
[Federal Register Volume 79, Number 13 (Tuesday, January 21, 2014)]
[Notices]
[Pages 3427-3429]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-00985]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71296; File No. SR-Topaz-2014-02]


Self-Regulatory Organizations; Topaz Exchange, LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Establish 
a Billing Dispute Practice

January 14, 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 January 8, 2014, 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 and II below, which items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    Topaz is proposing to amend its Schedule of Fees to establish a 
billing practice with respect to billing disputes. The text of the 
proposed rule change is available on the Exchange's Web site at http://www.ise.com, at the principal

[[Page 3428]]

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 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 proposes to amend its Schedule of Fees to establish a 
billing practice to prevent members from contesting their bills long 
after they have been sent an invoice. In accordance with the proposed 
rule change, members must submit all disputes no later than ninety 
calendar days after receipt of an Exchange invoice. After ninety 
calendar days, all fees assessed by the Exchange will be considered 
final. The Exchange provides members with both daily and monthly fee 
reports and thus believes members should be aware of any potential 
billing errors within ninety calendar days of receiving an invoice. 
Requiring that members dispute an invoice within this time period will 
encourage them to promptly review their invoices so that any disputed 
charges can be addressed in a timely manner while the information and 
data underlying those charges (e.g., applicable fees and order 
information) is still easily and readily available. This practice will 
avoid issues that may arise when members do not dispute an invoice in a 
timely manner, and will conserve Exchange resources that would have to 
be expended to resolve untimely billing disputes. The Exchange notes 
that this type of provision is common among many other exchanges, which 
require that members dispute invoices within as few as sixty days.\3\ 
In addition, the Exchange proposes to state that all billing disputes 
must be submitted to the Exchange in writing,\4\ and must be 
accompanied by supporting documentation. The Exchange believes that 
this requirement, which is also similar to requirements of other 
exchanges,\5\ will further streamline the billing dispute process.
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    \3\ See, e.g., Securities Exchange Act Release No. 62661 (August 
6, 2010), 75 FR 49544 (August 13, 2010) (SR-Phlx-2010-110).
    \4\ The Exchange invoice specifies contact information for 
billing inquiries.
    \5\ See supra note 3.
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 2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Securities Exchange Act of 1934 
(the ``Act''),\6\ in general, and with Section 6(b)(5) of the Act,\7\ 
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. The Exchange 
believes the requirement that all billing disputes must be submitted in 
writing, and with supporting documentation, within ninety calendar days 
from receipt of the invoice is reasonable in the public interest 
because the Exchange provides ample tools to properly and swiftly 
monitor and account for various charges incurred in a given month. 
Moreover, the proposed billing dispute language, which will lower the 
Exchange's administrative burden, is substantially similar to billing 
dispute language adopted by other exchanges.\8\
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    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(5).
    \8\ See supra note 3.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\9\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. As stated above, 
the proposed rule change, which applies equally to all members, is 
intended to reduce the Exchange's administrative burden, and is 
substantially similar to rules adopted by other options exchanges.
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    \9\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

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

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

    The Exchange has filed the proposed rule change pursuant to Section 
19(b)(3)(A)(iii) of the Act \10\ and Rule 19b-4(f)(6) thereunder.\11\ 
Because the 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, the proposed rule change has become effective 
pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) 
thereunder.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \11\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) 
requires the Exchange to give the Commission written notice of the 
Exchange's intent to file the proposed rule change, along with a 
brief description and text of the proposed rule change, at least 
five business days prior to the date of filing of the proposed rule 
change, or such shorter time as designated by the Commission. The 
Exchange has satisfied this requirement.
    \12\ 17 CFR 240.19b-4(f)(6)(iii).
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    A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally 
does not become operative prior to 30 days after the date of the 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\14\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest.
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
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    The Exchange has asked the Commission to waive the 30-day operative 
delay so that the proposal may become operative upon filing. The 
Exchange states that waiver of the operative delay is consistent with 
the protection of investors and the public interest because it will 
permit the Exchange to establish an administrative billing practice 
consistent with current billing practices employed by other options 
exchanges. The Exchange also notes that the regular 30-day operative 
period is not necessary as, under the terms of the proposed rule 
change, members will have ninety calendar days from the receipt of 
their next invoice to dispute their bills. Based on the Exchange 
representations above, the Commission waives the 30-day operative delay 
requirement and designates the proposed rule change as operative upon 
filing.\15\
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    \15\ For purposes only of waiving the 30-day operative delay, 
the Commission has also considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).

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[[Page 3429]]

    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings under Section 19(b)(2)(B) \16\ 
of the Act to determine whether the proposed rule should be approved or 
disapproved.
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    \16\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-Topaz-2014-02 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-2014-02. 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-2014-02 and should be 
submitted on or before February 11, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\17\
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    \17\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-00985 Filed 1-17-14; 8:45 am]
BILLING CODE 8011-01-P


