Cannot create Group List Settings View

I have 2 site collections on different ports.

In site one with port 1234, I am able to create a new group and then add a couple of AD users to the group. Once done, I can click the Settings menu item and choose List Settings. From here, I can create views.

On site collection two on port 80, I can do the same thing in the root but not in a sub-site. I don't have the List Settings option. I see Group Settings, View Group Permissions and Make default group.

List Settings is missing. I am sure there is a setting somewhere I am missing.