Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Fees and Rebates for Adding and Removing Liquidity, 3307-3308 [2012-1176]
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Federal Register / Vol. 77, No. 14 / Monday, January 23, 2012 / Notices
TKELLEY on DSK3SPTVN1PROD with NOTICES
Option Trading Rights (‘‘OTRs’’) that
were separated from full New York
Stock Exchange, Inc. 82 seats
(‘‘Separated OTRs’’). All New York
Stock Exchange seat ownership (with or
without OTRs) was extinguished in the
2006 demutualization of New York
Stock Exchange, Inc.83 Although the
commenter takes no position on the
merits of the Combination, the
commenter opposes the Combination on
the grounds that the Exchange does not
fully own all of the assets being
transferred. Specifically, the commenter
contends that the owners of Separated
OTRs retained their Separated OTRs,
even after the New York Stock
Exchange, Inc. exited the options
business in 1997, with the expectation
that their ownership of the Separated
OTRs would afford them full rights to
trade options under the auspices of New
York Stock Exchange, Inc. or its
successor entity. The commenter
contends that such ownership gives a
right to trade options on NYSE Market
and NYSE Arca, and after the
Combination, Euronext. The commenter
refers to its comment letters in
connection with the demutualization of
New York Stock Exchange, Inc. in its
merger with Archipelago as well as the
combination of NYSE Group and
Euronext N.V.84 The commenter asked
that reserves be put aside for the
Exchange to meet its obligations to
Separated OTR holders. The NYSE
Response to Comments states that the
issue of the rights of owners of
Separated OTRs is not before the
Commission in the context of the NYSE
Exchanges’ proposed rule filings and
notes that the NYSE Exchanges are not
proposing in their respective filings a
change in the trading rights on the
Exchange, NYSE Amex or NYSE Arca,
respectively.85
The issue of the rights of owners of
Separated OTRs is not before the
Commission in the context of this rule
filing. Pursuant to Section 19(b)(1) of
the Act,86 an SRO (such as NYSE) is
required to file with the Commission
any proposed rule or any proposed
82 New York Stock Exchange, Inc. is the
predecessor entity to NYSE. See NYSE Inc.Archipelago Merger Order, supra note 27.
83 See NYSE Inc.-Archipelago Merger Order,
supra note 27.
84 See Rothlein Letters, supra note 5. The
Commission notes that the commenter reiterated
these points in its rebuttal to the NYSE Response
to Comments, continuing to argue, in part, that it
still retains an interest in certain trading rights and
that the proposed rule changes do not comport with
fair and equitable principles of trade. See Rothlein
Rebuttal Letters, supra note 6.
85 See NYSE Response to Comments, supra note
6.
86 15 U.S.C. 78s(b)(1).
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17:58 Jan 20, 2012
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change in, addition to, or deletion from
the rules of such SRO. Further, pursuant
to Section 19(b)(2) of the Act,87 the
Commission shall approve a proposed
rule change filed by an SRO if the
Commission finds that such proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
the SRO.
III. Conclusion
For the foregoing reasons, the
Commission finds that the proposed
rule change is consistent with the Act
and the rules and regulations
thereunder applicable to a national
securities exchange.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 88 that the
proposed rule changes (SR–EDGA–
2011–34; SR–EDGX–2011–33; SR–ISE–
2011–69; SR–NYSE–2011–51; SR–
NYSEAmex–2011–78; SR–NYSEArca–
2011–72), are approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.89
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–1177 Filed 1–20–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–66170; File No. SR–ISE–
2012–02]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fees and Rebates
for Adding and Removing Liquidity
January 17, 2012.
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 January
3, 2012, 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
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
87 15
U.S.C. 78s(b)(2).
88 Id.
89 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
3307
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to amend its
transaction fees and rebates for adding
and removing liquidity. 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 Exchange currently assesses per
contract transaction fees and rebates to
market participants that add or remove
liquidity from the Exchange (‘‘maker/
taker fees’’) in 103 options classes (the
‘‘Select Symbols’’).3 The purpose of this
proposed rule change is to amend the
list of Select Symbols on the Exchange’s
Schedule of Fees, titled ‘‘Rebates and
Fees for Adding and Removing
Liquidity in Select Symbols and
Complex Order Maker/Taker fees for
symbols that are in the Penny Pilot
Program’’ in order to attract additional
order flow to the Exchange. The
Exchange is proposing to delete Market
Vectors Semiconductor ETF (‘‘SMH’’)
from the list of Select Symbols. With
this proposed rule change, SMH will no
longer be subject to the Exchange’s
maker/taker fees.
2. Statutory Basis
The Exchange believes that its
proposal to amend its Fee Schedule is
consistent with Section 6(b) of the Act 4
in general, and furthers the objectives of
Section 6(b)(4) of the Act 5 in particular,
3 Options classes subject to maker/taker fees are
identified by their ticker symbol on the Exchange’s
Schedule of Fees.
4 15 U.S.C. 78f(b).
5 15 U.S.C. 78f(b)(4).
E:\FR\FM\23JAN1.SGM
23JAN1
3308
Federal Register / Vol. 77, No. 14 / Monday, January 23, 2012 / Notices
in that it is an equitable allocation of
reasonable fees and other charges among
Exchange members and other persons
using its facilities.
The Exchange believes that it is
reasonable to remove SMH from its list
of Select Symbols to attract additional
order flow to the Exchange. The
Exchange believes that applying nonmaker/taker fees to SMH, including the
opportunity to receive payment for
order flow, will attract order flow in
SMH to the Exchange.
The Exchange believes that it is
equitable and not unfairly
discriminatory to amend its list of Select
Symbols to remove SMH because the
list of Select Symbols would apply
uniformly to all categories of
participants in the same manner. All
market participants who trade the Select
Symbols would be subject to the maker/
taker fees and rebates, which would not
include SMH. Also, all market
participants would be uniformly subject
to the non-maker/taker fees, which
would include SMH.
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.
TKELLEY on DSK3SPTVN1PROD with 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 Act.6 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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–1176 Filed 1–20–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–ISE–2012–02 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–2012–02. This file
number should be included on the
subject line if email 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–
2012–02 and should be submitted on or
before February 13, 2012.
[Release No. 34–66172; File No. SR–ISE–
2012–03]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to Fees and Rebates
for Adding and Removing Liquidity
January 18, 2012.
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 January
5, 2012, 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
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 amend its
transaction fees and rebates for adding
and removing liquidity. 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 15
6 15
U.S.C. 78s(b)(3)(A)(ii).
VerDate Mar<15>2010
17:58 Jan 20, 2012
7 17
Jkt 226001
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CFR 200.30–3(a)(12).
Frm 00083
Fmt 4703
2 17
Sfmt 4703
E:\FR\FM\23JAN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
23JAN1
]]>Agencies
[Federal Register Volume 77, Number 14 (Monday, January 23, 2012)]
[Notices]
[Pages 3307-3308]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1176]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-66170; File No. SR-ISE-2012-02]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Fees and Rebates for Adding and Removing Liquidity
January 17, 2012.
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 January 3, 2012, 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 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 amend its transaction fees and rebates for
adding and removing liquidity. 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 Exchange currently assesses per contract transaction fees and
rebates to market participants that add or remove liquidity from the
Exchange (``maker/taker fees'') in 103 options classes (the ``Select
Symbols'').\3\ The purpose of this proposed rule change is to amend the
list of Select Symbols on the Exchange's Schedule of Fees, titled
``Rebates and Fees for Adding and Removing Liquidity in Select Symbols
and Complex Order Maker/Taker fees for symbols that are in the Penny
Pilot Program'' in order to attract additional order flow to the
Exchange. The Exchange is proposing to delete Market Vectors
Semiconductor ETF (``SMH'') from the list of Select Symbols. With this
proposed rule change, SMH will no longer be subject to the Exchange's
maker/taker fees.
---------------------------------------------------------------------------
\3\ 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 Fee Schedule
is consistent with Section 6(b) of the Act \4\ in general, and furthers
the objectives of Section 6(b)(4) of the Act \5\ in particular,
[[Page 3308]]
in that it is an equitable allocation of reasonable fees and other
charges among Exchange members and other persons using its facilities.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange believes that it is reasonable to remove SMH from its
list of Select Symbols to attract additional order flow to the
Exchange. The Exchange believes that applying non-maker/taker fees to
SMH, including the opportunity to receive payment for order flow, will
attract order flow in SMH to the Exchange.
The Exchange believes that it is equitable and not unfairly
discriminatory to amend its list of Select Symbols to remove SMH
because the list of Select Symbols would apply uniformly to all
categories of participants in the same manner. All market participants
who trade the Select Symbols would be subject to the maker/taker fees
and rebates, which would not include SMH. Also, all market participants
would be uniformly subject to the non-maker/taker fees, which would
include SMH.
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)(A)(ii) of the Act.\6\ 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.
---------------------------------------------------------------------------
\6\ 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 email to rule-comments@sec.gov. Please include
File Number SR-ISE-2012-02 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-2012-02. This file
number should be included on the subject line if email 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-2012-02 and should be
submitted on or before February 13, 2012.
---------------------------------------------------------------------------
\7\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-1176 Filed 1-20-12; 8:45 am]
BILLING CODE 8011-01-P
