Federal Register / Vol. 76, No. 77 / Thursday, April 21, 2011 / Notices 22425 

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

2 17 CFR 240.19b–4. 

3Options classes subject to maker/taker fees are 

identified by their ticker symbol on the Exchange’s 

Schedule of Fees. See Securities Exchange Act 

Release Nos. 61869 (April 7, 2010), 75 FR 19449 

(April 14, 2010) (SR–ISE–2010–25), 62048 (May 6, 

2010), 75 FR 26830 (May 12, 2010) (SR–ISE–2010– 

43), 62282 (June 11, 2010), 75 FR 34499 (June 17, 

2010) (SR–ISE–2010–54), 62319 (June 17, 2010), 75 

FR 36134 (June 24, 2010) (SR–ISE–2010–57), 62508 

(July 15, 2010), 75 FR 42809 (July 22, 2010) (SR– 

ISE–2010–65), 62507 (July 15, 2010), 75 FR 42802 

(July 22, 2010) (SR–ISE–2010–68), 62665 (August 9, 

2010), 75 FR 50015 (August 16, 2010) (SR–ISE– 

2010–82), 62805 (August 31, 2010), 75 FR 54682 

(September 8, 2010) (SR–ISE–2010–90), 63283 

(November 9, 2010), 75 FR 70059 (November 16, 

2010) (SR–ISE–2010–106), 63534 (December 13, 

2010), 75 FR 79433 (December 20, 2010) (SR–ISE– 

2010–114) and 63664 (January 6, 2011), 76 FR 2170 

(January 12, 2011) (SR–ISE–2010–120). 

4A Market Maker Plus is a market maker who is 

on the National Best Bid or National Best Offer 80% 

of the time for series trading between $0.03 and 

$5.00 (for options whose underlying stock’s 

previous trading day’s last sale price was less than 

or equal to $100) and between $0.10 and $5.00 (for 

options whose underlying stock’s previous trading 

day’s last sale price was greater than $100) in 

premium in each of the front two expiration months 

and 80% of the time for series trading between 

$0.03 and $5.00 (for options whose underlying 

stock’s previous trading day’s last sale price was 

less than or equal to $100) and between $0.10 and 

$5.00 (for options whose underlying stock’s 

previous trading day’s last sale price was greater 

Continued 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Thomas Bayer, Chief Information 

Officer, Securities and Exchange 

Commission, c/o Remi Pavlik-Simon, 

6432 General Green Way, Alexandria, 

VA 22312 or send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: April 14, 2011. 

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9640 Filed 4–20–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request; Copies Available 

From: Securities and Exchange 

Commission, Office of Investor 

Education and Advocacy, 

Washington, DC 20549–0213. 

Extension: 

Rule 433; OMB Control No. 3235–0617; 

SEC File No. 270–558. 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget this 

request for extension of the previously 

approved collection of information 

discussed below. 

Rule 433 (17 CFR 230.433) governs 

the use and filing of free writing 

prospectuses under the Securities Act of 

1933 (15 U.S.C. 77a et seq.). The 

purpose of Rule 433 is to reduce the 

restrictions on communications that a 

company can make to investors during 

a registered offering of its securities, 

while maintaining a high level of 

investor protection. A free writing 

prospectus meeting the conditions of 

Rule 433(d)(1) must be filed with the 

Commission and is publicly available. 

We estimate that it takes approximately 

1.3 burden hours per response to 

prepare a free writing prospectus and 

that the information is filed by 2,906 

respondents approximately 1.25 times a 

year for a total of 3,633 responses. We 

estimate that 25% of the 1.3 burden 

hours per response (0.32 hours) is 

prepared by the respondent for total 

annual reporting burden of 

approximately 1,163 hours (0.32 hours × 

3,633 responses). 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. 

The public may view the background 

documentation for this information 

collection at the following Web site, 

http://www.reginfo.gov. Comments 

should be directed to: (i) Desk Officer 

for the Securities and Exchange 

Commission, Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, Room 10102, 

New Executive Office Building, 

Washington, DC 20503, or by sending an 

e-mail to: 

Shagufta_Ahmed@omb.eop.gov; and (ii) 

Thomas Bayer, Chief Information 

Officer, Securities and Exchange 

Commission, c/o Remi Pavlik-Simon, 

6432 General Green Way, Alexandria, 

VA 22312 or send an e-mail to: 

PRA_Mailbox@sec.gov. Comments must 

be submitted to OMB within 30 days of 

this notice. 

Dated: April 15, 2011. 

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9641 Filed 4–20–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64303; File No. SR–ISE– 

2011–18] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees and Rebates 

for Adding and Removing Liquidity 

April 15, 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 8, 

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 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 ISE is proposing to amend its 

transaction fees and rebates for adding 

and removing liquidity. 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 Exchange currently assesses a per 

contract transaction charge to market 

participants that add or remove 

liquidity from the Exchange (‘‘maker/ 

taker fees’’) in 100 options classes (the 

‘‘Select Symbols’’).3 For complex orders 

in the Select Symbols, the Exchange 

currently charges a take fee of: (i) $0.27 

per contract for Market Maker and 

Market Maker Plus 4 orders, (ii) $0.28 


emcdonald on DSK2BSOYB1PROD with NOTICES
22426 Federal Register / Vol. 76, No. 77 / Thursday, April 21, 2011 / Notices 

than $100) in premium across all expiration months 

in order to receive the rebate. The Exchange 

determines whether a market maker qualifies as a 

Market Maker Plus at the end of each month by 

looking back at each market maker’s quoting 

statistics during that month. If at the end of the 

month, a market maker meets the Exchange’s stated 

criteria, the Exchange rebates $0.10 per contract for 

transactions executed by that market maker during 

that month. The Exchange provides market makers 

a report on a daily basis with quoting statistics so 

that market makers can determine whether or not 

they are meeting the Exchange’s stated criteria. 

5A Customer (Professional) is a person who is not 

a broker/dealer and is not a Priority Customer. 

6A Non-ISE Market Maker, or Far Away Market 

Maker (‘‘FARMM’’), is a market maker as defined in 

Section 3(a)(38) of the Securities Exchange Act of 

1934, as amended (‘‘Exchange Act’’), registered in 

the same options class on another options 

exchange. 

7A Priority Customer is defined in ISE Rule 

100(a)(37A) as a person or entity that is not a 

broker/dealer in securities, and does not place more 

than 390 orders in listed options per day on average 

during a calendar month for its own beneficial 

account(s). 

8See PHLX Fee Schedule at http:// 

www.nasdaqtrader.com/content/marketregulation/ 

membership/phlx/feesched.pdf. 

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

10 15 U.S.C. 78f(b)(4). 

11See PHLX Fee Schedule at http:// 

www.nasdaqtrader.com/content/marketregulation/ 

membership/phlx/feesched.pdf. 

12 Id. 

13 Id. 

per contract for Firm Proprietary and 

Customer (Professional) 5 orders; 

and (iii) $0.35 per contract for Non-ISE 

Market Maker 6 orders. Priority 

Customer 7 orders, regardless of size, are 

not assessed a fee for removing liquidity 

from the Complex Order book. The 

Exchange now proposes to increase the 

take fee for complex orders in the Select 

Symbols, as follows: (i) For Market 

Maker and Market Maker Plus complex 

orders, from $0.27 per contract to $0.30 

per contract, and (ii) for Firm 

Proprietary and Customer (Professional) 

complex orders, from $0.28 per contract 

to $0.30 per contract. The Exchange is 

not proposing any change to the take fee 

for Non-ISE Market Maker and Priority 

Customer complex orders. 

Additionally, ISE Market Makers who 

remove liquidity in the Select Symbols 

from the Complex Order book by trading 

with orders that are preferenced to them 

are currently charged $0.25 per contract. 

The Exchange now proposes to increase 

the take fee for these preferenced orders 

from $0.25 per contract to $0.28 per 

contract. The Exchange notes that 

NASDAQ OMX PHLX, Inc. (‘‘PHLX’’) 

currently assesses a fee for complex 

orders for certain symbols that are 

preferenced to market makers at that 

exchange at a rate of $0.25 per contract. 

For regular complex orders that remove 

liquidity in those symbols, PHLX 

charges a take fee of $0.27 per contract. 

With this proposed fee change, ISE will 

maintain the two cent differential that is 

currently in place at PHLX.8

Finally, as an incentive for members 

to direct customer order flow to the 

Exchange, Priority Customer complex 

orders, regardless of size, currently 

receive a rebate of $0.20 per contract on 

all legs when these orders trade with 

non-customer orders in the Exchange’s 

Complex Order book. The Exchange 

proposes to increase this rebate from 

$0.20 per contract to $0.25 per contract. 

The Exchange believes it is necessary to 

pay a rebate for Customer complex 

orders that add liquidity in order to 

continue to attract Customer complex 

order flow to the Exchange. 

2. Statutory 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 impact of the proposal upon the net 

fees paid by a particular market 

participant will depend on a number of 

variables, most important of which will 

be its propensity to add or remove 

liquidity in options overlying the Select 

Symbols. 

The Exchange believes that the 

proposed fees it charges for options 

overlying the Select Symbols remain 

competitive with fees charged by other 

exchanges and therefore continue to be 

reasonable and equitably allocated to 

those members that opt to direct orders 

to the Exchange rather than to a 

competing exchange. The Exchange 

believes that its proposal to assess a 

$0.30 per contract take fee for complex 

orders in the Select Symbols is 

reasonable because the fee is within the 

range of fees assessed by other 

exchanges employing similar pricing 

schemes. For example, the proposed 

take fees for complex orders are 

comparable to rates assessed by PHLX. 

PHLX currently assesses a take fee of 

$0.28 for Firm and Professional orders 

and $0.35 for Broker-Dealer orders in its 

complex order book.11 The Exchange 

also believes that its proposal to 

increase the take fee for preferenced 

orders to $0.28 per contract is 

reasonable because it will allow the 

Exchange to remain competitive with 

other exchanges that employ a similar 

pricing scheme while maintaining the 

two cent differential that currently 

exists at options exchanges between fees 

charged for regular complex orders that 

take liquidity and complex orders that 

are preferenced to market makers. For 

example, PHLX currently charges $0.25 

per contract to Directed Participants for 

removing liquidity from its complex 

order book in a select group of symbols 

while charging $0.27 per contract for 

regular complex orders.12 Additionally, 

the Exchange believes the proposed fee 

increases are reasonable and equitable 

in that they apply equally to all market 

participants that were previously 

subject to these fees. 

The Exchange also believes that it is 

reasonable and equitable to provide a 

rebate for Priority Customer complex 

orders because paying a rebate would 

continue to attract additional order flow 

to the Exchange and thereby create 

liquidity that ultimately will benefit all 

market participants who trade on the 

Exchange. The Exchange further 

believes that paying a rebate is equitable 

and reasonable because it is similar to 

rebates paid by other Exchanges.13

Moreover, the Exchange believes that 

the proposed fees are fair, equitable and 

not unfairly discriminatory because the 

proposed fees are consistent with price 

differentiation that exists today at other 

option exchanges. Additionally, the 

Exchange believes it remains an 

attractive venue for market participants 

to trade complex orders despite its 

proposed fee change as its fees remain 

competitive with those charged by other 

exchanges for similar trading strategies. 

The Exchange operates in a highly 

competitive market in which market 

participants can readily direct order 

flow to another exchange if they deem 

fee levels at a particular exchange to be 

excessive. For the reasons noted above, 

the Exchange believes that the proposed 

fees are fair, equitable and not unfairly 

discriminatory. 

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. 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 77 / Thursday, April 21, 2011 / Notices 22427 

14 15 U.S.C. 78s(b)(3)(A)(ii). 

15 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. 62139 

(May 19, 2010), 75 FR 29597 (May 26, 2010) 

(approving SR–CBOE–2010–018). 

4This fee is assessed to help the Exchange recoup 

license fees the Exchange pays to the different 

index licensors in order to list options on the 

respective indexes. 

5See Footnote 6 of the Fees Schedule. In 2007, 

the Exchange amended its Fees Schedule to 

broaden the application of existing transaction fees 

for VIX options to options on all volatility indexes 

calculated by CBOE. At that time, the Exchange 

replaced all references to ‘‘VIX’’ in its Fees Schedule 

with ‘‘VOLATILITY INDEXES.’’ The reference to 

‘‘VIX’’ in Footnote 6 was inadvertently omitted in 

that filing. See Securities Exchange Act Release No. 

56660 (October 15, 2007), 72 FR 59315 (October 19, 

2007). Accordingly, the Exchange is proposing to 

make a technical change to Footnote 6 to change the 

reference from ‘‘VIX’’ to ‘‘VOLATILITY INDEXES.’’ 

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.14 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–2011–18 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–2011–18. 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. 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–2011–18 and should be 

submitted by May 12, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Cathy H. Ahn, 

Deputy Secretary. 

[FR Doc. 2011–9623 Filed 4–20–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–64304; File No. SR–CBOE– 

2011–028] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Establish Transaction 

Fees for CBOE Gold ETF Volatility 

Index Options 

April 15, 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 8, 

2011, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities and 

Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. 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 

CBOE proposes to amend its Fees 

Schedule to establish fees for 

transactions in CBOE Gold ETF 

Volatility Index (‘‘GVZ’’) options. The 

text of the proposed rule change is 

available on the Exchange’s Web site 

(http://www.cboe.org/legal), at the 

Exchange’s Office of the Secretary, 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange received approval to 

list and trade options on the CBOE Gold 

ETF Volatility Index (‘‘GVZ’’), which is 

an up-to-the-minute market estimate of 

the expected volatility of the SPDR Gold 

Trust (‘‘GLD’’) calculated by using realtime bid/ask quotes of CBOE listed GLD 

options.3 GVZ uses nearby and second 

nearby options with at least 8 days left 

to expiration and then weights them to 

yield a constant, 30-day measure of the 

expected (implied) volatility. The 

Exchange will begin listing GVZ options 

on April 12, 2011. 

The purpose of this rule change is to 

clarify that the existing transaction fees 

for ‘‘Volatility Indexes’’ shall apply for 

transactions in GVZ options, except that 

the existing Surcharge Fee (currently 

$.10 per contract for Volatility Index 

options) will not apply to GVZ options.4

In addition, the Exchange’s marketing 

fee 5 shall not apply to GVZ options. 

For reference, the existing Volatility 

Index transactions fees that will apply 

to GVZ options are as follows: 

• $0.40 per contract for customer 

transactions; 


emcdonald on DSK2BSOYB1PROD with NOTICES