Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 50805 

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); 63664 (January 6, 2011), 76 FR 2170 

(January 12, 2011) (SR–ISE–2010–120); and 64303 

(April 15, 2011), 76 FR 22425 (April 21, 2011) (SR– 

ISE–2011–18). 

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). 

8See PHLX Fee Schedule at http:// 

www.nasdaqtrader.com/content/marketregulation/ 

membership/phlx/feesched.pdf. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65084; File No. SR–ISE– 

2011–49] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees and Rebates 

for Certain Complex Orders 

August 10, 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 July 29, 

2011, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 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 

transaction fees and rebates for certain 

complex orders executed on the 

Exchange. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.ise.com), on the 

Commission’s Web site at http:// 

www.sec.gov, 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) $0.30 

per contract for Market Maker, Market 

Maker Plus,4 Firm Proprietary and 

Customer (Professional) 5 orders; and (ii) 

$0.35 per contract for Non-ISE Market 

Maker 6 orders. Priority Customer 7

orders, regardless of size, are not 

assessed a fee for adding or removing 

liquidity from the Complex Order book. 

The Exchange now proposes to change 

the take fees for complex orders in a 

select number of options classes 

(‘‘Designated Symbols’’), as follows: (i) 

For Market Maker, Market Maker Plus, 

Firm Proprietary and Customer 

(Professional) complex orders, from 

$0.30 per contract to $0.31 per contract, 

and (ii) for Non-ISE Market Maker 

complex orders, from $0.35 per contract 

to $0.36 per contract. The Exchange is 

not proposing any change to fees for 

Priority Customer complex orders in the 

Designated Symbols. The Designated 

Symbols are AAPL, BAC, C, F, GLD, 

INTC, IWM, JPM, QQQ, SLV, SPY and 

XLF. 

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 $0.28 per contract. 

The Exchange now proposes to change 

the take fee to $0.29 per contract for ISE 

Market Makers who remove liquidity in 

the Designated Symbols from the 

Complex Order book by trading with 

orders that are preferenced to them. 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 

$0.27 per contract. For regular complex 

orders that remove liquidity in those 

symbols, PHLX charges its market 

makers a take fee of $0.29 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 in the Select Symbols, regardless 

of size, currently receive a rebate of 

$0.25 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 to $0.26 per 

contract. The Exchange believes it is 

necessary to pay a rebate for Customer 

complex orders in the Designated 

Symbols in order to continue to attract 

Customer complex order flow to the 

Exchange. 

The Exchange has designated this 

proposal to be operative on August 1, 

2011. 


emcdonald on DSK2BSOYB1PROD with NOTICES
50806 Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 

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. 

14As of the date of this filing, PHLX has not 

posted on its web site its proposed rule change to 

increase the rebate to $0.26 per contract for 

Customer Complex Orders in the Designated 

Symbols. PHLX did, however, publish and 

distribute Options Trader Alert #2011–36 

announcing new complex order pricing, effective 

August 1, 2011, in options overlying the Designated 

Symbols. See http://www.nasdaqtrader.com/ 

TraderNews.aspx?id=OTA2011–36. 15 15 U.S.C. 78s(b)(3)(A)(ii). 

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 

Designated Symbols. 

The Exchange believes that the 

proposed fees for options overlying the 

Designated Symbols remain competitive 

with fees charged by other exchanges 

and are therefore 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 $0.31 per contract take fee for 

Market Maker, Market Maker Plus, Firm 

Proprietary and Customer (Professional) 

complex orders in the Designated 

Symbols, and $0.36 per contract take fee 

for Non-ISE Market Maker complex 

orders, 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 $0.29 per contract to its market 

makers, $0.30 per contract for Firm and 

Professional orders and $0.35 per 

contract for Broker-Dealer orders in a 

number of symbols in its complex order 

book.11

The Exchange also believes that its 

proposal to assess a take fee for 

preferenced orders in the Designated 

Symbols of $0.29 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 $0.27 

per contract to Directed Participants for 

removing liquidity in all their Select 

Symbols while charging $0.29 per 

contract to its market makers.12

Additionally, the Exchange believes the 

proposed fees are reasonable and 

equitable in that they will 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 in the Designated Symbols 

because paying a rebate would continue 

to attract additional order flow to the 

Exchange and thereby create liquidity in 

the Designated Symbols 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 The proposed increased 

rebate of $0.26 per contract for Priority 

Customer complex orders in the 

Designated Symbols is identical to a 

proposal recently submitted by PHLX.14

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. 

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.15 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–2011–49 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–2011–49. 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 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 50807 

16 17 CFR 200.30–3(a)(12). 

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 

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–2011–49 and should be 

submitted on or before September 6, 

2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20705 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Data Collection Available for Public 

Comments and Recommendations 

ACTION: Notice and request for 

comments. 

SUMMARY: In accordance with the 

Paperwork Reduction Act of 1995, this 

notice announces the Small Business 

Administration’s intentions to request 

approval on a new and/or currently 

approved information collection. 

DATES: Submit comments on or before 

October 17, 2011. 

ADDRESSES: Send all comments 

regarding whether these information 

collections are necessary for the proper 

performance of the function of the 

agency, whether the burden estimates 

are accurate, and if there are ways to 

minimize the estimated burden and 

enhance the quality of the collections, to 

Ingrid Ripley, Program Analyst, Office 

of Financial Assistance, Small Business 

Administration, 409 3rd Street, 8th 

Floor, Washington, DC 20416. 

FOR FURTHER INFORMATION CONTACT: 

Ingrid Ripley, mailto: Program Analyst, 

Office of Financial Assistance 202–205– 

7538 ingrid.ripley@sba.gov Curtis B. 

Rich, Management Analyst, 202–205– 

7030 curtis.rich@sba.gov 

SUPPLEMENTARY INFORMATION: 

PRIME is a grant program utilizing not 

for profit microenterprise development 

organizations (MDOs) to (1) Provide 

training and technical assistance to 

disadvantages and very-low income 

entrepreneurs (2) Provide training and 

facilitate capacity building to existing 

MDOs assisting disadvantaged and verylow income entrepreneurs, and (3) 

Provide research in the field of 

providing technical assistance to 

disadvantage and very-low income 

entrepreneurs. Information collected is 

used for oversight of the program and 

ensure appropriate use of federal funds. 

Title: ‘‘PRIME (Program for 

Investment in Microentrepreneurs)’’. 

Description of Respondents: Small 

Disadvantage Businesses. 

Form Number: N/A. 

Annual Responses: 140. 

Annual Burden: 280. 

SUPPLEMENTARY INFORMATION: 

SBLCs and NFRL’S are nondepository lending institutions 

authorized by SBA primarily to make 

loans under section 7(a) of the Small 

Business Act. As sole regulator of these 

institutions, SBA requires them to 

submit audited financial statements 

annually as well as interim, quarterly 

financial statements and other reports to 

facilitate the Agency’s oversight of these 

lenders. 

Title: ‘‘Reports to SBA, Provisions 03 

13 CFR 120.472’’. 

Description of Respondents: Small 

Business Lending Companies. 

Form Number: N/A. 

Annual Responses: 72. 

Annual Burden: 8,352. 

Curtis B. Rich, 

Acting Chief, Administrative Information 

Branch. 

[FR Doc. 2011–20795 Filed 8–15–11; 8:45 am] 

BILLING CODE P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #12730 and #12731] 

Utah Disaster #UT–00010 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Utah (FEMA–4011–DR), 

dated 08/08/2011. 

Incident: Flooding. 

Incident Period: 04/18/2011 Through 

07/16/2011. 

Effective Date: 08/08/2011. 

Physical Loan Application Deadline 

Date: 10/07/2011. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 05/08/2012. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

08/08/2011, Private Non-Profit 

organizations that provide essential 

services of governmental nature may file 

disaster loan applications at the address 

listed above or other locally announced 

locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Beaver, Box Elder, 

Cache, Daggett, Duchesne, Emery, 

Millard, Morgan, Piute, Salt Lake, 

Sanpete, Sevier, Summit, Tooele, 

Uintah, Utah, Wasatch, Weber, and 

the Uintah and Ouray Indian 

Reservation. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Non-Profit Organizations With 

Credit Available Elsewhere ... 3.250 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 3.000 

For Economic Injury: 

Non-Profit Organizations Without Credit Available Elsewhere ..................................... 3.000 

The number assigned to this disaster 

for physical damage is 127306 and for 

economic injury is 127316. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

Joseph P. Loddo, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2011–20838 Filed 8–15–11; 8:45 am] 

BILLING CODE 8025–01–P 


emcdonald on DSK2BSOYB1PROD with NOTICES