Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 50783 

18 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. 

No. SR–BX–2011–055 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 No. 

SR–BX–2011–055. 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 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 

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 No. SR–BX–2011– 

055 and should be submitted on or 

before September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20734 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65087; File No. SR–ISE– 

2011–47] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Adopt Tier-Based Rebates 

for Qualified Contingent Cross Orders 

and Solicitation 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 27, 

2011, 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 selfregulatory 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 adopt tierbased rebates for Qualified Contingent 

Cross (QCC) orders and Solicitation 

orders. 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 this proposed rule 

change is to adopt rebates to encourage 

members to submit greater numbers of 

QCC orders and Solicitation orders to 

the Exchange. With this proposed rule 

change, once a Member reaches a 

certain volume threshold in QCC orders 

and/or Solicitation orders during a 

month, the Exchange will provide a 

rebate to that Member for all of its QCC 

and Solicitation traded contracts for that 

month. The proposed rebate will be 

paid to the Member entering a 

qualifying order, i.e., a QCC order and/ 

or a Solicitation order. Specifically, the 

Exchange proposes to adopt the 

following thresholds and corresponding 

per contract rebate: 

Originating contract sides Rebate per 

contract 

0–1,999,999 .............................. $0.00 

2,000,000–3,499,999 ................ 0.03 

3,500,000–3,999,999 ................ 0.05 

4,000,000+ ................................ 0.07 

The proposed rebate shall apply to 

QCC orders and Solicitation orders in 

all symbols traded on the Exchange. 

Additionally, the proposed threshold 

levels are based on the originating side 

so if, for example, a Member submits a 

Solicitation order for 1,000 contracts, all 

1,000 contracts shall be counted to 

reach the established threshold even if 

the order is broken up and executed 

with multiple counter parties. 

Further, the Exchange currently 

assesses per contract transaction charges 

and credits to market participants that 

add or remove liquidity from the 

Exchange (‘‘maker/taker fees’’) in a 

select number of options classes (the 

‘‘Select Symbols’’).3 For Solicitation 

orders in the Select Symbols, the 

Exchange currently provides a rebate of 

$0.15 to contracts that do not trade with 

the contra order in the Solicited Order 

Mechanism. The Exchange does not 

propose any change to that rebate and 

that rebate will continue to apply. 

The Exchange has designated this 

proposal to be effective on August 1, 

2011. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Schedule of Fees 

is consistent with Section 6(b) of the 


emcdonald on DSK2BSOYB1PROD with NOTICES
50784 Federal Register / Vol. 76, No. 158 / Tuesday, August 16, 2011 / Notices 

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

5 15 U.S.C. 78f(b)(4). 

6For example, the customer fee is $0.00 per 

contract for products other than Singly Listed 

Indexes, Singly Listed ETFs and FX Options. For 

Singly Listed Options, Singly Listed ETFs and FX 

Options, the customer fee is $0.18 per contract. The 

Exchange also currently has an incentive plan in 

place for certain specific FX Options which has its 

own pricing. See ISE Schedule of Fees. 

7The Exchange currently has a sliding scale fee 

structure that ranges from $0.01 per contract to 

$0.18 per contract depending on the level of volume 

a Member trades on the Exchange in a month. 8 15 U.S.C. 78s(b)(3)(A)(ii). 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

Act 4 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 5

in particular, in that it is an equitable 

allocation of reasonable dues, fees and 

other charges among Exchange 

members. The Exchange believes that 

the proposed fee changes will generally 

allow the Exchange and its Members to 

better compete for order flow and thus 

enhance competition. More specifically, 

the Exchange believes that its proposal 

to adopt volume-based rebates is 

reasonable as it will encourage Members 

to direct their QCC and Solicitation 

orders to the Exchange instead of to a 

competing exchange. The Exchange 

notes that it has previously adopted 

other incentive programs to promote 

and encourage growth in specific 

business areas. For example, the 

Exchange has lower fees (or no fees) for 

customer orders; 6 and tiered pricing 

that reduces rates for market makers 

based on the level of business they bring 

to the Exchange.7 This proposed rule 

change targets yet another segment in 

which the Exchange seeks to garnish 

greater order flow. The Exchange also 

believes that adopting the proposed 

rebates is reasonable because it is 

designed to give Members who trade a 

lot on the Exchange a benefit by way of 

a lower transaction fee. As noted above, 

once a Member reaches the established 

threshold, all of the trading activity in 

the specified order type by that Member 

will be subject to the proposed rebate. 

The Exchange also believes the 

proposal to adopt the rebates is 

equitable because it would uniformly 

apply to all Members engaged in QCC 

and Solicitation trading in all option 

classes traded on the Exchange. 

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.8 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–2011–47 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–2011–47. 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, 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 

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– 

2011–47, and should be submitted on or 

before September 6, 2011. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2011–20733 Filed 8–15–11; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–65080; File No. SR–CHX– 

2011–23] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of a Proposed Rule Change To Extend 

the Pilot Program Relating to 

Individual Securities Circuit Breakers 

August 9, 2011. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

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

notice is hereby given that on August 8, 

2011, the Chicago Stock Exchange, Inc. 

(‘‘CHX’’ or the ‘‘Exchange’’) 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 CHX. CHX has 

filed this proposal pursuant to Exchange 

Act Rule 19b–4(f)(6) 3 which is effective 

upon filing with the Commission. 


emcdonald on DSK2BSOYB1PROD with NOTICES