Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees, 62691-62693 [2014-24778]
Download as PDF
Federal Register / Vol. 79, No. 202 / Monday, October 20, 2014 / Notices
persons using the service, within the
meaning of Rule 19b–4(f)(4)(i). As
discussed above, ICE Clear Europe is
currently the clearing organization for
the transitioning LIFFE contracts, and
will continue to clear such contracts
following the transition of trading to ICE
Futures Europe. The contract terms of
the transitioning contracts are not
changing in any material respect, and
ICE Clear Europe will continue to use
substantially the same risk management,
margin, guaranty fund, settlement and
other policies and procedures following
the transition as are currently used with
respect to such contracts. The
amendments to the Rules and
Procedures discussed herein generally
consist of conforming changes to
defined terms and related transitional
provisions that will accommodate the
transition of trading activity. In ICE
Clear Europe’s view, these changes will
thus not significantly affect the
safeguarding of funds or securities in
the custody or control of ICE Clear
Europe, or otherwise significantly affect
the rights or obligations of the Clearing
House and its Clearing Members. At any
time within 60 days of the filing of the
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:
tkelley on DSK3SPTVN1PROD with NOTICES
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–ICEEU–2014–17 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICEEU–2014–17. 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
VerDate Sep<11>2014
16:28 Oct 17, 2014
Jkt 235001
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
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s Web site at https://
www.theice.com/notices/
Notices.shtml?regulatoryFilings.
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–ICEEU–2014–17 and
should be submitted on or before
November 10, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24777 Filed 10–17–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73349; File No. SR–ISE–
2014–47]
Self-Regulatory Organizations;
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change To Amend the Schedule of
Fees
October 14, 2014.
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 October
1, 2014, the International Securities
Exchange, LLC (the ‘‘Exchange’’ or the
‘‘ISE’’) filed with the Securities and
Exchange Commission the proposed
16 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
62691
rule change, as described in Items I, II,
and III below, which items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The ISE is proposing to amend its
Schedule of Fees to introduce a new
rebate tier for members that execute a
specified volume of Qualified
Contingent Cross (‘‘QCC’’) and/or other
solicited crossing orders in a month.
The text of the proposed rule change is
available on the Exchange’s Web site
(https://www.ise.com), at the principal
office of the Exchange, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections A, B and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend the Schedule of Fees
to introduce a new rebate tier for
members that execute a specified
volume of QCC and/or other solicited
crossing orders in a month. The
Exchange’s Schedule of Fees has
separate tables for fees and rebates
applicable to Standard Options and
Mini Options. The Exchange notes that
while the discussion below relates to
rebates for Standard Options, the rebates
for Mini Options, which are not
discussed below, are and shall continue
to be 1⁄10th of the rebates for Standard
Options.
The Exchange offers members tiered
rebates in QCC and/or other solicited
crossing orders, i.e. orders executed in
the solicitation, facilitation, or price
improvement mechanisms where the
agency order is executed against an
order solicited from another party (the
E:\FR\FM\20OCN1.SGM
20OCN1
62692
Federal Register / Vol. 79, No. 202 / Monday, October 20, 2014 / Notices
‘‘QCC and Solicitation Rebate’’). These
rebates are provided for each originating
side of a crossing order, based on a
member’s volume in the crossing
mechanisms during a given month.3
Currently, the rebate is $0.07 per
contract for members that execute from
200,000 to 499,999 originating contract
sides, $0.08 per contract for members
that execute from 500,000 to 699,999
originating contract sides, $0.09 per
contract for members that execute from
700,000 to 999,999 originating contract
sides, and $0.11 per contract for
members that execute 1,000,000
originating contract sides or more.4 The
Exchange now proposes to extend this
pricing initiative to members that
execute from 100,000 to 199,999
originating contract sides in a given
month, who will now be eligible to
receive a QCC and Solicitation Rebate of
$0.05 per contract for their QCC and/or
other solicited crossing orders.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
the provisions of Section 6 of the Act,5
in general, and Section 6(b)(4) of the
Act,6 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. Currently, members
must execute a minimum of 200,000
originating contract sides in QCC and/
or other solicited crossing orders, in
order to qualify for a QCC and
Solicitation Rebate. The Exchange
believes that the proposed fee change is
reasonable and equitable as members
that meet the lower volume threshold
established in this filing will now be
entitled to receive a rebate for their QCC
and/or solicited crossing orders.
Moreover, lowering the threshold level
at which members are entitled to receive
a rebate for their QCC and/or solicited
crossing orders will attract more of this
order flow to the ISE, to the benefit of
all members that trade on the Exchange.
The Exchange does not believe that the
proposed fee change is unfairly
discriminatory as the rebate will be
uniformly applied to all members that
meet the volume threshold for the new
tkelley on DSK3SPTVN1PROD with NOTICES
3 Volume
in Standard Options and Mini Options
is combined to calculate the tier a Member has
reached. Based on the tier achieved, the member is
rebated for that tier for all the Standard Options
traded at the Standard Option rebate amount and
for all the Mini Options traded at the Mini Option
rebate amount.
4 The rebate is applied on all QCC and solicited
crossing order contracts traded in a given month
once a member reaches the specified volume
threshold during that month.
5 15 U.S.C. 78f.
6 15 U.S.C. 78f(b)(4).
VerDate Sep<11>2014
16:28 Oct 17, 2014
Jkt 235001
tier. By lowering the volume threshold
required to receive a QCC and
Solicitation Rebate, the proposed fee
change is designed to allow more
members to qualify. At the same time,
members who execute a higher volume
of QCC and/or solicited crossing orders
will continue to receive rebates at the
current higher rates.
The Exchange notes that it has
determined to charge fees and provide
rebates in Mini Options at a rate that is
1⁄10th the rate of fees and rebates the
Exchange provides for trading in
Standard Options. The Exchange
believes it is reasonable and equitable
and not unfairly discriminatory to
assess lower fees and rebates to provide
market participants an incentive to trade
Mini Options on the Exchange. The
Exchange believes the proposed rebates
are reasonable and equitable in light of
the fact that Mini Options have a
smaller exercise and assignment value,
specifically 1⁄10th that of a standard
option contract, and, as such, is
providing fees and rebates for Mini
Options that are 1⁄10th of those
applicable to Standard Options.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In accordance with Section 6(b)(8) of
the Act,7 the Exchange does not believe
that the proposed rule change will
impose any burden on intermarket or
intramarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes that the
proposed rule change is pro-competitive
as it is designed to attract additional
crossing order flow by offering attractive
rebates to members that bring their QCC
and/or solicited crossing orders to the
ISE. The Exchange operates in a highly
competitive market in which market
participants can readily direct their
order flow to competing venues. In such
an environment, the Exchange must
continually review, and consider
adjusting, its fees to remain competitive
with other exchanges. For the reasons
described above, the Exchange believes
that the proposed fee changes reflect
this competitive environment.
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 8 and
subparagraph (f)(2) of Rule 19b–4
thereunder,9 because it establishes a
due, fee, or other charge imposed by
ISE.
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:
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 No. SR–ISE–
2014–47 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE.,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ISE–2014–47. 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
8 15
7 15
PO 00000
U.S.C. 78f(b)(8).
Frm 00100
Fmt 4703
9 17
Sfmt 4703
E:\FR\FM\20OCN1.SGM
U.S.C. 78s(b)(3)(A)(ii).
CFR 240.19b–4(f)(2).
20OCN1
Federal Register / Vol. 79, No. 202 / Monday, October 20, 2014 / Notices
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
10:00 a.m. and 3:00 p.m. Copies of such
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–
2014–47 and should be submitted by
November 10, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–24778 Filed 10–17–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–73346; File No. SR–
NYSEMKT–2014–88]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change to Make Conforming
Amendments to Reflect Recent
Deletion of Rule 343—Equities
October 14, 2014.
tkelley on DSK3SPTVN1PROD with NOTICES
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on October
10, 2014, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to make
conforming amendments to reflect its
recent deletion of Rule 343—Equities.
The text of the proposed rule change is
10 17
CFR 200.30–3(a)(12).
U.S.C.78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
VerDate Sep<11>2014
16:28 Oct 17, 2014
Jkt 235001
available on the Exchange’s Web site at
www.nyse.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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to make
conforming amendments to reflect its
recent deletion of Rule 343—Equities.
The Exchange deleted Rule 343—
Equities and its interpretation, effective
as of April 7, 2014.4 The Exchange
accordingly proposes to delete obsolete
references to Rule 343—Equities in Rule
321—Equities, governing formation or
acquisition of subsidiaries by member
organizations, and Rule 476A, which
governs minor rule violations.
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Act,5 in general, and
furthers the objectives of Section 6(b)(5)
of the Act,6 in particular, because it is
designed to prevent fraudulent and
manipulative acts and practices, to
foster cooperation and coordination
with persons engaged in facilitating
transactions in securities, and to remove
impediments to and perfect the
mechanism of a free and open market
and a national market system and, in
general, help to protect investors and
the public interest. Specifically, the
Exchange believes that deleting
references to obsolete rules removes
impediments to and perfects the
mechanism of a free and open market by
removing confusion that may result
from having references to obsolete rules
4 See Securities Exchange Act Release No. 71988
(April 22, 2014), 79 FR 23393 (April 28, 2014) (SR–
NYSEMKT–2014–34). See also FINRA Regulatory
Notices 14–10 and 14–11.
5 15 U.S.C. 78f(b).
6 15 U.S.C. 78f(b)(5).
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
62693
in the Exchange’s rulebook. The
Exchange further believes that the
proposal removes impediments to and
perfects the mechanism of a free and
open market by ensuring that persons
subject to the Exchange’s jurisdiction,
regulators, and the investing public can
more easily navigate and understand the
Exchange’s rulebook. The Exchange
believes that eliminating references to
obsolete rules would not be inconsistent
with the public interest and the
protection of investors because investors
will not be harmed and in fact would
benefit from increased transparency as
to which rules are operable, thereby
reducing potential confusion. Removing
such obsolete cross references will also
further the goal of transparency and add
clarity to the Exchange’s rules
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. The
proposed change is not designed to
address any competitive issue but rather
would make the Exchange’s rules
internally consistent, thereby reducing
confusion and making the Exchange’s
rules easier to understand and navigate.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 7 and Rule
19b–4(f)(6) thereunder.8 Because the
proposed rule change does not: (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.
7 15
8 17
E:\FR\FM\20OCN1.SGM
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
20OCN1
Agencies
[Federal Register Volume 79, Number 202 (Monday, October 20, 2014)]
[Notices]
[Pages 62691-62693]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24778]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-73349; File No. SR-ISE-2014-47]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Amend the Schedule of Fees
October 14, 2014.
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 October 1, 2014, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission the proposed rule change, as described in Items I,
II, and III below, which items have been prepared by the self-
regulatory organization. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to amend its Schedule of Fees to introduce a
new rebate tier for members that execute a specified volume of
Qualified Contingent Cross (``QCC'') and/or other solicited crossing
orders in a month. The text of the proposed rule change is available on
the Exchange's Web site (https://www.ise.com), at the principal office
of the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to amend the Schedule of
Fees to introduce a new rebate tier for members that execute a
specified volume of QCC and/or other solicited crossing orders in a
month. The Exchange's Schedule of Fees has separate tables for fees and
rebates applicable to Standard Options and Mini Options. The Exchange
notes that while the discussion below relates to rebates for Standard
Options, the rebates for Mini Options, which are not discussed below,
are and shall continue to be \1/10\th of the rebates for Standard
Options.
The Exchange offers members tiered rebates in QCC and/or other
solicited crossing orders, i.e. orders executed in the solicitation,
facilitation, or price improvement mechanisms where the agency order is
executed against an order solicited from another party (the
[[Page 62692]]
``QCC and Solicitation Rebate''). These rebates are provided for each
originating side of a crossing order, based on a member's volume in the
crossing mechanisms during a given month.\3\ Currently, the rebate is
$0.07 per contract for members that execute from 200,000 to 499,999
originating contract sides, $0.08 per contract for members that execute
from 500,000 to 699,999 originating contract sides, $0.09 per contract
for members that execute from 700,000 to 999,999 originating contract
sides, and $0.11 per contract for members that execute 1,000,000
originating contract sides or more.\4\ The Exchange now proposes to
extend this pricing initiative to members that execute from 100,000 to
199,999 originating contract sides in a given month, who will now be
eligible to receive a QCC and Solicitation Rebate of $0.05 per contract
for their QCC and/or other solicited crossing orders.
---------------------------------------------------------------------------
\3\ Volume in Standard Options and Mini Options is combined to
calculate the tier a Member has reached. Based on the tier achieved,
the member is rebated for that tier for all the Standard Options
traded at the Standard Option rebate amount and for all the Mini
Options traded at the Mini Option rebate amount.
\4\ The rebate is applied on all QCC and solicited crossing
order contracts traded in a given month once a member reaches the
specified volume threshold during that month.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6 of the Act,\5\ in general, and Section
6(b)(4) of the Act,\6\ 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.
Currently, members must execute a minimum of 200,000 originating
contract sides in QCC and/or other solicited crossing orders, in order
to qualify for a QCC and Solicitation Rebate. The Exchange believes
that the proposed fee change is reasonable and equitable as members
that meet the lower volume threshold established in this filing will
now be entitled to receive a rebate for their QCC and/or solicited
crossing orders. Moreover, lowering the threshold level at which
members are entitled to receive a rebate for their QCC and/or solicited
crossing orders will attract more of this order flow to the ISE, to the
benefit of all members that trade on the Exchange. The Exchange does
not believe that the proposed fee change is unfairly discriminatory as
the rebate will be uniformly applied to all members that meet the
volume threshold for the new tier. By lowering the volume threshold
required to receive a QCC and Solicitation Rebate, the proposed fee
change is designed to allow more members to qualify. At the same time,
members who execute a higher volume of QCC and/or solicited crossing
orders will continue to receive rebates at the current higher rates.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78f.
\6\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------
The Exchange notes that it has determined to charge fees and
provide rebates in Mini Options at a rate that is \1/10\th the rate of
fees and rebates the Exchange provides for trading in Standard Options.
The Exchange believes it is reasonable and equitable and not unfairly
discriminatory to assess lower fees and rebates to provide market
participants an incentive to trade Mini Options on the Exchange. The
Exchange believes the proposed rebates are reasonable and equitable in
light of the fact that Mini Options have a smaller exercise and
assignment value, specifically \1/10\th that of a standard option
contract, and, as such, is providing fees and rebates for Mini Options
that are \1/10\th of those applicable to Standard Options.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\7\ the Exchange does
not believe that the proposed rule change will impose any burden on
intermarket or intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. To the contrary,
the Exchange believes that the proposed rule change is pro-competitive
as it is designed to attract additional crossing order flow by offering
attractive rebates to members that bring their QCC and/or solicited
crossing orders to the ISE. The Exchange operates in a highly
competitive market in which market participants can readily direct
their order flow to competing venues. In such an environment, the
Exchange must continually review, and consider adjusting, its fees to
remain competitive with other exchanges. For the reasons described
above, the Exchange believes that the proposed fee changes reflect this
competitive environment.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78f(b)(8).
---------------------------------------------------------------------------
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 \8\ and subparagraph (f)(2) of Rule 19b-4
thereunder,\9\ because it establishes a due, fee, or other charge
imposed by ISE.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(ii).
\9\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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:
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 No. SR-ISE-2014-47 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2014-47. 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
[[Page 62693]]
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
10:00 a.m. and 3:00 p.m. Copies of such 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-2014-47 and should be
submitted by November 10, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-24778 Filed 10-17-14; 8:45 am]
BILLING CODE 8011-01-P