Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees, 74822-74824 [2015-30243]

Download as PDF 74822 Federal Register / Vol. 80, No. 229 / Monday, November 30, 2015 / Notices 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 the filing also will be available for inspection and copying at the principal office of DTC and on DTCC’s Web site (https://dtcc.com/legal/sec-rulefilings.aspx). 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–DTC– 2015–011 and should be submitted on or before December 21, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 Robert W. Errett, Deputy Secretary. [FR Doc. 2015–30245 Filed 11–27–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Dated: November 25, 2015. Brent J. Fields, Secretary. [FR Doc. 2015–30481 Filed 11–25–15; 4:15 pm] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76507; File No. SR–ISE– 2015–41] Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees November 23, 2015. Sunshine Act Meeting jstallworth on DSK7TPTVN1PROD with NOTICES listed for the Closed Meeting in closed session. The subject matter of the Closed Meeting will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; Adjudicatory matters; Resolution of litigation claims; and Other matters relating to enforcement proceedings. 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. Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94–409, that the Securities and Exchange Commission will hold a Closed Meeting on Thursday, December 3, 2015 at 2:00 p.m. Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the Closed Meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or her designee, has certified that, in her opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) and 17 CFR 200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the scheduled matter at the Closed Meeting. Commissioner Aguilar, as duty officer, voted to consider the items 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 November 10, 2015, 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, 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 ISE proposes to amend the Schedule of Fees as described in more detail below. The text of the proposed rule change is available on the Exchange’s Internet Web site at https://www.ise.com, at the principal office of the Exchange, 1 15 20 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 15:23 Nov 27, 2015 2 17 Jkt 238001 PO 00000 U.S.C. 78s(b)(1). CFR 240.19b–4. Frm 00077 Fmt 4703 Sfmt 4703 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 Exchange 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 set of rebates to the Qualified Contingent Cross (‘‘QCC’’) and/or other solicited crossing orders, including solicited orders executed in the Solicitation, Facilitation or Price Improvement Mechanisms, pricing initiative that offers rebates to members who execute a specified volume of QCC and other solicited crossing orders in a month. This new set of rebates, as proposed, offers a lower rebate to members that execute a specified volume of QCC and solicited orders between two Priority Customers 3 (‘‘‘Customer to Customer’ Orders’’). The Exchange notes that there is no change to how volume is calculated for the volume tiers. Thus, members will continue to obtain the tier level based on all QCC and/or solicited crossing orders’ originating side volume. Members will receive the Non‘‘Customer to Customer’’ Order 4 rebate for their Non-‘‘Customer to Customer’’ Orders and the ‘‘Customer to Customer’’ Order rebate for their ‘‘Customer to Customer’’ Orders. Currently, the Exchange offers members rebates in QCC and/or other solicited crossing orders (including ‘‘Customer to Customer’’ Orders), i.e. orders executed in the Solicitation, 3 The term ‘‘Priority Customer’’ means a person or entity that (i) is not a broker or dealer in securities, and (ii) does not place more than 390 orders in listed options per day on average during a calendar month for its own beneficial account(s). 4 ‘‘Non-‘Customer to Customer’ Orders’’ are QCC and/or other solicited crossing orders, including solicited orders executed in the Solicitation, Facilitation or Price Improvement Mechanisms, and excluding ‘‘Customer to Customer’’ Orders. E:\FR\FM\30NON1.SGM 30NON1 Federal Register / Vol. 80, No. 229 / Monday, November 30, 2015 / Notices Facilitation, or Price Improvement Mechanisms where the agency order is executed against an order solicited from another party. 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. Currently, for members that execute 0 to 99,999 originating contract sides (‘‘Tier 1’’) the rebate is $0.00 per contract, for members that execute 100,00 to 199,999 originating contract sides (‘‘Tier 2’’) the rebate is $0.05 per contract, for members that execute 200,000 to 499,999 originating contract sides (‘‘Tier 3’’) the rebate is $0.07 per contract, for members that execute 500,000 to 699,999 originating contract sides (‘‘Tier 4’’) the rebate is $0.08 per contract, for members that execute 700,000 to 999,999 originating contract sides (‘‘Tier 5’’) the rebate is $0.09 per contract, and for members that execute 1,000,000 originating contract sides or more (‘‘Tier 6’’) the rebate is $0.11 per contract.5 The Exchange now proposes to offer a new set of rebates for ‘‘Customer to Customer’’ Orders. These rebates will be provided to members for each originating contract side of a ‘‘Customer to Customer’’ Order in all symbols traded on the Exchange as follows: For Tier 1 the rebate is $0.00, for Tiers 2 through 3 the rebate is $0.01, and for Tiers 4 through 6 the rebate is $0.03. Finally, the Exchange notes that all originating contract side volume will continue to contribute to the member’s Tier level. For example, if a member has 175,000 originating contract sides for Non-‘‘Customer to Customer’’ Orders and 75,000 originating contract sides for ‘‘Customer to Customer’’ Orders, the member’s aggregated volume will be 250,000 placing them in Tier 3 (200,000 to 499,999). As a result, the member will receive a rebate of $0.07 per originating contract side for its Non-‘‘Customer to Customer’’ Orders and a rebate of $0.01 per originating contract side for its ‘‘Customer to Customer’’ Orders. jstallworth on DSK7TPTVN1PROD with NOTICES 2. Statutory Basis The Exchange believes that the proposed rule change is consistent with the provisions of Section 6 of the Act,6 in general, and Section 6(b)(4) of the Act,7 in particular, in that it is designed to provide for the equitable allocation of reasonable dues, fees, and other charges 5 The rebate is applied to the originating contract side of QCC and solicited crossing orders traded in a given month once a member reaches the specified volume threshold/Tier during that month. 6 15 U.S.C. 78f. 7 15 U.S.C. 78f(b)(4). VerDate Sep<11>2014 15:23 Nov 27, 2015 Jkt 238001 among its members and other persons using its facilities. The Exchange believes that it is reasonable and equitable to offer lower rebates for certain ‘‘Customer to Customer’’ Orders because other exchanges, including the CBOE for example, offer no rebate (credit) for customer to customer executions.8 Further, the Exchange believes it is reasonable and equitable to continue to provide for the opportunity to receive rebates as these proposed rebates are designed to attract additional order flow to the Exchange and continue to remain attractive to market participants. The Exchange believes that the proposed fees are not unfairly discriminatory because these fees would be uniformly applied to all ‘‘Customer to Customer’’ Orders. Additionally, as fees for Priority Customer orders continue to decrease, it has become necessary for the Exchange to lower rebates for ‘‘Customer to Customer’’ Orders in order to balance the decrease in fees for Priority Customer orders and the rebates provided for ‘‘Customer to Customer’’ Orders. B. Self-Regulatory Organization’s Statement on Burden on Competition In accordance with Section 6(b)(8) of the Act,9 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. The Exchange believes that the proposed rebates remain competitive with the many rebates (if any) offered by other options exchanges as discussed above. Further, the rebates remain attractive to market participants. 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 and rebates 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 8 See CBOE Fee Schedule, QCC Rate Table, Notes at https://www.cboe.com/publish/feeschedule/ CBOEFeeSchedule.pdf. 9 15 U.S.C. 78f(b)(8). PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 74823 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,10 and subparagraph (f)(2) of Rule 19b–4 thereunder,11 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– 2015–41 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–2015–41. 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 10 15 11 17 E:\FR\FM\30NON1.SGM U.S.C. 78s(b)(3)(A)(ii). CFR 240.19b–4(f)(2). 30NON1 74824 Federal Register / Vol. 80, No. 229 / Monday, November 30, 2015 / Notices 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 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– 2015–41 and should be submitted by December 21, 2015. trading after a market-wide speed bump is triggered. 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Robert W. Errett, Deputy Secretary. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change [FR Doc. 2015–30243 Filed 11–27–15; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–76505; File No. SR–ISE Gemini–2015–17] Self-Regulatory Organizations; ISE Gemini, LLC; Notice of Filing of Proposed Rule Change To Amend Rule 804(g) November 23, 2015. jstallworth on DSK7TPTVN1PROD with NOTICES 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 November 12, 2015, ISE Gemini, LLC (the ‘‘Exchange’’ or ‘‘ISE Gemini’’) 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. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to amend Rule 804(g) to require Clearing Member approval for market makers to resume 12 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 1 15 VerDate Sep<11>2014 15:23 Nov 27, 2015 Jkt 238001 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. Purpose The purpose of the proposed rule change is to amend Rule 804(g) on ‘‘Automated Quotation Adjustments’’ to require Clearing Member 3 approval for Primary Market Makers (‘‘PMMs’’) and Competitive Market Makers (‘‘CMMs’’) (collectively, ‘‘market makers’’) to resume trading after a market-wide speed bump is triggered. The Exchange offers market makers functionality whereby the Exchange will automatically remove a market maker’s quote in all series in an options class if a ‘‘curtailment event’’ occurs based on parameters set by the market maker on a class-by-class basis.4 In particular, the Exchange will automatically remove a market maker’s quote in a class when, during a time period established by the market maker, the market maker exceeds: (i) The specified number of total contracts in the class, (ii) the specified percentage of the total size of the market maker’s quotes in the class, (iii) the specified absolute value of the net between contracts bought and contracts sold in the class, or (iv) the specified absolute value of the net between (a) calls purchased plus puts sold in the class, and (b) calls sold plus puts purchased in the class.5 In addition, the Exchange provides market3 The term ‘‘Clearing Member’’ means a Member that is self-clearing or an Electronic Access Member that clears Exchange Transactions for other Members of the Exchange. See Rule 100(a)(8). 4 See Rule 804(g)(i). 5 Id. PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 wide functionality whereby a market maker’s quote in all options classes are automatically cancelled if, during a configurable time period, the total number of curtailment events exceeds a market-wide parameter set by the market maker.6 This market-wide functionality, which is available for ISE Gemini only or across both ISE Gemini and ISE Gemini’s affiliate, the International Securities Exchange, LLC,7 is useful to members as numerous curtailment events triggered across multiple options classes, and if chosen, multiple exchanges, may signify a larger problem being experienced by the market maker that warrants its quotes being removed from the market. Currently, the Exchange only requires that a market maker notify Market Operations of its intention to reenter the market to resume trading after the market-wide speed bump has been activated. Due to the significant nature of events that may trigger this marketwide speed bump functionality, the Exchange now proposes also to require Clearing Member approval prior to allowing the market maker to resume quoting. Pursuant to the proposed rule change, a market maker must notify its Clearing Member(s) when it is ready to resume trading following a market-wide speed bump. Exchange staff may also notify the Clearing Member(s) when the market maker’s quotes have been removed, to facilitate a better response time. Each Clearing Member must then contact the Exchange directly to give their authorization for the market maker to resume trading.8 Each market maker authorized to trade on the Exchange must obtain from a Clearing Member a ‘‘Market Maker Letter of Guarantee’’ wherein the Clearing Member accepts financial responsibility for all Exchange transactions made by the market maker.9 The Exchange believes that it is appropriate to require Clearing Member approval before a market maker can reenter the market after the market-wide speed bump has been triggered as the Clearing Member guarantees the market makers trades, and therefore bears ultimate financial risk associated with those transactions. The Exchange notes that while not all market makers are Clearing Members, all market makers require a Clearing Member’s consent to clear transactions on their behalf in 6 See Rule 804(g)(ii). This functionality is known as ‘‘market-wide speed bump’’ and is the subject of this filing. 7 Id. 8 If a market maker has multiple Clearing Members, it must receive approval from each Clearing Member to resume trading. 9 See Rule 808. E:\FR\FM\30NON1.SGM 30NON1

Agencies

[Federal Register Volume 80, Number 229 (Monday, November 30, 2015)]
[Notices]
[Pages 74822-74824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30243]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76507; File No. SR-ISE-2015-41]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Amend the Schedule of Fees

November 23, 2015.
    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 November 10, 2015, 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, 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

    ISE proposes to amend the Schedule of Fees as described in more 
detail below. The text of the proposed rule change is available on the 
Exchange's Internet Web site at 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 Exchange 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 set of rebates to the Qualified Contingent 
Cross (``QCC'') and/or other solicited crossing orders, including 
solicited orders executed in the Solicitation, Facilitation or Price 
Improvement Mechanisms, pricing initiative that offers rebates to 
members who execute a specified volume of QCC and other solicited 
crossing orders in a month. This new set of rebates, as proposed, 
offers a lower rebate to members that execute a specified volume of QCC 
and solicited orders between two Priority Customers \3\ (```Customer to 
Customer' Orders''). The Exchange notes that there is no change to how 
volume is calculated for the volume tiers. Thus, members will continue 
to obtain the tier level based on all QCC and/or solicited crossing 
orders' originating side volume. Members will receive the Non-
``Customer to Customer'' Order \4\ rebate for their Non-``Customer to 
Customer'' Orders and the ``Customer to Customer'' Order rebate for 
their ``Customer to Customer'' Orders.
---------------------------------------------------------------------------

    \3\ The term ``Priority Customer'' means a person or entity that 
(i) is not a broker or dealer in securities, and (ii) does not place 
more than 390 orders in listed options per day on average during a 
calendar month for its own beneficial account(s).
    \4\ ``Non-`Customer to Customer' Orders'' are QCC and/or other 
solicited crossing orders, including solicited orders executed in 
the Solicitation, Facilitation or Price Improvement Mechanisms, and 
excluding ``Customer to Customer'' Orders.
---------------------------------------------------------------------------

    Currently, the Exchange offers members rebates in QCC and/or other 
solicited crossing orders (including ``Customer to Customer'' Orders), 
i.e. orders executed in the Solicitation,

[[Page 74823]]

Facilitation, or Price Improvement Mechanisms where the agency order is 
executed against an order solicited from another party. 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. 
Currently, for members that execute 0 to 99,999 originating contract 
sides (``Tier 1'') the rebate is $0.00 per contract, for members that 
execute 100,00 to 199,999 originating contract sides (``Tier 2'') the 
rebate is $0.05 per contract, for members that execute 200,000 to 
499,999 originating contract sides (``Tier 3'') the rebate is $0.07 per 
contract, for members that execute 500,000 to 699,999 originating 
contract sides (``Tier 4'') the rebate is $0.08 per contract, for 
members that execute 700,000 to 999,999 originating contract sides 
(``Tier 5'') the rebate is $0.09 per contract, and for members that 
execute 1,000,000 originating contract sides or more (``Tier 6'') the 
rebate is $0.11 per contract.\5\
---------------------------------------------------------------------------

    \5\ The rebate is applied to the originating contract side of 
QCC and solicited crossing orders traded in a given month once a 
member reaches the specified volume threshold/Tier during that 
month.
---------------------------------------------------------------------------

    The Exchange now proposes to offer a new set of rebates for 
``Customer to Customer'' Orders. These rebates will be provided to 
members for each originating contract side of a ``Customer to 
Customer'' Order in all symbols traded on the Exchange as follows: For 
Tier 1 the rebate is $0.00, for Tiers 2 through 3 the rebate is $0.01, 
and for Tiers 4 through 6 the rebate is $0.03.
    Finally, the Exchange notes that all originating contract side 
volume will continue to contribute to the member's Tier level. For 
example, if a member has 175,000 originating contract sides for Non-
``Customer to Customer'' Orders and 75,000 originating contract sides 
for ``Customer to Customer'' Orders, the member's aggregated volume 
will be 250,000 placing them in Tier 3 (200,000 to 499,999). As a 
result, the member will receive a rebate of $0.07 per originating 
contract side for its Non-``Customer to Customer'' Orders and a rebate 
of $0.01 per originating contract side for its ``Customer to Customer'' 
Orders.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\6\ in general, and Section 
6(b)(4) of the Act,\7\ 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.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78f.
    \7\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes that it is reasonable and equitable to offer 
lower rebates for certain ``Customer to Customer'' Orders because other 
exchanges, including the CBOE for example, offer no rebate (credit) for 
customer to customer executions.\8\ Further, the Exchange believes it 
is reasonable and equitable to continue to provide for the opportunity 
to receive rebates as these proposed rebates are designed to attract 
additional order flow to the Exchange and continue to remain attractive 
to market participants. The Exchange believes that the proposed fees 
are not unfairly discriminatory because these fees would be uniformly 
applied to all ``Customer to Customer'' Orders. Additionally, as fees 
for Priority Customer orders continue to decrease, it has become 
necessary for the Exchange to lower rebates for ``Customer to 
Customer'' Orders in order to balance the decrease in fees for Priority 
Customer orders and the rebates provided for ``Customer to Customer'' 
Orders.
---------------------------------------------------------------------------

    \8\ See CBOE Fee Schedule, QCC Rate Table, Notes at https://www.cboe.com/publish/feeschedule/CBOEFeeSchedule.pdf.
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\9\ 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. The Exchange 
believes that the proposed rebates remain competitive with the many 
rebates (if any) offered by other options exchanges as discussed above. 
Further, the rebates remain attractive to market participants. 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 and rebates to remain competitive with 
other exchanges. For the reasons described above, the Exchange believes 
that the proposed fee changes reflect this competitive environment.
---------------------------------------------------------------------------

    \9\ 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,\10\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\11\ because it establishes a due, fee, or other charge 
imposed by ISE.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 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-2015-41 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-2015-41. 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

[[Page 74824]]

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 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-2015-41 and should be submitted by December 21, 
2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-30243 Filed 11-27-15; 8:45 am]
 BILLING CODE 8011-01-P
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