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, 64136-64137 [2011-26677]

Download as PDF 64136 Federal Register / Vol. 76, No. 200 / Monday, October 17, 2011 / Notices At times, changes in Commission priorities require alterations in the scheduling of meeting items. For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact: The Office of the Secretary at (202) 551–5400. 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. Dated: October 13, 2011. Elizabeth M. Murphy, Secretary. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [FR Doc. 2011–26921 Filed 10–13–11; 4:15 pm] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65530; File No. SR–ISE– 2011–66] 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 11, 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 30, 2011, the International Securities Exchange, LLC (the ‘‘Exchange’’ or ‘‘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. jlentini on DSK4TPTVN1PROD with NOTICES 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 a number of foreign currency options (‘‘FX Options’’) traded on the Exchange. The text of the proposed rule change is available on the Exchange’s Web site (http://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 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Mar<15>2010 16:32 Oct 14, 2011 Jkt 226001 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’’), the Brazilian real (‘‘BRB’’), the Australian dollar (‘‘AUX’’), the British pound (‘‘BPX’’), the Canadian dollar (‘‘CDD’’), the euro (‘‘EUI’’), the Japanese yen (‘‘YUK’’) and the Swiss franc (‘‘SFC’’).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 and on March 1, 2011, added AUX, BPX, CDD, EUI, YUK and SFC.6 The Exchange has since extended the date by which market makers may join the incentive plan 7 and now proposes to do so again. 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 8 FXPMM 9 and all 3 The Commission previously approved the trading of options on NZD, PZO, SKA, BRB, AUX, BPX, CDD, EUI, YUK and SFC. See Securities Exchange Act Release No. 55575 (April 3, 2007), 72 FR 17963 (April 10, 2007) (SR–ISE–2006–59). 4 See Securities Exchange Act Release No. 60536 (August 19, 2009), 74 FR 43204 (August 26, 2009) (SR–ISE–2009–59). 5 See Securities Exchange Act Release No. 61459 (February 1, 2010), 75 FR 6248 (February 8, 2010) (SR–ISE–2010–07). 6 See Securities Exchange Act Release No. 64012 (March 2, 2011), 76 FR 12778 (March 8, 2011) (SR– ISE–2011–11). 7 See Securities Exchange Act Release Nos. 60810 (October 9, 2009), 74 FR 53527 (October 19, 2009) (SR–ISE–2009–80), 61334 (January 12, 2010), 75 FR 2913 (January 19, 2010) (SR–ISE–2009–115), 61851 (April 6, 2010), 75 FR 18565 (April 12, 2010) (SR– ISE–2010–27), 62503 (July 15, 2010), 75 FR 42812 (July 22, 2010) (SR–ISE–2010–71), 36045 (October 5, 2010), 75 FR 62900 (October 13, 2010) (SR–ISE– 2010–100), 63639 (January 4, 2011), 76 FR 1488 (January 10, 2011) (SR–ISE–2010–121), 64202 (April 6, 2011), 76 FR 20431 (April 12, 2011) (SR– ISE–2011–16) and 64861 (July 12, 2011), 76 FR 42145 (July 18, 2011) (SR–ISE–2011–38). 8 Participants in the incentive plan are known on the Exchange’s Schedule of Fees as Early Adopter Market Makers. 9 A FXPMM is a primary market maker selected by the Exchange that trades and quotes in FX Options only. See ISE Rule 2213. PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 Early Adopter FXCMMs 10 that make a market in NZD, PZO SKA, BRB, AUX, BPX, CDD, EUI, YUK and SFC 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, BRB, AUX, BPX, CDD, EUI, YUK and SFC 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 currently required to enter into the incentive plan no later than September 30, 2011. The Exchange now proposes to extend the date by which market makers may enter into the incentive plan to December 30, 2011. 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the objectives of Section 6 of the Act,11 in general, and furthers the objectives of Section 6(b)(4),12 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 is equitable as it will permit all market makers to explore the opportunity to join the incentive plan for an additional three months. The Exchange believes the proposed rule change is reasonable because the extension of the incentive plan for three months 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. 10 A FXCMM is a competitive market maker selected by the Exchange that trades and quotes in FX Options only. See ISE Rule 2213. 11 15 U.S.C. 78f(b). 12 15 U.S.C. 78f(b)(4). E:\FR\FM\17OCN1.SGM 17OCN1 Federal Register / Vol. 76, No. 200 / Monday, October 17, 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.13 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 DSK4TPTVN1PROD with NOTICES Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– ISE–2011–66 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–2011–66. 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 (http://www.sec.gov/ rules/sro/shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR–ISE–2011– 66 and should be submitted on or before November 7, 2011. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.14 Elizabeth M. Murphy, Secretary. [FR Doc. 2011–26677 Filed 10–14–11; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–65526; File No. SR– NASDAQ–2011–130] Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Re-Institute Fees for NASDAQ Basic and To Offer an Optional Nasdaq Basic NonProfessional Enterprise License Fee October 11, 2011. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19–b4 thereunder,2 notice is hereby given that on September 30, 2011, The NASDAQ Stock Market LLC (‘‘NASDAQ’’) 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 NASDAQ. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. 14 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 13 15 U.S.C. 78s(b)(3)(A)(ii). VerDate Mar<15>2010 16:32 Oct 14, 2011 Jkt 226001 PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 64137 I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change NASDAQ proposes to re-institute the fees for ‘‘Nasdaq Basic,’’ which is a real time data feed combining both NASDAQ’s Best Bid and Offer (‘‘QBBO’’) and the ‘‘NASDAQ Last Sale,’’ 3 as well as to offer an optional NASDAQ Basic Non-Professional Enterprise License Fee for broker-dealer distribution of NASDAQ Basic data to non-professional users with which the broker-dealer has a brokerage relationship (the ‘‘Basic NonProfessional Enterprise License’’ or ‘‘Enterprise License’’). The text of the proposed rule change is below. Proposed new language is in italics. * * * * * 7047. Nasdaq Basic (a) No change. (b) User Fees. (1) Except as provided in (b)(2) and (b)(3), for the NASDAQ Basic product there shall be a per subscriber monthly charge of $10 for NASDAQ-listed stocks, $5 for NYSE-listed stocks, and $5 for Alternext-listed stocks; or (2) For each non-professional subscriber, as defined in Rule 7011(b), there shall be a per subscriber monthly charge of $0.50 for NASDAQ-listed stocks, $0.25 for NYSE-listed stocks, and $0.25 for Alternext-listed stocks; or (3) There shall be a per query fee for NASDAQ Basic of $0.0025 for NASDAQ-listed stocks, $0.0015 for NYSE-listed stocks, and $0.0015 for Alternext-listed stocks. (4) An alternative to (b)(2) a brokerdealer may purchase an enterprise license at a rate of $100,000 per month for distribution to non-professional subscribers. The enterprise license entitles a Distributor to provide Nasdaq Basic to an unlimited number of nonprofessional subscribers with whom the firm has a brokerage relationship. The enterprise license is in addition to the Distributor Fee listed in (c)(1). (c) No change. * * * * * II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NASDAQ included statements 3 NASDAQ has also filed a companion release to establish Nasdaq Basic. See SR–NASDAQ–2011– 129. Additionally, NASDAQ is aware that the NASDAQ Basic pilot program has lapsed and NASDAQ intends to submit a separate filing to address the lapsed period shortly. E:\FR\FM\17OCN1.SGM 17OCN1

Agencies

[Federal Register Volume 76, Number 200 (Monday, October 17, 2011)]
[Notices]
[Pages 64136-64137]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-26677]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65530; File No. SR-ISE-2011-66]


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 11, 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 30, 2011, the International Securities Exchange, LLC 
(the ``Exchange'' or ``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.
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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 a number of foreign currency options (``FX Options'') traded on the 
Exchange. The text of the proposed rule change is available on the 
Exchange's Web site (http://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 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''), the Brazilian 
real (``BRB''), the Australian dollar (``AUX''), the British pound 
(``BPX''), the Canadian dollar (``CDD''), the euro (``EUI''), the 
Japanese yen (``YUK'') and the Swiss franc (``SFC'').\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\ and on March 1, 2011, added AUX, BPX, CDD, EUI, 
YUK and SFC.\6\ The Exchange has since extended the date by which 
market makers may join the incentive plan \7\ and now proposes to do so 
again.
---------------------------------------------------------------------------

    \3\ The Commission previously approved the trading of options on 
NZD, PZO, SKA, BRB, AUX, BPX, CDD, EUI, YUK and SFC. See Securities 
Exchange Act Release No. 55575 (April 3, 2007), 72 FR 17963 (April 
10, 2007) (SR-ISE-2006-59).
    \4\ See Securities Exchange Act Release No. 60536 (August 19, 
2009), 74 FR 43204 (August 26, 2009) (SR-ISE-2009-59).
    \5\ See Securities Exchange Act Release No. 61459 (February 1, 
2010), 75 FR 6248 (February 8, 2010) (SR-ISE-2010-07).
    \6\ See Securities Exchange Act Release No. 64012 (March 2, 
2011), 76 FR 12778 (March 8, 2011) (SR-ISE-2011-11).
    \7\ See Securities Exchange Act Release Nos. 60810 (October 9, 
2009), 74 FR 53527 (October 19, 2009) (SR-ISE-2009-80), 61334 
(January 12, 2010), 75 FR 2913 (January 19, 2010) (SR-ISE-2009-115), 
61851 (April 6, 2010), 75 FR 18565 (April 12, 2010) (SR-ISE-2010-
27), 62503 (July 15, 2010), 75 FR 42812 (July 22, 2010) (SR-ISE-
2010-71), 36045 (October 5, 2010), 75 FR 62900 (October 13, 2010) 
(SR-ISE-2010-100), 63639 (January 4, 2011), 76 FR 1488 (January 10, 
2011) (SR-ISE-2010-121), 64202 (April 6, 2011), 76 FR 20431 (April 
12, 2011) (SR-ISE-2011-16) and 64861 (July 12, 2011), 76 FR 42145 
(July 18, 2011) (SR-ISE-2011-38).
---------------------------------------------------------------------------

    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 \8\ FXPMM \9\ and all Early Adopter FXCMMs 
\10\ that make a market in NZD, PZO SKA, BRB, AUX, BPX, CDD, EUI, YUK 
and SFC 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, BRB, AUX, BPX, CDD, EUI, YUK and SFC 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 currently required to enter into the incentive 
plan no later than September 30, 2011. The Exchange now proposes to 
extend the date by which market makers may enter into the incentive 
plan to December 30, 2011.
---------------------------------------------------------------------------

    \8\ Participants in the incentive plan are known on the 
Exchange's Schedule of Fees as Early Adopter Market Makers.
    \9\ A FXPMM is a primary market maker selected by the Exchange 
that trades and quotes in FX Options only. See ISE Rule 2213.
    \10\ 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,\11\ in general, and 
furthers the objectives of Section 6(b)(4),\12\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes the proposed rule change is equitable as it 
will permit all market makers to explore the opportunity to join the 
incentive plan for an additional three months. The Exchange believes 
the proposed rule change is reasonable because the extension of the 
incentive plan for three months 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.

[[Page 64137]]

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.\13\ 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.
---------------------------------------------------------------------------

    \13\ 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 (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-ISE-2011-66 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-2011-66. 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 (http://www.sec.gov/rules/sro/shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street, NE., 
Washington, DC 20549, on official business days between the hours of 10 
a.m. and 3 p.m. Copies of such filing also will be available for 
inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-ISE-2011-66 and should be 
submitted on or before November 7, 2011.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-26677 Filed 10-14-11; 8:45 am]
BILLING CODE 8011-01-P