20752 Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 

11The text of the proposed rule change is 

available on Exchange’s Web site at http:// 

www.directedge.com, on the Commission’s Web site 

at http://www.sec.gov, at EDGX, and at the 

Commission’s Public Reference Room. 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 53522 (March 20, 

2006), 71 FR 14975 (March 24, 2006) (SR–ISE– 

2006–09). 

4 Id. 

5See Exchange Act Release No. 56721 (October 

30, 2007), 72 FR 62502 (November 5, 2007) (SR– 

ISE–2007–91). 

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 rulecomments@sec.gov. Please include File 

Number SR–EDGX–2011–09 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–EDGX–2011–09. 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,11 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 the 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–EDGX– 

2011–09 and should be submitted on or 

before May 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8910 Filed 4–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64269; File No. SR–ISE– 

2011–21] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to API Fees 

April 8, 2011. 

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 6, 

2011, 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. 

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 the 

Exchange’s API or login fees. 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 ISE is proposing to amend its 

Schedule of Fees regarding the 

Exchange’s API or login fees. ISE 

currently charges its members a fee for 

each login that a Member utilizes for 

quoting or order entry, with a lesser 

charge for logins used for the limited 

purpose of ‘‘listening’’ to broadcast 

messages.3 The Exchange currently has 

the following categories of authorized 

logins: (1) Quoting, order entry and 

listening (allowing the user to enter 

quotes, orders, and perform all other 

miscellaneous functions, such as setting 

parameters and pulling quotes); (2) 

order entry and listening (allowing the 

user to enter orders and perform all 

other miscellaneous functions, such as 

setting parameters and pulling quotes 

(but not quoting)); and (3) listening 

(allowing the user only to query the 

system and to respond to broadcast 

messages).4 The Exchange notes that 

quoting, order entry and listening are 

functionalities available only to 

Exchange market makers, i.e., Primary 

Market Makers and Competitive Market 

Makers, while order entry and listening 

are functionalities available only to nonmarket makers, i.e., Electronic Access 

Members. 

ISE market makers currently receive 

an allocation of 1,300,000 quotes per 

day per user.5 If a market maker submits 

more quotes than those allocated, i.e., 

1,300,000 quotes per day per user as 

measured on average in a single month, 

the market maker is charged for 

additional users depending upon the 

number of quotes submitted. Each 

month, the total number of quotes 

submitted by a market maker across all 

bins (i.e., group of options to which the 

market maker is appointed), is divided 

by the number of trading days, resulting 

in the average quotes per day. This 

number is then divided by 1,300,000 

and rounded up to the nearest whole 

number, resulting in an implied number 

of users based on quotes. Market makers 

are invoiced on a monthly basis for the 

greater of (a) the greatest number of 

users that logged into the system, or (b) 

the number of implied users based on 

quotes. 

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Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 20753 

6See Securities Exchange Act Release No. 55941 

(June 21, 2007), 72 FR 35535 (June 28, 2007) (SR– 

ISE–2007–36). 

7See supra note 3. 

8 Id. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4). 11 15 U.S.C. 78s(b)(3)(A)(ii). 

The Exchange also has an additional 

category of login known as a ‘‘High 

Throughput User.’’ 6 A High Throughput 

User is a market maker who is allocated 

up to 2,600,000 quotes per day in a 

month.7 A High Throughput User is able 

to enter quotes, orders, and perform all 

other miscellaneous functions, such as 

setting parameters and pulling quotes.8

ISE currently charges market makers 

$950 per month for each quoting session 

for up to 1,300,000 quotes per day, on 

average for a month. Market makers are 

charged an additional user fee of $950 

for each incremental usage of up to 

1,300,000 quotes per day per user. For 

High Throughput Users, ISE charges a 

fee of $1,900 per month. High 

Throughput Users are charged an 

additional user fee of $1,900 for each 

incremental usage of up to 2,600,000 

quotes per day per user. 

The Exchange is scheduled to launch 

an enhanced trading system called 

Optimise on April 11, 2011. In 

anticipation of the launch of the 

Optimise trading platform, the Exchange 

proposes to amend its API quote fees. 

Specifically, ISE proposes to increase 

the monthly fee and quote allowance for 

non-High Throughput Users to $1,200 

and 1,800,000 quotes per day per user, 

respectively. Members that quote in 

excess of 1,800,000 quotes per day 

average in a month will be charged an 

additional login of $950 per month for 

each subsequent usage of 1,800,000 

quotes per day in a month. For example, 

a market maker who uses four million 

quotes per day would be charged as 

follows: $1,200 for the initial session 

with an allowance of 1,800,000 quotes 

per day plus $1,900 for two additional 

quoting sessions, each with an 

allowance of 1,800,000 quotes per day. 

For ‘‘High Throughput Users,’’ ISE 

proposes to increase the monthly fee 

and quote allowance to $2,400 and 

3,600,000 quotes per day, respectively. 

Members that quote in excess of 

3,600,000 quotes per day in a month 

will be charged an additional login of 

$1,900 per month for each subsequent 

usage of 3,600,000 quotes per day in a 

month. 

As the Exchange migrates from its 

current trading platform to Optimise, 

Members will undoubtedly be required 

to login to access both trading systems 

and thus could be charged for accessing 

both systems. The Exchange does not 

intend to charge members for logging in 

to both systems simultaneously. 

Members will be charged a single login 

fee regardless of whether they use their 

quote allocation for the current trading 

system or for the Optimise trading 

system instead of charging for quote 

allocation separately for each of the 

trading systems. Therefore, until the 

Exchange fully migrates to the Optimise 

trading system, ISE proposes to waive 

any API fees that are duplicative. 

ISE represents that the proposed 

increase in the allocation of quotes per 

day per user will not have an adverse 

effect on capacity on the Exchange. 

The Exchange has designated this 

proposal to be operative on April 11, 

2011. 

2. Basis 

The Exchange believes that its 

proposal to amend its Schedule of Fees 

is consistent with Section 6(b) of the 

Act 9 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 10

in particular, in that it is an equitable 

allocation of reasonable dues, fees and 

other charges among Exchange members 

and other persons using its facilities. 

The Exchange believes that the proposal 

does not constitute an inequitable 

allocation of fees, as all similarly 

situated Members will be subject to the 

same fee structure, and access to the 

Exchange’s market is offered on fair and 

non-discriminatory terms. In other 

words, the proposed rule change will 

treat similarly situated Members in the 

same manner by assessing the same fees 

to all Members based on their quoting 

needs. The Exchange also believes that 

it is equitable to assess different access 

fees based on the type of logins as long 

as the same access fee is assessed to all 

Members that are similarly situated. The 

Exchange also believes that the proposal 

is reasonable because during the 

transition period to the Optimise trading 

platform the Exchange will waive any 

API fees that are duplicative to ensure 

Members are not burdened by having to 

pay fees to login in to both the current 

trading platform and the Optimise 

platform. 

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.11 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 http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an E-mail to rulecomments@sec.gov. Please include File 

No. SR–ISE–2011–21 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–2011–21. 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 

mstockstill on DSKH9S0YB1PROD with NOTICES

20754 Federal Register / Vol. 76, No. 71 / Wednesday, April 13, 2011 / Notices 

12 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 64040 

(March 4, 2011), 76 FR 13249. 

4 15 U.S.C. 78s(b)(2). 

5 15 U.S.C. 78s(b)(2)(A)(ii)(I). 

6 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

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. 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–2011–21 and should be 

submitted by May 4, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8923 Filed 4–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64274; File No. SR– 

NYSEAmex-2011–11] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Designation of a 

Longer Period for Commission Action 

on a Proposed Rule Change Amending 

Rule 103B—NYSE Amex Equities To 

Modify the Application of the 

Exchange’s Designated Market Maker 

Allocation Policy in the Event of a 

Merger Involving One or More Listed 

Companies 

April 8, 2011. 

On February 24, 2011, NYSE Amex 

LLC (‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend Rule 103B—NYSE Amex 

Equities to modify the application of the 

Exchange’s Designated Market Maker 

allocation policy in the event of a 

merger involving one or more listed 

companies. The proposed rule change 

was published for comment in the 

Federal Register on March 10, 2011.3

Section 19(b)(2) of the Act 4 provides 

that within 45 days of the publication of 

notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day for this filing 

is April 24, 2011. 

The Commission is hereby extending 

the 45-day period for Commission 

action on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period within 

which to take action on the proposed 

rule change. In particular, the extension 

of time will ensure that the Commission 

has sufficient time to consider and take 

action on the Exchange’s proposal. 

Accordingly, pursuant to Section 

19(b)(2)(A)(ii)(I) of the Act 5 and for the 

reasons stated above, the Commission 

designates June 8, 2011, as the date by 

which the Commission should either 

approve or disapprove, or institute 

proceedings to determine whether to 

disapprove, the proposed rule change 

File No. SR–NYSEAmex-2011–11. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–8922 Filed 4–12–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64270; File No. SR–ISE– 

2011–13] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Adopt a Fee Cap and a 

Service Fee 

April 8, 2011. 

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 March 31, 

2011, 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE is proposing to establish a fee 

cap of $100,000 per month and a related 

service fee for member firms on all 

proprietary trading, with certain 

exclusions, in all ISE products. 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 the proposed rule 

change is to establish a monthly fee cap 

per ISE member organization, subject to 

certain exclusions, across all products 

traded on ISE. The proposed fee cap 

shall apply to transactions executed in 

a member’s proprietary account. The 

cap also would apply to crossing 

transactions for the account of entities 

affiliated with a member. That is, the 

cap will apply to a member’s crossing 

transactions even if the member 

executes crosses in the account of an 

affiliate, rather than the member’s own 

account. This will provide members 

with the flexibility to effect transactions 

mstockstill on DSKH9S0YB1PROD with NOTICES