[Federal Register Volume 75, Number 242 (Friday, December 17, 2010)]
[Notices]
[Pages 79058-79060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-31683]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63531; File No. SR-ISE-2010-109]
Self-Regulatory Organizations; International Securities Exchange,
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule
Change Relating to a Fee Waiver
December 10, 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 November 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 self-regulatory organization. The Commission is publishing this
notice to
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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 regarding its
Competitive Market Maker (``CMM'') Inactivity Fee. 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
ISE proposes to amend its Schedule of Fees regarding its CMM
Inactivity Fee. ISE currently charges the owner \3\ of a CMM membership
an Inactivity Fee of $25,000 a month per trading right if the owner
does not (i) itself operate the CMM membership, (ii) lease the CMM
Trading Right to another member which operates the CMM membership, or
(iii) avail itself to one of the exemptions specifically authorized in
the Notes to the CMM Inactivity Fee on the Schedule of Fees. Pursuant
to ISE Rules, however, a CMM Member may not operate more than 10 CMM
Trading Rights.\4\ A CMM that has more than 10 trading rights must
lease the additional trading rights or else be subject to the CMM
Inactivity Fee.
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\3\ The Note to the CMM Inactivity Fee on the Schedule of Fees
provides that the fee applies to the owner of the CMM membership,
unless the inactive CMM membership is subject to a lease that was
approved by the Exchange prior to the effective date of the fee, in
which case the fee would apply to the lessee.
\4\ See ISE Rule 303(b).
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The Exchange has developed an enhanced technology trading platform
and will migrate from its current trading system to the new trading
system over time (the ``Transition Period''). The Exchange believes
that during the Transition Period it would be impractical for a firm to
become a new market maker on the Exchange due to the level of financial
and technical resources that a new market maker would be required to
commit. As a result, CMMs who are actively seeking to lease their
trading rights during the Transition Period are unlikely to find a firm
that would be willing to commit such resources. Therefore, ISE proposes
to waive its current CMM Inactivity Fee until the new trading system
has been completely rolled out.\5\ This proposed fee waiver would only
apply to trading rights in excess of the 10 trading rights that a CMM
is permitted to operate provided that CMM Member owns more than 10
trading rights.
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\5\ The Exchange has been working with its members to assure a
smooth transition to the new trading platform and will continue to
do so up to the launch of the new technology and during the
Transition Period.
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2. 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)\6\ that an exchange have an equitable allocation of reasonable
dues, fees and other charges among its members and other persons using
its facilities. In particular, the proposed fee waiver is simply a
recognition of the fact that it would be impractical for a new firm to
become a member of the Exchange during the Transition Period, and thus,
serves to effectively maintain low fees during this time.
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\6\ 15 U.S.C. 78f(b)(4).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The proposed rule change does not impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes of
the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
The Exchange has not solicited, and does not intend to solicit,
comments on this proposed rule change. The Exchange has not received
any unsolicited written comments from members or other interested
parties.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act.\7\ 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.
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\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-2010-109 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ISE-2010-109. 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 Commissions 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, 100 F Street, NE., Washington,
DC 20549 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
[[Page 79060]]
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-2010-109 and should be submitted by
January 7, 2011.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-31683 Filed 12-16-10; 8:45 am]
BILLING CODE 8011-01-P