Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Sales Value Fee, 66410-66411 [2010-27245]

Download as PDF 66410 Federal Register / Vol. 75, No. 208 / Thursday, October 28, 2010 / Notices Paper Comments • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–1090. SECURITIES AND EXCHANGE COMMISSION [Release No. 34–63165; File No. SR–ISE– 2010–102] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate All submissions should refer to File Effectiveness of Proposed Rule Number SR–EDGX–2010–14. This file Change Relating to the Sales Value number should be included on the subject line if e-mail is used. To help the Fee Commission process and review your October 22, 2010. comments more efficiently, please use Pursuant to Section 19(b)(1) of the only one method. The Commission will Securities Exchange Act of 1934 (the post all comments on the Commission’s ‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that, on October Internet Web site (https://www.sec.gov/ 14, 2010, the International Securities rules/sro.shtml). Copies of the Exchange, LLC (the ‘‘Exchange’’ or the submission,11 all subsequent ‘‘ISE’’) filed with the Securities and amendments, all written statements Exchange Commission (‘‘Commission’’) with respect to the proposed rule the proposed rule change as described change that are filed with the in Items I and II below, which items Commission, and all written have been prepared by the Exchange. communications relating to the The Commission is publishing this proposed rule change between the notice to solicit comments on the Commission and any person, other than proposed rule change from interested those that may be withheld from the persons. public in accordance with the I. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be Statement of the Terms of Substance of available for Web site viewing and the Proposed Rule Change printing in the Commission’s Public Reference Room, 100 F Street, NE., The Exchange proposes to adopt ISE Washington, DC 20549, on official Rule 212 (Sales Value Fee). The text of the proposed rule change is available on business days between the hours of the Exchange’s Web site https:// 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and www.ise.com, at the principal office of the Exchange, and at the Commission’s copying at the principal office of the Public Reference Room. Exchange. All comments received will be posted without change; the II. Self-Regulatory Organization’s Commission does not edit personal Statement of the Purpose of, and identifying information from Statutory Basis for, the Proposed Rule submissions. You should submit only Change information that you wish to make In its filing with the Commission, the available publicly. All submissions Exchange included statements should refer to File Number SR–EDGX– concerning the purpose of, and basis for, 2010–14 and should be submitted on or the proposed rule change and discussed before November 18, 2010. any comments it received on the proposed rule change. The text of these For the Commission, by the Division of statements may be examined at the Trading and Markets, pursuant to delegated places specified in Item IV below. The authority.12 self-regulatory organization has Florence E. Harmon, prepared summaries, set forth in Deputy Secretary. Sections A, B and C below, of the most [FR Doc. 2010–27244 Filed 10–27–10; 8:45 am] significant aspects of such statements. emcdonald on DSK2BSOYB1PROD with NOTICES BILLING CODE 8011–01–P A. Self-Regulatory Organization’s Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change 11 The text of the proposed rule change is available on Exchange’s Web site at https:// www.directedge.com, on the Commission’s Web site at https://www.sec.gov, at EDGX, and at the Commission’s Public Reference Room. 12 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:13 Oct 27, 2010 Jkt 223001 1. Purpose Pursuant to Section 31 of the Securities Act and Rule 31 thereunder,3 national securities exchanges and 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 17 CFR 240.31. associations (collectively, ‘‘SROs’’) are required to pay a transaction fee to the Commission that is designed to recover the costs related to the government’s supervision and regulation of the securities markets and securities professionals. To offset this obligation, the Exchange Members are assessed charges in connection with satisfaction of the Exchange’s payment obligations under Section 31. The fee is collected indirectly from Exchange Members through their clearing firms by the Options Clearing Corporation (‘‘OCC’’) on behalf of the Exchange with respect to options sales and options exercises. The fee is collected by billing the Member’s designated clearing firm for the amount owed by the member to the Exchange. The Exchange is now proposing to codify this process by adopting proposed Rule 212 (Sales Value Fee). Proposed ISE Rule 212 defines the Sales Value Fee (‘‘Fee’’) as the fee assessed by ISE to each member for sales of securities on ISE with respect to which ISE is obligated to pay a fee to the Commission under Section 31 of the Exchange Act. Proposed ISE Rule 212 provides that, to the extent the Exchange may collect more from Members under ISE Rule 212 than is due to from the Exchange to the Commission under Section 31 of the Exchange Act, for example due to rounding differences, the excess monies collected may be used by the Exchange to fund its general operating expenses. Proposed ISE Rule 212 explains that the transactions to which the Fee applies are sales of options (other than options on a security index) and sales of securities resulting from the exercise of physical-delivery options traded on ISE. As discussed above, the proposed rule specifies that the Fee is collected indirectly from Exchange Members through their clearing firms by the OCC on behalf of the Exchange with respect to options sales and options exercises. Proposed ISE Rule 212 also sets forth the formula for calculating the Fee with respect to covered options transactions, which is equal to (a) the Commission’s Section 31 fee rate multiplied by (b) the Member’s aggregate dollar mount [sic] of covered sales resulting from options transactions occurring on the Exchange during any computational period. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,4 in general, and furthers the objectives of 2 17 PO 00000 Frm 00064 Fmt 4703 4 15 Sfmt 4703 E:\FR\FM\28OCN1.SGM U.S.C. 78f(f). 28OCN1 Federal Register / Vol. 75, No. 208 / Thursday, October 28, 2010 / Notices Section 6(b)(4),5 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 proposed rule is simply codifying a practice currently employed by Exchange and the OCC to ensure that the Exchange is compliant with Section 31 of the Exchange Act. By adopting this rule, the Exchange is providing Members with a description of the Fee and the process by which the Fee is collected. 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 6 and Rule 19b–4(f)(2) thereunder 7 because it establishes a due, fee, or other charge imposed on its members by ISE. At any time within 60 days of the filing of the 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. emcdonald on DSK2BSOYB1PROD with NOTICES 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 rulecomments@sec.gov. Please include File 5 15 U.S.C. 78f(b)(4). 6 15 U.S.C. 78s(b)(3)(A). 7 17 CFR 240.19b–4(f)(2). VerDate Mar<15>2010 16:13 Oct 27, 2010 Number SR–ISE–2010–102 on the subject line. notice announces the Small Business Administration’s intentions to request approval on a new and/or currently Paper Comments approved information collection. • Send paper comments in triplicate DATES: Submit comments on or before to Elizabeth M. Murphy, Secretary, December 27, 2010. Securities and Exchange Commission, ADDRESSES: Send all comments 100 F Street, NE., Washington, DC regarding whether this information 20549–1090. collection is necessary for the proper All submissions should refer to File performance of the function of the Number SR–ISE–2010–102. This file agency, whether the burden estimates number should be included on the are accurate, and if there are ways to subject line if e-mail is used. To help the minimize the estimated burden and Commission process and review your enhance the quality of the collection, to comments more efficiently, please use Edsel Brow, Director, Office of only one method. The Commission will Technology, Small Business post all comments on the Commission’s Administration, 409 3rd Street, 6th Internet Web site (https://www.sec.gov/ Floor, Washington, DC 20416. rules/sro.shtml). Copies of the FOR FURTHER INFORMATION CONTACT: submission, all subsequent George Solomon, Office of Senior amendments, all written statements Policy, 202–205–7343 with respect to the proposed rule edsel.brown@sba.gov Curtis B. Rich, change that are filed with the Management Analyst, 202–205–7030 Commission, and all written curtis.rich@sba.gov. communications relating to the proposed rule change between the SUPPLEMENTARY INFORMATION: This data Commission and any person, other than will be used by SBA to maintain those that may be withheld from the information about the SBIR and STTR public in accordance with the awards issued through the two provisions of 5 U.S.C. 552, will be programs. This data will also be used to available for Web site viewing and track performance of the SBIR/STTR printing in the Commission’s Public programs as a whole and at specific Reference Room, 100 F Street, NE., agencies. Title: ‘‘Small Business Innovation Washington, DC 20549, on official Research (SBIR) and Small Business business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also Technology (STTR) Tech-Net Database’’. Description of Respondents: All Firms will be available for inspection and or Individuals applying for a Phase 1 or copying at the principal office of the Phase II award from the SBIR or STTR Exchange. All comments received will program. be posted without change; the Form Number: N/A. Commission does not edit personal Annual Responses: 30,000. identifying information from Annual Burden: 15,000. submissions. You should submit only information that you wish to make Jacqueline White, available publicly. All submissions Chief, Administrative Information Branch. should refer to File Number SR–ISE– [FR Doc. 2010–27271 Filed 10–27–10; 8:45 am] 2010–102 and should be submitted on BILLING CODE 8025–01–P or before November 18, 2010. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.8 Florence E. Harmon, Deputy Secretary. [FR Doc. 2010–27245 Filed 10–27–10; 8:45 am] BILLING CODE 8011–01–P SMALL BUSINESS ADMINISTRATION Small Entity Compliance Guide: Women-Owned Small Business Program Small Business Administration. Notice: Availability of Compliance Guide. AGENCY: ACTION: SMALL BUSINESS ADMINISTRATION Data Collection Available for Public Comments and Recommendations Notice and request for comments. ACTION: In accordance with the Paperwork Reduction Act of 1995, this SUMMARY: 8 17 Jkt 223001 66411 PO 00000 CFR 200.30–3(a)(12). Frm 00065 Fmt 4703 Sfmt 4703 The Small Business Administration (SBA) is announcing the availability of a compliance guide for the Women-Owned Small Business (WOSB) Program. This guide sets forth in plain language the requirements for participation in the WOSB program, and is intended to help small businesses understand the regulation and how it affects them. SUMMARY: E:\FR\FM\28OCN1.SGM 28OCN1

Agencies

[Federal Register Volume 75, Number 208 (Thursday, October 28, 2010)]
[Notices]
[Pages 66410-66411]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-27245]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-63165; File No. SR-ISE-2010-102]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to the Sales Value Fee

October 22, 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 October 14, 2010, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule change as 
described in Items I and II 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to adopt ISE Rule 212 (Sales Value Fee). 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 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 the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    Pursuant to Section 31 of the Securities Act and Rule 31 
thereunder,\3\ national securities exchanges and associations 
(collectively, ``SROs'') are required to pay a transaction fee to the 
Commission that is designed to recover the costs related to the 
government's supervision and regulation of the securities markets and 
securities professionals. To offset this obligation, the Exchange 
Members are assessed charges in connection with satisfaction of the 
Exchange's payment obligations under Section 31. The fee is collected 
indirectly from Exchange Members through their clearing firms by the 
Options Clearing Corporation (``OCC'') on behalf of the Exchange with 
respect to options sales and options exercises. The fee is collected by 
billing the Member's designated clearing firm for the amount owed by 
the member to the Exchange.
---------------------------------------------------------------------------

    \3\ 17 CFR 240.31.
---------------------------------------------------------------------------

    The Exchange is now proposing to codify this process by adopting 
proposed Rule 212 (Sales Value Fee). Proposed ISE Rule 212 defines the 
Sales Value Fee (``Fee'') as the fee assessed by ISE to each member for 
sales of securities on ISE with respect to which ISE is obligated to 
pay a fee to the Commission under Section 31 of the Exchange Act. 
Proposed ISE Rule 212 provides that, to the extent the Exchange may 
collect more from Members under ISE Rule 212 than is due to from the 
Exchange to the Commission under Section 31 of the Exchange Act, for 
example due to rounding differences, the excess monies collected may be 
used by the Exchange to fund its general operating expenses.
    Proposed ISE Rule 212 explains that the transactions to which the 
Fee applies are sales of options (other than options on a security 
index) and sales of securities resulting from the exercise of physical-
delivery options traded on ISE. As discussed above, the proposed rule 
specifies that the Fee is collected indirectly from Exchange Members 
through their clearing firms by the OCC on behalf of the Exchange with 
respect to options sales and options exercises. Proposed ISE Rule 212 
also sets forth the formula for calculating the Fee with respect to 
covered options transactions, which is equal to (a) the Commission's 
Section 31 fee rate multiplied by (b) the Member's aggregate dollar 
mount [sic] of covered sales resulting from options transactions 
occurring on the Exchange during any computational period.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the objectives of Section 6 of the Act,\4\ in general, and 
furthers the objectives of

[[Page 66411]]

Section 6(b)(4),\5\ 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 
proposed rule is simply codifying a practice currently employed by 
Exchange and the OCC to ensure that the Exchange is compliant with 
Section 31 of the Exchange Act. By adopting this rule, the Exchange is 
providing Members with a description of the Fee and the process by 
which the Fee is collected.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78f(f).
    \5\ 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 \6\ and Rule 19b-4(f)(2) thereunder \7\ because it 
establishes a due, fee, or other charge imposed on its members by ISE. 
At any time within 60 days of the filing of the 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 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-2010-102 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-2010-102. 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 the 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-2010-102 and should be 
submitted on or before November 18, 2010.

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

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

Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-27245 Filed 10-27-10; 8:45 am]
BILLING CODE 8011-01-P
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