Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Professional Customer Fees, 63693-63695 [2011-26436]
Download as PDF
Federal Register / Vol. 76, No. 198 / Thursday, October 13, 2011 / Notices
‘‘Report’’). The Report will cover the
period from July 2, 2010, the date the
Exchange first began to list and trade
short term options, through August 31,
2011. The Report will describe the
Exchange’s experience with the STOS
Program in respect of the option classes
included by the Exchange in the STOS
Program. The Report will be submitted
to the Commission on a confidential
basis under separate cover.
2. Statutory Basis
sroberts on DSK5SPTVN1PROD with NOTICES
The Exchange believes that its
proposal is consistent with Section 6(b)
of the Securities Exchange Act of 1934 8
(the ‘‘Act’’) in general, and furthers the
objectives of Section 6(b)(5) of the Act 9
in particular, in that it is designed to
promote just and equitable principles of
trade, to remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general to protect
investors and the public interest. The
Exchange believes that expanding the
current short term options program will
result in a continuing benefit to
investors by giving them more flexibility
to closely tailor their investment
decisions and hedging decisions in
greater number of securities. The
Exchange believes that expanding the
current program would provide the
investing public and other market
participants increased opportunities
because an expanded program would
provide market participants additional
opportunities to hedge their investment
thus allowing these investors to better
manage their risk exposure. While the
expansion of the STOS Program will
generate additional quote traffic, the
Exchange does not believe that this
increased traffic will become
unmanageable since the proposal
remains limited to a fixed number of
classes. Further, the Exchange does not
believe that the proposed rule change
will result in a material proliferation of
additional series because it is limited to
a fixed number of series per class and
the Exchange does not believe that the
additional price points will result in
fractured liquidity. Moreover, the
Exchange believes the proposed rule
change would benefit investors by
giving them more flexibility to closely
tailor their investment decisions in a
greater number of securities.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The proposed rule change does not
impose any burden on competition that
8 15
U.S.C. 78f(b).
9 15 U.S.C. 78f(b)(5).
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16:50 Oct 12, 2011
Jkt 226001
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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
As the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the Exchange consents,
the Commission shall: (a) By order
approve or disapprove such proposed
rule change, or (b) institute proceedings
to determine whether the proposed rule
change should be 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:
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–2011–60 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–2011–60. 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
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
63693
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
publicly available. All submissions
should refer to File Number SR–ISE–
2011–60 and should be submitted on or
before November 3, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–26438 Filed 10–12–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65499; File No. SR–ISE–
2011–64]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Professional
Customer Fees
October 6, 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
September 26, 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 and II below, which items
have been prepared by the selfregulatory organization. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
10 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\13OCN1.SGM
13OCN1
63694
Federal Register / Vol. 76, No. 198 / Thursday, October 13, 2011 / Notices
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE proposes to amend its
Schedule of Fees relating to certain
professional customer orders executed
on the Exchange. 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
sroberts on DSK5SPTVN1PROD with NOTICES
ISE proposes to increase the execution
fee for ‘‘professional customers,’’ who
execute orders as a result of taking
liquidity from ISE’s order book in
certain option classes, from $0.18 per
contract to $0.20 per contract. This
proposed fee change is applicable to
option classes that are not subject to the
Exchange’s modified maker/taker
pricing structure (‘‘Non-Select
Symbols’’). In addition to the NonSelect Symbols, this proposed fee
change shall also apply to non-complex
orders in option classes that are in the
Penny Pilot program.3
ISE rules distinguish between Priority
Customer Orders 4 and Professional
3 The Exchange recently extended its maker/taker
pricing structure to all complex orders in option
classes that are in the Penny Pilot program. See
Exchange Act Release No. 65021 (August 3, 2011),
76 FR 48933 (August 9, 2011) (SR–ISE–2011–45).
The Penny Pilot program, which commenced on
January 26, 2007, permits ISE and all of the other
options exchanges to quote certain option classes in
pennies. See Exchange Act Release No. 55161
(January 24, 2007), 72 FR 4754 (February 1, 2007)
(SR–ISE–2006–62). The current pilot is scheduled
to expire on December 31, 2011. See Exchange Act
Release No. 63437 (December 6, 2010), 75 FR 77032
(December 10, 2010) (SR–ISE–2010–116).
4 A Priority Customer is defined in ISE Rule
100(a)(37A) as a person or entity that is not a broker
or dealer in securities, and does not place more
than 390 orders in listed options per day on average
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16:50 Oct 12, 2011
Jkt 226001
Orders.5 For purpose of this discussion,
‘‘professional customers’’ are nonbroker/dealer participants who enter at
least 390 orders per day on average
during a calendar month for their own
beneficial account(s). The Exchange
notes that the level of trading activity by
professional customers more resembles
that of broker/dealers, i.e., proprietary
traders, than it does of a retail, or
‘‘Priority’’ customer. As a result,
professional customers are on parity
with broker/dealers and generally pay
the same transaction fees as broker/
dealers. For example, for years broker/
dealer orders have been charged an
execution fee of $0.20 per contract in
the Non-Select Symbols. And recently,
the Exchange began charging
professional customers who execute
orders as a result of posting liquidity to
ISE’s order book in the Non-Select
Symbols $0.20 per contract.6
With this proposed fee change, the
Exchange seeks to standardize the fee
charged to professional customers for
trading on the Exchange in the NonSelect Symbols as all professional
customers will now pay $0.20 per
contract, regardless of whether they are
posting liquidity or taking liquidity in
the Non-Select Symbols and for noncomplex orders in option classes that
are in the Penny Pilot program. The
Exchange believes that the proposed
fees for professional customers will
allow the Exchange to remain
competitive with other options
exchanges who apply fees to
professional customers. Further, in
addition to standardizing theses [sic]
fees, the Exchange believes the
proposed fee change will make the
Exchange’s transaction fees simpler and
more concise to Exchange Members.
The Exchange has designated this
proposal to be operative on October 3,
2011.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Schedule of Fees
is consistent with Section 6(b) of the
Act 7 in general, and furthers the
objectives of Section 6(b)(4) of the Act 8
in particular, in that it is an equitable
allocation of reasonable dues, fees and
other charges among Exchange
members. The Exchange believes that
the proposed fee changes will generally
during a calendar month for its own beneficial
account(s).
5 A Professional Order is defined in ISE Rule
100(a)(37C) as an order that is for the account of a
person or entity that is not a Priority Customer.
6 See Securities Exchange Act Release No. 61434
(January 27, 2010), 75 FR 5826 (February 4, 2010).
7 15 U.S.C. 78f(b).
8 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
allow the Exchange to better compete
for professional customer order flow
and thus enhance competition.
Specifically, the Exchange believes that
its proposal to assess a $0.20 per
contract fee for professional customers
who take liquidity from the Exchange’s
order book in the Non-Select Symbols
and for non-complex orders in option
classes that are in the Penny Pilot
program is equitable and reasonable as
it will standardize fees charged by the
Exchange for all professional customers
that engage in a similar activity. The
Exchange further believes it is
reasonable, equitable and not unfairly
discriminatory to charge professional
customers the same level of fees that the
Exchange charges broker/dealers as both
groups of market participants essentially
engage in similar trading activity.
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 9 and Rule 19b–4(f)(2) 10
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
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:
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 17
E:\FR\FM\13OCN1.SGM
13OCN1
Federal Register / Vol. 76, No. 198 / Thursday, October 13, 2011 / 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–2011–64 on the subject
line.
Paper Comments
sroberts on DSK5SPTVN1PROD with NOTICES
• 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. 34–65496; File No. SR–BYX–
2011–027]
Self-Regulatory Organizations; BATS
Y–Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Revenue
Sharing Program With Correlix and a
Free Trial Period for New Users of the
Correlix Service
October 6, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’ or the ‘‘Exchange Act’’),1 and
All submissions should refer to File
Rule 19b–4 thereunder,2 notice is
Number SR–ISE–2011–64. This file
hereby given that on September 30,
number should be included on the
2011, BATS Y–Exchange, Inc. (the
subject line if e-mail is used. To help the ‘‘Exchange’’ or ‘‘BYX’’) filed with the
Commission process and review your
Securities and Exchange Commission
comments more efficiently, please use
(‘‘Commission’’) the proposed rule
only one method. The Commission will change as described in Items I, II and III
post all comments on the Commission’s below, which Items have been prepared
Internet Web site (https://www.sec.gov/
by the Exchange. The Commission is
rules/sro.shtml). Copies of the
publishing this notice to solicit
submission, all subsequent
comments on the proposed rule change
amendments, all written statements
from interested persons.
with respect to the proposed rule
I. Self-Regulatory Organization’s
change that are filed with the
Statement of the Terms of Substance of
Commission, and all written
the Proposed Rule Change
communications relating to the
proposed rule change between the
The Exchange is proposing to
Commission and any person, other than
establish a revenue sharing program
those that may be withheld from the
with Correlix, Inc. (‘‘Correlix’’) and a
public in accordance with the
free trial period for new subscribers to
provisions of 5 U.S.C. 552, will be
the Correlix service.
available for Web site viewing and
The text of the proposed rule change
printing in the Commission’s Public
is available at the Exchange’s Web site
Reference Room, 100 F Street, NE.,
at https://www.batstrading.com, at the
Washington, DC 20549, on official
principal office of the Exchange, and at
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also the Commission’s Public Reference
Room.
will be available for inspection and
copying at the principal office of the
II. Self-Regulatory Organization’s
ISE. All comments received will be
Statement of the Purpose of, and
posted without change; the Commission Statutory Basis for, the Proposed Rule
does not edit personal identifying
Change
information from submissions. You
should submit only information that
In its filing with the Commission, the
you wish to make available publicly. All Exchange included statements
submissions should refer to File
concerning the purpose of and basis for
Number SR–ISE–2011–64 and should be the proposed rule change and discussed
submitted on or before November 3,
any comments it received on the
2011.
proposed rule change. The text of these
statements may be examined at the
For the Commission, by the Division of
places specified in Item IV below. The
Trading and Markets, pursuant to delegated
Exchange has prepared summaries, set
authority.11
forth in Sections A, B, and C below, of
Elizabeth M. Murphy,
the most significant parts of such
Secretary.
statements.
[FR Doc. 2011–26436 Filed 10–12–11; 8:45 am]
BILLING CODE 8011–01–P
1 15
11 17
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
16:50 Oct 12, 2011
2 17
Jkt 226001
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00096
Fmt 4703
Sfmt 4703
63695
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 a revenue sharing
program with Correlix. The Exchange
has entered into an agreement with
Correlix to provide to Users 3 of the
Exchange real-time analytical tools to
measure the latency of orders to and
from the Exchange’s system as well as
the latency of market data updates
transmitted from the Exchange systems
to the User. Under the agreement, the
Exchange will receive 30% of the total
monthly subscription fees received by
Correlix from parties who have
contracted directly with Correlix to use
their RaceTeam latency measurement
service for the Exchange. The Exchange
will not bill or contract with any
Correlix RaceTeam customer directly.
Pricing for the Correlix RaceTeam
product for Users of the Exchange will
be based on the number of ports
requested by the User for monitoring by
Correlix; each ‘‘port’’ is a FIX or binary
order entry (‘‘BOE’’) protocol
connection to the Exchange. The fee for
Users of the Exchange will be an initial
$1,500 monthly fee for the first 25 ports
requested by the User for latency
monitoring, and an additional $1,000
per month for each additional 25 ports
(or portion thereof).
Under the program, the Correlix data
collector 4 will see an individualized
unique identifier that will allow
Correlix RaceTeam to determine round
trip order time,5 from the time the order
reaches the Exchange, through the
Exchange matching engine, and back
out of the Exchange. The RaceTeam
product offering does not measure
latency outside of the Exchange. The
unique identifier serves as a
technological information barrier so that
the Correlix data collector will only be
able to view data for Correlix RaceTeam
subscribers related to latency. The
Correlix data collector will not see
subscriber’s individual order detail such
as security, price or size. Individual
RaceTeam subscribers’ logins will
restrict access to only their own latency
data. The Correlix data collector will see
3 A ‘‘User’’ is defined in BYX Rule 1.5(cc) as any
member or sponsored participant of the Exchange
who is authorized to obtain access to the System.
4 The Correlix data collector is a Correlix process
that receives information from the Exchange that is
subsequently taken into Correlix’s systems for
latency monitoring purposes.
5 The product measures latency of orders whether
the orders are rejected, executed, or partially
executed.
E:\FR\FM\13OCN1.SGM
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Agencies
[Federal Register Volume 76, Number 198 (Thursday, October 13, 2011)]
[Notices]
[Pages 63693-63695]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26436]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65499; File No. SR-ISE-2011-64]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Professional Customer Fees
October 6, 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 September 26, 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
and II 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.
---------------------------------------------------------------------------
[[Page 63694]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE proposes to amend its Schedule of Fees relating to certain
professional customer orders executed on the Exchange. 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
ISE proposes to increase the execution fee for ``professional
customers,'' who execute orders as a result of taking liquidity from
ISE's order book in certain option classes, from $0.18 per contract to
$0.20 per contract. This proposed fee change is applicable to option
classes that are not subject to the Exchange's modified maker/taker
pricing structure (``Non-Select Symbols''). In addition to the Non-
Select Symbols, this proposed fee change shall also apply to non-
complex orders in option classes that are in the Penny Pilot
program.\3\
---------------------------------------------------------------------------
\3\ The Exchange recently extended its maker/taker pricing
structure to all complex orders in option classes that are in the
Penny Pilot program. See Exchange Act Release No. 65021 (August 3,
2011), 76 FR 48933 (August 9, 2011) (SR-ISE-2011-45). The Penny
Pilot program, which commenced on January 26, 2007, permits ISE and
all of the other options exchanges to quote certain option classes
in pennies. See Exchange Act Release No. 55161 (January 24, 2007),
72 FR 4754 (February 1, 2007) (SR-ISE-2006-62). The current pilot is
scheduled to expire on December 31, 2011. See Exchange Act Release
No. 63437 (December 6, 2010), 75 FR 77032 (December 10, 2010) (SR-
ISE-2010-116).
---------------------------------------------------------------------------
ISE rules distinguish between Priority Customer Orders \4\ and
Professional Orders.\5\ For purpose of this discussion, ``professional
customers'' are non-broker/dealer participants who enter at least 390
orders per day on average during a calendar month for their own
beneficial account(s). The Exchange notes that the level of trading
activity by professional customers more resembles that of broker/
dealers, i.e., proprietary traders, than it does of a retail, or
``Priority'' customer. As a result, professional customers are on
parity with broker/dealers and generally pay the same transaction fees
as broker/dealers. For example, for years broker/dealer orders have
been charged an execution fee of $0.20 per contract in the Non-Select
Symbols. And recently, the Exchange began charging professional
customers who execute orders as a result of posting liquidity to ISE's
order book in the Non-Select Symbols $0.20 per contract.\6\
---------------------------------------------------------------------------
\4\ A Priority Customer is defined in ISE Rule 100(a)(37A) as a
person or entity that is not a broker or 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).
\5\ A Professional Order is defined in ISE Rule 100(a)(37C) as
an order that is for the account of a person or entity that is not a
Priority Customer.
\6\ See Securities Exchange Act Release No. 61434 (January 27,
2010), 75 FR 5826 (February 4, 2010).
---------------------------------------------------------------------------
With this proposed fee change, the Exchange seeks to standardize
the fee charged to professional customers for trading on the Exchange
in the Non-Select Symbols as all professional customers will now pay
$0.20 per contract, regardless of whether they are posting liquidity or
taking liquidity in the Non-Select Symbols and for non-complex orders
in option classes that are in the Penny Pilot program. The Exchange
believes that the proposed fees for professional customers will allow
the Exchange to remain competitive with other options exchanges who
apply fees to professional customers. Further, in addition to
standardizing theses [sic] fees, the Exchange believes the proposed fee
change will make the Exchange's transaction fees simpler and more
concise to Exchange Members.
The Exchange has designated this proposal to be operative on
October 3, 2011.
2. Statutory Basis
The Exchange believes that its proposal to amend its Schedule of
Fees is consistent with Section 6(b) of the Act \7\ in general, and
furthers the objectives of Section 6(b)(4) of the Act \8\ in
particular, in that it is an equitable allocation of reasonable dues,
fees and other charges among Exchange members. The Exchange believes
that the proposed fee changes will generally allow the Exchange to
better compete for professional customer order flow and thus enhance
competition. Specifically, the Exchange believes that its proposal to
assess a $0.20 per contract fee for professional customers who take
liquidity from the Exchange's order book in the Non-Select Symbols and
for non-complex orders in option classes that are in the Penny Pilot
program is equitable and reasonable as it will standardize fees charged
by the Exchange for all professional customers that engage in a similar
activity. The Exchange further believes it is reasonable, equitable and
not unfairly discriminatory to charge professional customers the same
level of fees that the Exchange charges broker/dealers as both groups
of market participants essentially engage in similar trading activity.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b).
\8\ 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 \9\ and Rule 19b-4(f)(2) \10\ 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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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:
[[Page 63695]]
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-2011-64 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-2011-64. 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 ISE. 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-2011-64 and should be
submitted on or before November 3, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26436 Filed 10-12-11; 8:45 am]
BILLING CODE 8011-01-P