Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices 70059 

9 17 CFR 200.30–3(a)(12). 

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. 

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 

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). 

8The proposed fee for responses to special orders 

is similar to fees currently in place at other options 

exchanges. See Securities Exchange Act Release No. 

62632 (August 3, 2010), 75 FR 47869 (August 9, 

2010) (Notice of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend the Fee 

Schedule of the Boston Options Exchange Facility) 

(SR–BX–2010–049). 

9Pre-existing Market Maker, Market Maker Plus, 

Firm Proprietary and Customer (Professional) 

interest that trades with special orders in the 

Exchange’s various auctions will continue to be 

charged $0.25 per contract. 

available for website 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 

copying at the principal office of EDGA. 

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 No. 

SR–EDGA–2010–16 and should be 

submitted on or before December 7, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28749 Filed 11–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63283; File No. SR–ISE– 

2010–106] 

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 

November 9, 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 October 

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 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 the 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 The Exchange 

currently charges a take fee of: (i) $0.25 

per contract for Market Maker, Market 

Maker Plus,4 Firm Proprietary and 

Customer (Professional) 5 orders; (ii) 

$0.35 per contract for Non-ISE Market 

Maker 6 orders; (iii) $0.20 per contract 

for Priority Customer 7 orders for 100 or 

more contracts. Priority Customer orders 

for less than 100 contracts are not 

assessed a fee for removing liquidity. 

The Exchange proposes to increase the 

take fee to $0.40 per contract for Market 

Maker, Market Maker Plus, Firm 

Proprietary, Customer (Professional) and 

Non-ISE Market Maker interest that 

responds to special orders.8 A special 

order is an order submitted for 

execution in the Exchange’s Facilitation 

Mechanism, Solicited Order 

Mechanism, Block Order Mechanism 

and Price Improvement Mechanism. A 

response to a special order is any 

contra-side interest submitted after the 

commencement of an auction in the 

Exchange’s Facilitation Mechanism, 

Solicited Order Mechanism, Block 

Order Mechanism and Price 

Improvement Mechanism.9

Additionally, to incentivize members, 

the Exchange currently offers a rebate of 

$0.15 per contract to contracts that do 

not trade with the contra order in the 

Exchange’s Facilitation Mechanism and 

Price Improvement Mechanism. The 

Exchange proposes to (i) extend that 

$0.15 per contract rebate to contracts 

that do not trade with the contra order 

in the Exchange’s Solicited Order 

Mechanism, and (ii) increase the rebate 

applied to contracts that do not trade 

with the contra order in the Exchange’s 

Price Improvement Mechanism from 

$0.15 per contract to $0.25 per contract. 

Finally, the Exchange currently 

charges Non-ISE Market Maker orders a 

fee of $0.20 per contract for adding 

liquidity. The Exchange proposes to 

lower this fee to $0.10 per contract. 

With this proposed fee reduction, the 

fee charged to Non-ISE Market Maker 

orders that add liquidity shall be equal 

to all other non-Priority Customer 

orders that add liquidity. 

The Exchange also proposes to change 

the symbol for UAL Corporation on the 

Schedule of Fees from ‘‘UAUA’’ to 

mstockstill on DSKH9S0YB1PROD with NOTICES

70060 Federal Register / Vol. 75, No. 220 / Tuesday, November 16, 2010 / Notices 

10On October 1, 2010, UAL Corporation 

announced that as a result of a merger between UAL 

Corporation and Continental Airlines, Inc. that it 

would change its name and underlying symbol. 

UAL Corporation is now known as United 

Continental Holding, Inc. 

11 15 U.S.C. 78f(b)(4). 

12See supra note 8. 

13 15 U.S.C. 78s(b)(3)(A)(ii). 

14 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 61820 

(Apr. 1, 2010), 75 FR 17805. 

4The exact language of the proposal can be seen 

at http://www.theocc.com/component/docs/legal/ 

rules_and_bylaws/sr_OCC_10_05.pdf. 

‘‘UAL’’ to reflect a recent corporate 

action.10

The Exchange has designated this 

proposal to be operative on November 1, 

2010. 

2. Statutory Basis 

The basis under the Exchange Act for 

this proposed rule change is the 

requirement under Section 6(b)(4) 11

that an exchange have an equitable 

allocation of reasonable dues, fees and 

other charges among its 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 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. The Exchange believes that 

the proposed fees are within the range 

assessed by other exchanges 12 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’s maker/taker fees, which 

are currently applicable to each market 

participant, will continue to apply to 

the Select Symbols. 

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.13 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 

Number SR–ISE–2010–106 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–2010–106. 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 website 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 offices 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–2010–106, and should 

be submitted on or before December 7, 

2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–28747 Filed 11–15–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63278; File No. SR–OCC– 

2010–05] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Order 

Granting Approval of a Proposed Rule 

Change Relating to Cash-Settled 

Foreign Currency Options With OneCent Exercise Prices 

November 8, 2010. 

I. Introduction 

On March 16, 2010, The Options 

Clearing Corporation (‘‘OCC’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a proposed 

rule change pursuant to Section 19(b)(1) 

of the Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder 2 to 

clarify that cash-settled foreign currency 

options traded on national securities 

exchanges will be treated and cleared as 

securities options notwithstanding that 

they may have a nominal exercise price 

such as one cent. The proposed rule 

change was published for comment in 

the Federal Register on April 7, 2010.3

No comment letters were received on 

the proposal. This order approves the 

proposal. 

II. Description of the Proposal 

OCC will add a sentence to the 

Introduction to Article XXII of its ByLaws to make clear that cash-settled 

foreign currency options traded on 

national securities exchanges will be 

treated and cleared as securities options 

notwithstanding that they may have a 

nominal exercise price such as one 

cent.4

mstockstill on DSKH9S0YB1PROD with NOTICES