishes or changes a
due, fee, or other charge imposed by the Exchange, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \16\ and Rule 19b-
4(f)(2) \17\ thereunder. At any time within 60 days of the filing of
the proposed rule change the Commission may summarily abrogate such
proposed 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.\18\
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 19b-4(f)(2).
    \18\ For purposes of calculating the 60-day abrogation period,
the Commission considers the abrogation period to have commenced on
November 30, 2007.
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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 e-mail to<EMAIL_ADDRESS>Please include

File Number SR-CBOE-2007-127 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-CBOE-2007-127. This file
number should be included on the subject line if e-mail 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 inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of CBOE. 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-CBOE-2007-127 and should be
submitted on or before January 7, 2008.

    For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-24310 Filed 12-14-07; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Notices]
[Pages 10136-10144]
[FR Doc No: 2019-05092]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85308; File No. SR-ISE-2019-05]

Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change to No Longer Offer
Complex Order Quoting Functionality or Legging Functionality for Stock-
Option Orders and To Make Other Changes to Chapter 7

March 13, 2019.
    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 March 1, 2019, Nasdaq ISE, LLC (``ISE'' or the ``Exchange'') filed
with the Securities and Exchange Commission (``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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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to no longer offer Complex Order quoting
functionality or legging functionality for Stock-Option Orders on ISE.
The Exchange also proposes other amendments, including modifying its

Spread Feed, adopting a term ``Professional Customer,'' removing Mini
Option language for Complex Orders, and reorganizing the Rulebook as
well as other technical amendments.
    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
    The purpose of the proposed rule change is to: (1) Remove rule text
related to Complex Order quoting functionality; (2) remove rule text
related to legging functionality for Stock-Option Orders; (3) amend the
description of the Nasdaq ISE Spread Feed including adopting a
definition specifically for Professional Customer; (4) remove Mini
Options language related to Complex Orders; and (5) reorganize the
Rulebook and make other technical amendments. Each change will be
discussed below.
Universal Changes
    In addition to the amendments described below, the Exchange
proposes to make several changes throughout its rules. In particular,
the Exchange proposes to capitalize references to ``member'' to reflect
the defined term ``Member'' \3\ and capitalize references to ``system''
to reflect the defined term ``System.'' \4\
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    \3\ The term ``Member'' means an organization that has been
approved to exercise trading rights associated with Exchange Rights.
See Rule 100(a)(30).
    \4\ The term ``System'' means the electronic system operated by
the Exchange that receives and disseminates quotes, executes orders
and reports transactions. See Rule 100(a)(63).
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    In addition, with the proposal herein to remove rule text related
to Complex Order quoting functionality on ISE, as described in more
detail below, the Exchange proposes to remove any references to Complex
Order quotes throughout these proposed rules because the System will no
longer accept Complex Order quotes. Finally, the Exchange will amend
certain cross-references in connection with relocating certain rules
described herein.
Complex Order Legging functionality for Stock-Option Orders
    In 2017, ISE underwent a replatform to move its functionality to
INET.\5\ At that time, ISE proposed to delay the re-introduction of
legging functionality for Stock-Option Orders for one year from the
date of filing.\6\ Subsequently, ISE filed to delay the re-introduction
of legging functionality until March 21, 2019.\7\ At this time, the
Exchange proposes to not offer this functionality on ISE. If the
Exchange determines to re-introduce legging functionality for Stock-
Option Orders it will file a new proposal with the Commission. The
legging functionality allows Members to leg into the regular market
where they may trade against bids and offers for the individual legs
pursuant to Rule 722(d)(2)and (3) and Supplementary Material .01 and
.02 to Rule 722 (``legging''). With this proposed amendment to not
offer this functionality, Stock-Option Orders will only be permitted to
trade with other Stock-Option Orders in the complex order book. The
Exchange will issue an Options Trader Alert notifying Members that
legging functionality for Stock-Option Orders will no longer be
available.
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    \5\ INET is the proprietary core technology utilized across
Nasdaq's global markets. The migration of ISE to the Nasdaq INET
architecture has resulted in higher performance, scalability, and
more robust architecture.
    \6\ See Securities Exchange Act Release No. 80316 (March 27,
2017) 82 FR 16084 (March 31, 2017) (SR-ISE-2017-28).
    \7\ See Securities Exchange Act Release No. 82961 (March 28,
2018), 83 FR 14302 (April 3, 2018) (SR-ISE-2018-21).
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    The Exchange proposes to not implement legging functionality for
Stock-Option Orders because of concerns with obtaining executions for
the stock portion of the order in a timely fashion in order to execute
the Stock-Option Order on ISE. Previously, when this functionality was
offered on ISE prior to the replatform to INET, the stock portion of
the Stock-Option Order was obtained at a stock venue through a broker-
dealer for Stock-Option Orders that attempted to execute the stock
component of the order. A necessary delay was created when executing
this order type because the option portion of the order could not
execute until such time as the stock portion was executed. The added
complexity of waiting for a third-party broker to obtain the stock
portion of the order, check for compliance with Regulation SHO, post
the trade to the tape and deliver the execution back to ISE, resulted
in low fill rates for Stock-Option Orders because the stock portion was
not always available immediately with mandated Regulation SHO
compliance checks in place by the broker-dealer. The option portion of
the Stock-Option Order was cancelled when the stock could not be
obtained. The Exchange has considered the legging of Stock-Option
Orders and has determined not to reintroduce the functionality in light
of the complexity with obtaining the stock from a third party. Members
may continue to execute Stock-Option Orders that trade with other
Stock-Option Orders in the complex order book or hedge a stock against
the option order in separate transactions. Further, the Exchange notes
this functionality is not available on other markets that offer complex
order functionality.\8\
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    \8\ Phlx does not offer legging functionality for stock-option
orders.
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    With this proposal, Stock-Option Orders entered on the Exchange
will not automatically execute against bids and offers on the Exchange
for the individual legs pursuant to Rule 722(d)(1) and (3) and
Supplementary Material .01 and .02 to Rule 722. Stock-Option Orders may
execute against other Stock-Option Orders in the Complex Order Book,
thereby providing an opportunity for Members to have their Stock-Option
Orders executed on the Exchange. In addition complex [sic] orders
continue to leg into the single-leg market as is the case today.
Amendments to the rule text of ISE Rule 722 are explained below.
Complex Order Quoting
    In 2017, in conjunction with the replatform of ISE to INET, ISE
filed a rule change to delay the re-introduction of functionality that
enabled ISE to designate symbols eligible for Market Maker quotes in
the Complex Order book for one year from the date of filing.\9\
Subsequently, ISE filed to delay the re-introduction of Complex Order
quoting until April 26, 2019.\10\ At this time, the Exchange proposes
to not offer this functionality on ISE. If the Exchange determines to
re-introduce

Complex Order quoting functionality on ISE it will file a new proposal
with the Commission. The Exchange will issue an Options Trader Alert
notifying Members that Complex Order quoting functionality will no
longer be available.
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    \9\ See Securities Exchange Act Release No. 80613 (May 5, 2017),
82 FR 22022 (May 11, 2017) (SR-ISE-2017-37).
    \10\ See Securities Exchange Act Release No. 83001 (April 5,
2018), 83 FR 15653 (April 11, 2018) (SR-ISE-2018-29).
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    The Exchange does not believe that there is sufficient demand for
this offering at this time from Market Makers. At the time this
functionality was offered prior to the replatform to INET, only twelve
symbols were available for Complex Order Quoting. The Exchange provided
notice to Members on two occasions \11\ with respect to delaying the
Complex Order Quoting functionality. The Exchange did not receive any
response from Market Makers with respect to the delay in offering this
functionality. The Exchange has notified Members that it will not offer
this functionality going forward and once again,\12\ no response was
received from Market Makers. Further, the Exchange notes that other
markets that offer complex functionality do not offer complex
quoting.\13\ Market Makers may utilize orders in lieu of quotes to
execute Complex Orders.
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    \11\ See Options Traders Alerts 2016-8 and 2016-10 (these prior
option trade alerts are no longer publically available because the
content is obsolete. The alerts were also superseded by Options
Trader Alert 2019-3).
    \12\ See Options Trader Alert 2019-3.
    \13\ Phlx does not offer complex quoting.
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    Prior to the delay in re-introducing the Complex Order quoting
functionality, ISE's rules permitted Market Makers to enter quotes in
certain symbols for complex strategies on the Complex Order book in
their appointed options classes. Market Maker quotes for complex
strategies were not automatically executed against bids and offers on
the Exchange for the individual legs nor marked for price
improvement.\14\ Market Makers were not required to enter quotes on
ISE's Complex Order book. Quotes for Complex Orders have not been
subject to any quotation requirements that are applicable to Market
Maker quotes in the regular market for individual options series or
classes, nor was any volume executed in Complex Orders taken into
consideration when determining whether Market Makers met quotation
obligations applicable to Market Maker quotes in the regular market for
individual options series.
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    \14\ See Supplementary Material .03 to Rule 722.
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Nasdaq ISE Spread Feed
    The Exchange proposes to amend ISE Rule 718, titled ``Data Feeds
and Trade Information'' to reflect its current practice. The Exchange
also proposes a few technical amendments, including adding numbering to
ISE Rule 718(a)(5) to bring greater clarity to the description and
deleting a reference to Complex Order quotes. The Exchange proposes to
add the word ``data'' before ``aggregated'' in the first sentence to
give more context to the word. With this change, the first sentence
will provide in part that the ``Nasdaq ISE Spread Feed (``Spread
Feed'') is a feed that consists of: (1) Options orders for all Complex
Orders (i.e., spreads, buy-writes, delta neutral strategies, etc.); (2)
data aggregated at the top five prices levels (BBO) on both the bid and
offer side of the market; and (3) last trades information.'' The
Exchange proposes to delete the words ``as well as'' from the first
sentence because those words are not necessary to convey the
information in the feed. The Exchange also proposes to add detail to
the second sentence to reflect its current practice. The second
sentence as amended will state that, ``The Spread Feed provides
updates, including prices, side, size, and capacity, for every Complex
Order placed on the ISE Complex Order book.'' The second sentence is
reworded to remove the words ``In addition,'' which are no longer
necessary and replace ``. . . for every time a new Complex Limit Order
that is not immediately executable at the BBO . . .'' with ``. . .
every Complex Order placed on the ISE Complex Order book.'' The phrase
``immediately executable at the BBO'' is not the trigger for the
update; instead the booking of a Complex Order to the order book is the
trigger to update the Spread Feed. This proposed new language is more
accurate with respect to updates. Also, the Exchange is replacing the
phrase ``Complex Limit Order'' with the broader term ``Complex Order''
which more accurately reflects the types of Complex Orders on the ISE
Spread Feed.\15\ Today, the Nasdaq ISE Spread Feed includes price,
side, size, and capacity, for every Complex Order. The Exchange
believes that this proposed language brings greater transparency to
information contained in the data feed. Adding references to the
additional information, price, side, size and capacity for every
Complex Order as well as auction notifications, contained in the ISE
Spread Feed is consistent with the Act because it will provide market
participants with clear information as to the type of data available in
the Spread Feed. By providing the details of the content of the Spread
Feed, market participants will be better informed as to the type of
information they may choose to access to obtain information about the
Order Book and this will in turn promote just and equitable principles
of trade.
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    \15\ There are circumstances where Complex Market Orders,
provided for in Rule 722(b)(1), will rest on the Complex Order Book.
For example a Complex Market Order will remain on the Complex Order
Book if there is no complex interest available for a complex
strategy to execute against and the synthetic market for the complex
strategy is beyond the trade through allowance provided for in
Supplementary Material .07(a)(1) to ISE Rule 722.
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    The Exchange also is amending the last sentence of the current rule
text in Rule 718(a)(5). Currently, ISE Rule 718(a)(5) provides, ``The
Spread Feed shows aggregate bid/ask quote size for Public Customer \16\
and Priority Customer \17\ option orders for ISE traded options.'' The
Exchange proposes to amend this sentence to state, ``The Spread Feed
shows: (1) Aggregate bid/ask quote size; (2) aggregate bid/ask quote
size for Professional Customer Orders; and (3) aggregate bid/ask quote
size for Priority Customer Orders for ISE traded options.'' The
Exchange is separating out this information to make clear that three
separate types of information are available: (1) The local quote size
(BBO) in the aggregate, (2) the local quote size for Professional
Customer Orders and (3) the local quote size for Priority Customers.
The Exchange believes that separating out the feed information to
demonstrate the various pieces of information included in the data feed
clarifies the description. In addition, the Exchange proposes to
introduce a new term ``Professional Customer'' to replace the word
``Public Customer.'' The Exchange proposes to add a new definition for
the term ``Professional Customer'' at proposed new Rule 100(a)(51A).
This new term would mean a non-broker/dealer participant who enters at
least 390 orders per day on average during a calendar month for its own
beneficial account(s). The concept of a Professional is established on
ISE,\18\ this new term permits a Professional Customer to be more
specifically identified within the Rules. The term ``Public Customer''
means a person or entity that is not a broker or dealer in
securities.\19\ The current feed--which refers to the aggregate quote
sizes for Public Customers and Priority

Customers--does not make clear that local Professional Customer and
local Priority Customer quote sizes are separately available. Under the
current description, it may appear that a quote size with both
Professional Customer and Priority Customer interest is available along
with a separate quote size for Priority Customer interest; however this
is not the case. The more precise new defined term ``Professional
Customer'' would make clear that manner in which the quote size
information is segregated. As rewritten, the Exchange is representing
that there are three separate streams of quote information and the
``Professional Customer'' and ``Priority Customer'' streams of quote
information are separated. By adopting the new term ``Professional
Customer'' the Exchange believes that the quote information being
offered will be clear. The Exchange is not amending the information
contained in the Spread Feed, rather these changes are intended to more
accurately represent the information currently in the Spread Feed. It
is consistent with the Act to provide clear information about the types
of aggregated quotes available on the Spread Feed so that market
participants are able to avail themselves of that information if they
choose and also to better understand the information that is available
to other market participants. The Exchange believes that adding this
detail will add transparency to the data feed and promote just and
equitable principles of trade.
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    \16\ The term ``Public Customer'' means a person or entity that
is not a broker or dealer in securities. See Rule 100(a)(52).
    \17\ The term ``Priority Customer'' means a person or entity
that (i) is not a broker or dealer in securities, and (ii) does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s). See Rule
100(a)(49).
    \18\ See Rule 100(a)(51).
    \19\ See note 15 above. The terms Public Customer includes both
Priority Customers and Professional Customers.
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    Finally, the Exchange is also noting that the feed contains Complex
Order auction notifications, which adds additional detail to the rule.
It is consistent with the Act to include auction notifications in the
feed to allow Members to be aware of ongoing auctions so they have an
opportunity to participate in the auctions. The Exchange is not
amending any Spread Feed pricing with this proposal.\20\
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    \20\ The Spread Feed pricing is reflected in Options 7, Section
10, at I.
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Mini Options
    The Exchange proposes to remove the entire provision related to
trading Mini Options for Complex Orders in Supplementary Material .06
\21\ and the provision within .08(i) \22\ to ISE Rule 722 which
describe the manner in which listed Mini Options are handled for
purposes of Complex Order trading. Today, while the Exchange's rules
permit the listing of Mini Options, the Exchange does not list Mini
Options for trading and has not listed Mini Options in some time.
Accordingly, ISE proposes to delete the provisions addressing Mini
Options in Complex Orders. The Exchange proposes to no longer list Mini
Options for trading because the Exchange believes the demand for this
product does not exist.\23\ The Exchange would file a proposal to adopt
rules to list Mini Options if it determines in the future that it
desires to list these options. Additionally, the Exchange would file
appropriate trading rules to govern the trading of Mini Options.
---------------------------------------------------------------------------

    \21\ Supplementary Material .06 to Rule 722 provides, ``If any
leg of a complex strategy is a Mini Option contract as provided in
Supplementary Material .13 to Rule 504, all options legs of such
complex strategy must also be Mini Option contracts.''
    \22\ Supplementary Material .08(i) to Rule 722 provides, ``The
minimum contract threshold shall be adjusted for Mini Options by a
multiple of ten (10) and shall be as follows: (i) each leg of a
Complex Options Order executed in the Complex Facilitation Mechanism
must be for 500 or more Mini Option contracts; (ii) each leg of a
Complex Options Order executed in the Complex Solicited Order
Mechanism must be for 5,000 or more Mini Option contracts; and (iii)
each leg of a Complex Qualified Contingent Cross Order must be for
10,000 or more Mini Option contracts coupled with a contra-side
order or orders totaling an equal number of Mini Option contracts.''
    \23\ The Exchange will separately file to remove listing and
other rules associated with Mini Options.
---------------------------------------------------------------------------

Reorganization of the Rulebook and Other Technical Amendments
Rule 715
    The Exchange proposes to capitalize the defined term ``system''
within Rule 715(u) as explained in the beginning of the proposal.
Rule 716
    The Exchange proposes to retitle Rule 716, currently titled ``Block
Trades,'' as ``Auction Mechanisms'' because the new title more
accurately describes the rule text contained in this rule. The Exchange
proposes to relocate the text of Rule 716(a) within current Rule 716(c)
and re-letter that Rule as 716(a). The Exchange also proposes to make
clear that the Block Order Mechanism applies only to single-leg
transactions and therefore does not apply to Complex Orders. The
Exchange notes that it offers a Complex Order Exposure auction, which
is described within Supplementary Material .01 to Rule 722.
    The Exchange proposes to remove the ``(b)'' from Rule 716 so that
the following text would apply to the entirety of Rule 716 and all
mechanisms within the rule, including proposed relocated text, ``For
purposes of this Rule, a ``broadcast message'' means an electronic
message that is sent by the Exchange to all Members, and a ``Response''
means an electronic message that is sent by Members in response to a
broadcast message.'' This rule text, as written, is being amended so
that it is clear that the rule text applies to all mechanisms within
this rule, including the mechanisms proposed to be relocated within the
rule. In addition, the Exchange proposes to relocate and expand rule
text within Supplementary Material .04 to Rule 716 \24\ to this
introductory paragraph so that with the relocation it also would apply
to the entire rule. The Exchange proposes to provide, ``Also for
purposes of this rule, the time given to Members to enter Responses for
any of the below auction mechanisms shall be designated by the Exchange
via circular, but no less than 100 milliseconds and no more than 1
second.'' Today, this rule text applies to all mechanisms within the
rule, the Block Order Mechanism, Facilitation Mechanism and
Solicitation Mechanism. As amended, the rule text would apply to all
the relocated mechanisms as well.
---------------------------------------------------------------------------

    \24\ Supplementary Material .04 to Rule 716 provides, ``The time
given to Members to enter Responses under paragraphs (c)(1), (d)(1)
and (e)(1) shall be designated by the Exchange via circular, but no
less than 100 milliseconds and no more than 1 second.''
---------------------------------------------------------------------------

    The Exchange proposes to amend the Facilitation Mechanism to re-
letter ``(d)'' as ``(b).'' The Exchange proposes to relocate rule text
related to the Complex Facilitation Mechanism from Supplementary
Material .08(a) to ISE Rule 722 to Rule 716(c).25 [sic] ISE
proposes to relocate the Complex Solicited Order Mechanism from
Supplementary .08(b) to ISE Rule 722 to Rule 716(e). The Exchange notes
that references to Complex Order quotes were not relocated with the
rule text as the Exchange proposes to eliminate Complex Order quoting.
    The Exchange also proposes to relocate the paragraph related to
Limitations on Concurrent Complex Strategy Auctions, currently located
in Supplementary Material .08(g) of ISE Rule 722, to Rule 716(f). The
Exchange also proposes to relocate rule text relating to Concurrent
Complex Order and single leg auctions, currently located Supplementary
Material .08(h) of ISE Rule 722, to Rule 716(g).
    The Exchange proposes to eliminate Supplementary Material .03,
which is currently reserved, and .04 to Rule 716, which is being
relocated as discussed above. The Exchange proposes to amend
Supplementary Material .05 to Rule 716 to renumber it .03. The Exchange
proposes to renumber Supplementary Material .06 to Rule 716 as .04. The
Exchange proposes to eliminate

references to Supplementary Material .07 and .08 to Rule 716, which are
currently reserved. The Exchange proposes to renumber Supplementary
Material .09 to Rule 716 as .07.
Rule 721
    The Exchange proposes to amend Rule 721, Crossing Orders. The
Exchange proposes to add a title within Rule 721(a), ``Customer Cross
Orders.'' This will distinguish this paragraph from new proposed Rule
721(b), titled ``Complex Customer Cross Orders.'' The Exchange notes
that references to Complex Order quotes were not relocated with the
rule text, as discussed below, as the Exchange proposes to eliminate
Complex Order quoting.
    The Exchange proposes to relocate rule text from Supplementary
Material .08(d) to ISE Rule 722 to proposed Rule 721(b). The Exchange
proposes to re-letter 721(b) as 721(c) and add a title ``Qualified
Contingent Cross Orders'' to distinguish it from new proposed Rule
721(d), which the Exchange proposes to title ``Complex Qualified
Contingent Cross Orders.'' The Exchange proposes to relocate rule text
from Supplementary Material .08(e) to ISE Rule 722 to proposed Rule
721(d). The Exchange proposes to relocate certain rule text regarding
Qualified Contingent Cross (``QCC'') Orders with Stock from
Supplementary Material .01 -.03 to ISE Rule 721 to proposed Rule
721(e)(4)--(6). The Exchange is renumbering current Rule721(c) as
``(e)'' and adding a new title, ``Qualified Contingent Cross (``QCC'')
with Stock.'' The Exchange proposes to relocate rule text from
Supplementary Material .08(f) to ISE Rule 722 to proposed Rule 721(f)
and add the title ``Complex QCC with Stock Orders.'' The Exchange notes
that current Supplementary Material .08(f)(4) to ISE Rule 722 cross-
references current Rule 721 at Supplementary Material .01--.03. The
Exchange notes that it is deleting Supplementary Material .08(f)(4) to
ISE Rule 722 because its sole purpose is to cross-reference Rule 721
and this provision is no longer necessary as ISE is relocating the rule
text to Rule 721.
Rule 722
    The Exchange proposes to delete the introductory text within ISE
Rule 722, which provides, Stock-Option Orders will not be automatically
executed against bids and offers on the Exchange for the individual
legs (``legging'') pursuant to subparagraphs (d)(1) and (d)(3) of Rule
722 and Supplementary Material .01 and .02 to Rule 722. Stock-Option
Orders will continue to execute against other Stock-Option Orders in
the Complex Order Book. The Exchange will recommence legging for Stock-
Option Orders on ISE on or before March 21, 2019. The Exchange will
issue an Options Trader Alert notifying Members when this functionality
will be available.
    Only one Complex Order auction pursuant to Supplementary Material
.01 and Supplementary Material .08(a)-(c) to Rule 722 may be ongoing at
any given time in a complex strategy. Such Complex Order auctions will
not queue or overlap in any manner. The Exchange will reject a Complex
Order auction of the same or different auction type submitted pursuant
to Supplementary Material .08(a)-(c) to Rule 722 while another Complex
Order auction is ongoing in that complex strategy. When there is an
ongoing auction in a complex strategy, a subsequent Complex Order for
that strategy will not initiate an auction pursuant to Supplementary
Material .01 to Rule 722 and will be processed as a Complex Order that
is not marked for price improvement, unless the member requested the
order to be cancelled after the exposure period, in which case the
Complex Order will be cancelled back to the member.
    The Exchange proposes herein to not offer legging functionality for
Stock-Option Orders and therefore the first paragraph describing the
delay is no longer necessary. The Exchange is proposing herein to
remove all references to legging functionality for Stock-Option Orders.
The second paragraph concerning concurrent auctions is no longer
necessary because the Exchange details this behavior within its current
rules in the section titled ``Limitations on Concurrent Complex
Strategy Auctions'' currently located in Supplementary Material .08(g)
of ISE Rule 722 and proposed to be relocated to Rule 716(f). Also, the
paragraph titled ``Concurrent Complex Order and single leg auctions''
currently located within Supplementary Material .08(h) of ISE Rule 722
and proposed to be relocated to Rule 716(g), describes this behavior.
    The Exchange proposes to eliminate Rule 722(b)(4) which is
``reserved'' and renumber the remainder of Rule 722(b). The Exchange
proposes to amend ISE Rule 722(d) to change certain references, where
applicable, from ``complex strategies'' to ``Complex Options Orders''
to reflect the removal of the legging of Stock-Option Orders. The
Exchange notes as proposed, the Exchange would no longer offer legging
functionality for Stock-Option Orders. The terms ``complex strategies''
includes Complex Options Strategies, Stock-Option Strategies, and
Stock-Complex Strategies.\26\ The Exchange proposes to modify portions
of this rule, described herein, such as Rule 722(d)(2) to make clear
the type of behavior that applies to Complex Options Orders as compared
to the type of behavior that applies to Stock Options Orders and Stock
Complex Orders that no longer would leg as proposed herein. The
Exchange proposes to add a sentence to this paragraph (d)(2) which
provides, ``Stock Option Orders and Stock Complex Orders will be
executed at the best net price available from Complex Order Exposure
pursuant to Supplementary Material .01 to Rule 722 and executable
Complex Orders on the Complex Order Book'' to accurately reflect how
Stock Option Orders and Stock Complex Orders would be executed.
---------------------------------------------------------------------------

    \26\ See Rule 722(a)(4).
---------------------------------------------------------------------------

    Today, ISE Rule 722(d)(2) sets forth three allocation models which
may be utilized: (1) 722(d)(2)(i) time priority; (2) 722(d)(2)(ii)
``pursuant to Nasdaq ISE Rule 713(e) and Supplementary Material .01(a)
to Nasdaq ISE Rule 713 except that there shall be no participation
rights for the Primary Market Maker as provided in Supplementary
Material to Rule 713, paragraph .01(b) and (c)''; and (3)
722(d)(2)(iii) pro-rata based on size. The allocation method set forth
in current Rule 722(d)(2)(ii) provides that a Primary Market Maker
entering Complex Order Quotes is not entitled to the enhanced
allocation provided for in Rule 713(e) for a Primary Market Maker
quoting in the single-leg market. As noted herein, unlike the quoting
obligation applicable to a Primary Market Maker in the single-leg
market, a Primary Market Maker entering Complex Order Quotes has no
corresponding quoting obligations. The Exchange proposes to remove the
rule text contained within ISE Rule 722(d)(2)(ii) as this methodology
was intended to be put in place if Complex Order Quoting was available
to Market Makers. With this proposal, the Exchange will no longer offer
Complex Order Quoting and this method of allocation would become
obsolete because it would only apply with respect to Market Maker
allocations in connection with Complex Order quoting. The Exchange also
proposes to renumber ISE Rule 722(d)(2)(iii) as ``(ii).''
    The Exchange proposes to remove certain rule text within ISE Rule
722(d)(3). This paragraph of Rule 722(d)(3) addresses a situation when
there is no executable contra-side

complex interest on the Complex Order Book at a particular price and
explains how executable Complex Options Orders legs may be executed
against bids and offers for the individual options series. The current
rule text provides, ``and the options leg(s) of executable Stock-Option
Orders or executable Stock-Complex Orders with up to a maximum number
of options legs (determined by the Exchange as either two legs, three
legs or four legs).'' As proposed herein, the Exchange will no longer
leg Stock-Option Orders, therefore this rule text that is currently
described within ISE Rule 722(d)(3) would no longer be applicable and
is proposed to be removed.
    The Exchange proposes to amend Supplementary Material .01(c) Rule
722 to add a new sentence to describe the manner in which Stock Option
Orders would be handled since the Exchange would no longer offer
legging for Stock Option Orders, as proposed. The new sentence would
provide, ``Notwithstanding the foregoing, Supplementary Material
.01(c)(ii) shall not be applicable with respect to Stock Option Orders
and Stock Complex Orders.'' The Exchange notes that Supplementary
Material .01(c)(ii) to Rule 722 provides, ``At the end of the exposure
period, if the Complex Order still improves upon the best price for the
complex strategy on the same side of the market, it is automatically
executed to the greatest extent possible pursuant to Rule 722(d)(2)-
(3), taking into consideration. . . . bids and offers on the Exchange
for the individual options series (including interest received during
the exposure period).'' The Exchange notes that the bids and offers for
the individual options series would only be taken into account for
Complex Options Orders and not for Stock Option Orders and Stock
Complex Orders, which, under the proposal, will no longer leg.
    The Exchange is removing Supplementary Material .03, .04 and .05 to
ISE Rule 722 as these sections relate to Market Maker quotes, which
functionality is proposed to be removed with this proposal. The
Exchange is removing Supplementary Material .06 to ISE Rule 722 as
described in the section pertaining to Mini Options.
    Supplementary Material .07 to ISE Rule 722 is being relocated to
new Rule 724 as described in that section. Supplementary Material .08
to ISE Rule 722 is being relocated to Rules 716, 721 and 723 as
described in those sections.
    The Trade Value Allowance would be renumbered from Supplementary
Material .09 to .03 of ISE Rule 722 to account for the removal of
Supplementary Materials .03 to .08 of Rule 722.
    The Complex Opening Process would be renumbered from Supplementary
Material .10 to .04 of ISE Rule 722. The Complex Opening Price
Determination would be renumbered from Supplementary Material .11 to
.05 of ISE Rule 722. The word ``order'' is being capitalized within
proposed Supplementary Material .05(d)(1) to ISE Rule 722, currently
Supplementary Material .11(d)(i) of ISE Rule 722, because it is part of
the defined term ``Priority Customer Order.'' The Exchange is also
reformatting the numbering of this rule section to conform it to the
remainder of the rule.
    The Exchange is amending the uncrossing language within proposed
Supplementary Material .05(d)(6) of ISE Rule 722, currently
Supplementary Material .11(d)(vi) of ISE Rule 722, to amend the term
``complex strategy'' to ``Complex Option Order.'' Supplementary
Material .10 of Rule 722 states, Complex Opening Process. After each of
the individual component legs have opened, or reopened following a
trading halt, Complex Options Strategies will be opened pursuant to the
Complex Opening Price Determination described in Supplementary Material
.11 to Rule 722, and Stock-Option Strategies and Stock-Complex
Strategies will be opened pursuant to the Complex Uncrossing Process
described in Supplementary Material .12 to Rule 722.
    To further distinguish that the uncrossing language within proposed
Supplementary Material .05(d)(6) of ISE Rule 722 does not apply to
Stock-Option Strategies and Stock-Complex Strategies, the Exchange
proposes to amend the more generic term ``complex strategy'' to replace
that term with the more specific reference to ``Complex Options
Orders.''
    The Complex Uncrossing Process would be renumbered from
Supplementary Material .12 to .06. of ISE Rule 722 . The Exchange
proposes to amend the term ``Complex Order'' within proposed
Supplementary Material .06(b)(2) and replace it with the more specific
defined term ``Complex Options Order'' because this section references
legging which cannot be accomplished, as proposed herein with Stock
Option Orders and Stock Complex Orders.
    Finally, the title ``Qualified Contingent Trade Exemption'' is
being added to Supplementary Material .13 of ISE Rule 722 and
Supplementary Material .13 is proposed to be renumbered as
Supplementary Material .07 of ISE Rule 722.
Rule 723
    The Exchange proposes to relocate the text of Supplementary
Material .08(c) to ISE Rule 722 to proposed Rule 723(e).\27\ The
Exchange proposes to amend proposed Rule 723(e)(4)(vi) to replace the
term ``complex strategy'' with ``Complex Order.'' A Complex Price
Improvement Mechanism in a complex strategy may be ongoing at the same
time as a Price Improvement Auction pursuant to Rule 723 or during an
exposure period pursuant to Supplementary Material .02 to Rule 1901 in
a component leg(s) of such Complex Order. The Exchange is amending the
term because with this proposal, Stock Option Orders and Stock Complex
Orders may not leg. Also, the Exchange is amending the last sentence of
this same paragraph to provide, '' If a Complex Price Improvement
Mechanism is early terminated pursuant to paragraph (iv) above, and the
incoming Complex Order that causes the early termination in the complex
strategy is also marketable against a component leg(s) of the complex
strategy that is the subject of a concurrent ongoing Price Improvement
Auction pursuant to Rule 723 or an exposure period pursuant to
Supplementary Material .02 to Rule 1901, then the concurrent Complex
Price Improvement Mechanism and component leg auction(s) are processed
in the following sequence: . . . . and (3) legging of residual incoming
Complex Order interest occurs, except with respect to Stock Option
Orders and Stock Complex Orders.'' The Exchange similarly notes that
this addition is consistent with the proposal to not offer legging for
Stock Option Orders.
---------------------------------------------------------------------------

    \27\ The Exchange notes that references to Complex Order quotes
were not carried over with the rule text as the Exchange proposes to
eliminate Complex Order quoting.
---------------------------------------------------------------------------

    Supplementary Material .07 to Rule 723 and Supplementary Material
.09 to Rule 723 are being eliminated as they are reserved.
Supplementary Material .08 to Rule 723 is being renumbered as .07 and
Supplementary Material .10 to Rule 723 is being renumbered as .08.
Rule 724
    The Exchange proposes to relocate Supplementary Material .07 to ISE
Rule 722 to new Rule 724 titled ``Complex Order Risk Protections.'' The
Exchange proposes to add the following sentence to this rule, ``The
following are Complex Order risk protections on ISE.'' This will
distinguish these risk protections from those in Rule 714, which apply
to single-leg transactions. The Exchange notes that references to
Complex Order

quotes were not relocated with the rule text as the Exchange proposes
to eliminate Complex Order quoting.
    The Exchange proposes to amend proposed new Rule 724(b)(2)(A) to
amend the term ``Market Order'' to the defined term within Rule
722(b)(1) ``Market Complex Order'' \28\ as this rule applies to Complex
Orders. Additionally, as noted in the beginning of this proposal,
references to Complex Order quotes are being removed. The Exchange
proposes not to relocate the sentence within Supplementary .07(c)(1) of
ISE Rule 722 which states, ``This limit order price protection applies
only to orders and does not apply to quotes.'' There is no need to
state that the limit order price protection applies only to orders
since that is the only possibility with the removal of Complex Order
quoting.
---------------------------------------------------------------------------

    \28\ A Market Complex Order is a Complex Order to buy or sell a
complex strategy that is to be executed at the best price
obtainable. If not executable upon entry, such orders will rest on
the Complex Order Book unless designated as fill-or-kill or
immediate-or-cancel. See ISE Rule 722(b)(1).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\29\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\30\ 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 for the reasons described below.
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78f(b).
    \30\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

Complex Order Legging Functionality for Stock-Option Orders
    The Exchange's proposal to not offer legging functionality for
Stock-Option Orders is consistent with the Act because Members can
continue to submit these orders to the Exchange where they can be
executed against other Stock-Option Orders on the Complex Order book.
No Members have notified the Exchange of any impact on execution
quality as a result of the delayed implementation of legging
functionality for Stock-Option Orders since the INET replatform, and
therefore the Exchange does not believe that no longer offering this
functionality will have a significant impact on market participants.
    The Exchange is not implementing this functionality because the
Exchange believes that obtaining the stock portion of the order is
difficult given liquidity concerns. The Exchange believes its concerns
surrounding historically low fill rates for this type of business model
warrant the Exchange not offering this functionality, which is
currently not available on other markets that offer complex
functionality.\31\ On ISE, when this functionality was offered prior to
the ISE replatform to INET, the option order would be cancelled if the
stock could not be obtained from a third party within a certain
timeframe. The Exchange believes this decision to not offer this
functionality promotes 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 because the Exchange has concerns
with liquidity and historically low fill rates in offering legging
functionality for Stock-Option Orders.
---------------------------------------------------------------------------

    \31\ Phlx does not offer legging functionality for stock-option
orders.
---------------------------------------------------------------------------

Complex Order Quoting
    The Exchange's proposal to not offer Complex Order quoting on ISE
is consistent with the Act because even though the Complex Order
quoting functionality will not be available, Market Makers will still
be able to submit Complex Orders. The Exchange has not experienced any
impact with respect to execution quality in the time since the INET
replatform. The Exchange notes that Phlx does not offer Complex Order
quoting functionality.\32\
---------------------------------------------------------------------------

    \32\ See Phlx Rule 1098.
---------------------------------------------------------------------------

    The Exchange does not believe that there is sufficient demand for
this offering at this time from Market Makers. Members may utilize
orders in lieu of quotes to execute Complex Orders and therefore not
offering Complex Order quoting functionality does not create an
impediment to a free and open market and a national market system.
Nasdaq ISE Spread Feed
    The Exchange's proposal to add more specificity to the Nasdaq ISE
Spread Feed in Rule 718(a)(5) will bring greater transparency to the
data feed. The Exchange proposes to amend ISE Rule 718, titled ``Data
Feeds and Trade Information'' to reflect its current practice. The
technical amendments will add context to the rule. Adding references to
the additional information, price, side, size and capacity for every
Complex Order as well as auction notifications, contained in ISE Spread
Feed is consistent with the Act because it will provide market
participants with clear information as to the type of data available in
the Spread Feed. By providing the details of the content of the Spread
Feed, market participants will be better informed as to the type of
information they may choose to access to obtain information about the
Order Book and this will in turn promote just and equitable principles
of trade.
    Separating out the various types of information available and
replacing the word ``Public Customer'' with the more precise new
defined term ``Professional Customer'' will bring greater transparency
to the rule. The Exchange's proposal to introduce the term
``Professional Customer'' and define that term to make clear that the
current feed contains segregated local Professional Customer and
segregated local Priority Customer quote sizes separately available is
consistent with the Act. The Spread Feed is not being amended, rather
the rule text is being amended to make clear what information is being
disseminated over the feed. The information being received does contain
separate data for Professional Customers and Priority Customers. By
amending the rule text and making clear what specific data is contained
in the Spread Feed the Exchange believes that it would promote just and
equitable principles of trade, to [sic] remove impediments to and
perfect the mechanism of a free and open market because market
participant would have a better understanding of the data contained in
the Spread Feed. It is consistent with the Act to provide clear
information about the types of aggregated quotes available on the
Spread Feed so that market participants are able to avail themselves of
that information if they choose to receive the date feed, better
understand the information that they are currently receiving on the
date feed and also understand the information that is available to
other market participants. The Exchange believes that adding this
detail will add transparency to the data feed and promote just and
equitable principles of trade.
Mini Options
    The Exchange's proposal to remove language related to trading Mini
Options in Supplementary Material .06 and .08(i) to ISE Rule 722 is
consistent with the Act because it will avoid confusion since the
Exchange no longer lists Mini Options for trading. The demand for this
product has diminished and the Exchange will separately remove listing
rules related to this product. The Exchange notes it has not listed
Mini Option in some time. Removing this rule text will bring greater
transparency to the Exchange's Rulebook.

Reorganization of the Rulebook and Other Technical Amendments
    The Exchange's proposal to relocate various provisions is
consistent with the Act because the reorganization is intended to bring
greater transparency and ease of reference to the ISE Rulebook. Also,
making technical non-substantive amendments to capitalize terms and
amend cross-references will also bring greater clarity and transparency
to the ISE Rulebook.

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 the proposed rule change will impact the intense competition that
exists in the options market.
Complex Order Legging Functionality for Stock-Option Orders
    The Exchange does not believe that its proposal to not offer
legging for Stock-Option Orders will impose an undue burden on intra-
market competition because legging for Stock-Option Orders will not be
available uniformly to any Member on ISE. Similarly, the Exchange does
not believe that the proposal to not offer legging for Stock-Option
Orders will impose any significant burden on inter-market competition
as it does not impact the ability of other markets to offer or not
offer competing functionality.
Complex Order Quoting
    The Exchange does not believe that its proposal to not offer
Complex Order quoting will impose an undue burden on intra-market
competition because all Members uniformly will not be able to submit
Market Maker quotes in the complex order book. All Members will be able
to continue to submit Complex Orders on ISE. Similarly, the Exchange
does not believe that the proposal will impose any significant burden
on inter-market competition as it does not impact the ability of other
markets to offer such quoting functionality.
Nasdaq ISE Spread Feed
    The Exchange's proposal to add more specificity to the Nasdaq ISE
Spread Feed in Rule 718(a)(5) will bring greater transparency to the
data feed. The Exchange's proposal does not impose an undue burden on
inter-market competition because today other options exchanges that
offer complex orders offer similar data. The Exchange's proposal would
not impose a burden on intra-market competition because adding
references to the additional information, price, side, size and
capacity for every Complex Order as well as auction notifications will
provide all Members with clear information as to the type of data
available in the Spread Feed. By providing the details of the content
of the Spread Feed, Members will be better informed as to the type of
information they may choose to access to obtain information about the
Order Book.
    The Exchange's proposal to separate the various types of
information available and replace the word ``Public Customer'' with the
more precise new defined term ``Professional Customer'' will bring
greater transparency to the rule. The Exchange's proposal to introduce
the term ``Professional Customer'' and define that term to make clear
that the current feed contains segregated local Professional Customer
and segregated local Priority Customer quote sizes separately available
will make clear what specific data is contained in the Spread Feed.
Members would have a better understanding of the data that is available
in the Spread Feed. The revised rule text will provide information
about the types of aggregated quotes available on the Spread Feed so
that Members may better understand the information that they may
currently obtain on the feed.
Mini Options
    The Exchange's proposal to remove language related to trading Mini
Options in Supplementary Material .06 and .08(i) to ISE Rule 722 will
not impose an undue burden on inter-market competition as the Exchange
no longer lists these types of options for trading and has no plans for
listing them in the future. Other markets may continue to list mini
options pursuant to their own trading rules. The Exchange's proposal
does not impose an undue burden on intra-market competition because no
ISE Member will be able to transact mini options.
Reorganization of the Rulebook and Other Technical Amendments
    The Exchange's proposal to relocate various rules with similar
topics and create new rules with the text will not impose an undue
burden on intra-market or inter-market competition because the
reorganization is intended to bring greater transparency and ease of
reference to the ISE Rulebook. Also, making technical non-substantive
amendments to capitalize terms and amend cross-references will also
bring greater clarity and transparency to the ISE Rulebook.

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 \33\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\34\
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \34\ 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.
---------------------------------------------------------------------------

    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_ADDRESS>Please include
File Number SR-ISE-2019-05 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-2019-05. 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 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 such 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-2019-05, and should be submitted on
or before April 9, 2019.
---------------------------------------------------------------------------

    \35\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\35\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-05092 Filed 3-18-19; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 32 (Friday, February 17, 2017)]
[Notices]
[Pages 11052-11053]
[FR Doc No: 2017-03188]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID FEMA-2008-0010]

Board of Visitors for the National Fire Academy

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Committee management; notice of open Federal Advisory Committee
Meeting.

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SUMMARY: The Board of Visitors for the National Fire Academy (Board)
will meet via teleconference on March 16, 2017. The meeting will be
open to the public.

DATES: The meeting will take place on Thursday, March 16, 2017, from
1:00 to 3:00 p.m. Eastern Daylight Time. Please note that the meeting
may close early if the Board has completed its business.

ADDRESSES: Members of the public who wish to participate in the
teleconference should contact Ruth MacPhail as listed in the FOR
FURTHER INFORMATION CONTACT section by close of business

March 14, 2017, to obtain the call-in number and access code. For
information on services for individuals with disabilities or to request
special assistance, contact Ruth MacPhail as soon as possible.
    To facilitate public participation, we are inviting public comment
on the issues to be considered by the Board as listed in the
SUPPLEMENTARY INFORMATION section. Comments must be submitted in
writing no later than March 14, 2017, and must be identified by Docket
ID FEMA-2008-0010 and may be submitted by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
     Email<EMAIL_ADDRESS>Include the docket number
in the subject line of the message.
     Mail/Hand Delivery: Ruth MacPhail, 16825 South Seton
Avenue, Emmitsburg, Maryland 21727.
    Instructions: All submissions received must include the words
``Department of Homeland Security'' and the Docket ID for this action.
Comments received will be posted without alteration at http://www.regulations.gov, including any personal information provided.
    Docket: For access to the docket to read background documents or
comments received by the Board, go to http://www.regulations.gov, click
on ``Advanced Search,'' then enter ``FEMA-2008-0010'' in the ``By
Docket ID'' box, then select ``FEMA'' under ``By Agency,'' and then
click ``Search.''

FOR FURTHER INFORMATION CONTACT:
    Alternate Designated Federal Officer: Kirby E. Kiefer, telephone
(301) 447-1117, email<EMAIL_ADDRESS>    Logistical Information: Ruth MacPhail, telephone<PHONE_NUMBER> and
email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Notice of this meeting is given under the
Federal Advisory Committee Act, 5 U.S.C. Appendix.

Purpose of the Board

    The purpose of the Board is to review annually the programs of the
National Fire Academy (Academy) and advise the Federal Emergency
Management Agency (FEMA) Administrator, through the United States Fire
Administrator, on the operation of the Academy and any improvements
therein that the Board deems appropriate. In carrying out its
responsibilities, the Board examines Academy programs to determine
whether these programs further the basic missions that are approved by
the FEMA Administrator, examines the physical plant of the Academy to
determine the adequacy of the Academy's facilities, and examines the
funding levels for Academy programs. The Board submits a written annual
report to the FEMA Administrator, through the United States Fire
Administrator. The report provides detailed comments and
recommendations regarding the operation of the Academy.

Agenda

    The Board will discuss the direction of the Executive Fire Officer
Program to include curriculum, projects, and other requirements.
    There will be one 10-minute comment period after the one agenda
item; each speaker will be given no more than 2 minutes to speak.
Please note that the public comment period may end before the time
indicated, following the last call for comments. Contact Ruth MacPhail
to register as a speaker. Meeting materials will be posted at https://www.usfa.fema.gov/training/Academy/about/bov.html by February 22, 2017.

    Dated: February 8, 2017.
Kirby E. Kiefer,
Acting Superintendent, National Fire Academy, United States Fire
Administration, Federal Emergency Management Agency.
[FR Doc. 2017-03188 Filed 2-16-17; 8:45 am]
 BILLING CODE 9111-45-P


[Federal Register: March 6, 2009 (Volume 74, Number 43)]
[Notices]
[Page 9825-9826]
[DOCID:fr06mr09-47]

=======================================================================
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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

[Docket No. USCG-2009-0114]

National Boating Safety Advisory Council

AGENCY: Coast Guard, DHS.

ACTION: Committee Management; notice of meeting.

-----------------------------------------------------------------------

SUMMARY: The National Boating Safety Advisory Council (NBSAC) and its
subcommittees will meet on April 4, 5, and 6, 2009, in Orlando, FL. The
meetings will be open to the public.

DATES: NBSAC will meet April 4, 2009, from 8:30 a.m. to 12 noon, and on
April 6, 2009, from 8:30 a.m. to 5 p.m. The Boats and Associated
Equipment Subcommittee will meet on April 4, and the Prevention through
People Subcommittee and the Recreational Boating Safety Strategic
Planning Subcommittee will meet on April 5, 2009. Please note that the
meetings may conclude early if the council has completed it business.
    All written materials, comments, and requests to make oral
presentations at the meetings should reach Mr. Jeff Ludwig by March 13,
2009, via one of the methods described in ADDRESSES. Requests to have a
copy of your material distributed to each member of the committee prior
to the meeting should reach Mr. Ludwig by March 13, 2009.

ADDRESSES: The meeting will be held at the Grand Bohemian Hotel,325 S.
Orange Ave, Orlando, FL 32801.
    Please send written material, comments, and requests to make oral
presentations to Mr. Jeff Ludwig by one of the submission methods
described below. All materials, comments, and requests must be
identified by docket number USCG-2009-0114.
    Submission Methods: Please use only one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
     E-mail<EMAIL_ADDRESS>Include the docket
number in the subject line of the message.
     Fax:<PHONE_NUMBER>.
     Mail: Mr. Jeff Ludwig, COMDT (CG-54221), 2100 2nd Street,
SW., Washington, DC 20593.
    Instructions: All submissions received must include the words
``U.S. Coast Guard'' and docket number USCG-2009-0114. All submissions
received will be posted without alteration at http://
www.regulations.gov, including any personal information provided.
Anyone can search the electronic form of comments received into any of
our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008 issue of the
Federal Register (73 FR 3316).
    Docket: For access to the docket to read background documents or
submissions received by the NBSAC, go to http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. Jeff Ludwig, COMDT (CG-54221),
2100 2nd Street, SW., Washington, DC 20593;<PHONE_NUMBER>;
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Notice of this meeting is given under the
Federal Advisory Committee Act, 5 U.S.C. App. (Pub. L. 92-463). NBSAC
was established by the Federal Boat Safety Act of 1971. That law
requires the Secretary of Homeland Security, and the Commandant of the
Coast Guard by delegation, to consult with NBSAC in prescribing Federal
regulations, and on other major matters regarding boating safety. See
46 U.S.C. 4302(c) and 13110(c).
    NBSAC will meet for the purpose of discussing issues related to
recreational boating safety.

A. Tentative Agendas of Meetings

    National Boating Safety Advisory Council (NBSAC):
    Saturday, April 4, 2009:
    (1) Remarks--Mr. James P. Muldoon, NBSAC Chairman;
    (2) Chief, Office of Auxiliary and Boating Safety Update on NBSAC
Resolutions and Recreational Boating Safety Program report.
    (3) Executive Secretary's report.
    (4) Chairman's session.
    (5) TSAC Liaison's report.
    (6) NAVSAC Liaison's report.
    (7) National Association of State Boating Law Administrators
report.
    (8) Boats and Associated Equipment Subcommittee meeting.
    Sunday, April 5, 2009:
    (9) Prevention through People Subcommittee meeting.
    (10) Recreational Boating Safety Strategic Planning Subcommittee
meeting.
    Monday, April 6, 2009:
    (11) Prevention through People Subcommittee report.
    (12) Boats and Associated Equipment Subcommittee report.
    (13) Recreational Boating Safety Strategic Planning Subcommittee
report.
    A more detailed agenda can be found at: http://www.uscgboating.org/
nbsac/nbsac.htm, after March 27, 2009.

B. NBSAC Subcommittees

    Prevention Through People Subcommittee: Discuss current regulatory
projects, grants, contracts, and new issues affecting the prevention of
boating accidents through outreach and education of boaters.
    Boats and Associated Equipment Subcommittee: Discuss current
regulatory projects, grants, contracts, and new issues affecting boats
and associated equipment.
    Recreational Boating Safety Strategic Planning Subcommittee:
Discuss current status of the strategic planning process and any new
issues or factors that could impact, or contribute to, the development
of the strategic plan for the recreational boating safety program.

C. Meeting Procedure

    This meeting is open to the public. At the discretion of the Chair,
members of the public may make oral presentations during the meeting.
If you would like to make an oral presentation at the meeting, please
notify Mr. Jeff Ludwig as described in the ADDRESSES section above. If
you would like a copy of your material distributed to each member of
the Council in advance of the meeting, please submit thirty (30) of
copies to Mr. Jeff Ludwig by March 13, 2009.
    Please note that the meeting may conclude early if all business is
finished.

D. Information on Services for Individuals With Disabilities

    For information on facilities or services for individuals with
disabilities or to request special assistance at the meeting, contact
Mr. Jeff Ludwig as described in the ADDRESSES section above as soon as
possible.

    Dated: February 27, 2009.
J.A. Watson,
Rear Admiral, U.S. Coast Guard, Director of Prevention Policy.
 [FR Doc. E9-4810 Filed 3-5-09; 8:45 am]

BILLING CODE 4910-15-P


From:
Jones, DonnaLee<EMAIL_ADDRESS>Sent:
Friday, April 1, 2016 11:36 AM
To:
David Ailor<EMAIL_ADDRESS><EMAIL_ADDRESS><EMAIL_ADDRESS>Cc:
Raymond, Gabrielle<EMAIL_ADDRESS>Shappley, Ned<EMAIL_ADDRESS>Lowe, Theresa<EMAIL_ADDRESS>Subject:
FW: Coke Oven Quench Tower Testing firm and novel approach - pending EPA review for acceptability

FYI  -  Received this today from a vendor. Our testing staff will review this for its viability in our Coke ICR test request.

_____________________________________________________________
Regards,
Donna Lee Jones, Ph.D.
Senior Technical Advisor, Metals Sector
U. S. Environmental Protection Agency
Office of Air Quality Planning and Standards
Sector Policies and Programs Division / Metals & Inorganic Chemicals Group (D 243-02)
Research Triangle Park, NC  27711  Tele:<PHONE_NUMBER>  Fax<PHONE_NUMBER>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
"Reasonableness never fails to be appreciated."  - anon.

<< Quench Tower Probe Sampling System.pdf >>

From: Campbell, Richard L<EMAIL_ADDRESS>Sent: Friday, April 01, 2016 10:41 AM
To: Jones, DonnaLee<EMAIL_ADDRESS>Cc: Bruffey, Chuck<EMAIL_ADDRESS>Subject: Coke Oven Quench Tower Testing

Dr. Jones:
I do have some experience testing quench towers in the early 2000's and am familiar with many of the problems associated with this task.
We would like to get your comments on a sampling approach for the quench tower that will allow us to sample multiple parameters at the
same time to help reduce the overall time due to the short sample durations for quenching operations. Due to safety considerations and
the necessity to constantly monitor the sample trains due to the excessive moisture content in the gas plume we would like to propose to
our client using a multiple probe assembly as shown in the attached schematic. This would allow us to sample safely from the ground and
monitor all the sample trains as well. Please let me know if this approach would be acceptable?

Regards

Rick Campbell, QSTI
Senior Project Manager/ Business Development Coordinator
Stack Testing Services
National Air Measurements Group
Tel: 1-513-782-4515
Cell: 1-513-304-5316
Fax: 1-513-782-4807
<EMAIL_ADDRESS>
CB&I
5050 Section Avenue
Cincinnati, Ohio 45212
USA
www.CBI.com