Federal Register / Vol. 77, No. 49 / Tuesday, March 13, 2012 / Notices 14847 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78f. 

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

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 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–BX–2012–017 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–BX–2012–017. 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 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 the 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–BX– 

2012–017 and should be submitted on 

or before April 3, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6033 Filed 3–12–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66525; File No. SR–ISE– 

2012–09] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Network Fees 

March 7, 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 February 22, 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 proposes to amend its 

network fees. 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 amend the Exchange’s 

network fees. Specifically, the Exchange 

proposes to adopt a network fee for a 

new 10 Gigabit (GB) low latency 

Ethernet connectivity option. The 

Exchange currently offers two Ethernet 

connection options, a 1 GB connection 

at a cost of $500 per month and a 10 GB 

connection at a cost of $4,000 per 

month. 

In keeping with changes in 

technology, the Exchange now proposes 

to provide an enhanced bandwidth 

option to enable Members a more 

efficient connection to the Exchange. 

Through the use of new, advanced 

hardware, the proposed new 

connectivity option will provide a 

higher speed network to access the 

Exchange’s Optimise trading system. 

The Exchange proposes to charge 

Members $7,000 per month for this 

connection. ISE has expended 

significant amount of resources in 

developing this infrastructure and the 

proposed fees will allow the Exchange 

to recoup its investment. The 

Exchange’s new network connectivity 

option will provide Members the option 

to select the bandwidth that is 

appropriate for their current needs. This 

new connectivity option is voluntary 

and therefore, the Exchange will retain 

the existing connectivity options for 

those Members who choose not to 

utilize the new network connection. 

The Exchange has designated this 

proposal to be operative on March 1, 

2012. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the 

Securities Exchange Act of 1934 

(‘‘Act’’),3 in general, and with Section 

6(b)(4) of the Act,4 in particular, in that 

it provides for the equitable allocation 

of reasonable dues, fees and other 

charges among Exchange members and 

other persons using its facilities. In 

particular, the proposed rule change 

will provide greater transparency into 

the connectivity options available to 

Members. 

The Exchange’s proposal for a low 

latency 10 GB Ethernet network 

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14848 Federal Register / Vol. 77, No. 49 / Tuesday, March 13, 2012 / Notices 

5NYSE charges $10,000 per month for 10Gb LCN 

(Liquidity Center Network) Connection. See https:// 

usequities.nyx.com/sites/usequities.nyx.com/files/ 

nyse_arca_marketplace_fees_1.3.2012.pdf, page 13. 6 15 U.S.C. 78s(b)(3)(A)(ii). 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

connection will provide Members the 

ability to increase data transmission and 

reduce latency, thereby enhancing their 

operations. The Exchange believes the 

proposed fees for this new connection to 

the Exchange are reasonable because the 

fees charged will allow the Exchange to 

cover the hardware, installation, testing 

and connection costs to maintain and 

manage the enhanced connection. The 

proposed fees will allow the Exchange 

to recoup costs associated with 

providing the low latency 10 GB 

connection and provide the Exchange a 

profit while providing Members the 

possibility of reducing the number of 

their connections to the Exchange. The 

Exchange believes the proposed fees are 

reasonable in that they are lower than 

the fees charged by other trading venues 

for similar connectivity services.5

The Exchange also believes the 

proposed 10 GB fee for connectivity to 

the Exchange is equitably allocated in 

that all Exchange Members that 

voluntarily select this service option 

will be charged the same amount to 

maintain and manage the enhanced 

connection. All Exchange Members 

have the option to select this voluntary 

network connection. 

The Exchange also believes the 

proposed 10 GB fee for connectivity to 

the Exchange is not unfairly 

discriminatory in that all Exchange 

Members will have the option of 

selecting the 10 GB connection to the 

Exchange, and there is no differentiation 

among Members with regard to the fees 

charged for this option. 

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 

Exchange 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 Exchange Act.6 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 Exchange 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 Exchange 

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–ISE–2012–09 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–2012–09. 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 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 the 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– 

2012–09 and should be submitted on or 

before April 3, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5984 Filed 3–12–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66528; File No. SR–FINRA– 

2012–014] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change To Extend 

the Implementation of FINRA Rule 4240 

(Margin Requirements for Credit 

Default Swaps) 

March 7, 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 

23, 2012, Financial Industry Regulatory 

Authority, Inc. (‘‘FINRA’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II, below, which Items have been 

substantially prepared by FINRA. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. For the 

reasons discussed below, the 

Commission is granting accelerated 

approval of the proposed rule change. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

FINRA is proposing to extend to July 

17, 2012 the implementation of FINRA 

Rule 4240, retroactively from January 

17, 2012. FINRA Rule 4240 implements 

an interim pilot program with respect to 

margin requirements for certain 

transactions in credit default swaps. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

mstockstill on DSK4VPTVN1PROD with NOTICES