[Federal Register Volume 75, Number 92 (Thursday, May 13, 2010)]
[Notices]
[Pages 27033-27034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11399]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-62053; File No. SR-ISE-2010-35]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change To Adopt a Fee Waiver for Its PrecISE Terminals
May 6, 2010.
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 April 26, 2010, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The ISE is proposing to amend its Schedule of Fees by adopting a
fee waiver. The text of the proposed rule change is available on the
Exchange's Web site (http://www.ise.com), at the principal office of
the Exchange, and at the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of these statements may be examined at
the places specified in Item IV below. The self-regulatory organization
has prepared summaries, set forth in sections A, B and C below, of the
most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of this proposed rule change is to adopt a limited fee
waiver for PrecISE Trade[supreg] (``PrecISE''), the Exchange's
proprietary front-end order routing terminal used by Electronic Access
Members (``EAM'') and sponsored customers \3\ of an EAM to send order
flow to ISE. The Exchange currently charges $350 per user per month for
the first 10 users of an EAM and $100 per user per month for all
subsequent users. The Exchange also has a PrecISE sponsored customer
fee of $350 per sponsored customer per month for the first 10 users and
$100 per sponsored customer per month for all subsequent users.
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\3\ A ``Sponsored Customer'' is a non-Member of the Exchange
that trades under a sponsoring Member's execution and clearing
identity, pursuant to ISE Rule 706, Supplementary Material .01.
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In order to give new users time to become familiar and fully
acclimated with all of the functionality that PrecISE offers, we
proposes [sic] to adopt a fee waiver applicable to all new users of
PrecISE. Specifically, we propose to waive our PrecISE fees for the
first two months for all new EAM and sponsored customer users. The
proposed fee waivers are based on ISE's billing period, which begins on
the 16th of each month and ends on the 15th of the following month. So
if a new user begins using a PrecISE Trade terminal on May 16th, that
user's PrecISE fees would be waived from May 16-July 15, i.e., two
billing periods. And if a new user begins using a PrecISE Trade
terminal on May 18th, that user's PrecISE fees would similarly be
waived from May 18-July 15.\4\
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\4\ See e-mail from Samir Patel, Assistant General Counsel, ISE,
to Richard Holley III, Senior Special Counsel, Division of Trading
and Markets, Commission, dated May 3, 2010.
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These proposed fee changes will be operative on May 3, 2010.
2. Statutory Basis
The basis under the Securities Exchange Act of 1934 (the ``Exchange
Act'') for this proposed rule change is the requirement under Section
6(b)(4) that an exchange have an equitable
[[Page 27034]]
allocation of reasonable dues, fees and other charges among its members
and other persons using its facilities. In particular, the proposed
rule change will serve as an incentive for EAMs and their sponsored
customers to use PrecISE as an additional trading tool on their trading
desks.
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) of the Act \5\ and Rule 19b-4(f)(2) \6\ thereunder. At any
time within 60 days of the filing of such proposed rule change, the
Commission may summarily abrogate 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.
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\5\ 15 U.S.C. 78s(b)(3)(A).
\6\ 17 CFR 240.19b-4(f)(2).
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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 Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form http://www.sec.gov/rules/sro.shtml); or
Send an E-mail to [email protected]. Please include
File No. SR-ISE-2010-35 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, Station Place, 100 F
Street, NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2010-35. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room on official business
days between the hours of 10 a.m. and 3 p.m. Copies of such filing also
will be available for inspection and copying at the principal office of
the 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-
2010-35 and should be submitted by June 3, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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\7\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-11399 Filed 5-12-10; 8:45 am]
BILLING CODE 8011-01-P