Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 10013 

25 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

circumstances detrimental to the 

maintenance of a fair and orderly 

market are present. Trading in Shares 

will be subject to trading halts caused 

by extraordinary market volatility 

pursuant to the Exchange’s ‘‘circuit 

breaker’’ rule or by the halt or 

suspension of trading of the Designated 

Contracts. The Exchange represents that 

the Exchange may halt trading during 

the day in which the interruption to the 

dissemination of the IIV, the Index or 

the value of the underlying futures 

contracts occurs. If the interruption to 

the dissemination of the IIV, the Index 

or the value of the underlying futures 

contracts persists past the trading day in 

which it occurred, the Exchange will 

halt trading no later than the beginning 

of the trading day following an 

interruption. In addition, if the 

Exchange becomes aware that the NAV 

with respect to the Shares is not 

disseminated to all market participants 

at the same time, it will halt trading in 

the Shares until such time as the NAV 

is available to all market participants. 

The proposed rule change is designed 

to promote just and equitable principles 

of trade and to protect investors and the 

public interest in that a large amount of 

information is publicly available 

regarding the Fund and the Shares, 

thereby promoting market transparency. 

The NAV for the Fund will be 

disseminated to all market participants 

at the same time. The IIV per Share will 

be widely disseminated by one or more 

major market data vendors at least every 

15 seconds during the Core Trading 

Session and on the Managing Owner’s 

Web site. Trading in Shares of the Fund 

will be halted if the circuit breaker 

parameters in NYSE Arca Equities Rule 

7.12 have been reached or because of 

market conditions or for reasons that, in 

the view of the Exchange, make trading 

in the Shares inadvisable. Moreover, 

prior to the commencement of trading, 

the Exchange will inform its ETP 

Holders in an Information Bulletin of 

the special characteristics and risks 

associated with trading the Shares. 

The proposed rule change is designed 

to perfect the mechanism of a free and 

open market and, in general, to protect 

investors and the public interest in that 

it will facilitate the listing and trading 

of an additional type of exchange-traded 

product that will enhance competition 

among market participants, to the 

benefit of investors and the marketplace. 

As noted above, the Exchange has in 

place surveillance procedures relating to 

trading in the Shares and may obtain 

information via ISG from other 

exchanges that are members of ISG or 

with which the Exchange has entered 

into a comprehensive surveillance 

sharing agreement. In addition, as noted 

above, investors will have ready access 

to information regarding the Fund’s 

holdings, IIV, and quotation and last 

sale information for the Shares. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will 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 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the self-regulatory 

organization consents, the Commission 

will: 

(A) By order approve or disapprove 

the proposed rule change, or 

(B) Institute proceedings to determine 

whether the proposed rule change 

should be 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 email to rulecomments@sec.gov. Please include File 

Number SR–NYSEArca–2012–10 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–NYSEArca–2012–10. This 

file number should be included on the 

subject line if email 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 Section, 100 F Street NE., 

Washington, DC 20549–1090, on official 

business days between 10 a.m. and 

3 p.m. Copies of the filing will also be 

available for inspection and copying at 

the New York Stock Exchange’s 

principal office and on its Internet Web 

site at www.nyse.com. 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– 

NYSEArca–2012–10 and should be 

submitted on or before March 13, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–3858 Filed 2–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66391; File No. SR–CHX– 

2012–05] 

Self-Regulatory Organizations; 

Chicago Stock Exchange, Inc.; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change To Amend 

the Fee Schedule To Implement a 

Clearing Submission Fee Credit for 

Institutional Brokers 

February 14, 2012. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on February 

2, 2012, the Chicago Stock Exchange, 

Inc. (‘‘CHX’’ or ‘‘Exchange’’) filed with 

mstockstill on DSK4VPTVN1PROD with NOTICES

10014 Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 

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

4 17 CFR 240.19b–4(f)(2). 

5See, Securities Exchange Act Release No. 65615 

(Oct. 24, 2011), 76 FR 67239 (Oct. 31, 2011) (SR– 

CHX–2011–17). Currently, the National Securities 

Clearing Corporation (‘‘NSCC’’) is the Qualified 

Clearing Agency for such transactions. 

6See, Securities Exchange Act Release No. 65792 

(Nov. 18, 2011), 76 FR 72739 (Nov. 25, 2011) (SR– 

CHX–2011–31). 

7The Exchange is also proposing to add text to 

Section E.3.a. of the Fee Schedule to emphasize that 

the fees imposed pursuant to that section are for 

trades executed in the Matching System and to 

distinguish that activity from transactions subject to 

Section E.7. of the Fee Schedule. 

8See, Securities Exchange Act Release No. 58362, 

73 FR 49511 (SR–CHX–2008–13) (Aug. 14, 2008) 

(adopting a Trade Processing Fee Credit); Securities 

Exchange Act. Release No. 60259 (July 7, 2009), 74 

FR 34062 (July 14, 2009) (SR–CHX–2009–08) 

(changes to calculation and allocation of Trade 

Processing Fee Credits paid to Institutional 

Brokers); Securities Exchange Act Release No. 

64173 (April 4, 2011), 76 FR 19818 (April 8, 2011) 

(SR–CHX–2011–02) (repealing Trade Processing Fee 

Credit). 

9At the time it was repealed, the Trade 

Processing Fee Credit was set at the same rate as 

the current Transaction fee credit, i.e., 16% of the 

fee paid by the Clearing Participant to the Exchange 

in the transaction. 

10The broker representing the ultimate clearing 

participant is currently known as the ‘‘broker of 

credit.’’ Since both that broker and the ‘‘originating 

broker’’ (defined as the Institutional Broker that 

executes a trade) can receive a credit, the Exchange 

believes that it would be more accurate to use the 

term ‘‘Clearing Broker.’’ The Exchange also 

proposes to capitalize the terms ‘‘Transaction Fee 

Credit,’’ ‘‘Clearing Broker’’ and ‘‘Originating 

Broker’’ in the Fee Schedule to emphasize that 

those are defined terms. The Exchange notes that 

it is possible, although not required, for the same 

Institutional Broker to act as both the Originating 

Broker and Clearing Broker in any given 

transaction. 

11A Transaction Fee Credit of 16% of the 

Transaction Fees generated pursuant to Section 

E.3.a. is paid to Institutional Brokers for trades 

submitted through that firm and which were 

executed on the Exchange. [sic] Section F.2. of the 

Fee Schedule. Of that amount, 4% is paid to the 

Originating Broker and 12% is paid to the Clearing 

Broker. 

12The Exchange notes that it is uncertain as to 

whether the 8% level for the Clearing Submission 

Fee Credit will ultimately prove to be the correct 

amount in effectuating its purpose, which is to 

incent Institutional Brokers to enter clearing 

submissions for non-CHX trades through the 

Exchange’s system. At some point, the Exchange 

may seek to raise the 8% level of the Clearing 

Submission Fee Credit in order to attract business. 

If so, the Exchange would make the appropriate 

filing to modify its Fee Schedule as required by the 

rules of the Commission. 

13 15 U.S.C. 78o(b)(8). 

the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by CHX. CHX has filed 

the proposal pursuant to Section 

19(b)(3)(A) of the Act 3 and Rule 19b– 

4(f)(2) thereunder,4 which renders the 

proposal effective upon filing with the 

Commission. 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 

CHX proposes to amend its Fee 

Schedule, effective February 16, 2012, 

to amend its Fee Schedule [sic] to 

implement a Clearing Submission Fee 

Credit for Institutional Brokers. 

The text of this proposed rule change 

is available on the Exchange’s Web site 

at (www.chx.com) and in 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 

CHX included statements concerning 

the purpose of and basis for the 

proposed rule changes and discussed 

any comments it received regarding the 

proposal. The text of these statements 

may be examined at the places specified 

in Item IV below. The CHX 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 

Changes 

1. Purpose 

Through this filing, the Exchange 

proposes to amend its Schedule of Fees 

and Assessments (the ‘‘Fee Schedule’’), 

effective February 16, 2012, to create a 

Clearing Submission Fee Credit to be 

paid to Institutional Brokers and make 

other technical changes. In October 

2011, the Exchange added Article 21, 

Rule 6 authorizing the submission by 

the Exchange of non-CHX trades entered 

through an Institutional Broker to a 

Qualified Clearing Agency for clearance 

and settlement.5 Among other things, 

the Exchange imposes a Trade 

Processing Fee on the Clearing 

Participants named in these clearing 

submissions, pursuant to the provisions 

of Section E.7. of the Fee Schedule. In 

November 2011, the Exchange modified 

the definition of the Trade Processing 

Fee to be based upon non-CHX executed 

trades for which clearing information is 

entered by an Exchange-registered 

Institutional Broker into the Exchange’s 

systems and submitted to a Qualified 

Clearing Agency pursuant to Article 21, 

Rule 6(a).6 The Exchange now proposes 

to rename the Trade Processing Fee as 

the ‘‘Clearing Submission Fee’’ for 

purposes of clarity and institute a 

Clearing Submission Fee Credit to share 

the revenue generated by these fees and 

incentivize this activity by its 

Institutional Brokers.7 The Exchange 

previously had in place a Trade 

Processing Fee Credit beginning in 

August 2008 through April 2011, but 

repealed it pending the adoption of 

Article 21, Rule 6.8 With the 

implementation of that rule, the 

Exchange proposes to reinstate the 

credit formerly paid to Institutional 

Brokers regarding clearing submissions 

for non-CHX trades, albeit at a different 

rate than previously.9

The Exchange proposes to pay on a 

monthly basis a credit equal to 8% of 

the Clearing Submission Fees collected 

by the Exchange pursuant to Section 

E.7. of the Fee Schedule to the 

Institutional Broker which acted as the 

broker for the ultimate Clearing 

Participant to the clearing submission 

(known as the ‘‘Clearing Broker’’).10 The 

Exchange believes that payment of a 

Clearing Submission Fee Credit to the 

Clearing Broker based on activity 

handled by it will incent Institutional 

Brokers to utilize the Exchange’s 

systems and services in forwarding nonCHX trades to NSCC, rather than using 

alternative mechanisms such as 

correspondent clearing or Nasdaq’s 

Automated Confirmation Transaction 

(‘‘ACT’’) system. The Exchange 

proposes to provide a credit equal to 

50% of the credit paid to Institutional 

Broker for transactions handled by it 

which are executed on the Exchange.11

The Exchange believes that payment of 

a credit for non-CHX trades at a lower 

rate than for CHX trades appears to 

strike an appropriate balance between 

incentivizing Institutional Brokers to 

execute trades on the CHX’s facilities 

and competing with other venues to 

make clearing submissions for trades 

executed by Institutional Brokers in the 

over-the-counter (‘‘OTC’’) 

marketplace.12

Only Institutional Brokers which are 

members of the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

will be eligible for the Clearing 

Submission Fee Credit. Since the 

trading activities involved in the 

relevant clearing submissions by 

definition occurred in a market center 

other than the Exchange (normally the 

OTC marketplace), the provisions of 

Exchange Act Section 15(b)(8) are 

implicated.13 Under Section 15(b)(8), a 

registered broker or dealer must be a 

member of a securities association 

registered under Section 15A of the 

Exchange Act, unless it effects 

transactions in securities solely on a 

national securities exchange of which it 

is a member. Currently, the only 

registered securities association is 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 10015 

14Exchange Act Rule 15b9–1 provides a limited 

exemption if the broker-dealer carries no customer 

accounts and has annual gross income derived from 

purchases and sales of securities otherwise than on 

a national securities exchange of which it is a 

member in an amount no greater than $1,000. 17 

CFR 240.15b9–1. Since broker-dealers can 

separately charge commissions, however, the 

Exchange will not ordinarily know whether a nonFINRA member has already received more than 

$1,000 compensation arising out of OTC 

transactions as commissions or some other means. 

The Exchange’s proposed restriction will preclude 

an Institutional Broker’s violation of these 

provisions by the receipt of Clearing Submission 

Fee Credits. 

15Report Concerning Examinations of Options 

Order Routing and Execution, U.S. Securities and 

Exchange Commission (Mar. 8, 2007), p.2. 

16See, Article 21, Rule 6 and Securities Exchange 

Act Release No. 65615, supra, note 3. Among other 

things, the Exchange permits the post-trade 

substitution of Clearing Participants on a non-CHX 

trade prior to making the clearing submission. This 

substitution process is particularly important in 

facilitating the execution of the equity component 

of stock-option or stock-futures orders. The Clearing 

Submission Fee is designed to compensate the 

Exchange for the costs of providing the systems 

used, and oversight of, such activities. 

17See, Securities Exchange Act Release No. 43833 

(January 10, 2001), 66 FR 7822 (January 25, 2001) 

(SR–ISE–00–10) [sic] at p.7825, note 28 and 

accompanying text. 18 Id.; See, Securities Exchange Act Release No. 

43112 (Aug. 3, 2000), 65 FR 49040 (Aug. 10, 2000) 

(SR–CBOE–00–28) [sic]; Securities Exchange Act 

Release No. 43177 (Aug. 18, 2000), 65 FR 51889 

(Aug. 25, 2000) (SR–PHLX–00–77) [sic]; Securities 

Exchange Act Release No. 43228 (Aug. 30, 2000), 

65 FR 54330 (Sept. 7, 2000) (SR–AMEX–00–38) 

[sic]; Securities Exchange Act Release No. 43290 

(Sept. 13, 2000), 65 FR 57213 (Sept. 21, 2000) (SR– 

PCX–00–30) [sic]. 

19 15 U.S.C. 78f. 

20 15 U.S.C. 78f(b)(4). 

21 17 CFR 242.610(c)(1). 

22 If the value of the trade was sufficiently large 

to result in the application of the $100 maximum 

fee, the per share amount would necessarily 

decline. 

23 15 U.S.C. 78f. 

24 15 U.S.C. 78f(b)(5). 

25See, NYSE Price List 2012, Fees and Credits 

applicable to Designated Market Makers (‘‘DMMs’’), 

p.4, available on the NYSE’s public Web site. 

DMMs (f/k/a specialists) are a subcategory of NYSE 

members with special rights and obligations, 

particularly as they relate to the execution of orders 

on the NYSE’s facilities. 

FINRA. Since transactions giving rise to 

a Clearing Submission Fee Credit are 

normally executed in the OTC 

marketplace, the Exchange proposes to 

limit the payment of Clearing 

Submission Fee Credits to Institutional 

Brokers which are members of FINRA in 

order to avoid creating a violation of 

Section 15(b)(8) by the Institutional 

Brokers receiving such credits.14

The Exchange recognizes that the 

Commission has raised concerns about 

so-called payment for order flow 

programs in variety of scenarios. For 

example, the 2007 Report Concerning 

Examinations of Options Order Routing 

and Execution stated, ‘‘The Commission 

previously has expressed concern that 

payment for order flow and 

internalization in the markets contribute 

to an environment in which quote 

competition is not always rewarded, 

thereby discouraging the display of 

aggressively priced quotes and 

impeding investor’s ability to obtain 

better prices. [footnote omitted]’’ 15 The 

Exchange believes that the proposed 

Clearing Submission Fee Credit 

materially differs from other programs 

inasmuch as payment of the credit does 

not depend on the execution of a trade 

on the CHX’s facilities and therefore 

does not discourage aggressive quote 

competition. Rather, the credit is based 

on the receipt of a Clearing Submission 

Fee by the Exchange, which is assessed 

for the post-execution submission via 

the CHX’s systems to NSCC for 

clearance and settlement.16 As such, the 

Exchange does not believe that a 

payment of a credit for post-trade 

clearing submissions raises the same 

execution quality issues which underlie 

the Commission’s stated concerns about 

payment for order flow programs. 

Even taking the view that the Clearing 

Submission Fee Credit implicates 

market quality issues, the Exchange 

notes that a variety of other payment for 

order flow practices are prevalent in the 

securities industry. As the Commission 

has recognized, payment for order flow 

is not in itself unlawful.17 For example, 

many options exchanges have created 

payment for order flow programs which 

are reflected in their rules and fee 

schedules.18 It is also not uncommon for 

broker-dealers to ‘‘internalize’’ their 

order flow by trading as principal with 

their own clients. The Exchange’s goal 

in creating a Clearing Submission Fee 

Credit is to incent transaction providers 

to conduct business using the CHX’s 

systems and services, by which the 

Exchange can generate revenue. The 

implementation of a Clearing 

Submission Fee Credit should further 

this legitimate objective by encouraging 

Institutional Brokers to make clearing 

submissions for non-CHX trades using 

the Exchange’s systems. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 19 in general, and 

furthers the objectives of Section 6(b)(4) 

of the Act 20 in particular, in that it 

provides for the equitable allocation of 

reasonable dues, fees and other charges 

among members and other persons 

using any facility or system which the 

Exchange operates or controls. The 

fundamental purpose of the Clearing 

Submission Fee Credit is to incent the 

entry of post-trade clearing submissions 

for non-CHX trades by Institutional 

Brokers through the Exchange’s systems, 

which generates revenue to the 

Exchange in the form of Clearing 

Submission Fees. The Exchange notes 

that most, if not all, other exchanges 

issue credits to their members in order 

to incent them to direct business to their 

facilities. For example, many exchanges 

offer a ‘‘provide’’ credit to members 

which provide liquidity by entering 

orders on the trading facilities of the 

exchange with which other orders can 

interact. Pursuant to Regulation NMS 

Rule 610 (the ‘‘Access Rule’’), the 

maximum rate an exchange can charge 

to execute against its protected quote is 

$0.003 per share for transactions in 

securities priced over $1 per share.21 In 

most cases, exchanges offer a provide 

credit which is less than the maximum 

charge, although transactions in certain 

securities, most often Tape B securities, 

may offer a provide credit which is 

slightly higher than the maximum rate. 

The CHX notes that the proposed 

Clearing Submission Fee Credit is to be 

set at 8% of the Clearing Submission 

Fee. That Fee is currently set at the 

Access Rule maximum rate of $0.003/ 

share (with a $100 cap per side) for 

securities priced over $1 per share, as 

specified in the Exchange’s Schedule of 

Fees and Assessment. Thus, even 

assuming that the Clearing Submission 

Fee did not reach the $100 cap, the 

effective rate of the Clearing Submission 

Fee Credit is $0.00024 per share, which 

is far below the provide credits offered 

by many other exchanges.22 Based upon 

these facts, the Exchange believes that 

the proposed Clearing Submission Fee 

Credit represents an equitable allocation 

of reasonable dues, fee, credits and 

other charges among its members and 

issuers and other persons using its 

facilities. 

The Exchange further believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act 23 in general, and 

furthers the objectives of Section 6(b)(5) 

of the Act 24 in particular, in that it 

provides for fees and credits which are 

not designed to permit unfair 

discrimination between customers, 

issuers, brokers or dealers. The 

Exchange notes that other exchanges 

have authorized credit payment 

programs which are available only to 

certain subcategories of their members. 

For example, the New York Stock 

Exchange (‘‘NYSE’’) pays a series of 

credits to its Designated Market Makers 

(‘‘DMMs’’).25 The credits paid to DMMs 

can exceed the provide credits paid to 

non-DMMs (which is $0.0015/share) by 

a substantial percentage. For example, 

DMMs can receive a credit of $0.0035/ 

mstockstill on DSK4VPTVN1PROD with NOTICES

10016 Federal Register / Vol. 77, No. 34 / Tuesday, February 21, 2012 / Notices 

26 Id., p.5. 

27 15 U.S.C. 78s(b)(3)(A)(ii). 

28 17 CFR 240.19b–4(f)(2). 

29 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

share (or more than twice as much as 

paid to ordinary members) when adding 

liquidity in shares of less active 

securities under certain specified 

circumstances.26 The payment by CHX 

of a much smaller Clearing Submission 

Fee Credit to its Institutional Brokers 

would appear to be well within the 

scope of this precedent. The Exchange 

also notes that the entry of clearing 

submissions pursuant to Article 21, 

Rule 6(a), which gives rise to the 

Clearing Submission Fee, is limited to 

Institutional Brokers. Since only 

Institutional Brokers can engage in the 

activity which results in Clearing 

Submission Fees, there would be no 

purpose served in offering a financial 

incentive which is based upon the 

generation of those fees to nonInstitutional Brokers. For these reasons, 

the Exchange believes that the proposed 

Clearing Submission Fee Credit 

represents a lawful payment which is 

distributed in a manner which is 

reasonable and not unfairly 

discriminatory. 

B. Self-Regulatory Organization’s 

Statement of Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that payment of a 

Clearing Submission Fee Credit to the 

Clearing Broker based on activity 

handled by it will incent Institutional 

Brokers to utilize the Exchange’s 

systems and services in forwarding nonCHX trades to NSCC, rather than using 

alternative mechanisms such as 

correspondent clearing or Nasdaq’s ACT 

system. 

C. Self-Regulatory Organization’s 

Statement on Comments Regarding the 

Proposed Rule Changes Received From 

Members, Participants or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Changes and Timing for 

Commission Action 

The proposed rule change is to take 

effect pursuant to Section 19(b)(3)(A)(ii) 

of the Act 27 and subparagraph (f)(2) of 

Rule 19b–4 thereunder 28 because it 

establishes or changes a due, fee or 

other charge applicable to the 

Exchange’s members and non-members, 

which renders the proposed rule change 

effective upon filing. 

At any time within 60 days of the 

filing of the 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. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposal 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 email to rulecomments@sec.gov. Please include File 

Number SR–CHX–2012–05 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–CHX–2012–05. This file number 

should be included on the subject line 

if email 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 changes 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 on official business 

days between the hours of 10 a.m. and 

3 p.m. Copies of such filing will also be 

available for inspection and copying at 

the principal office of the CHX. 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–CHX–2012–05 and should be 

submitted on or before March 13, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–3899 Filed 2–17–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66392; File No. SR–ISE– 

2012–06] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Fees for Certain 

Complex Orders Executed on the 

Exchange 

February 14, 2012. 

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

Securities Exchange Act of 1934 (the ’’ 

Exchange Act’’) 1 and Rule 19b–4 

thereunder,2 notice is hereby given that 

on January 31, 2012, 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 and II 

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 

The ISE is proposing to amend fees 

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), 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 

mstockstill on DSK4VPTVN1PROD with NOTICES