Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change to Amend the Volume Threshold for Tier-Based Rebates for Qualified Contingent Cross Orders and Solicitation Orders Executed on the Exchange, 65555-65557 [2011-27305]
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Federal Register / Vol. 76, No. 204 / Friday, October 21, 2011 / Notices
sroberts on DSK5SPTVN1PROD with NOTICES
same security.51 Another commenter 52
suggested that FINRA not alter the
definitions of the terms ‘‘quotation
medium’’ and ‘‘inter-dealer quotation
system’’ from the way these terms are
laid out in Exchange Act Rule 15c2–
11(e).53 This commenter also suggested
that the same quote requirements apply
to inter-dealer quotation systems rather
than quotation mediums. As noted
above, at this time, FINRA is proposing
to transfer the provisions into a separate
rule without change; FINRA believes
that the objectives behind adopting this
requirement are still valid and is not
proposing to amend this provision at
this time. In addition, by relocating the
provision into the FINRA Rule 6400
Series, the defined terms at issue are
already defined in existing FINRA Rule
6420.
(7) Other Comments
Some commenters provided
comments on portions of the rule that
FINRA has not proposed to change. For
example, one commenter requested that
the language in proposed Rule 5310(d)
be updated to refer to defined industry
terms (e.g., ‘‘clearing firm’’) rather than
descriptions (e.g., ‘‘third party pursuant
to established correspondent
relationships under which executions
are confirmed directly to the member
acting as agent for the customer’’).54
Although the term ‘‘clearing firm’’ is
generally understood, it is not defined
in any FINRA rule; consequently,
FINRA determined to retain the existing
descriptions to avoid any unintended
changes in the scope of the rule or any
misunderstandings regarding the use of
the term. In light of this comment,
however, FINRA has replaced the
references to ‘‘introducing firms’’ and
‘‘clearing firms’’ in Supplementary
Material .09(c) in addition to clarifying
the scope of that provision as proposed
in Regulatory Notice 08–80.55
Finally, one commenter asked FINRA
to clarify the meaning of proposed
FINRA Rule 5310(c) (current NASD
Rule 2320(c)) regarding costs borne by a
customer.56 That provision states that
‘‘the channeling of customers’ orders
through a broker’s broker or third party
pursuant to established correspondent
relationships under which executions
are confirmed directly to the member
acting as agent for the customer * * *
are not prohibited if the cost of such
service is not borne by the customer.’’
51 SIFMA.
52 Pink
OTC.
CFR 240.15c2–11(e).
54 FSI.
55 See SIFMA.
56 NAIBD.
The commenter asked whether the
provision applied to all costs or, rather,
to additional or undue costs. In light of
this comment, and the fact that the SEC
has approved revisions to the
interpositioning provisions in the Best
Execution Rule that address sending
orders through third parties,57 FINRA is
proposing to delete the sentence from
the Best Execution Rule. FINRA believes
that the issues the provision covers are
adequately addressed in the revised
interpositioning provision.
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 FINRA 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 rulecomments@sec.gov. Please include File
Number SR–FINRA–2011–052 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–FINRA–2011–052. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. 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–FINRA–2011–052 and
should be submitted on or before
November 14, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.58
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–27277 Filed 10–20–11; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–65583; File No. SR–ISE–
2011–68]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change to Amend the Volume
Threshold for Tier-Based Rebates for
Qualified Contingent Cross Orders and
Solicitation Orders Executed on the
Exchange
October 18, 2011.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b-4
thereunder,2 notice is hereby given that,
on October 3, 2011, the International
Securities Exchange, LLC (the
‘‘Exchange’’ or the ‘‘ISE’’) 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
53 17
VerDate Mar<15>2010
18:11 Oct 20, 2011
57 See Securities Exchange Act Release No. 60635
(September 8, 2009), 74 FR 47302 (September 15,
2009).
Jkt 226001
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Frm 00063
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Sfmt 4703
65555
58 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
E:\FR\FM\21OCN1.SGM
21OCN1
65556
Federal Register / Vol. 76, No. 204 / Friday, October 21, 2011 / Notices
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to lower the
threshold levels for tier-based rebates
for Qualified Contingent Cross (‘‘QCC’’)
orders and Solicitation orders. 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.
sroberts on DSK5SPTVN1PROD with NOTICES
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 lower the threshold
contract levels for tier-based rebates to
encourage members to submit greater
numbers of QCC orders and Solicitation
orders to the Exchange. The Exchange
currently provides a rebate to Members
who reach a certain volume threshold in
QCC orders and/or Solicitation orders
during a month.3 Once a Member
reaches the volume threshold, the
Exchange provides a rebate to that
Member for all of its QCC and
Solicitation traded contracts for that
month. The rebate is paid to the
Member entering a qualifying order, i.e.,
a QCC order and/or a Solicitation order.
The rebate applies to QCC orders and
Solicitation orders in all symbols traded
on the Exchange. Additionally, the
threshold levels are based on the
originating side so if, for example, a
Member submits a Solicitation order for
1,000 contracts, all 1,000 contracts are
counted to reach the established
3 See Exchange Act Release No. 65087 (August 10,
2011), 76 FR 50783 (August 16, 2011) (SR–ISE–
2011–47).
VerDate Mar<15>2010
18:11 Oct 20, 2011
Jkt 226001
threshold even if the order is broken up
and executed with multiple counter
parties.
The current volume threshold and
corresponding rebate per contract is:
Specifically, the Exchange believes that
its proposal to lower the volume
threshold is reasonable as it will
encourage Members to direct their QCC
and Solicitation orders to the Exchange
instead of sending this order flow to a
Rebate
competing exchange. The Exchange
Originating Contract Sides
per
Contract notes that it currently has other
incentive programs to promote and
0–1,999,999 ..................................
$0.00 encourage growth in specific business
2,000,000–3,499,999 ....................
0.03 areas. For example, the Exchange has
3,500,000–3,999,999 ....................
0.05
4,000,000+ ....................................
0.07 lower fees (or no fees) for customer
orders; 7 and tiered pricing that reduces
rates for market makers based on the
The Exchange now proposes to lower
level of business they bring to the
the volume threshold levels to attract
Exchange.8 This proposed rule change
additional order flow in QCC and
targets a particular segment in which
Solicitation orders and make it easier for
the Exchange seeks to garnish greater
more firms to reach the levels and
order flow. The Exchange further
receive the corresponding rebate. The
Exchange proposes to only lower the
believes that the rebate currently in
number of contracts that Members need place for QCC and Solicitation orders is
to reach in order to receive the rebate;
reasonable because it is designed to give
no change is proposed to the amount of
Members who trade significant volume
rebate per contract. The proposed lower on the Exchange a benefit by way of a
volume threshold is:
lower transaction fee. As noted above,
once a Member reaches the proposed
Rebate
new threshold, all of the trading activity
Originating Contract Sides
per
Contract in the specified order type by that
Member will be subject to the
0–1,699,999 ..................................
$0.00 corresponding rebate.
1,700,000–2,499,999 ....................
0.03
The Exchange also believes that its
2,500,000–3,499,999 ....................
0.05
3,500,000+ ....................................
0.07 rebate program for QCC and Solicitation
orders is equitable because it would
Further, the Exchange currently
uniformly apply to all Members engaged
assesses per contract transaction charges in QCC and Solicitation trading in all
and credits to market participants that
option classes traded on the Exchange.
add or remove liquidity from the
B. Self-Regulatory Organization’s
Exchange (‘‘maker/taker fees’’) in a
Statement on Burden on Competition
select number of options classes (the
‘‘Select Symbols’’).4 For Solicitation
The proposed rule change does not
orders in the Select Symbols, the
impose any burden on competition that
Exchange currently provides a rebate of
$0.15 to contracts that do not trade with is not necessary or appropriate in
furtherance of the purposes of the
the contra order in the Solicited Order
Exchange Act.
Mechanism. The Exchange does not
propose any change to that rebate and
C. Self-Regulatory Organization’s
that rebate will continue to apply.
Statement on Comments on the
Proposed Rule Change Received from
2. Statutory Basis
Members, Participants, or Others
The Exchange believes that its
proposal to amend its Schedule of Fees
The Exchange has not solicited, and
is consistent with Section 6(b) of the
does not intend to solicit, comments on
Exchange Act 5 in general, and furthers
this proposed rule change. The
the objectives of Section 6(b)(4) of the
Exchange has not received any
Exchange Act 6 in particular, in that it is unsolicited written comments from
an equitable allocation of reasonable
members or other interested parties.
dues, fees and other charges among
Exchange Members. The Exchange
7 For example, the customer fee is $0.00 per
believes that the proposed fee change
contract for products other than Singly Listed
will generally allow the Exchange and
Indexes, Singly Listed ETFs and FX Options. For
Singly Listed Options, Singly Listed ETFs and FX
its Members to better compete for order
Options, the customer fee is $0.18 per contract. The
flow and thus enhance competition.
4 Options
classes subject to maker/taker fees are
identified by their ticker symbol on the Exchange’s
Schedule of Fees.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(4).
PO 00000
Frm 00064
Fmt 4703
Sfmt 4703
Exchange also currently has an incentive plan in
place for certain specific FX Options which has its
own pricing. See ISE Schedule of Fees.
8 The Exchange currently has a sliding scale fee
structure that ranges from $0.01 per contract to
$0.18 per contract depending on the level of volume
a Member trades on the Exchange in a month.
E:\FR\FM\21OCN1.SGM
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Federal Register / Vol. 76, No. 204 / Friday, October 21, 2011 / Notices
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 Exchange Act.9 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 Exchange 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 Exchange
Act. Comments may be submitted by
any of the following methods:
Electronic Comments
sroberts on DSK5SPTVN1PROD with NOTICES
• 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–2011–68 on the subject
line.
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–
2011–68 and should be submitted on or
before November 14, 2011.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–27305 Filed 10–20–11; 8:45 am]
BILLING CODE 8011–01–P
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
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 20, 2011.
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–2011–68. 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
Julia Kurnik, Director of Research and
only one method. The Commission will
Policy, National Women’s Business
post all comments on the Commission’s
Council, Small Business
Internet Web site (https://www.sec.gov/
Administration, 409 3rd Street, Suite
rules/sro.shtml). Copies of the
210, Washington, DC 20416.
submission, all subsequent
FOR FURTHER INFORMATION CONTACT: Julia
amendments, all written statements
Kurnik, mail to: Director of Research
with respect to the proposed rule
and Policy, National Women’s Business
change that are filed with the
Council 202–205–6826,
Commission, and all written
julia.kurnik@nwbc.gov, Curtis B. Rich,
communications relating to the
Management Analyst, 202–205–7030,
proposed rule change between the
Commission and any person, other than curtis.rich@sba.gov.
SUPPLEMENTARY INFORMATION: The
those that may be withheld from the
National Women’s Business Council
public in accordance with the
(NWBC) is a bi-partisan federal advisory
provisions of 5 U.S.C. 552, will be
council created to serve as an
available for Web site viewing and
9 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Mar<15>2010
18:11 Oct 20, 2011
SUMMARY:
10 17
Jkt 226001
PO 00000
CFR 200.30–3(a)(12).
Frm 00065
Fmt 4703
Sfmt 4703
65557
independent source of advice and
counsel to the President, Congress and
the U.S. Small Business Administration
on economic issues of importance to
women business owners. The NWBC
proposes to conduct a focus group study
to probe in-depth issues relating to the
gender gap in the grant of U.S. Patents,
Trademarks and Copyrights for the time
period 1976–2010. One of NWBC’s
current priorities is to examine in-depth
the relationship between intellectual
property and women-owned businesses.
Very little has been studied in this area,
so the NWBC has crafted a study that is
both quantitative and qualitative. The
quantitative study will use USPTO data
on patents and trademarks to determine
the number of women entrepreneurs
applying for and receiving patents,
trademarks and copyrights. The
quantitative study will also analyze the
differences in the number of women
applying for and receiving patents,
trademarks and copyrights as compared
to men, and will analyze sub-groups of
women as well. The qualitative study
will probe in-depth the questions raised
by the quantitative study as well as
those raised by NWBC. Six focus groups
will be conducted, two with women
participants who have received U.S.
patents, trademarks or copyrights, two
with women participants who applied
for U.S. patents, trademarks or
copyrights but did not receive a grant,
and two with women participants who
have not applied for IP protection.
Title: Focus Groups: Intellectual
Property and Women Entrepreneurs.
Description of Respondents: Women
who have received U.S. patents,
trademarks or copyrights; women who
applied for U.S. patents, trademarks or
copyrights but did not receive a grant;
and women who have not applied for IP
protection.
Form Number: N/A.
Annual Responses: 72.
Annual Burden: 144.
Jacqueline White,
Chief, Administrative Information Branch.
[FR Doc. 2011–27239 Filed 10–20–11; 8:45 am]
BILLING CODE; P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #12884 and #12885]
Massachusetts Disaster #MA–00043
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a notice of an
Administrative declaration of a disaster
for the Commonwealth of Massachusetts
dated 10/13/2011.
SUMMARY:
E:\FR\FM\21OCN1.SGM
21OCN1
]]>Agencies
[Federal Register Volume 76, Number 204 (Friday, October 21, 2011)]
[Notices]
[Pages 65555-65557]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27305]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-65583; File No. SR-ISE-2011-68]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change to Amend the Volume Threshold for Tier-Based Rebates for
Qualified Contingent Cross Orders and Solicitation Orders Executed on
the Exchange
October 18, 2011.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that, on October 3, 2011, the International Securities Exchange,
LLC (the ``Exchange'' or the ``ISE'') 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
[[Page 65556]]
by the Exchange. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to lower the threshold levels for tier-based
rebates for Qualified Contingent Cross (``QCC'') orders and
Solicitation orders. 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 this proposed rule change is to lower the threshold
contract levels for tier-based rebates to encourage members to submit
greater numbers of QCC orders and Solicitation orders to the Exchange.
The Exchange currently provides a rebate to Members who reach a certain
volume threshold in QCC orders and/or Solicitation orders during a
month.\3\ Once a Member reaches the volume threshold, the Exchange
provides a rebate to that Member for all of its QCC and Solicitation
traded contracts for that month. The rebate is paid to the Member
entering a qualifying order, i.e., a QCC order and/or a Solicitation
order. The rebate applies to QCC orders and Solicitation orders in all
symbols traded on the Exchange. Additionally, the threshold levels are
based on the originating side so if, for example, a Member submits a
Solicitation order for 1,000 contracts, all 1,000 contracts are counted
to reach the established threshold even if the order is broken up and
executed with multiple counter parties.
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 65087 (August 10, 2011), 76 FR
50783 (August 16, 2011) (SR-ISE-2011-47).
---------------------------------------------------------------------------
The current volume threshold and corresponding rebate per contract
is:
------------------------------------------------------------------------
Rebate
Originating Contract Sides per
Contract
------------------------------------------------------------------------
0-1,999,999.................................................. $0.00
2,000,000-3,499,999.......................................... 0.03
3,500,000-3,999,999.......................................... 0.05
4,000,000+................................................... 0.07
------------------------------------------------------------------------
The Exchange now proposes to lower the volume threshold levels to
attract additional order flow in QCC and Solicitation orders and make
it easier for more firms to reach the levels and receive the
corresponding rebate. The Exchange proposes to only lower the number of
contracts that Members need to reach in order to receive the rebate; no
change is proposed to the amount of rebate per contract. The proposed
lower volume threshold is:
------------------------------------------------------------------------
Rebate
Originating Contract Sides per
Contract
------------------------------------------------------------------------
0-1,699,999.................................................. $0.00
1,700,000-2,499,999.......................................... 0.03
2,500,000-3,499,999.......................................... 0.05
3,500,000+................................................... 0.07
------------------------------------------------------------------------
Further, the Exchange currently assesses per contract transaction
charges and credits to market participants that add or remove liquidity
from the Exchange (``maker/taker fees'') in a select number of options
classes (the ``Select Symbols'').\4\ For Solicitation orders in the
Select Symbols, the Exchange currently provides a rebate of $0.15 to
contracts that do not trade with the contra order in the Solicited
Order Mechanism. The Exchange does not propose any change to that
rebate and that rebate will continue to apply.
---------------------------------------------------------------------------
\4\ Options classes subject to maker/taker fees are identified
by their ticker symbol on the Exchange's Schedule of Fees.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that its proposal to amend its Schedule of
Fees is consistent with Section 6(b) of the Exchange Act \5\ in
general, and furthers the objectives of Section 6(b)(4) of the Exchange
Act \6\ 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 change will generally allow the
Exchange and its Members to better compete for order flow and thus
enhance competition. Specifically, the Exchange believes that its
proposal to lower the volume threshold is reasonable as it will
encourage Members to direct their QCC and Solicitation orders to the
Exchange instead of sending this order flow to a competing exchange.
The Exchange notes that it currently has other incentive programs to
promote and encourage growth in specific business areas. For example,
the Exchange has lower fees (or no fees) for customer orders; \7\ and
tiered pricing that reduces rates for market makers based on the level
of business they bring to the Exchange.\8\ This proposed rule change
targets a particular segment in which the Exchange seeks to garnish
greater order flow. The Exchange further believes that the rebate
currently in place for QCC and Solicitation orders is reasonable
because it is designed to give Members who trade significant volume on
the Exchange a benefit by way of a lower transaction fee. As noted
above, once a Member reaches the proposed new threshold, all of the
trading activity in the specified order type by that Member will be
subject to the corresponding rebate.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f(b).
\6\ 15 U.S.C. 78f(b)(4).
\7\ For example, the customer fee is $0.00 per contract for
products other than Singly Listed Indexes, Singly Listed ETFs and FX
Options. For Singly Listed Options, Singly Listed ETFs and FX
Options, the customer fee is $0.18 per contract. The Exchange also
currently has an incentive plan in place for certain specific FX
Options which has its own pricing. See ISE Schedule of Fees.
\8\ The Exchange currently has a sliding scale fee structure
that ranges from $0.01 per contract to $0.18 per contract depending
on the level of volume a Member trades on the Exchange in a month.
---------------------------------------------------------------------------
The Exchange also believes that its rebate program for QCC and
Solicitation orders is equitable because it would uniformly apply to
all Members engaged in QCC and Solicitation trading in all option
classes traded on the Exchange.
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 Exchange 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.
[[Page 65557]]
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 Exchange Act.\9\ 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 Exchange Act. If the Commission takes such action, the
Commission shall institute proceedings to determine whether the
proposed rule should be approved or disapproved.
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\9\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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 Exchange 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-2011-68 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-2011-68. 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-2011-68 and should be
submitted on or before November 14, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-27305 Filed 10-20-11; 8:45 am]
BILLING CODE 8011-01-P
