Federal Register / Vol. 78, No. 6 / Wednesday, January 9, 2013 / Notices 1901 

22 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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–Phlx–2012–141 and should 

be submitted on or before January 30, 

2013. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2013–00256 Filed 1–8–13; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 3468570; File No. SR–ISE– 

2012–82] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Make Non-Substantive, 

Technical Corrections to ISE Rules 

January 3, 2013. 

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 December 

21, 2012, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or 

‘‘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 Exchange proposes to make a 

number of non-substantive, technical 

corrections to its rules. Examples of 

such technical corrections include 

updating ISE rule number citations and 

cross references, correcting 

typographical errors, deleting obsolete 

rule text, and updating references to 

outdated terms, such as changing 

references from the National 

Association of Securities Dealers 

(‘‘NASD’’) to Financial Industry 

Regulatory Authority (‘‘FINRA’’). The 

text of the proposed rule change is 

available on the Exchange’s Internet 

Web site at 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 the 

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 

statements may be examined at the 

places specified in Item IV below. The 

Exchange 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to make a 

number of non-substantive, technical 

corrections to its rules. Examples of 

such technical corrections include 

updating ISE rule number citations and 

cross references, correcting 

typographical errors, deleting obsolete 

rule text, and updating references to 

outdated terms, such as changing 

references from NASD to FINRA. 

Following is a narrative description of 

each of the corrections: 

• The Table of Contents to the ISE 

Rules is being amended to reflect that 

ISE Rule 718 is now ‘‘Reserved’’ since 

ISE Rule 718 (Accommodation 

Liquidations (Cabinet Trades)) was 

deleted. 

• The Table of Contents is being 

amended to make conforming changes 

to the title of ISE Rule 720 (Obvious and 

Catastrophic Errors) so that it matches 

the title as it appears in the rules. 

• ISE Rule 210 (Liability for Payment 

of Fees) is being amended to update an 

incorrect rule cross-reference number in 

paragraph (a). 

• ISE Rule 312 (Limitation on 

Affiliation between the Exchange and 

Members) is being amended to delete 

references in paragraph (a) to Maple 

Merger Sub LLC because that subsidiary 

no longer exists. Paragraphs (b) and (c) 

are being deleted since the Exchange is 

no longer affiliated with Direct Edge 

ECN LLC (‘‘DE ECN’’), DE ECN is no 

longer a facility of the Exchange, and 

ISE (including its affiliates) no longer 

maintains an ownership interest in 

Ballista Securities LLC. Since 

paragraphs (b) and (c) are being deleted, 

the opening paragraph no longer needs 

to be designated as paragraph (a), so the 

(a) is being deleted. 

• ISE Rule 604 (Continuing Education 

for Registered Persons) is being 

amended to change a reference in 

paragraph (b) from NASD to FINRA and 

brackets are being changed to 

parentheses wherever they appear 

throughout the rule. 

• ISE Rule 704 (Collection and 

Dissemination of Quotations) is being 

amended to change references in 

paragraphs (a) and (b) from Rule 11Ac1– 

1 to Rule 602 of Regulation NMS. 

• ISE Rule 713 (Priority of Quotes and 

Orders) is being amended to update an 

incorrect rule cross-reference number in 

paragraph (a), as well as to add nonsubstantive words to correct the 

sentence structure of paragraph (a). 

Additionally, Supplementary Material 

.03 to ISE Rule 713 was amended to 

update an incorrect rule cross-reference 

number in paragraph (d). 

• ISE Rule 715 (Types of Orders) is 

being amended to correct the defined 

term of ‘‘Priority Customer Orders’’ in 

paragraph (g), and to correct the defined 

term of ‘‘Add Liquidity Order’’ in 

paragraph (n). In addition, 

Supplementary Material .02 to ISE Rule 

713 is being moved into ISE Rule 713 

itself as new paragraphs (o), (p), and (q), 

since ISE has fully-migrated to its new 

trading system, Optimise. Thus, it is no 

longer necessary to separately maintain 

those order types in the Supplementary 

Material. 

• ISE Rule 718 (Accommodation 

Liquidations (Cabinet Trades)) is being 

deleted in its entirety, since that trading 

functionality is not offered in Optimise, 

and therefore not possible on the 

Exchange. ISE Rule 718 is now 

‘‘Reserved.’’ 

• ISE Rule 722 (Complex Orders) is 

being amended to delete the obsolete 

clause to ISE’s Optimise platform in 

Supplementary Material .03 and .04. In 

addition, ISE Supplementary Material 

.05 is being amended to correct the 

defined term ‘‘Priority Customer 

Orders’’, to insert a missing word, and 

to update an incorrect rule crossreference number. 

• ISE Rule 723 (Price Improvement 

Mechanism for Crossing Transactions) is 

being amended to delete paragraph 

(d)(6) since that trading functionality is 

not offered in Optimise. As a result, the 

corresponding sentence that crossreferenced paragraph (d)(6) is being 

deleted from Supplementary Material 

.05 and .09. 


srobinson on DSK4SPTVN1PROD with 
1902 Federal Register / Vol. 78, No. 6 / Wednesday, January 9, 2013 / Notices 

3 15 U.S.C. 78f(b)(5). 

4 15 U.S.C. 78s(b)(3)(A). 

5 17 CFR 240.19b–4(f)(6). 

6 17 CFR 240.19b–4(f)(6). 

7 17 CFR 240.19b–4(f)(6)(iii). 

8For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

• ISE Rule 802 (Appointment of 

Market Makers) is being amended to 

delete obsolete references to ‘‘Second 

Market Primary Market Makers’’ in 

Supplementary Material .02, since ISE 

no longer operates a ‘‘Second Market.’’ 

• ISE Rule 804 (Market Maker 

Quotations) is being amended to delete 

obsolete rule text in paragraph (g), since 

that rule text related to ‘Automated 

Quotation Adjustments’ functionality 

contained in ISE’s prior trading system 

which has been retired. The rule text 

that is contained in Supplementary 

Material .01 relates to ‘Automated 

Quotation Adjustments’ functionality 

contained in ISE’s current trading 

system, Optimise. Accordingly, the 

Exchange has moved the rule text in 

Supplementary Material .01 into 

paragraph (g) of ISE Rule 804 itself, 

since there is only one method for such 

functionality. 

• ISE Rule 1503 (Failure to Obtain 

Reinstatement) is being amended to 

update an incorrect rule cross-reference 

number. 

• ISE Rule 1615 (Disciplinary 

Functions) is being amended to change 

references in Supplementary Material 

.01 from NASD to FINRA. 

• ISE Rule 1800 (Arbitration) is being 

amended to change references in 

paragraph (a) from the NASD Code of 

Arbitration to the FINRA Code of 

Arbitration, as well as update a number 

of corresponding FINRA rule crossreference numbers contained in 

paragraphs (a), (c), and (d). Paragraph 

(b) is being amended to change a 

reference from NASD to FINRA. 

• ISE Rule 2114 (Doing Business with 

the Public) is being amended to change 

a reference from NASD to FINRA. 

2. Statutory Basis 

The basis under the Act for this 

proposed rule change is the requirement 

under Section 6(b)(5) 3 that an exchange 

have rules that are designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to remove 

impediments to and perfect the 

mechanism for a free and open market 

and a national market system, and, in 

general, to protect investors and the 

public interest. The Exchange believes it 

is appropriate to make these technical 

corrections to its rules so that Exchange 

members and investors have a clear and 

accurate understanding of the meaning 

of the Exchange’s rules. By removing 

obsolete rule text, the Exchange is 

eliminating any potential for confusion 

about how its systems operate, 

particularly since the Exchange recently 

operated two trading systems while it 

migrated from its prior system to 

Optimise, its new trading system. By 

updating references from NASD to 

FINRA and related, corresponding rules, 

the Exchange is eliminating any 

inaccuracies in its rules. The Exchange 

further believes that the proposed rule 

change is not unfairly discriminatory 

because it treats all market participants 

equally and will not have an adverse 

impact on any market participant. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule changes are nonsubstantive and therefore do not 

implicate the competition analysis. 

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 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) 4 of the Act and Rule 19b– 

4(f)(6) 5 thereunder. The Exchange 

provided the Commission with written 

notice of its intent to file the proposed 

rule change, along with a brief 

description and text of the proposed 

rule change, at least five business days 

prior to the date of filing the proposed 

rule change. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 6 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),7 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. 

The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because this rule change is not 

proposing any substantive changes and 

is merely correcting inaccuracies in the 

Exchange’s rules. Additionally, the 

Exchange will be able to immediately 

remove obsolete rule text and correct 

inaccurate references and cross 

references in the Exchange’s rules 

which will eliminate member confusion 

and provide clarity on how the rules 

apply. Therefore, the Commission 

designates the proposal operative upon 

filing.8

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 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–2012–82 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–2012–82. 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 


srobinson on DSK4SPTVN1PROD with 
Federal Register / Vol. 78, No. 6 / Wednesday, January 9, 2013 / Notices 1903 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Exchange Rule 2.20, which authorizes the 

Exchange, from time to time, to ‘‘fix the fee and 

charges payable by Trading Permit Holders.’’ 4See Exchange Rule 8.80, which defines a 

‘‘Designated Primary Market-Maker’’ as a ‘‘TPH 

organization that is approved by the Exchange to 

function in allocated securities as a Market-Maker 

* * * and is subject to the obligations under Rule 

8.85 * * *.’’ 

5See Securities Exchange Act Release No. 34– 

50903 (December 21, 2004), 69 FR 78070 (December 

29, 2004) (SR–CBOE–2004–084) (immediately 

effective rule increasing, among other things, the 

firm FOCUS Minimum Monthly Fee to $275 for 

non-clearing members while maintaining a monthly 

minimum of $1000 for clearing members). See also 

Securities Exchange Act Release No. 34–63701 

(January 11, 2011), 76 FR 2934 (January 18, 2011) 

(SR–CBOE–2010–116) (immediately effective rule 

change to increase, among other things, the DPMs 

and Designated Examining Authority Fee to $.50 

per $1,000 of gross revenue as reported on quarterly 

FOCUS reports filed). 

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

7 15 U.S.C. 78f(b)(5). 

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 on official business 

days between the hours of 10:00 a.m. 

and 3:00 p.m. Copies of such filing also 

will be available for inspection and 

copying at the principal offices 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– 

2012–82, and should be submitted on or 

before January 30, 2013. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2013–00197 Filed 1–8–13; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–68572; File No. SR–CBOE– 

2012–132] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fees 

Schedule 

January 3, 2013. 

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 December 

28, 2012, Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III 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 amend the 

Fees Schedule. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.cboe.com/AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission. 

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 

statements may be examined at the 

places specified in Item IV below. The 

Exchange 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 amend its 

Fees Schedule.3 More specifically, the 

Exchange is proposing to make changes 

to the section ‘‘Regulatory Fees.’’ Under 

the Exchange’s Regulatory Fees, the 

Exchange charges a fee to Designated 

Primary Market-Makers 4 (‘‘DPMs’’) and 

firms for which the Exchange is the 

Designated Examining Authority 

(‘‘DEA’’) called the ‘‘DPM’s and Firm 

Designated Examining Authority Fee.’’ 

Under such fee, the Exchange currently 

charges DPMs and TPHs for which the 

Exchange is the DEA $0.50 per $1,000 

of gross revenue as reported on 

quarterly FOCUS reports filed by such 

TPHs (excluding commodity 

commission revenue). In addition, this 

fee is subject to a monthly minimum fee 

of $1,000 per month for Clearing TPHs 

and $275 for non-Clearing TPHs. The 

Exchange is proposing to increase this 

fee from $.50 per $1,000 of gross 

revenue to $0.60 per $1,000 of gross 

revenue. In addition, the Exchange is 

proposing to increase the monthly 

minimum fee for Clearing TPHs from 

$1,000 to $1,500 and the monthly 

minimum fee for non-Clearing TPHs 

from $275 to $400. New proposed text 

has been added to the ‘‘Regulatory Fees’’ 

section of the Fees Schedule to reflect 

this charge. 

The Exchange has determined that 

these changes are necessary to increase 

the revenue of the Exchange for the 

purpose of continuing to adequately 

fund its regulatory functions. 

Specifically, the Exchange is proposing 

to increase this fee in order to help more 

closely cover the costs of regulating 

these TPHs. The proposed modifications 

are reasonable as they have not been 

recently changed to reflect growing 

regulatory costs.5 In addition, the 

Exchange believes the proposed changes 

to the Fees Schedule are equitably 

allocated to all TPHs in which the 

Exchange is the DEA as all will be 

charged equally based upon their gross 

revenue. 

The proposed changes are to take 

effect on January 1, 2013. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.6 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the Section 

6(b)(5) 7 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitation transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 


srobinson on DSK4SPTVN1PROD with