[Federal Register Volume 75, Number 200 (Monday, October 18, 2010)]
[Notices]
[Pages 63870-63873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26108]
[[Page 63870]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63077; File No. SR-ISE-2010-97]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to Delta Hedge Exemptions
October 12, 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 September 30, 2010, the International Securities Exchange, LLC
(the ``Exchange'' or the ``ISE'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which items have been prepared by
the Exchange. The Exchange has filed the proposal as a ``non-
controversial'' proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-4(f)(6) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to (i) expand the delta hedging exemption
available for equity options positions limits, (ii) amend the reporting
requirements applicable to members relying on the delta hedging
exemption, and (iii) adopt a delta hedging exemption from certain index
options position limits. 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, on the Commission's Web site at
http://www.sec.gov, 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
I. Expansion of Delta-Based Equity Hedge Exemption
On December 14, 2007,\5\ the Commission approved a proposed rule
change establishing an exemption from equity options position and
exercise limits for positions held by the Chicago Board Options
Exchange (``CBOE'') members, and certain of their affiliates, that are
``delta neutral'' \6\ under a ``permitted pricing model'', subject to
certain conditions (``Exemption''). ISE filed a rule filing to
establish an exemption similar to CBOE's filing.\7\ CBOE, and more
recently, NASDAQ OMX PHLX (``PHLX''), expanded its exemption from
equity options position and exercise limits, amended reporting
requirements and adopted a delta hedging exemption from certain index
options position limits.\8\ ISE proposes to amend Rules 413 and 2006 to
make similar amendments.\9\
---------------------------------------------------------------------------
\5\ See Securities Exchange Act Release No. 56970 (December 14,
2007), 72 FR 72428 (December 20, 2007) (SR-CBOE-2007-99). The
exemption was extended to certain customers whose accounts are
carried by a member. See Securities Exchange Act Release No. 60555
(August 21, 2009), 74 FR 43741 (August 27, 2009) (SR-CBOE-2009-039).
\6\ The term ``delta neutral'' is defined in ISE Rule
413(a)(7)(A) as referring to an equity option position that is
hedged, in accordance with a permitted pricing model, by a position
in the underlying security or one or more instruments relating to
the underlying security, for the purpose of offsetting the risk that
the value of the option position will change with incremental
changes in the price of the security underlying the option position.
\7\ See Securities Exchange Act Release No. 57360 (February 20,
2008), 73 FR 11170 (February 29, 2008) (SR-ISE-2008-06).
\8\ See Securities Exchange Act Release Nos. 62190 (May 27,
2010), 75 FR 31826 (June 4, 2010) (SR-CBOE-2010-021); and 62504
(July 15, 2010), 75 FR 42797 (July 22, 2010) (SR-PHLX-2010-93).
\9\ This proposed rule filing is being done pursuant to an
industry-wide initiative, under the auspices of the Intermarket
Surveillance Group (``ISG'') to establish comparable delta hedge
exemption rules among exchanges.
---------------------------------------------------------------------------
The ``options contract equivalent of the net delta'' of a hedged
equity option position is subject to the position limits under ISE Rule
412, subject to the availability of other exemptions.\10\ Currently,
the Exemption only is available for securities that directly underlie
the applicable option position. This means that with respect to options
on exchange-traded funds (``ETF options''), index options overlying the
same index on which the ETF is based currently cannot be combined with
the ETF options to calculate a net delta for purposes of the Exemption.
---------------------------------------------------------------------------
\10\ The term ``options contract equivalent of the net delta''
is defined in ISE Rule 413(a)(7)(B) as the net delta divided by the
number of shares underlying the option contract. The term ``net
delta'' is also defined in ISE Rule 413(a)(7(B) to mean, at any
time, the number of shares (either long or short) required to offset
the risk that the value of an equity option position will change
with incremental changes in the price of the security underlying the
option position, as determined in accordance with a permitted
pricing model.
---------------------------------------------------------------------------
Many ETF options overlie exchange-traded funds that track the
performance of an index. For example, options on Standard & Poor's
Depositary Receipts (``SPY'') track the performance of the S&P 500
Index. Market participants often hedge SPY options with options on the
S&P 500 Index (``SPX options'') or with other financial instruments
based on the S&P 500 Index for risk management purposes. The Exchange
believes that in order for eligible market participants to more fully
benefit from the Exemption as it relates to ETF options, securities and
other instruments that are based on the same underlying ETF or the same
index on which the ETF is based should also be included in any
determination of an ETF option position's net delta or whether the
options position is hedged delta neutral.\11\
---------------------------------------------------------------------------
\11\ However, this would not include baskets of securities for
purposes of the Exemption.
---------------------------------------------------------------------------
Accordingly, the Exchange proposes to expand the Exemption by
amending ISE Rule 413 to permit equity option positions for which the
underlying security is an ETF that is based on the same index as an
index option to be combined with an index option position for
calculation of the delta-based equity hedge exemption. The proposed
rule would allow financial products such as securities index options,
index futures, and options on index futures to be included along with
the ETF in an equity option's net delta calculation. So for example,
the proposed rule would allow SPY options to be hedged not only with
SPY shares, but with S&P 500 options, S&P 500 futures, options on S&P
500 futures or any other instrument that tracks the performance of or
is based on the S&P 500 index. This would be accomplished by including
such positions with a related index option position in accordance with
the Delta-Based Index Hedge Exemption rule proposed below.
Index options and equity options (i.e., ETF options) that are
eligible to be combined for computing a delta-based hedge exemption,
along with all securities and/or other instruments that
[[Page 63871]]
are based on or track the performance of the same underlying security
or index, will be grouped and the net delta and options contract
equivalent of the net delta will be calculated for each respective
option class based on offsets realized from the grouping as a whole.
The Exchange proposes to amend the definition of ``net delta'' in
ISE Rule 413(a)(7)(B) to mean, at any time, the number of shares and/or
other units of trade \12\ (either long or short) required to offset the
risk that the value of an equity option position will change with
incremental changes in the price of the security underlying the option
position, as determined in accordance with a permitted pricing model.
The Exchange proposes to amend the definition of the ``option contract
equivalent of the net delta'' in ISE Rule 413(a)(7)(B) to mean the net
delta divided by the number of shares that equate to one option
contract on a delta basis.
---------------------------------------------------------------------------
\12\ ``Other units of trade'' would include, for example,
options or futures contracts hedging the relevant option position.
When determining whether an ETF option hedged with other instruments
such as ETF or index options is delta neutral, the relative size of
the ETF option when compared to the other product is taken into
consideration. For example, SPX options are ten (10) times larger
than SPY options thus 1 SPX delta is equivalent to .10 SPY deltas.
---------------------------------------------------------------------------
II. Reporting Requirements
ISE Rule 413(a)(7)(F) sets forth the reporting requirements
applicable to Exchange members who rely on the Exemption. The Exchange
proposes to amend ISE Rule 413(a)(7)(F) to exempt from the reporting
requirements Exchange market-makers relying on the Exemption who use
the Options Clearing Corporation (``OCC'') pricing model, because
market-maker positions and delta information can be accessed through
the Exchange's market surveillance systems. This proposed exemption is
consistent with similar exemptions from the reporting requirements
under ISE Rule 2006(a)(13) applicable to broad-based (market) index
options and narrow-based (industry) index options.
III. Delta-Based Index Hedge Exemption
Index options traded on the Exchange are subject to position and
exercise limits, as provided under ISE Rules 2004 (Position Limits for
Broad-Based Index Options), 2005 (Position Limits for Industry Index
Options) and 2007 (Exercise Limits). Position limits are imposed,
generally, to prevent the establishment of options positions that can
be used or might create incentives to manipulate or disrupt the
underlying market so as to benefit the holder of the options position.
Index options are often used by market participants such as
institutional investors to hedge large portfolios. Exchange rules
include hedge exemptions to allow certain positions in index options in
excess of the applicable standard position limit if hedged with an
Exchange-approved qualified portfolio. Under ISE Rule 2006, a qualified
portfolio must be previously established and the options must be
carried in an account with an Exchange member or if not carried by an
Exchange member, the account must be carried by a member of a self-
regulatory organization participating in the ISG. Securities used as a
hedge pursuant to this provision may not be used to hedge other option
positions.
The Exchange believes that any limit on the ability of market
participants to use index options to hedge their portfolios exposes
market participants to unnecessary risk on the unhedged portion of
their portfolios. The Exchange proposes to adopt a delta-based
exemption from index option position and exercise limits that are
substantially similar to the delta-based equity hedge exemption under
ISE Rule 413. A delta-based index hedge exemption would provide market
participants the ability to accumulate an unlimited number of index
options contracts provided that such contracts are properly delta
hedged in accordance with the requirements of the exemption.
Proposed Exemption. The Exchange proposes to adopt an exemption
from index options position and exercise limits \13\ for positions held
by Exchange members and certain of their affiliates that are ``delta
neutral'' (as defined below) under a ``permitted pricing model'' (as
defined below), subject to certain conditions (``Index Exemption'').
---------------------------------------------------------------------------
\13\ ISE Rule 2007 establishes exercise limits for an index
option at the same level as the index option's position limit under
index options position limit rules in ISE Rules 2004 and 2005,
therefore no changes are proposed to ISE Rule 2007.
---------------------------------------------------------------------------
The term ``delta neutral'' is defined in proposed ISE Rule
2006(c)(i) as referring to an index option position that is hedged, in
accordance with a permitted pricing model, by a position in one or more
correlated instruments for the purpose of offsetting the risk that the
value of the option position will change with incremental changes in
the value of the underlying index. Correlated instruments would be
defined to mean securities and/or other instruments that track the
performance of or are based on the same underlying index as the index
underlying the option position. These definitions would allow financial
products such as ETF options, index futures, options on index futures
and ETFs that track the performance of or are based on the same
underlying index to be included in an index option's net delta
calculation.
Any index option position that is not delta neutral would be
subject to position and exercise limits, subject to the availability of
other exemptions. Only the ``options contract equivalent of the net
delta'' of such position would be subject to the appropriate position
limit.\14\
---------------------------------------------------------------------------
\14\ Under proposed ISE Rule 2006(c)(ii), the term ``options
contract equivalent of the net delta'' is defined as the net delta
divided by units of trade that equate to one option contract on a
delta basis, and the term ``net delta'' is defined as, at any time,
the number of shares and/or other units of trade (either long or
short) required to offset the risk that the value of an index option
position will change with incremental changes in the value of the
underlying index, as determined in accordance with a permitted
pricing model.
---------------------------------------------------------------------------
In addition, members could not use the same positions in correlated
instruments in connection with more than one hedge exemption.
Therefore, a position in correlated instruments used as part of a delta
hedging strategy could not also serve as the basis for any other index
hedge exemption.
Permitted Pricing Model. Under the proposed rule, the calculation
of the delta for any index option position, and the determination of
whether a particular index option position is hedged delta neutral,
must be made using a permitted pricing model. A ``permitted pricing
model'' is defined in proposed ISE Rule 2006(c)(iii) to have the same
meaning as defined in ISE Rule 413(a)(7)(C), namely, the pricing model
maintained and operated by OCC and the pricing models used by (i) a
member or its affiliate subject to consolidated supervision by the SEC
pursuant to Appendix E of SEC Rule 15c3-1; (ii) a financial holding
company (``FHC'') or a company treated as an FHC under the Bank Holding
Company Act of 1956, or its affiliate subject to consolidated holding
company group supervision; \15\ (iii) an SEC registered
[[Page 63872]]
OTC derivatives dealer; \16\ and (iv) a national bank.\17\
---------------------------------------------------------------------------
\15\ The pricing model of an FHC or of an affiliate of an FHC
would have to be consistent with: (i) The requirements of the Board
of Governors of the Federal Reserve System, as amended from time to
time, in connection with the calculation of risk-based adjustments
to capital for market risk under capital requirements of the Board
of Governors of the Federal Reserve System, provided that the member
or affiliate of a member relying on this exemption in connection
with the use of such model is an entity that is part of such
company's consolidated supervised holding company group; or (ii) the
standards published by the Basel Committee on Banking Supervision,
as amended from time to time and as implemented by such company's
principal regulator, in connection with the calculation of risk-
based deductions or adjustments to or allowances for the market risk
capital requirements of such principal regulator applicable to such
company--where ``principal regulator'' means a member of the Basel
Committee on Banking Supervision that is the home country
consolidated supervisor of such company--provided that the member or
affiliate of a member relying on this exemption in connection with
the use of such model is an entity that is part of such company's
consolidated supervised holding company group. See ISE Rule
413(a)(7)(C)(3).
\16\ The pricing model of an SEC registered OTC derivatives
dealer would have to be consistent with the requirements of Appendix
F to SEC Rule 15c3-1 and SEC Rule 15c3-4 under the Act, as amended
from time to time, in connection with the calculation of risk-based
deductions from capital for market risk thereunder. Only an OTC
derivatives dealer and no other affiliated entity (including a
member) would be able to rely on this part of the Exemption. See ISE
Rule 413(a)(7)(C)(4).
\17\ The pricing model of a national bank would have to be
consistent with the requirements of the Office of the Comptroller of
the Currency, as amended from time to time, in connection with the
calculation of risk-based adjustments to capital for market risk
under capital requirements of the Office of the Comptroller of the
Currency. Only a national bank and no other affiliated entity
(including a member) would be able to rely on this part of the
Exemption. See ISE Rule 413(a)(7)(C)(5).
---------------------------------------------------------------------------
Aggregation of Accounts. Members and non-member affiliates relying
on the Index Exemption would be required to ensure that the permitted
pricing model is applied to all positions in correlated instruments
hedging the relevant option position that are owned or controlled by
the member, or its affiliates.
However, the net delta of an index option position held by an
entity entitled to rely on the Index Exemption, or by a separate and
distinct trading unit of such entity, may be calculated without regard
to positions in correlated instruments held by an affiliated entity or
by another trading unit within the same entity, provided that: (i) The
entity demonstrates to the Exchange's satisfaction that no control
relationship, as defined in ISE Rule 412(f), exists between such
affiliates or trading units, and (ii) the entity has provided the
Exchange written notice in advance that it intends to be considered
separate and distinct from any affiliate, or, as applicable, which
trading units within the entity are to be considered separate and
distinct from each other for purposes of the Index Exemption.\18\ Any
member or non-member affiliate relying on the Index Exemption must
designate, by prior written notice to the Exchange, each trading unit
or entity whose options positions are required by Exchange rules to be
aggregated with the options positions of such member or non-member
affiliate relying on the Index Exemption for purposes of compliance
with Exchange position or exercise limits.\19\
---------------------------------------------------------------------------
\18\ See proposed ISE Rule 2006(c)(iv)(2)(B).
\19\ See proposed ISE Rule 2006(c)(iv)(3).
---------------------------------------------------------------------------
The Exchange previously issued a Regulatory Information Circular to
provide guidance to members regarding the use of delta hedge
exemption.\20\
---------------------------------------------------------------------------
\20\ See Regulatory Information Circular 2008-04 dated March 5,
2008.
---------------------------------------------------------------------------
Obligations of Members and Affiliates. Any member relying on the
Index Exemption would be required to provide a written certification to
the Exchange that it is using a permitted pricing model as defined in
the rule for purposes of the Index Exemption.\21\ In addition, by such
reliance, such member would authorize any other person carrying for
such member an account including, or with whom such member has entered
into, a position in a correlated instrument hedging the relevant option
position to provide to the Exchange or OCC such information regarding
such account or position as the Exchange or OCC may request as part of
the Exchange's confirmation or verification of the accuracy of any net
delta calculation under this exemption.\22\
---------------------------------------------------------------------------
\21\ See proposed ISE Rule 2006(c)(v)(1)(A).
\22\ See proposed ISE Rule 2006(c)(v)(1)(B).
---------------------------------------------------------------------------
The index option positions of a non-member affiliate relying on the
Index Exemption must be carried by a member with which it is
affiliated.\23\ A member carrying an account that includes an index
option position for a non-member affiliate that intends to rely on the
Index Exemption would be required to obtain from such non-member
affiliate a written certification that it is using a permitted pricing
model as defined in the rule for purposes of the Index Exemption.\24\
---------------------------------------------------------------------------
\23\ See proposed ISE Rule 2006(c)(v)(2).
\24\ In addition, the member would be required to obtain from
such non-member affiliate a written statement confirming that such
non-member affiliate: (a) Is relying on the Index Exemption; (b)
will use only a permitted pricing model for purposes of calculating
the net delta of its option positions for purposes of the Index
Exemption; (c) will promptly notify the member if it ceases to rely
on the Index Exemption; (d) authorizes the member to provide to the
Exchange or the OCC such information regarding positions of the non-
member affiliate as the Exchange or OCC may request as part of the
Exchange's confirmation or verification of the accuracy of any net
delta calculation under the Index Exemption; and (e) if the non-
member affiliate is using the OCC Model, has duly executed and
delivered to the Exchange such documents as the Exchange may require
to be executed and delivered to the Exchange as a condition to
reliance on the Exemption. See proposed ISE Rule 2006(c)(v)(3).
---------------------------------------------------------------------------
Reporting. Under proposed ISE Rule 2006(c)(v)(4), each member
(other than an Exchange market-maker using the OCC Model) relying on
the Index Exemption would be required to report, in accordance with
Rule 415: \25\ (i) All index option positions (including those that are
delta neutral) that are reportable thereunder, and (ii) on its own
behalf or on behalf of a designated aggregation unit pursuant to ISE
Rule 2006(c)(iv) for each such account that holds an index option
position subject to the Index Exemption in excess of the levels
specified in ISE Rules 2004 and 2005 the net delta and the options
contract equivalent of the net delta of such position.
---------------------------------------------------------------------------
\25\ ISE Rule 415 requires, among other things, that members
report to the Exchange aggregate long or short positions of 200 or
more options contracts of any single class of options traded on the
Exchange.
---------------------------------------------------------------------------
Records. Under proposed ISE Rule 2006(c)(v)(5), each member relying
on the Index Exemption would be required to (i) retain, and undertake
reasonable efforts to ensure that any non-member affiliate of the
member relying on the Index Exemption retains, a list of the options,
securities and other instruments underlying each option position net
delta calculation reported to the Exchange hereunder, and (ii) produce
such information to the Exchange upon request.\26\
---------------------------------------------------------------------------
\26\ A member would be authorized to report position information
of its non-member affiliate pursuant to the written statement
required under proposed ISE Rule 2006(c)(v)(3)(B)(d).
---------------------------------------------------------------------------
Reliance on Federal Oversight. As provided under proposed ISE Rule
2006(c)(iii), a permitted pricing model includes proprietary pricing
models used by members and affiliates that have been approved by the
SEC, the Fed or another Federal financial regulator. In adopting the
proposed Index Exemption, the Exchange would be relying upon the
rigorous approval processes and ongoing oversight of a Federal
financial regulator. The Exchange notes that it would not be under any
obligation to verify whether a member's or its affiliate's use of a
proprietary pricing model is appropriate or yielding accurate results.
The Exchange will issue a regulatory circular upon publication of
the notice of this filing regarding the proposal herein.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act \27\ in general, and furthers the objectives of Section
6(b)(5) of the Act \28\ in particular, in that it is designed to
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general to protect investors and the public
interest.
---------------------------------------------------------------------------
\27\ 15 U.S.C. 78f(b).
\28\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
The Exchange believes that allowing correlated instruments to be
included in
[[Page 63873]]
the calculation of an equity option's net delta would enable eligible
market participants to more fully realize the benefit of the delta
based equity hedge exemption. The proposed delta-based index hedge
exemption would be substantially similar to the delta-based equity
hedge exemption under ISE Rule 413. Also, the Commission has previously
stated its support for recognizing options positions hedged on a delta
neutral basis as properly exempted from position limits.\29\
---------------------------------------------------------------------------
\29\ See Securities Exchange Act Release No. 40594 (October 23,
1998), 63 FR 59362, 59380 (November 3, 1998) (adopting rules
relating to OTC Derivatives Dealers).
---------------------------------------------------------------------------
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 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
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing rule change does not: (1) Significantly
affect the protection of investors or the public interest; (2) impose
any significant burden on competition; and (3) become operative for 30
days after the date of this filing, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \30\ and Rule 19b-4(f)(6) thereunder.\31\
---------------------------------------------------------------------------
\30\ 15 U.S.C. 78s(b)(3)(A).
\31\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
A proposed rule change filed under 19b-4(f)(6) normally may not
become operative prior to 30 days after the date of filing.\32\
However, Rule 19b-4(f)(6)(iii) \33\ permits the Commission to designate
a shorter time if such action is consistent with the protection of
investors and the public interest. The Exchange has requested that the
Commission waive the 30-day operative delay. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest. The Commission notes
that it has approved a substantially similar proposal filed by the
Chicago Board Options Exchange, Incorporated,\34\ and therefore
believes that no significant purpose is served by a 30-day operative
delay. For these reasons, the Commission designates the proposed rule
change to be operative upon filing with the Commission.\35\
---------------------------------------------------------------------------
\32\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change, at least five business days prior to the date of filing
of the proposed rule change, or such shorter time as designated by
the Commission. The Exchange has satisfied this requirement.
\33\ Id.
\34\ See Securities Exchange Act Release No. 62190 (May 27,
2010), 75 FR 31826 (June 4, 2010) (SR-CBOE-2010-21). See also
Securities Exchange Act Release No. 62504 (July 15, 2010), 75 FR
42797 (July 22, 2010) (SR-PHLX-2010-93).
\35\ For the purposes only of waiving the 30-day operative
delay, the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
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.
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 Number SR-ISE-2010-97 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-2010-97. 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 inspection
and copying 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 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-2010-97 and should be submitted on or before
November 8, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
---------------------------------------------------------------------------
\36\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-26108 Filed 10-15-10; 8:45 am]
BILLING CODE 8011-01-P