Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 32211-32212 [E9-15903]
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Federal Register / Vol. 74, No. 128 / Tuesday, July 7, 2009 / Notices
and ITPs are outstanding.5 The goal of
this component of the ITP program is to
put the lessor in a similar position as if
the lessor’s membership was leased. The
Exchange asserts that this goal would be
frustrated if the lessor is charged dues,
because the lessor would be subject to
an obligation the lessor would otherwise
not be subject to if the lessor’s
membership was leased.
In a separate proposed rule change,
the Exchange instituted a waiver of
member dues for any month that a
lessor member receives a payment from
the Exchange for an open lease under
the ITP program, effective as of May 1,
2009.6 The Exchange now proposes to
rebate dues to any lessor member who
received such a payment from the
Exchange during the period of August 1,
2008 through April 30, 2009.
III. Discussion
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.7 Specifically, the
Commission finds that the proposal is
consistent with Section 6(b)(4) of the
Act,8 which requires that the rules of a
national securities exchange provide for
the equitable allocation of reasonable
dues, fees and other charges among
members and issuers and other persons
using its facilities.
As note above, CBOE recently
adopted a waiver of member dues for
any month that a lessor member
receives a payment from the Exchange
for an open lease under the ITP
program, effective May 1, 2009.9 The
current proposal will effectively allow
CBOE to apply this same waiver
retroactively by rebating to a lessor
member its member dues for any month
in which the lessor member received a
payment from the Exchange for an open
lease under the ITP program for the
period August 1, 2008 through April 30,
2009.
The Commission believes that the
rebate will put lessor members who
5 The ITP program is a program pursuant to which
the Exchange has the authority to issue up to 50
ITPs. The ITP program is governed by CBOE Rule
3.27. The lessor compensation component of the
ITP program is described in CBOE Rule 3.27(d). An
‘‘open lease’’ is defined in Rule 3.27(d) as a
transferable Exchange membership available for
lease.
6 See Securities Exchange Act Release No. 59892
(May 8, 2009), 74 FR 22790 (May 14, 2009) (SR–
CBOE–2009–027).
7 In approving this proposed rule change, the
Commission has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
8 15 U.S.C. 78f(b)(4).
9 See supra, note 5.
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14:45 Jul 06, 2009
Jkt 217001
received compensation from the
Exchange for an open lease under the
ITP program but who paid member dues
since August 1, 2008 in the same
position as those lessor members who
are currently having their member dues
waived pursuant to the fee waiver
adopted as of May 1, 2009.10 The
Commission also believes that the
proposed rebate will further the goal of
the Exchange’s ITP program to put the
lessor of an ‘‘open lease’’ in the same
position as if the lessor’s membership
had been leased. The Commission notes
that the Exchange represented that lease
agreements typically provide that the
lessee member is responsible for all
dues and thus the lessor would
generally not have to pay such dues.
Accordingly, the Commission finds that
the proposed fee rebate is consistent
with the Act.
IV. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,11 that the
proposed rule change (SR–CBOE–2009–
028), be, and hereby is, approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–15901 Filed 7–6–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–60192; File No. SR–ISE–
2009–42]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
June 30, 2009.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934,1 notice
is hereby given that on June 26, 2009,
International Securities Exchange, 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 ISE. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested parties.
PO 00000
10 Id.
U.S.C. 78s(b)(2).
CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
32211
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to amend its
Schedule of Fees. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
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, ISE
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 ISE 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, Proposed Rule
Change
1. Purpose
The purpose of this proposed rule
change is to amend the Exchange’s
Schedule of Fees. First, ISE currently
waives most customer transaction fees,
with such waiver scheduled to expire
on June 30, 2009.2 Zero customer
transaction fees in options are part of
the competitive pricing landscape.
Since its inception, ISE has not charged
fees for customer transactions for most
products by way of a fee waiver. Despite
having an effective rate of $0.00 per
contract for customer transactions in
these products, ISE’s fee schedule
reflects a customer fee of $0.05 with a
waiver to offset the fee. Instead of
extending the waiver on a year-to-year
basis, the Exchange proposes to remove
the fee waiver language from its fee
schedule and replace the $0.05 fee with
$0.00 for First Market options, effective
July 1, 2009. ISE believes this change
will make its customer fees easier for
market participants to understand. The
Exchange will continue to charge $0.05
per contract for customer transactions in
Second Market options and proposes to
create a new line item to reflect this.
Second, the Exchange currently has a
fee cap for large-size foreign currency
(‘‘FX’’) options orders. This fee discount
applies for orders of 5,000 contracts or
more and waives fees on incremental
11 15
12 17
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Fmt 4703
Sfmt 4703
2 See Securities Exchange Act Release No. 58139
(July 10, 2008), 73 FR 41142 (July 17, 2008).
E:\FR\FM\07JYN1.SGM
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32212
Federal Register / Vol. 74, No. 128 / Tuesday, July 7, 2009 / Notices
volume above 5,000 contracts. Contracts
at or under the threshold are charged
the constituent’s prescribed execution
fee. This waiver is for both Public
Customer orders and Firm Proprietary
orders. ISE adopted this fee incentive,
on a pilot basis, to encourage members
to execute large-sized FX options orders
on the Exchange. The current pilot
program is set to expire on June 30,
2009.3 The Exchange now proposes to
extend this fee waiver through June 30,
2010 in a continuing effort to attract
more activity in its FX options.
2. Statutory Basis
The basis under the Securities
Exchange Act of 1934 (the ‘‘Exchange
Act’’) for this proposed rule change is
the requirement under Section 6(b)(4)
that an exchange have an equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using its facilities. In
particular, the Exchange believes
calculating the fee on a per symbol basis
is necessary to allow the Exchange to
target cancellations that do not have a
valid justification.
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.
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 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 4 and
subparagraph (f)(2) of Rule 19b–4 5
thereunder. 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,
3 Id.
4 15
5 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
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14:45 Jul 06, 2009
Jkt 217001
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9–15903 Filed 7–6–09; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
[Release No. 34–60198; File No. SR–BX–
2009–034]
• 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–2009–42 on the subject
line.
Self-Regulatory Organizations;
NASDAQ OMX BX, Inc.; Notice of Filing
and Order Granting Accelerated
Approval of Proposed Rule Change To
Amend the Fee Schedule of the Boston
Options Exchange Facility
Paper Comments
June 30, 2009.
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 June 26,
2009, NASDAQ OMX BX, Inc. (the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
All submissions should refer to File
(‘‘Commission’’) the proposed rule
Number SR–ISE–2009–42. This file
change as described in Items I and II
number should be included on the
below, which Items have been prepared
subject line if e-mail is used. To help the by the self-regulatory organization. The
Commission process and review your
Commission is publishing this notice to
comments more efficiently, please use
solicit comments on the proposed rule
only one method. The Commission will from interested persons and approves
post all comments on the Commission’s the proposal on an accelerated basis.
Internet Web site (https://www.sec.gov/
I. Self-Regulatory Organization’s
rules/sro.shtml). Copies of the
Statement of the Terms of Substance of
submission, all subsequent
the Proposed Rule Change
amendments, all written statements
The Exchange is proposing an
with respect to the proposed rule
amendment to the Fee Schedule of the
change that are filed with the
Boston Options Exchange Group, LLC
Commission, and all written
(‘‘BOX’’). The text of the proposed rule
communications relating to the
change is available from the principal
proposed rule change between the
Commission and any person, other than office of the Exchange, at the
Commission’s Public Reference Room
those that may be withheld from the
and also on the Exchange’s Internet Web
public in accordance with the
site at https://
provisions of 5 U.S.C. 552, will be
nasdaqomxbx.cchwallstreet.com/
available for inspection and copying in
NASDAQOMXBX/Filings/.
the Commission’s Public Reference
Room, 100 F Street, NE., Washington,
II. Self-Regulatory Organization’s
DC 20549, on official business days
Statement of the Purpose of, and
between the hours of 10 a.m. and 3 p.m. Statutory Basis for, the Proposed Rule
Copies of the filing also will be available Change
for inspection and copying at the
In its filing with the Commission, the
principal office of ISE. All comments
received will be posted without change; self-regulatory organization included
statements concerning the purpose of,
the Commission does not edit personal
and basis for, the proposed rule change
identifying information from
and discussed any comments it received
submissions.
on the proposed rule change. The text
You should submit only information
of these statements may be examined at
that you wish to make available
the places specified in Item IV below.
publicly. All submissions should refer
to File Number SR–ISE–2009–42 and
6 17 CFR 200.30–3(a)(12).
should be submitted on or before July
1 15 U.S.C. 78s(b)(1).
28, 2009.
2 17 CFR 240.19b–4.
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
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07JYN1
]]>Agencies
[Federal Register Volume 74, Number 128 (Tuesday, July 7, 2009)]
[Notices]
[Pages 32211-32212]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-15903]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-60192; File No. SR-ISE-2009-42]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fee Changes
June 30, 2009.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ notice is hereby given that on June 26, 2009, International
Securities Exchange, 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 ISE. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested parties.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to amend its Schedule of Fees. The text of the
proposed rule change is available on the Exchange's Web site (https://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, ISE 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 ISE 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, Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to amend the Exchange's
Schedule of Fees. First, ISE currently waives most customer transaction
fees, with such waiver scheduled to expire on June 30, 2009.\2\ Zero
customer transaction fees in options are part of the competitive
pricing landscape. Since its inception, ISE has not charged fees for
customer transactions for most products by way of a fee waiver. Despite
having an effective rate of $0.00 per contract for customer
transactions in these products, ISE's fee schedule reflects a customer
fee of $0.05 with a waiver to offset the fee. Instead of extending the
waiver on a year-to-year basis, the Exchange proposes to remove the fee
waiver language from its fee schedule and replace the $0.05 fee with
$0.00 for First Market options, effective July 1, 2009. ISE believes
this change will make its customer fees easier for market participants
to understand. The Exchange will continue to charge $0.05 per contract
for customer transactions in Second Market options and proposes to
create a new line item to reflect this.
---------------------------------------------------------------------------
\2\ See Securities Exchange Act Release No. 58139 (July 10,
2008), 73 FR 41142 (July 17, 2008).
---------------------------------------------------------------------------
Second, the Exchange currently has a fee cap for large-size foreign
currency (``FX'') options orders. This fee discount applies for orders
of 5,000 contracts or more and waives fees on incremental
[[Page 32212]]
volume above 5,000 contracts. Contracts at or under the threshold are
charged the constituent's prescribed execution fee. This waiver is for
both Public Customer orders and Firm Proprietary orders. ISE adopted
this fee incentive, on a pilot basis, to encourage members to execute
large-sized FX options orders on the Exchange. The current pilot
program is set to expire on June 30, 2009.\3\ The Exchange now proposes
to extend this fee waiver through June 30, 2010 in a continuing effort
to attract more activity in its FX options.
---------------------------------------------------------------------------
\3\ Id.
---------------------------------------------------------------------------
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Exchange
Act'') for this proposed rule change is the requirement under Section
6(b)(4) that an exchange have an equitable allocation of reasonable
dues, fees and other charges among its members and other persons using
its facilities. In particular, the Exchange believes calculating the
fee on a per symbol basis is necessary to allow the Exchange to target
cancellations that do not have a valid justification.
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.
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 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 \4\ and subparagraph (f)(2)
of Rule 19b-4 \5\ thereunder. 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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(3)(A).
\5\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2009-42 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-2009-42. 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, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of ISE. 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-2009-42
and should be submitted on or before July 28, 2009.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
---------------------------------------------------------------------------
\6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-15903 Filed 7-6-09; 8:45 am]
BILLING CODE 8010-01-P
