
[Federal Register Volume 79, Number 5 (Wednesday, January 8, 2014)]
[Notices]
[Pages 1420-1422]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00073]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71229; File No. SR-Topaz-2013-18]


Self-Regulatory Organizations; Topaz Exchange, LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Make Non-
Controversial Changes to Its Rules

January 2, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on December 23, 2013, the Topaz Exchange, LLC (d/b/a ISE Gemini) 
(the ``Exchange'' or ``Topaz'') 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 self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes a number of non-controversial and technical 
changes to its rules. Examples of such

[[Page 1421]]

corrections include updating Topaz rule number citations and cross 
references, correcting typographical errors and deleting obsolete rule 
text. The text of the proposed rule change is available on the 
Exchange's Internet Web site at http://www.ise.com, at the principal 
office of the Exchange, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in sections A, B and C below, of the 
most significant aspects of such statements.

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

1. Purpose
    The Exchange is proposing to make a number of non-controversial 
changes and technical corrections to its rules. Examples of such 
corrections include updating rule number citations and cross-
references, correcting typographical errors, and deleting obsolete rule 
text. Following is a narrative description of each of the corrections:
    [ssquf] Topaz Rule 701 (Trading Rotations) is being amended to make 
a non-substantive change to correct a typographical error in paragraph 
(b)(2) and to remove the first sentence in paragraph (c), which states 
that trading in options will close 2 minutes after the primary market 
on which the underlying stock trades closes for trading. This reference 
to a 4:02 p.m. closing was imported from the International Securities 
Exchange (``ISE'') rule book, but should have been removed when the 
hours of trading on the ISE were amended,\3\ but was inadvertently 
overlooked.
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    \3\ See Securities Exchange Act Release No. 53248 (February 7, 
2006), 71 FR 8015 (February 15, 2006) (SR-ISE-2005-58).
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    [ssquf] Topaz Rule 705 (Limitation of Liability) is being amended 
to change a non-substantive word to update the sentence structure of 
paragraph (a).
    [ssquf] Topaz Rule 715 (Types of Orders) is being amended to add 
the defined terms of ``Day Order'' and ``Good-Till-Cancelled Order (GTC 
Order).'' The addition of these two order types qualify for non-
controversial treatment as there is nothing new or novel with respect 
to these types of orders. Additionally, the Chicago Board Options 
Exchange has identical order types.\4\
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    \4\ See CBOE Rule 43.2(5) and (7).
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    [ssquf] Topaz Rules 803(c) is being amended to remove underlining 
that does not belong. Topaz Rules 803, 810 and 811 are being amended to 
remove cross-references to Rule 803(c)(2) and replace them with the 
correct cross-references, where applicable. These cross-references were 
imported from the ISE rule book, which were inadvertently missed when 
paragraph 803(c)(2) was deleted from the ISE rules.\5\
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    \5\ See Securities Exchange Act Release No. 69396 (April 18, 
2013), 78 FR 24273 (April 24, 2013) (SR-ISE-2013-18).
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    [ssquf] Topaz Rule 804(d)(3) is being deleted as this provision is 
obsolete and no longer applicable, but was imported from the ISE rule 
book and (e)(2)(ii) is being amended to delete rule text that was 
incorrectly imported from the ISE rule book.\6\
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    \6\ See Securities Exchange Act Release No. 69175 (March 19, 
2013), 78 FR 17988 (March 25, 2013) (SR-ISE-2013-17).
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2. Statutory Basis
    The basis under the Act for this proposed rule change is the 
requirement under Section 6(b)(5) \7\ that an exchange have rules that 
are designed to prevent fraudulent and manipulative acts and practices, 
to promote just and equitable principles of trade, to remove 
impediments to and perfect the mechanism for a free and open market and 
a national market system, and, in general, to protect investors and the 
public interest. The Exchange believes it is appropriate to make these 
technical corrections to its rules so that Exchange members and 
investors have a clear and accurate understanding of the meaning of the 
Exchange's rules. By removing obsolete rule text, the Exchange is 
eliminating any potential for confusion about how its systems operate. 
By updating cross-references in its rules, the Exchange is eliminating 
any inaccuracies. The addition of a Day Order and a GTC Order qualifies 
for non-controversial treatment as there is nothing new or novel with 
respect to these order types. Day Orders and GTC Orders merely address 
the time-in-force of an order and are standard, generic orders. In 
addition, CBOE has both of these order types in its rules.\8\ The 
Exchange further believes that the proposed rule change is not unfairly 
discriminatory because it treats all market participants equally and 
will not have an adverse impact on any market participant.
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    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See note 4.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    Most of the proposed rule changes are non-substantive corrections 
to the Exchange's rules and therefore do not implicate the competition 
analysis. The change proposing to adopt two new order types is non-
controversial as they already exist on another exchange and merely 
address the time-in-force of an order, and will therefore not impact 
competition because these order types already exist. The proposed rule 
changes will serve to promote regulatory clarity and consistency, 
thereby reducing burdens on the marketplace and facilitating investor 
protection.

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

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

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

    Because the foregoing proposed rule change does not significantly 
affect the protection of investors or the public interest, does not 
impose any significant burden on competition, and, by its terms, does 
not become operative for 30 days from the date on which it was filed, 
or such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-
4(f)(6) \10\ thereunder. The Exchange provided the Commission with 
written notice of its intent to file the proposed rule change, along 
with a brief description and text of the proposed rule change, at least 
five business days prior to the date of filing the proposed rule 
change.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(6).
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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.

[[Page 1422]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-Topaz-2013-18 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.
All submissions should refer to File Number SR-Topaz-2013-18. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-Topaz-2013-18 and should be 
submitted on or before January 29, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-00073 Filed 1-7-14; 8:45 am]
BILLING CODE 8011-01-P


