Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fee Changes, 1667-1668 [2010-300]
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Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices
other things, that waiver of the 30-day
operative delay will allow the change to
become operative on the same date as
NYSE’s rule change and conform to the
Commission’s desire to eliminate any
disparities involving voting.
The Commission believes that the
waiver of the 30-day operative delay
period is consistent with the protection
of investors and the public interest.20
The proposal would permit the
Exchange to comply with the
Commission’s stated goal that other selfregulatory organizations, that currently
allow member discretionary voting for
director elections, conform their rules to
the NYSE’s new rules to eliminate any
disparities involving voting depending
on where the shares are held. Further,
the proposal would codify previously
published interpretations with respect
to voting on investment advisory
contracts. Finally, the Commission
notes that the NYSE’s recently adopted
rule changes, which are identical to the
Exchange’s proposed changes, were
subject to full notice and comment, and
considered and approved by the
Commission.21 Based on the above, the
Commission finds that waiving the 30day operative delay period is consistent
with the protection of investors and the
public interest and the proposal is
therefore deemed effective upon filing.
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:
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Electronic Comments
20 For purposes only of waiving the operative
delay for this proposal, the Commission has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
21 See supra note 4.
15:14 Jan 11, 2010
• 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–NYSEAmex–2009–93. 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 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–NYSEAmex–2009–93 and
should be submitted on or before
February 2, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–308 Filed 1–11–10; 8:45 am]
• 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–NYSEAmex–2009–93 on
the subject line.
VerDate Nov<24>2008
Paper Comments
Jkt 220001
BILLING CODE 8011–01–P
1667
SECURITIES AND EXCHANGE
COMMISSION
Release No. 34–61296; File No. SR–ISE–
2009–114]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fee Changes
January 6, 2010.
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 December
31, 2009, International Securities
Exchange, LLC (‘‘ISE’’ or ‘‘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 the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
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 to increase the
surcharge fee for transactions in options
on the Nasdaq-100® Stock Index. 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, 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
Exchange 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 amend
its Schedule of Fees to increase the
surcharge fee for transactions in options
1 15
22 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00085
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\12JAN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
12JAN1
1668
Federal Register / Vol. 75, No. 7 / Tuesday, January 12, 2010 / Notices
on the Nasdaq-100 Stock Index, both
full value (‘‘NDX’’) and 1/10 value
(‘‘MNX’’).3 The Exchange currently
charges an execution fee for most
transactions in options on NDX and
MNX.4 Specifically, the amount of the
execution fee for transactions in options
on NDX and MNX is $0.20 per contract
for all Firm Proprietary orders. The
amount of the execution fee for all ISE
Market Maker transactions in options on
NDX and MNX is equal to the execution
fee currently charged by the Exchange
for ISE Market Maker transactions in
equity options.5 Finally, the amount of
the execution fee for all non-ISE Market
Maker transactions is $0.45 per
contract.6 For competitive reasons, the
Exchange does not charge an execution
fee for transactions in options on NDX
and MNX executed by Public Customer
Orders.7
Pursuant to a license agreement
between the Exchange and the NASDAQ
OMX Group, Inc., (‘‘NASDAQ’’), the
Exchange currently charges a surcharge
fee of $0.16 per contract for trading in
options on NDX and MNX. The
Exchange recently renewed its license
agreement with NASDAQ pursuant to
which the Exchange is now being
charged six (6) cents more per contract.
Accordingly, to defray the increased
licensing costs, the Exchange proposes
to increase the surcharge fee to $0.22
per contract for trading in options on
NDX and MNX, effective January 1,
2010. The Exchange believes charging
the participants that trade these
instruments is the most equitable means
of recovering the costs of the license.
However, because of competitive
pressures in the industry, the Exchange
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
3 See
Securities Exchange Act Release No. 51121
(February 1, 2005), 70 FR 6476 (February 7, 2005)
(Order approving the trading of options on full and
reduced values of the Nasdaq-100 Stock Index).
4 These fees are charged only to Exchange
members. Under a pilot program that is set to expire
on July 31, 2010, these fees will also be charged to
Linkage Principal Orders (‘‘Linkage P Orders’’) and
Linkage Principal Acting as Agent Orders (‘‘Linkage
P/A Orders’’). The amount of the execution fee
charged by the Exchange for Linkage P Orders and
Linkage P/A Orders is $0.27 per contract side and
$0.18 per contract side, respectively. See Securities
Exchange Act Release No. 60175 (June 25, 2009), 74
FR 32026 (July 6, 2009) (SR–ISE–2009–36).
5 The Exchange applies a sliding scale, between
$0.01 and $0.18 per contract side, based on the
number of contracts an ISE market maker trades in
a month.
6 The amount of the execution fee for non-ISE
Market Maker transactions executed in the
Exchange’s Facilitation and Solicitation
Mechanisms and for Orders entered into the Price
Improvement Mechanism by the member initiating
the price improvement order is $0.20 per contract.
7 Public Customer Order is defined in Exchange
Rule 100(a)(39) as an order for the account of a
Public Customer. Public Customer is defined in
Exchange Rule 100(a)(38) as a person or entity that
is not a broker or dealer in securities.
VerDate Nov<24>2008
15:14 Jan 11, 2010
Jkt 220001
proposes to continue excluding Public
Customer Orders from this surcharge
fee. Accordingly, this surcharge fee will
only be charged to Exchange members
with respect to non-Public Customer
Orders (e.g., Market Maker, Non-ISE
Market Maker & Firm Proprietary
orders).
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the objectives of Section 6 of the Act,8
in general, and furthers the objectives of
Section 6(b)(4),9 in particular, in that it
is designed to provide for the equitable
allocation of reasonable dues, fees and
other charges among its members and
other persons using its facilities.
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
The foregoing rule change has become
effective pursuant to Section 19(b)(3) of
the Act 10 and Rule 19b–4(f)(2) 11
thereunder. At any time within 60 days
of the filing of such 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:
U.S.C. 78f(b).
U.S.C. 78f(b)(4).
10 15 U.S.C. 78s(b)(3).
11 17 CFR 240.19b-4(f)(2).
9 15
Frm 00086
Fmt 4703
• 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–2009–114 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–2009–114. 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,12 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 will also 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 No. SR–ISE–2009–
114 and should be submitted on or
before February 2, 2010.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–300 Filed 1–11–10; 8:45 am]
BILLING CODE 8011–01–P
12 The text of the proposed rule change is
available on the Commission’s Web site at https://
www.sec.gov.
13 17 CFR 200.30–3(a)(12).
8 15
PO 00000
Electronic Comments
Sfmt 9990
E:\FR\FM\12JAN1.SGM
12JAN1
]]>Agencies
[Federal Register Volume 75, Number 7 (Tuesday, January 12, 2010)]
[Notices]
[Pages 1667-1668]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-300]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Release No. 34-61296; File No. SR-ISE-2009-114]
Self-Regulatory Organizations; International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to Fee Changes
January 6, 2010.
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 December 31, 2009, International Securities Exchange, LLC (``ISE''
or ``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 the Exchange. 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 amend its Schedule of Fees to increase the
surcharge fee for transactions in options on the Nasdaq-100[supreg]
Stock Index. 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, 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 Exchange 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 amend its Schedule of Fees to increase
the surcharge fee for transactions in options
[[Page 1668]]
on the Nasdaq-100 Stock Index, both full value (``NDX'') and 1/10 value
(``MNX'').\3\ The Exchange currently charges an execution fee for most
transactions in options on NDX and MNX.\4\ Specifically, the amount of
the execution fee for transactions in options on NDX and MNX is $0.20
per contract for all Firm Proprietary orders. The amount of the
execution fee for all ISE Market Maker transactions in options on NDX
and MNX is equal to the execution fee currently charged by the Exchange
for ISE Market Maker transactions in equity options.\5\ Finally, the
amount of the execution fee for all non-ISE Market Maker transactions
is $0.45 per contract.\6\ For competitive reasons, the Exchange does
not charge an execution fee for transactions in options on NDX and MNX
executed by Public Customer Orders.\7\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 51121 (February 1,
2005), 70 FR 6476 (February 7, 2005) (Order approving the trading of
options on full and reduced values of the Nasdaq-100 Stock Index).
\4\ These fees are charged only to Exchange members. Under a
pilot program that is set to expire on July 31, 2010, these fees
will also be charged to Linkage Principal Orders (``Linkage P
Orders'') and Linkage Principal Acting as Agent Orders (``Linkage P/
A Orders''). The amount of the execution fee charged by the Exchange
for Linkage P Orders and Linkage P/A Orders is $0.27 per contract
side and $0.18 per contract side, respectively. See Securities
Exchange Act Release No. 60175 (June 25, 2009), 74 FR 32026 (July 6,
2009) (SR-ISE-2009-36).
\5\ The Exchange applies a sliding scale, between $0.01 and
$0.18 per contract side, based on the number of contracts an ISE
market maker trades in a month.
\6\ The amount of the execution fee for non-ISE Market Maker
transactions executed in the Exchange's Facilitation and
Solicitation Mechanisms and for Orders entered into the Price
Improvement Mechanism by the member initiating the price improvement
order is $0.20 per contract.
\7\ Public Customer Order is defined in Exchange Rule 100(a)(39)
as an order for the account of a Public Customer. Public Customer is
defined in Exchange Rule 100(a)(38) as a person or entity that is
not a broker or dealer in securities.
---------------------------------------------------------------------------
Pursuant to a license agreement between the Exchange and the NASDAQ
OMX Group, Inc., (``NASDAQ''), the Exchange currently charges a
surcharge fee of $0.16 per contract for trading in options on NDX and
MNX. The Exchange recently renewed its license agreement with NASDAQ
pursuant to which the Exchange is now being charged six (6) cents more
per contract. Accordingly, to defray the increased licensing costs, the
Exchange proposes to increase the surcharge fee to $0.22 per contract
for trading in options on NDX and MNX, effective January 1, 2010. The
Exchange believes charging the participants that trade these
instruments is the most equitable means of recovering the costs of the
license. However, because of competitive pressures in the industry, the
Exchange proposes to continue excluding Public Customer Orders from
this surcharge fee. Accordingly, this surcharge fee will only be
charged to Exchange members with respect to non-Public Customer Orders
(e.g., Market Maker, Non-ISE Market Maker & Firm Proprietary orders).
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the objectives of Section 6 of the Act,\8\ in general, and
furthers the objectives of Section 6(b)(4),\9\ in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees and other charges among its members and other persons using
its facilities.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
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
The foregoing rule change has become effective pursuant to Section
19(b)(3) of the Act \10\ and Rule 19b-4(f)(2) \11\ thereunder. At any
time within 60 days of the filing of such 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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3).
\11\ 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-2009-114 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-2009-114. 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,\12\ 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 will
also 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 No. SR-ISE-
2009-114 and should be submitted on or before February 2, 2010.
---------------------------------------------------------------------------
\12\ The text of the proposed rule change is available on the
Commission's Web site at https://www.sec.gov.
\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-300 Filed 1-11-10; 8:45 am]
BILLING CODE 8011-01-P
