Federal Register / Vol. 77, No. 69 / Tuesday, April 10, 2012 / Notices 21615 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3A Non-ISE Market Maker is a market maker as 

defined in Section 3(a)(38) of the Act, registered in 

the same options class on another options 

exchange. 

4See Securities Exchange Act Release No. 53630 

(April 11, 2006), 71 FR 19918 (April 18, 2006) (SR– 

ISE–2006–18). 

5See Securities Exchange Act Release No. 61869 

(April 7, 2010), 75 FR 19449 (April 14, 2010) (SR– 

ISE–2010–25). 

6Options classes subject to maker/taker fees are 

identified by their ticker symbol on the Exchange’s 

Schedule of Fees. 

7The Intermarket Linkage Plan prohibits an 

exchange from allowing the automatic execution of 

public customer orders at a price that is inferior to 

the best prices being publically displayed by 

another exchange. Under ISE Rule 803(c)(2), it is 

the responsibility of the PMM to either execute an 

order at a price that matches or betters the NBBO, 

or obtain such better prices on behalf of the public 

customer. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(4). 

NASDAQ–2012–042, and should be 

submitted on or before May 1, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–8580 Filed 4–9–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66734; File No. SR–ISE– 

2012–29] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Additions to the 

Schedule of Fees 

April 4, 2012. 

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 April 2, 

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 add notes to its 

Schedule of Fees with respect to two 

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 Exchange proposes to add notes 

to its Schedule of Fees with respect to 

the application of two fees currently 

assessed by ISE. The first note relates to 

Non-ISE Market Maker fees, which 

apply to regular and complex orders, 

and how those fees are applied to 

execution of complex orders on the 

Exchange.3 Non-ISE Market Maker fees 

were adopted by ISE in 2006.4 Prior to 

this fee change, Non-ISE Market Makers 

were subject to the fee listed on the 

Schedule of Fees under ‘‘firm 

proprietary’’ for both regular and 

complex orders. In order to attract 

complex orders to the Exchange, ISE 

charged an execution fee only on the 

largest leg of a complex order. Most of 

the execution fees for complex orders on 

the Exchange’s Schedule of Fees 

currently note that for complex orders, 

this fee is ‘‘charged for the leg of the 

trade consisting of the most contracts.’’ 

However, in 2006, when ISE carved out 

the fee for Non-ISE Market Makers as a 

separate line item on the Schedule of 

Fees, the Exchange inadvertently failed 

to note that the Exchange only charges 

an execution fee on the largest leg of a 

trade for complex orders sent to the 

Exchange. The Exchange continued to 

charge Non-ISE Market Makers only for 

the largest leg of a complex order. The 

Exchange now proposes to add the 

following note under the Non-ISE 

Market Maker line item: ‘‘For Complex 

Orders, fee charged only for the leg of 

the trade consisting of the most 

contracts.’’ 

The second note relates to a fee for 

executions in symbols that are subject to 

the Exchange’s modified maker/taker 

fees. The Exchange initially adopted 

modified maker/taker fees in April 

2010 5 and has since amended these fees 

regularly in response to competitive 

changes made by other options 

exchanges. These fees apply to market 

participants that add or remove 

liquidity from the Exchange in 101 

options classes.6 When the Exchange 

adopted modified maker/taker fees, it 

did not specify how the maker/taker 

fees would apply to executions by 

Primary Market Makers (PMMs) when 

they provide away market price 

protection for marketable public 

customer orders when the ISE market is 

not at the NBBO in accordance with 

their obligations under ISE rules and the 

Intermarket Linkage Plan.7 Since the 

PMM is performing its linkage 

obligations when it executes (i.e., ‘‘trade 

reports’’) such public customer orders, it 

is neither a taker nor maker of liquidity 

as those terms are used within the 

framework of the ISE’s maker/taker 

pricing model. Accordingly, when 

PMMs are performing this intermarket 

price protection function, the Exchange 

has not charged any fees or provided 

any rebates for PMM trade reports since 

the adoption of the maker/taker fees. 

The Exchange now proposes to specify 

in a note that: ‘‘Primary Market Makers 

do not receive a maker rebate nor pay 

a taker fee when trade reporting a public 

customer order in accordance with their 

obligation to provide away market price 

protection pursuant to ISE Rule 

803(c)(2).’’ 

2. Statutory Basis 

The Exchange believes that its 

proposal to clarify its Schedule of Fees 

is consistent with Section 6(b) of the 

Act 8 in general, and furthers the 

objectives of Section 6(b)(4) of the Act 9

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. In 

particular, the proposal will correct an 

ambiguity that was created by the 

adoption of a separate Non-ISE Market 

Maker fee that failed to specify the fee’s 

application to complex orders. Non-ISE 

Market Makers were only charged for 

the largest leg of a complex order prior 

to that fee change, and continued to be 

charged only for the largest leg of a 

complex order after the fee change. 

Accordingly, the Exchange’s application 

of the transaction fee to complex orders 

remained consistent, and Non-ISE 

Market Makers continued to be treated 


srobinson on DSK4SPTVN1PROD with NOTICES
21616 Federal Register / Vol. 77, No. 69 / Tuesday, April 10, 2012 / Notices 

10 15 U.S.C. 78s(b)(3)(A)(ii). 11 17 CFR 200.30–3(a)(12). 

in a non-discriminatory manner with 

respect to the execution of complex 

orders. 

The Exchange also believes it is fair 

and equitable not to charge a taker fee, 

nor provide a maker rebate, to PMMs 

when they trade report a public 

customer order in compliance with their 

linkage obligations. The PMM neither 

receives a financial benefit in the form 

of a rebate from performing its 

obligations, nor is it subject to the 

burden of paying the taker fee. The 

Exchange believe this is the most fair 

way to approach the PMM trade report 

function under the maker/taker pricing 

model, as categorizing the PMM trade 

report as a maker or taker would either 

provide an inequitable benefit to PMMs 

or place an inequitable burden on 

PMMs. The proposal to codify the 

application of the maker/taker pricing 

model to PMM trade reports will add 

transparency to the Exchange’s 

Schedule of Fees. 

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.10 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 email to rulecomments@sec.gov. Please include File 

Number SR–ISE–2012–29 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–2012–29. 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– 

2012–29 and should be submitted on or 

before May 1, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–8522 Filed 4–9–12; 8:45 am] 

BILLING CODE 8011–01–P 

SOCIAL SECURITY ADMINISTRATION 

Agency Information Collection 

Activities: Proposed Request and 

Comment Request 

The Social Security Administration 

(SSA) publishes a list of information 

collection packages requiring clearance 

by the Office of Management and 

Budget (OMB) in compliance with 

Public Law 104–13, the Paperwork 

Reduction Act of 1995, effective October 

1, 1995. This notice includes revisions 

and one extension of OMB-approved 

information collections. 

SSA is soliciting comments on the 

accuracy of the agency’s burden 

estimate; the need for the information; 

its practical utility; ways to enhance its 

quality, utility, and clarity; and ways to 

minimize burden on respondents, 

including the use of automated 

collection techniques or other forms of 

information technology. Mail, email, or 

fax your comments and 

recommendations on the information 

collection(s) to the OMB Desk Officer 

and SSA Reports Clearance Officer at 

the following addresses or fax numbers. 

(OMB), Office of Management and 

Budget, Attn: Desk Officer for SSA, 

Fax: 202–395–6974, Email address: 

OIRA_Submission@omb.eop.gov. 

(SSA), Social Security Administration, 

DCRDP, Attn: Reports Clearance 

Director, 107 Altmeyer Building, 6401 

Security Blvd., Baltimore, MD 21235, 

Fax: 410–966–2830, Email address: 

OPLM.RCO@ssa.gov. 

I. The information collections below 

are pending at SSA. SSA will submit 

them to OMB within 60 days from the 

date of this notice. To be sure we 

consider your comments, we must 

receive them no later than June 11, 

2012. Individuals can obtain copies of 

the collection instruments by calling the 

SSA Reports Clearance Officer at 410– 

965–8783 or by writing to the above 

email address. 

1. Request for Workers’ 

Compensation/Public Disability Benefit 

Information—20 CFR 404.408(e)—0960– 

0098. Claimants for Social Security 

disability payments who are also 

receiving Worker’s Compensation/ 

Public Disability Benefits (WC/PDB) 


srobinson on DSK4SPTVN1PROD with NOTICES