Federal Register / Vol. 77, No. 54 / Tuesday, March 20, 2012 / Notices 16287 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Act Release No. 53522 (March 20, 

2006), 71 FR 14975 (March 24, 2006) (SR–ISE– 

2006–09). 

4 Id. 

5See Exchange Act Release No. 64269 (April 8, 

2011), 76 FR 20752 (April 13, 2011) (SR–ISE–2011– 

21). 

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–Phlx–2012– 

26 and should be submitted on or before 

April 10, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6582 Filed 3–19–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66590; File No. SR–ISE– 

2012–12] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to API Fees 

March 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 February 29, 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 its API 

or login 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 ISE is proposing to amend its 

Schedule of Fees regarding the 

Exchange’s API or login fees. ISE 

currently charges its Members a fee for 

each login that a Member uses for 

quoting or order entry, with a lesser 

charge for logins used for the limited 

purpose of ‘‘listening’’ to broadcast 

messages.3 The Exchange currently has 

the following categories of authorized 

logins: (1) Quoting, order entry and 

listening (allowing the user to enter 

quotes, orders, and perform all other 

miscellaneous functions, such as setting 

parameters and pulling quotes); (2) 

order entry and listening (allowing the 

user to enter orders and perform all 

other miscellaneous functions, such as 

setting parameters and pulling quotes 

(but not quoting)); and (3) listening 

(allowing the user only to query the 

system and to respond to broadcast 

messages).4 The Exchange notes that 

quoting, order entry and listening are 

functionalities available only to 

Exchange Market Makers, i.e., Primary 

Market Makers and Competitive Market 

Makers, while only order entry and 

listening are functionalities available to 

non-Market Makers, i.e., Electronic 

Access Members. 

ISE Market Makers currently receive 

an allocation of 1.8 million quotes per 

day per user.5 If a Market Maker submits 

more quotes than those allocated, i.e., 

1.8 million quotes per day per user as 

measured on average in a single month, 

the Market Maker is charged for 

additional users depending upon the 

number of quotes submitted. Each 

month, the total number of quotes 

submitted by a Market Maker is divided 

by the number of trading days, resulting 

in the average quotes per day entered by 

that Market Maker. This number is then 

divided by 1.8 million and rounded up 

to the nearest whole number, resulting 

in an implied number of users based on 

quotes. Market Makers are charged on a 

monthly basis for the greater of a) the 

greatest number of users that logged into 

the system, or b) the number of implied 

users based on quotes. 

ISE currently charges Market Makers 

a standardized fee of $1,000 per month 

for each quoting session of up to 1.8 

million quotes per day, on average for 

a month, including for any incremental 

usage. For example, a Market Maker 

with 10 logins currently pays $10,000 in 

fees as long as it quotes on average 18 

million quotes or less per day. If that 

Market Maker instead sends an average 

of 20 million quotes per day during a 

month, its fees would total $12,000 for 

a total of 12 sessions, with the extra 2 

million quotes per day counting towards 

two additional sessions. 

The Exchange now proposes to lower 

the quote allowance for each login 

session from 1.8 million quotes per day 

to 1.5 million quotes per day, including 

the quote allowance for each 

incremental login. The Exchange is not 

proposing any changes to the fee 

charged for each login session. The fee 

for each login session will remain at 

$1,000 per month. With this proposed 

rule change, ISE expects to raise 

revenue to offset the lower quoting 

volume at the Exchange. 

The Exchange has designated this 

proposal to be operative on March 1, 

2012. 

2. Statutory Basis 

The Exchange believes that its 

proposal to amend its Schedule of Fees 

is consistent with Section 6(b) of the 


srobinson on DSK4SPTVN1PROD with NOTICES
16288 Federal Register / Vol. 77, No. 54 / Tuesday, March 20, 2012 / Notices 

6 15 U.S.C. 78f(b). 

7 15 U.S.C. 78f(b)(4). 

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. 

Act 6 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 7

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 Exchange believes that the proposal 

does not constitute an inequitable 

allocation of fees, as all similarly 

situated Members will be subject to the 

same fee structure, and access to the 

Exchange’s market is offered on fair and 

non-discriminatory terms. In other 

words, the proposed rule change will 

treat similarly situated Members in the 

same manner by allocating the same 

quoting allowance to all Members. The 

Exchange further believes that its 

proposal to lower the quote allowance 

per each login is both equitable and 

reasonable as it will help the Exchange 

manage quote message traffic. The 

Exchange believes that Market Makers 

are generally quoting more efficiently on 

the Optimise trading platform and does 

not believe that lowering the quoting 

allowance will impact Market Makers 

adversely from conducting their activity 

on the Exchange. Further, the 

Exchange’s proposal does not preclude 

Members from obtaining additional 

logins if they have a need beyond the 

quoting allowance allocated per each 

login. 

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.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 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–2012–12 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–2012–12. 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– 

2012–12 and should be submitted on or 

before April 10, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6615 Filed 3–19–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66592; File No. SR–BX– 

2012–018] 

Self-Regulatory Organizations; 

NASDAQ OMX BX, Inc.; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change To Eliminate 

the 100MB Connectivity Option and 

Fee 

March 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 March 6, 

2012, NASDAQ OMX BX, Inc. (‘‘BX’’ or 

‘‘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 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 Exchange proposes to eliminate 

100MB connectivity between the 

Exchange and co-located servers, as well 

as associated fees, as set forth in 

Exchange Rule 7034(b). The Exchange 

will implement the proposed change on 

April 1, 2012. The text of the proposed 

rule change is available at http:// 

nasdaqomxbx.cchwallstreet.com/, at the 

Exchange’s principal office, 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 

Exchange 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 


srobinson on DSK4SPTVN1PROD with NOTICES