Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Market Maker Incentive Plan for Foreign Currency Options, 62900-62901 [2010-25624]

Download as PDF 62900 Federal Register / Vol. 75, No. 197 / Wednesday, October 13, 2010 / Notices A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63045; File No. SR–ISE– 2010–100] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to a Market Maker Incentive Plan for Foreign Currency Options October 5, 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 October 4, 2010, 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 extend an incentive plan for market makers in four foreign currency options (‘‘FX Options’’). The text of the proposed rule change is available on ISE’s Web site at https:// www.ise.com, on the Commission’s Web site at https://www.sec.gov, at the principal office of the Exchange, and at the Commission’s Public Reference Room. mstockstill on DSKH9S0YB1PROD with NOTICES 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. 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 17:22 Oct 12, 2010 Jkt 223001 1. Purpose The purpose of this proposed rule change is to extend an incentive plan for market makers in options on the New Zealand dollar (‘‘NZD’’), the Mexican peso (‘‘PZO’’), the Swedish krona (‘‘SKA’’) and the Brazilian real (‘‘BRB’’).3 On August 3, 2009, the Exchange adopted an incentive plan applicable to market makers in NZD, PZO and SKA,4 and on January 19, 2010, added BRB to the incentive plan.5 The Exchange subsequently extended the date by which market makers may join the incentive plan.6 The Exchange proposes to again extend the date by which market makers may join the incentive plan. In order to promote trading in these FX Options, the Exchange has an incentive plan pursuant to which the Exchange waives the transaction fees for the Early Adopter 7 FXPMM 8 and all Early Adopter FXCMMs 9 that make a market in NZD, PZO SKA and BRB for as long as the incentive plan is in effect. Further, pursuant to a revenue sharing agreement entered into between an Early Adopter Market Maker and ISE, the Exchange pays the Early Adopter FXPMM forty percent (40%) of the transaction fees collected on any customer trade in NZD, PZO SKA and BRB and pays up to ten (10) Early Adopter FXCMMs that participate in the incentive plan twenty percent (20%) of the transaction fees collected for trades between a customer and that FXCMM. Market makers that do not participate in the incentive plan are charged regular transaction fees for trades in these 3 The Commission previously approved the trading of options on NZD, PZO, SKA and BRB. See Exchange Act Release No. 34–55575 (April 3, 2007), 72 FR 17963 (April 10, 2007) (SR–ISE–2006–59). 4 See Exchange Act Release No. 34–60536 (August 19, 2009), 74 FR 43204 (August 26, 2009) (SR–ISE– 2009–59). 5 See Exchange Act Release No. 34–61459 (February 1, 2010), 75 FR 6248 (February 8, 2010) (SR–ISE–2010–07). 6 See Exchange Act Release Nos. 34–60810 (October 9, 2009), 74 FR 53527 (October 19, 2009) (SR–ISE–2009–80), 34–61334 (January 12, 2010), 75 FR 2913 (January 19, 2010) (SR–ISE–2009–115), 34– 61851 (April 6, 2010), 75 FR 18565 (April 12, 2010) (SR–ISE–2010–27) and 34–62503 (July 15, 2010), 75 FR 42812 (July 22, 2010) (SR–ISE–2010–71). 7 Participants in the incentive plan are known on the Exchange’s Schedule of Fees as Early Adopter Market Makers. 8 A FXPMM is a primary market maker selected by the Exchange that trades and quotes in FX Options only. See ISE Rule 2213. 9 A FXCMM is a competitive market maker selected by the Exchange that trades and quotes in FX Options only. See ISE Rule 2213. PO 00000 Frm 00146 Fmt 4703 Sfmt 4703 products. In order to participate in the incentive plan, market makers are required to enter into the incentive plan no later than September 30, 2010. The Exchange now proposes to extend the date by which market makers may enter into the incentive plan to December 31, 2010. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,10 in general, and furthers the objectives of Section 6(b)(4),11 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. The Exchange believes the proposed rule change will permit additional market makers to join the incentive plan which in turn will generate additional order flow to the Exchange by creating incentives to trade these FX Options as well as defray operational costs for Early Adopter Market Makers. 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 12 and Rule 19b–4(f)(2) 13 thereunder. At any time within 60 days of the filing of such proposed rule change, the Commission summarily may temporarily suspend 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 10 15 U.S.C. 78f. U.S.C. 78f(b)(4). 12 15 U.S.C. 78s(b)(3). 13 17 CFR 240.19b–4(f)(2). 11 15 E:\FR\FM\13OCN1.SGM 13OCN1 Federal Register / Vol. 75, No. 197 / Wednesday, October 13, 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. 2010–25624 Filed 10–12–10; 8:45 am] Electronic Comments BILLING CODE 8011–01–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–2010–100 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 DSKH9S0YB1PROD with NOTICES For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Florence E. Harmon, Deputy Secretary. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63046; File No. SR–FINRA– 2010–050] Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Online Filing of Arbitration Claims October 5, 2010. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 All submissions should refer to File (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 Number SR–ISE–2010–100. This file notice is hereby given that on number should be included on the September 27, 2010, the Financial subject line if e-mail is used. To help the Industry Regulatory Authority, Inc. Commission process and review your (‘‘FINRA’’) filed with the Securities and comments more efficiently, please use Exchange Commission (‘‘SEC’’ or only one method. The Commission will ‘‘Commission’’) the proposed rule post all comments on the Commission’s change as described in Items I and II Internet Web site (https://www.sec.gov/ below, which Items have been prepared rules/sro/shtml). Copies of the substantially by FINRA. FINRA has designated the proposed rule change as submission, all subsequent constituting a ‘‘non-controversial’’ rule amendments, all written statements change under paragraph (f)(6) of Rule with respect to the proposed rule 19b–4 under the Act,3 which renders change that are filed with the the proposal effective upon receipt of Commission, and all written this filing by the Commission. The communications relating to the Commission is publishing this notice to proposed rule change between the Commission and any person, other than solicit comments on the proposed rule change from interested persons. those that may be withheld from the I. Self-Regulatory Organization’s public in accordance with the Statement of the Terms of Substance of provisions of 5 U.S.C. 552, will be the Proposed Rule Change available for Web site viewing and printing in the Commission’s Public FINRA is proposing to amend Rules Reference Room, 100 F Street, NE., 12302 and 13302 of the Customer and Washington, DC 20549, on official Industry Codes of Arbitration business days between the hours of 10 Procedure, respectively (‘‘Codes’’) to update the rules relating to online filing a.m. and 3 p.m. Copies of such filing will also be available for inspection and of arbitration claims. The text of the proposed rule change copying at the principal office of the is available on FINRA’s Web site at Exchange. All comments received will https://www.finra.org, at the principal be posted without change; the office of FINRA and at the Commission does not edit personal Commission’s Public Reference Room. identifying information from submissions. You should submit only II. Self-Regulatory Organization’s Statement of the Purpose of, and information that you wish to make Statutory Basis for, the Proposed Rule available publicly. All submissions Change should refer to File No. SR–ISE–2010– 100 and should be submitted on or In its filing with the Commission, before November 3, 2010. FINRA included statements concerning 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 17 CFR 240.19b–4(f)(6). 1 15 VerDate Mar<15>2010 17:22 Oct 12, 2010 Jkt 223001 PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 62901 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. FINRA 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 To initiate an arbitration claim at FINRA, a claimant files a signed and dated Submission Agreement, a Statement of Claim that specifies the relevant facts and remedies requested, and any additional documents supporting the Statement of Claim (‘‘initial documents’’). The claimant may file in hard copy, submitting enough copies of each of the initial documents for the Director, each arbitrator, and each other party. As an alternative, FINRA Rules 12302 and 13302 provide that a claimant may use the Online Arbitration Claim Filing system (‘‘System’’) to complete part of the claim filing process through the Internet. The rules state that the claimant completes a Claim Information Form online, and submits a Statement of Claim (along with supporting documents) electronically through the System. Once the Claim Information Form is complete, the System generates a FINRA Dispute Resolution Tracking Form (‘‘Tracking Form’’) for the claimant to reproduce. The claimant then files, in hard copy, the Tracking Form and any materials not submitted electronically. When a claimant files electronically, FINRA makes copies of the documents submitted through the System for the arbitrators and the other parties in the case. Recently, FINRA implemented programming enhancements that allow claimants to file all of the initial documents electronically if they file through the System. FINRA is proposing to make technical, non-substantive amendments to Rules 12302 and 13302 to update the rule language to reflect that claimants may file all of the initial documents electronically. If the SEC approves the proposed rule change, FINRA would continue to permit claimants to file their claims in hard copy. The proposed rule change specifies that if a claimant does not elect to file electronically, the claimant would be required to file enough copies of the initial documents for the Director, each arbitrator and each other party. E:\FR\FM\13OCN1.SGM 13OCN1

Agencies

[Federal Register Volume 75, Number 197 (Wednesday, October 13, 2010)]
[Notices]
[Pages 62900-62901]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-25624]



[[Page 62900]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63045; File No. SR-ISE-2010-100]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to a Market Maker Incentive Plan for Foreign Currency 
Options

October 5, 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 October 4, 2010, 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 extend an incentive plan for market makers 
in four foreign currency options (``FX Options''). The text of the 
proposed rule change is available on ISE's Web site at https://www.ise.com, on the Commission's Web site at https://www.sec.gov, 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 purpose of this proposed rule change is to extend an incentive 
plan for market makers in options on the New Zealand dollar (``NZD''), 
the Mexican peso (``PZO''), the Swedish krona (``SKA'') and the 
Brazilian real (``BRB'').\3\ On August 3, 2009, the Exchange adopted an 
incentive plan applicable to market makers in NZD, PZO and SKA,\4\ and 
on January 19, 2010, added BRB to the incentive plan.\5\ The Exchange 
subsequently extended the date by which market makers may join the 
incentive plan.\6\ The Exchange proposes to again extend the date by 
which market makers may join the incentive plan.
---------------------------------------------------------------------------

    \3\ The Commission previously approved the trading of options on 
NZD, PZO, SKA and BRB. See Exchange Act Release No. 34-55575 (April 
3, 2007), 72 FR 17963 (April 10, 2007) (SR-ISE-2006-59).
    \4\ See Exchange Act Release No. 34-60536 (August 19, 2009), 74 
FR 43204 (August 26, 2009) (SR-ISE-2009-59).
    \5\ See Exchange Act Release No. 34-61459 (February 1, 2010), 75 
FR 6248 (February 8, 2010) (SR-ISE-2010-07).
    \6\ See Exchange Act Release Nos. 34-60810 (October 9, 2009), 74 
FR 53527 (October 19, 2009) (SR-ISE-2009-80), 34-61334 (January 12, 
2010), 75 FR 2913 (January 19, 2010) (SR-ISE-2009-115), 34-61851 
(April 6, 2010), 75 FR 18565 (April 12, 2010) (SR-ISE-2010-27) and 
34-62503 (July 15, 2010), 75 FR 42812 (July 22, 2010) (SR-ISE-2010-
71).
---------------------------------------------------------------------------

    In order to promote trading in these FX Options, the Exchange has 
an incentive plan pursuant to which the Exchange waives the transaction 
fees for the Early Adopter \7\ FXPMM \8\ and all Early Adopter FXCMMs 
\9\ that make a market in NZD, PZO SKA and BRB for as long as the 
incentive plan is in effect. Further, pursuant to a revenue sharing 
agreement entered into between an Early Adopter Market Maker and ISE, 
the Exchange pays the Early Adopter FXPMM forty percent (40%) of the 
transaction fees collected on any customer trade in NZD, PZO SKA and 
BRB and pays up to ten (10) Early Adopter FXCMMs that participate in 
the incentive plan twenty percent (20%) of the transaction fees 
collected for trades between a customer and that FXCMM. Market makers 
that do not participate in the incentive plan are charged regular 
transaction fees for trades in these products. In order to participate 
in the incentive plan, market makers are required to enter into the 
incentive plan no later than September 30, 2010. The Exchange now 
proposes to extend the date by which market makers may enter into the 
incentive plan to December 31, 2010.
---------------------------------------------------------------------------

    \7\ Participants in the incentive plan are known on the 
Exchange's Schedule of Fees as Early Adopter Market Makers.
    \8\ A FXPMM is a primary market maker selected by the Exchange 
that trades and quotes in FX Options only. See ISE Rule 2213.
    \9\ A FXCMM is a competitive market maker selected by the 
Exchange that trades and quotes in FX Options only. See ISE Rule 
2213.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\10\ in general, and 
furthers the objectives of Section 6(b)(4),\11\ 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. The Exchange believes the proposed rule change will 
permit additional market makers to join the incentive plan which in 
turn will generate additional order flow to the Exchange by creating 
incentives to trade these FX Options as well as defray operational 
costs for Early Adopter Market Makers.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78f.
    \11\ 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 \12\ and Rule 19b-4(f)(2) \13\ thereunder. At any 
time within 60 days of the filing of such proposed rule change, the 
Commission summarily may temporarily suspend 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.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3).
    \13\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and

[[Page 62901]]

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-2010-100 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-2010-100. 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 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-2010-100 and should be 
submitted on or before November 3, 2010.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-25624 Filed 10-12-10; 8:45 am]
BILLING CODE 8011-01-P
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