Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Foreign Currency Options Orders Fee Discount for Market Makers and Non-ISE Market Makers, 44995-44996 [2010-18724]

Download as PDF Federal Register / Vol. 75, No. 146 / Friday, July 30, 2010 / Notices SECURITIES AND EXCHANGE COMMISSION comments on the proposed rule change from interested persons. [Release No. 34–62432; File No. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change SR–CBOE–2010–066] Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated: Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Reduce the Payments that CBOE Makes to CBOE Trading Permit Holders that Participate in a Program Under Which CBOE Subsidizes the Costs of Providing and/ or Using Certain Order Routing Functionalities Correction In notice document 10–16686 beginning on page 39602, in the issue of Friday, July 9, 2010 make the following corrections: 1. On page 39602, on the second column, the heading is corrected to include the bracketed information [Release No. 34–62432; File No. SR– CBOE–2010–066]. 2. On page 39603, in the second column, at the end of this document, the billing code is corrected to appear as BILLING CODE 8010–01–P. [FR Doc. C1–2010–16686 Filed 7–29–10; 8:45 am] BILLING CODE 1505–01–D 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, 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 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 SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62568; File No. SR–ISE– 2010–76] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Foreign Currency Options Orders Fee Discount for Market Makers and Non-ISE Market Makers srobinson on DSKHWCL6B1PROD with NOTICES July 26, 2010. 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 July 19, 2010, the International Securities Exchange, LLC (the ‘‘Exchange’’ or the ‘‘ISE’’) filed with the Securities and Exchange Commission the proposed rule change, as described in Items I, II, and III below, which items have been prepared by the self-regulatory organization. The Commission is publishing this notice to solicit 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 20:12 Jul 29, 2010 Jkt 220001 The Exchange currently has a fee cap for large-size foreign currency (‘‘FX’’) options orders. This fee discount applies for orders of 250 contracts or more and waives fees on incremental volume above 250 contracts.3 Contracts at or under the threshold are charged the constituent’s prescribed execution fee. Pursuant to an incentive plan currently in place, this fee discount currently applies to all customer 4 orders, Firm Proprietary orders, market maker orders and non-ISE market maker orders in options on the following FX option currencies traded on the Exchange: New Zealand dollar, Mexican peso, Swedish krona and the Brazilian real. For all other FX option currencies traded on the Exchange, this fee discount currently applies only to customer orders and Firm Proprietary 3 See Securities Exchange Act Release No. 62506 (July 15, 2010) (SR–ISE–2010–67). 4 The fee waiver applies to both professional and priority customer orders. A Priority Customer is defined in ISE Rule 100(a)(37A) as a person or entity that is not a broker/dealer in securities, and does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). A Customer (Professional) is a person who is not a broker/dealer and is not a Priority Customer. PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 44995 orders in those products. The Exchange now proposes to extend this fee discount to market maker orders and non-ISE market maker orders in all FX option currencies and specifically, to the orders that were previously not receiving this discount. ISE adopted this fee discount to encourage members to execute largesized FX options orders on the Exchange in a manner that is cost effective. The Exchange believes this proposed rule change will further that goal. 2. 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, this proposed rule change would extend a current fee discount to all orders in FX options traded on the Exchange, thus effectively maintaining low fees. 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 5 and Rule 19b–4(f)(2) 6 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 5 15 6 17 E:\FR\FM\30JYN1.SGM U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). 30JYN1 44996 Federal Register / Vol. 75, No. 146 / Friday, July 30, 2010 / 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: [FR Doc. 2010–18724 Filed 7–29–10; 8:45 am] 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–ISE–2010–76 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. srobinson on DSKHWCL6B1PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.7 Florence E. Harmon, Deputy Secretary. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–62577; IA–3058; File No. 4–606] Study Regarding Obligations of Brokers, Dealers, and Investment Advisers Securities and Exchange Commission. ACTION: Request for comment. AGENCY: The Securities and Exchange Commission is requesting public All submissions should refer to File comment for a study to evaluate: The Number SR–ISE–2010–76. This file effectiveness of existing legal or number should be included on the regulatory standards of care for brokers, subject line if e-mail is used. To help the dealers, investment advisers, and Commission process and review your persons associated with them when comments more efficiently, please use providing personalized investment only one method. The Commission will advice and recommendations about post all comments on the Commission’s securities to retail investors; and Internet Web site (https://www.sec.gov/ whether there are gaps, shortcomings, or rules/sro.shtml). Copies of the overlaps in legal or regulatory standards in the protection of retail customers submission, all subsequent relating to the standards of care for these amendments, all written statements intermediaries. with respect to the proposed rule DATES: The Commission will accept change that are filed with the comments regarding issues related to Commission, and all written the study on or before August 30, 2010. communications relating to the proposed rule change between the ADDRESSES: Comments may be Commission and any person, other than submitted by any of the following methods: those that may be withheld from the public in accordance with the Electronic Comments provisions of 5 U.S.C. 552, will be • Use the Commission’s Internet available for Web site viewing and comment form (https://www.sec.gov/ printing in the Commission’s Public rules/other.shtml); or Reference Room, 100 F Street, NE., • Send an e-mail to ruleWashington, DC 20549, on official comments@sec.gov. Please include File business days between the hours of 10 Number 4–606 on the subject line. a.m. and 3 p.m. Copies of such filing also will be available for inspection and Paper Comments copying at the principal office of the • Send paper comments in triplicate Exchange. All comments received will to Elizabeth M. Murphy, Secretary, be posted without change; the Securities and Exchange Commission, 100 F Street, NE., Washington, DC Commission does not edit personal 20549–1090. All submissions should identifying information from refer to File Number 4–606. This file submissions. You should submit only number should be included on the information that you wish to make subject line if e-mail is used. To help us available publicly. All submissions process and review your comments should refer to File Number SR–ISE– 2010–76 and should be submitted on or more efficiently, please use only one method. The Commission will post all before August 20, 2010. comments on the Commission’s Internet Web site (https://www.sec.gov). Comments are also available for Web site viewing and printing in the 7 17 CFR 200.30–3(a)(12). Commission’s Public Reference Room, VerDate Mar<15>2010 16:29 Jul 29, 2010 Jkt 220001 SUMMARY: PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. All comments received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. FOR FURTHER INFORMATION CONTACT: Holly Hunter-Ceci, Division of Investment Management, at (202) 551– 6825 or Emily Russell, Division of Trading and Markets, at (202) 551–5550, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–7010. Discussion On July 21, 2010, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Under section 913 of that Act, the Commission is required to conduct a study regarding the obligations of brokers, dealers, and investment advisers. The study will evaluate the effectiveness of existing legal or regulatory standards of care for brokers, dealers, investment advisers, persons associated with brokers or dealers, and persons associated with investment advisers for providing personalized investment advice and recommendations about securities to retail customers imposed by the Commission and a national securities association, and other Federal and State legal or regulatory standards. In addition, the study will evaluate whether there are legal or regulatory gaps, shortcomings, or overlaps in legal or regulatory standards in the protection of retail customers relating to the standards of care for brokers, dealers, investment advisers, persons associated with brokers or dealers, and persons associated with investment advisers for providing personalized investment advice about securities to retail customers that should be addressed by rule or statute. For purposes of the study, the term ‘‘retail customer’’ means a natural person (or the legal representative of such natural person) who receives personalized investment advice about securities from a broker or dealer or investment adviser and uses such advice primarily for personal, family, or household purposes. The Commission is required to submit a study report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives no later than 6 months after enactment of the Dodd-Frank Act. E:\FR\FM\30JYN1.SGM 30JYN1

Agencies

[Federal Register Volume 75, Number 146 (Friday, July 30, 2010)]
[Notices]
[Pages 44995-44996]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-18724]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-62568; File No. SR-ISE-2010-76]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Foreign Currency Options Orders Fee Discount for 
Market Makers and Non-ISE Market Makers

July 26, 2010.
    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 July 19, 2010, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') filed with the Securities and Exchange 
Commission the proposed rule change, as described in Items I, II, and 
III 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 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, 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 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 currently has a fee cap for large-size foreign 
currency (``FX'') options orders. This fee discount applies for orders 
of 250 contracts or more and waives fees on incremental volume above 
250 contracts.\3\ Contracts at or under the threshold are charged the 
constituent's prescribed execution fee. Pursuant to an incentive plan 
currently in place, this fee discount currently applies to all customer 
\4\ orders, Firm Proprietary orders, market maker orders and non-ISE 
market maker orders in options on the following FX option currencies 
traded on the Exchange: New Zealand dollar, Mexican peso, Swedish krona 
and the Brazilian real.
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release No. 62506 (July 15, 
2010) (SR-ISE-2010-67).
    \4\ The fee waiver applies to both professional and priority 
customer orders. A Priority Customer is defined in ISE Rule 
100(a)(37A) as a person or entity that is not a broker/dealer in 
securities, and does not place more than 390 orders in listed 
options per day on average during a calendar month for its own 
beneficial account(s). A Customer (Professional) is a person who is 
not a broker/dealer and is not a Priority Customer.
---------------------------------------------------------------------------

    For all other FX option currencies traded on the Exchange, this fee 
discount currently applies only to customer orders and Firm Proprietary 
orders in those products. The Exchange now proposes to extend this fee 
discount to market maker orders and non-ISE market maker orders in all 
FX option currencies and specifically, to the orders that were 
previously not receiving this discount.
    ISE adopted this fee discount to encourage members to execute 
large-sized FX options orders on the Exchange in a manner that is cost 
effective. The Exchange believes this proposed rule change will further 
that goal.
2. 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, this proposed rule change would extend a 
current fee discount to all orders in FX options traded on the 
Exchange, thus effectively maintaining low fees.

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 \5\ and Rule 19b-4(f)(2) \6\ 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.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(3)(A).
    \6\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and

[[Page 44996]]

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-2010-76 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-2010-76. 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 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 
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-2010-76 and should be 
submitted on or before August 20, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
---------------------------------------------------------------------------

    \7\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-18724 Filed 7-29-10; 8:45 am]
BILLING CODE 8010-01-P
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