Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Linkage Fees, 32026-32027 [E9-15739]

Download as PDF 32026 Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices 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 BILLING CODE 8010–01–P • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–FINRA–2009–040 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. mstockstill on PROD1PC66 with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.34 Elizabeth M. Murphy, Secretary. [FR Doc. E9–15741 Filed 7–2–09; 8:45 am] SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60175; File No. SR–ISE– 2009–36] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Linkage Fees June 25, 2009. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the All submissions should refer to File ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Number SR–FINRA–2009–040. This file notice is hereby given that, on June 23, number should be included on the 2009, International Securities Exchange, subject line if e-mail is used. To help the LLC (‘‘ISE’’ or the ‘‘Exchange’’) filed Commission process and review your with the Securities and Exchange comments more efficiently, please use Commission (the ‘‘Commission’’) the only one method. The Commission will proposed rule change as described in post all comments on the Commission’s Items I and II below, which Items have Internet Web site (https://www.sec.gov/ been prepared by the self-regulatory rules/sro.shtml). Copies of the organization. The Commission is submission, all subsequent publishing this notice to solicit amendments, all written statements comments on the proposed rule change with respect to the proposed rule from interested persons. change that are filed with the I. Self-Regulatory Organization’s Commission, and all written Statement of the Terms of Substance of communications relating to the the Proposed Rule Change proposed rule change between the The ISE is proposing to extend Commission and any person, other than through July 31, 2010 the current pilot those that may be withheld from the program regarding transaction fees public in accordance with the charged for trades executed through the provisions of 5 U.S.C. 552, will be intermarket options linkage (‘‘Linkage’’). available for inspection and copying in The text of the proposed rule change is the Commission’s Public Reference available at the Exchange. Room, 100 F Street, NE., Washington, II. Self-Regulatory Organization’s DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Copies of such filing also will be Change available for inspection and copying at the principal office of FINRA. All In its filing with the Commission, the comments received will be posted self-regulatory organization included without change; the Commission does statements concerning the purpose of, not edit personal identifying and basis for, the proposed rule change information from submissions. You and discussed any comments it received should submit only information that on the proposed rule change. The text you wish to make available publicly. All of those statements may be examined at the places specified in Item IV below. submissions should refer to File The Exchange has prepared summaries, Number SR–FINRA–2009–040 and set forth in sections A, B, and C below, should be submitted on or before July of the most significant parts of such 27, 2009. statements. 34 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Nov<24>2008 17:06 Jul 02, 2009 Jkt 217001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The purpose of this proposed rule change is to extend for one year the pilot program establishing ISE fees for Principal Orders (‘‘P Orders’’) and Principal Acting as Agent Orders (‘‘P/A Orders’’) sent through Linkage and executed on the ISE. The fees currently are effective for a pilot period scheduled to expire on July 31, 2009.3 This filing would extend the pilot program for another year, through July 31, 2010. The ISE fees affected by this filing are: The Linkage P Order fee of $0.27 per contract; the Linkage P/A Order fee of $0.18 per contract and a surcharge fee of between $0.02 and $0.16 per contract for trading certain licensed products (collectively ‘‘linkage fees’’).4 These are the same fees that all ISE Members pay for non-customer transactions executed on the Exchange.5 The ISE does not charge for the execution of Satisfaction Orders sent through Linkage and is not proposing to charge for such orders. The Exchange believes it is appropriate to charge fees for P Orders and P/A Orders executed through Linkage. Notably, while market makers on competing exchanges always can match a better price on the ISE, they never are obligated to send orders to the ISE through Linkage. However, if such market makers do seek the ISE’s liquidity, whether through conventional orders or through the use of P Orders or P/A Orders, we believe it is appropriate to charge our Members the same fees levied on other non-customer orders. We appreciate that there has been limited experience with Linkage and that the Commission is continuing to study Linkage in general and the effect of fees on Linkage trading. Thus, this filing would extend the status quo with Linkage fees for an additional year. The Exchange is making no substantive changes to the way the pilot is currently operating, other than to extend the date of operation through July 31, 2010. 2. Statutory Basis The basis under the Exchange Act for this proposed rule change is the requirement under Section 6(b)(4) that 3 See Securities Exchange Act Release No. 58143 (July 11, 2008), 73 FR 41388 (July 18, 2008) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Linkage Fees). 4 Pursuant to other pilot programs, certain linkage fees may not apply during the Linkage pilot program. 5 The ISE charges these fees only to its Members, generally firms who clear P Orders and P/A Orders for market makers on the other linked exchanges. E:\FR\FM\06JYN1.SGM 06JYN1 Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices 32027 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Elizabeth M. Murphy, Secretary. [FR Doc. E9–15739 Filed 7–2–09; 8:45 am] an exchange have an equitable allocation of reasonable dues, fees and other charges among its members and other persons using its facilities. As discussed above, the ISE believes that this proposed rule change will equitably allocate fees by having all non-customer users of ISE transaction services pay the same fees. If the ISE were not to charge Linkage fees, the Exchange’s fee would not be equitable, in that ISE Members would be subsidizing the trading of their competitors, all of whom access the same trading services. necessary or appropriate in the public interest, for the protection of investors, or otherwise in furtherance of the purposes of the Act. 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: BILLING CODE 8010–01–P B. Self-Regulatory Organization’s Statement on Burden on Competition The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act. Moreover, failing to adopt the proposed rule change would impose a burden on competition by requiring ISE Members to subsidize the trading of their competitors. Electronic Comments Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend the Current Pilot Program for Linkage Fees on the Boston Options Exchange Facility 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: (i) Does not significantly affect the protection of investors or the public interest; (ii) does not impose any significant burden on competition; and (iii) 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, if consistent with the protection of investors and the public interest, it has become effective pursuant to Section 19(b)(3)(A) of the Act 6 and Rule 19b– 4(f)(6) thereunder.7 At any time within 60 days of the filing of the proposed rule change, the Commission may summarily abrogate such rule change if it appears to the Commission that such action is 6 15 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6)(iii) requires the self-regulatory organization to submit to the Commission 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 of the proposed rule change, or such shorter time as designated by the Commission. The Exchange has satisfied this requirement. mstockstill on PROD1PC66 with NOTICES 7 17 VerDate Nov<24>2008 17:06 Jul 02, 2009 Jkt 217001 IV. Solicitation of Comments • Use the Commission’s Internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an e-mail to rulecomments@sec.gov. Please include File Number SR–ISE–2009–36 on the subject line. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–60174; File No. SR–BX– 2009–030] June 25, 2009. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 • Send paper comments in triplicate notice is hereby given that, on June 23, to Elizabeth M. Murphy, Secretary, 2009, NASDAQ OMX BX, Inc. (the Securities and Exchange Commission, ‘‘Exchange’’) filed with the Securities 100 F Street, NE., Washington, DC and Exchange Commission (the 20549–1090. ‘‘Commission’’) the proposed rule change as described in Items I and II All submissions should refer to File below, which Items have been prepared Number SR–ISE–2009–36. This file by the self-regulatory organization. The number should be included on the subject line if e-mail is used. To help the Commission is publishing this notice to solicit comments on the proposed rule Commission process and review your change from interested persons. comments more efficiently, please use only one method. The Commission will I. Self-Regulatory Organization’s post all comments on the Commission’s Statement of the Terms of Substance of Internet Web site (https://www.sec.gov/ the Proposed Rule Change rules/sro.shtml). Copies of the The Exchange proposes to amend the submission, all subsequent Fee Schedule of the Boston Options amendments, all written statements Exchange Group, LLC (‘‘BOX’’), the with respect to the proposed rule options trading facility of the Exchange, change that are filed with the to extend until July 31, 2010, the current Commission, and all written pilot program applicable to the options communications relating to the intermarket linkage (‘‘Linkage’’) fees. proposed rule change between the Commission and any person, other than The text of the proposed rule change is available from the principal office of the those that may be withheld from the Exchange, at the Commission’s Public public in accordance with the Reference Room and also on the provisions of 5 U.S.C. 552, will be Exchange’s Internet Web site at https:// available for inspection and copying in nasdaqomxbx.cchwallstreet.com/ the Commission’s Public Reference Room on official business days between NASDAQOMXBX/Filings/. the hours of 10 a.m. and 3 p.m. Copies II. Self-Regulatory Organization’s of such filing also will be available for Statement of the Purpose of, and inspection and copying at the principal Statutory Basis for, the Proposed Rule office of the Exchange. All comments Change received will be posted without change; In its filing with the Commission, the the Commission does not edit personal Exchange included statements identifying information from concerning the purpose of, and basis for, submissions. You should submit only the proposed rule change and discussed information that you wish to make any comments it received on the available publicly. All submissions should refer to File Number SR–ISE– 8 17 CFR 200.30–3(a)(12). 2009–36 and should be submitted on or 1 15 U.S.C. 78s(b)(1). before July 27, 2009. 2 17 CFR 240.19b–4. Paper Comments PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 E:\FR\FM\06JYN1.SGM 06JYN1

Agencies

[Federal Register Volume 74, Number 127 (Monday, July 6, 2009)]
[Notices]
[Pages 32026-32027]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-15739]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60175; File No. SR-ISE-2009-36]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Linkage Fees

June 25, 2009.
    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 June 23, 2009, International Securities Exchange, LLC (``ISE'' 
or the ``Exchange'') filed with the Securities and Exchange Commission 
(the ``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.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The ISE is proposing to extend through July 31, 2010 the current 
pilot program regarding transaction fees charged for trades executed 
through the intermarket options linkage (``Linkage''). The text of the 
proposed rule change is available at the Exchange.

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 those 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 parts 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 this proposed rule change is to extend for one year 
the pilot program establishing ISE fees for Principal Orders (``P 
Orders'') and Principal Acting as Agent Orders (``P/A Orders'') sent 
through Linkage and executed on the ISE. The fees currently are 
effective for a pilot period scheduled to expire on July 31, 2009.\3\ 
This filing would extend the pilot program for another year, through 
July 31, 2010.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 58143 (July 11, 
2008), 73 FR 41388 (July 18, 2008) (Notice of Filing and Immediate 
Effectiveness of Proposed Rule Change Relating to Linkage Fees).
---------------------------------------------------------------------------

    The ISE fees affected by this filing are: The Linkage P Order fee 
of $0.27 per contract; the Linkage P/A Order fee of $0.18 per contract 
and a surcharge fee of between $0.02 and $0.16 per contract for trading 
certain licensed products (collectively ``linkage fees'').\4\ These are 
the same fees that all ISE Members pay for non-customer transactions 
executed on the Exchange.\5\ The ISE does not charge for the execution 
of Satisfaction Orders sent through Linkage and is not proposing to 
charge for such orders.
---------------------------------------------------------------------------

    \4\ Pursuant to other pilot programs, certain linkage fees may 
not apply during the Linkage pilot program.
    \5\ The ISE charges these fees only to its Members, generally 
firms who clear P Orders and P/A Orders for market makers on the 
other linked exchanges.
---------------------------------------------------------------------------

    The Exchange believes it is appropriate to charge fees for P Orders 
and P/A Orders executed through Linkage. Notably, while market makers 
on competing exchanges always can match a better price on the ISE, they 
never are obligated to send orders to the ISE through Linkage. However, 
if such market makers do seek the ISE's liquidity, whether through 
conventional orders or through the use of P Orders or P/A Orders, we 
believe it is appropriate to charge our Members the same fees levied on 
other non-customer orders. We appreciate that there has been limited 
experience with Linkage and that the Commission is continuing to study 
Linkage in general and the effect of fees on Linkage trading. Thus, 
this filing would extend the status quo with Linkage fees for an 
additional year. The Exchange is making no substantive changes to the 
way the pilot is currently operating, other than to extend the date of 
operation through July 31, 2010.
2. Statutory Basis
    The basis under the Exchange Act for this proposed rule change is 
the requirement under Section 6(b)(4) that

[[Page 32027]]

an exchange have an equitable allocation of reasonable dues, fees and 
other charges among its members and other persons using its facilities. 
As discussed above, the ISE believes that this proposed rule change 
will equitably allocate fees by having all non-customer users of ISE 
transaction services pay the same fees. If the ISE were not to charge 
Linkage fees, the Exchange's fee would not be equitable, in that ISE 
Members would be subsidizing the trading of their competitors, all of 
whom access the same trading services.

B. Self-Regulatory Organization's Statement on Burden on Competition

    The proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. Moreover, failing to adopt the proposed rule change would 
impose a burden on competition by requiring ISE Members to subsidize 
the trading of their competitors.

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: (i) Does not 
significantly affect the protection of investors or the public 
interest; (ii) does not impose any significant burden on competition; 
and (iii) 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, if consistent with the protection of investors and the 
public interest, it has become effective pursuant to Section 
19(b)(3)(A) of the Act \6\ and Rule 19b-4(f)(6) thereunder.\7\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
requires the self-regulatory organization to submit to the 
Commission 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 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 may summarily abrogate 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.

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 (https://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2009-36 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-ISE-2009-36. 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 (https://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 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 
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-ISE-
2009-36 and should be submitted on or before July 27, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15739 Filed 7-2-09; 8:45 am]
BILLING CODE 8010-01-P
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