Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees for Qualified Contingent Cross Orders, 17462-17463 [2011-7265]
Download as PDF
<![CDATA[
17462
Federal Register / Vol. 76, No. 60 / Tuesday, March 29, 2011 / Notices
2. Report on completion of annual
compliance determination.
3. Report on status of pending dockets
before the Commission.
4. Report on international activities.
5. Report on legislative activities.
6. Report on improved public access
to Commission archival records.
7. Report on Commission docket
management procedures in the event of
a government shutdown.
Portions Closed to the Public
8. Discussion of pending litigation.
9. Discussion of contractual matters
involving sensitive business
information—lease-related negotiations.
10. Discussion of information
technology security implementation.
11. Discussion of confidential
personnel matters—performance,
records and practices.
CONTACT PERSON FOR MORE INFORMATION:
Stephen L. Sharfman, General Counsel,
Postal Regulatory Commission, 901 New
York Avenue, NW., Suite 200,
Washington, DC 20268–0001, at 202–
789–6820 (for agenda-related inquiries)
and Shoshana M. Grove, Secretary of the
Commission, at 202–789–6800 or
shoshana.grove@prc.gov (for inquiries
related to meeting location, access for
handicapped or disabled persons, the
audiocast, or similar matters).
Dated: March 24, 2011.
By the Commission.
Shoshana M. Grove,
Secretary.
BILLING CODE 7710–FW–P
[Release No. 34–64112; File No. SR–ISE–
2011–14]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fees for Qualified
Contingent Cross Orders
jlentini on DSKJ8SOYB1PROD with NOTICES
March 23, 2011.
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 March 14,
2011, 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
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Mar<15>2010
16:37 Mar 28, 2011
The ISE is proposing to amend its fee
schedule to establish fees for a new
order type called Qualified Contingent
Cross. 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.
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
2 17
I. Self-Regulatory Organization’s
Statement of the Terms of the Substance
of the Proposed Rule Change
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2011–7397 Filed 3–25–11; 11:15 am]
1 15
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
Jkt 223001
The purpose of the proposed rule
change is to establish fees for a new
order type called Qualified Contingent
Cross (‘‘QCC’’). The QCC order type was
recently approved by the Commission.3
The Exchange now proposes to adopt
fees related to this new order type.
Specifically, the Exchange proposes to
extend the same pricing that currently
applies to orders entered into the
facilitation, solicitation and price
improvement mechanism on behalf of
firm proprietary, Non-ISE Market
Makers 4 and Professional Order
participants,5 which amounts to $0.20
per contract for QCC orders in all option
classes traded on the Exchange.
3 See Securities Exchange Act Release No. 63955
(February 24, 2011) (SR–ISE 2010–73).
4 The term ‘‘Non-ISE Market Maker’’ means a
market maker as defined in Section 3(a)(38) of the
Securities Exchange Act of 1934 registered in the
same options class on another options exchange.
See ISE’s Schedule of Fees.
5 The term ‘‘Professional Order’’ means an order
that is for the account of a person or entity that is
not a Priority Customer. See ISE Rule 100(37C).
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
The fee for ISE Market Makers that
participate in a QCC order will be
charged either $.18 6 or $.20, 7
depending upon the product.8
2. Statutory Basis
The Exchange believes that its
proposal to amend its Schedule of Fees
is consistent with Section 6(b) of the
Act 9 in general, and furthers the
objectives of Section 6(b)(4) of the Act 10
in particular, in that it is an equitable
allocation of reasonable dues, fees and
other charges among Exchange
members. The Exchange believes that
the fees proposed for QCC orders are
reasonable because QCC orders are
similar to facilitation and solicitation
orders in that the members have both
sides of the order and are entering the
order onto the exchange for execution.
Members are currently charged $.20 for
executions of facilitation and
solicitation orders and because QCC
orders have a similar composition, it is
reasonable that the Exchange is
proposing to extend the same fee to QCC
orders. The Exchange believes that the
proposed fee is equitable in that this fee
is applied consistently across all
memberships and client categories,
except for ISE Market Makers in certain
circumstances. The Exchange believes
that it is equitable to allow ISE Market
Makers a lower transaction fee in certain
circumstances because ISE Market
Makers are differentiated from other
members in that they have negative and
affirmative obligations to the market
place.
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.
6 The rate of $.18 remains unchanged for ISE
Market Makers participating in all symbols other
than those set forth in footnote 5 [sic].
7 ISE Market Makers and Market Maker Plus are
charged a higher rate of $.20 when participating in
a QCC order in these select symbols: QQQQ, C,
BAC, SPY, IWM, XLF, GE, JPM, INTC, RIMM, T,
VZ, UNG, FCX, CSCO, DIA, AMZN, X, AA, AIG,
AXP, BBY, CAT, CHK, DNDN, EEM, EFA, EWZ, F,
FAS, FAZ, FSLR, GDX, GLD, IYR, MGM, MS,
MSFT, MU, PBR, PG, POT, RIG, SDS, SLV, XLE,
XOM, ABX, BMY, BP, COP, DELL, FXI, HAL, IBM,
KO, LVS, MCD, MO, MON, NOK, ORCL, PFE,
QCOM, S, SLB, SMH, SNDK, TBT, USO, V, VALE,
WFT, XLI, XRT, YHOO, AKAM, AMD, AMR, APC,
BA, BRCM, GG, HPQ, LCC, MOT, NEM, NFLX,
NVDA, QID, SSO, TEVA, TLT, TZA, UAL, WFC,
XLB, SIRI, SBUX and VVUS.
8 Priority Customers are currently not charged
when participating in orders executed in the
facilitation, solicitation and price improvement
mechanism. Consistent with the Exchange’s
approach, this will be extended to Priority
Customers when participating in QCC orders.
9 15 U.S.C. 78f(b).
10 15 U.S.C. 78f(b)(4).
E:\FR\FM\29MRN1.SGM
29MRN1
Federal Register / Vol. 76, No. 60 / Tuesday, March 29, 2011 / Notices
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)(A)(ii) of the Act.11 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. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
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:
jlentini on DSKJ8SOYB1PROD with NOTICES
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
Number SR–ISE–2011–014 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–2011–014. 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 website viewing and
printing 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 also will be
available for inspection and copying at
the principal offices 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–2011–014, and should
be submitted on or before April 19,
2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011–7265 Filed 3–28–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–64110; File No. SR–CBOE–
2011–024]
Self-Regulatory Organizations;
Chicago Board Options Exchange,
Incorporated; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Extend Pilot Programs
Relating to FLEX Exercise Settlement
Values and Minimum Value Sizes
March 23, 2011.
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 March 14,
2011, the Chicago Board Options
Exchange, Incorporated (‘‘Exchange’’ or
‘‘CBOE’’) filed with the Securities and
Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
12 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
11 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Mar<15>2010
16:37 Mar 28, 2011
Jkt 223001
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
17463
the Act 3 and Rule 19b–4(f)(6)
thereunder.4 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 Exchange is proposing to extend
the operation of its pilot programs
regarding permissible exercise
settlement values and the elimination of
minimum value sizes for Flexible
Exchange Options (‘‘FLEX Options’’),5
which pilot programs are currently set
to expire on March 28, 2011, through
March 30, 2012. The text of the
proposed rule change is available on the
Exchange’s Web site (https://
www.cboe.org/Legal), at the Exchange’s
Office of the Secretary 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 those
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 parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
On January 28, 2010, the Exchange
received approval of a rule change that
established two pilot programs
regarding permissible exercise
settlement values and the elimination of
minimum value sizes for FLEX Options.
3 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
5 FLEX Options provide investors with the ability
to customize basic option features including size,
expiration date, exercise style, and certain exercise
prices. FLEX Options can be FLEX Index Options
or FLEX Equity Options. In addition, other products
are permitted to be traded pursuant to the FLEX
trading procedures. For example, credit options are
eligible for trading as FLEX Options pursuant to the
FLEX rules in Chapters XXIVA and XXIVB. See
CBOE Rules 24A.1(e) and (f), 24A.4(b)(1) and (c)(1),
24B.1(f) and (g), 24B.4(b)(1) and (c)(1), and 28.17.
The rules governing the trading of FLEX Options on
the FLEX Request for Quote (‘‘RFQ’’) System
platform are contained in Chapter XXIVA. The rules
governing the trading of FLEX Options on the FLEX
Hybrid Trading System platform are contained in
Chapter XXIVB.
4 17
E:\FR\FM\29MRN1.SGM
29MRN1
]]>Agencies
[Federal Register Volume 76, Number 60 (Tuesday, March 29, 2011)]
[Notices]
[Pages 17462-17463]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7265]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-64112; File No. SR-ISE-2011-14]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fees for Qualified Contingent Cross Orders
March 23, 2011.
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 March 14, 2011, 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 the
Substance of the Proposed Rule Change
The ISE is proposing to amend its fee schedule to establish fees
for a new order type called Qualified Contingent Cross. 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 purpose of the proposed rule change is to establish fees for a
new order type called Qualified Contingent Cross (``QCC''). The QCC
order type was recently approved by the Commission.\3\ The Exchange now
proposes to adopt fees related to this new order type. Specifically,
the Exchange proposes to extend the same pricing that currently applies
to orders entered into the facilitation, solicitation and price
improvement mechanism on behalf of firm proprietary, Non-ISE Market
Makers \4\ and Professional Order participants,\5\ which amounts to
$0.20 per contract for QCC orders in all option classes traded on the
Exchange.
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 63955 (February 24,
2011) (SR-ISE 2010-73).
\4\ The term ``Non-ISE Market Maker'' means a market maker as
defined in Section 3(a)(38) of the Securities Exchange Act of 1934
registered in the same options class on another options exchange.
See ISE's Schedule of Fees.
\5\ The term ``Professional Order'' means an order that is for
the account of a person or entity that is not a Priority Customer.
See ISE Rule 100(37C).
---------------------------------------------------------------------------
The fee for ISE Market Makers that participate in a QCC order will
be charged either $.18 \6\ or $.20, \7\ depending upon the product.\8\
---------------------------------------------------------------------------
\6\ The rate of $.18 remains unchanged for ISE Market Makers
participating in all symbols other than those set forth in footnote
5 [sic].
\7\ ISE Market Makers and Market Maker Plus are charged a higher
rate of $.20 when participating in a QCC order in these select
symbols: QQQQ, C, BAC, SPY, IWM, XLF, GE, JPM, INTC, RIMM, T, VZ,
UNG, FCX, CSCO, DIA, AMZN, X, AA, AIG, AXP, BBY, CAT, CHK, DNDN,
EEM, EFA, EWZ, F, FAS, FAZ, FSLR, GDX, GLD, IYR, MGM, MS, MSFT, MU,
PBR, PG, POT, RIG, SDS, SLV, XLE, XOM, ABX, BMY, BP, COP, DELL, FXI,
HAL, IBM, KO, LVS, MCD, MO, MON, NOK, ORCL, PFE, QCOM, S, SLB, SMH,
SNDK, TBT, USO, V, VALE, WFT, XLI, XRT, YHOO, AKAM, AMD, AMR, APC,
BA, BRCM, GG, HPQ, LCC, MOT, NEM, NFLX, NVDA, QID, SSO, TEVA, TLT,
TZA, UAL, WFC, XLB, SIRI, SBUX and VVUS.
\8\ Priority Customers are currently not charged when
participating in orders executed in the facilitation, solicitation
and price improvement mechanism. Consistent with the Exchange's
approach, this will be extended to Priority Customers when
participating in QCC orders.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend its Schedule of
Fees is consistent with Section 6(b) of the Act \9\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \10\ in
particular, in that it is an equitable allocation of reasonable dues,
fees and other charges among Exchange members. The Exchange believes
that the fees proposed for QCC orders are reasonable because QCC orders
are similar to facilitation and solicitation orders in that the members
have both sides of the order and are entering the order onto the
exchange for execution. Members are currently charged $.20 for
executions of facilitation and solicitation orders and because QCC
orders have a similar composition, it is reasonable that the Exchange
is proposing to extend the same fee to QCC orders. The Exchange
believes that the proposed fee is equitable in that this fee is applied
consistently across all memberships and client categories, except for
ISE Market Makers in certain circumstances. The Exchange believes that
it is equitable to allow ISE Market Makers a lower transaction fee in
certain circumstances because ISE Market Makers are differentiated from
other members in that they have negative and affirmative obligations to
the market place.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78f(b).
\10\ 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.
[[Page 17463]]
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)(A)(ii) of the Act.\11\ 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. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
---------------------------------------------------------------------------
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-2011-014 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-2011-014. 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 website
viewing and printing 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 also will be available for inspection and copying at the
principal offices 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-2011-014, and should be submitted on or before April
19, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-7265 Filed 3-28-11; 8:45 am]
BILLING CODE 8011-01-P
