Federal Register / Vol. 80, No. 18 / Wednesday, January 28, 2015 / Notices 4603 

23 17 CFR 240.19b–4(f)(2). 

24 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 ‘‘Penny Symbols’’ are options overlying all 

symbols listed on ISE Gemini that are in the Penny 

Pilot Program. 

4 ‘‘Non- Penny Symbols’’ are options overlying all 

symbols excluding Penny Symbols. 

5The term Market Maker refers to ‘‘Competitive 

Market Makers’’ and ‘‘Primary Market Makers’’ 

collectively. Market Maker orders sent to the 

Exchange by an Electronic Access Member are 

assessed fees and rebates at the same level as 

Market Maker orders. See footnote 2, Schedule of 

Fees, Section I and II. 

6A ‘‘Non-ISE Gemini Market Maker’’ is a market 

maker as defined in Section 3(a)(38) of the 

Securities Exchange Act of 1934, as amended, 

registered in the same options class on another 

options exchange. 

7A ‘‘Firm Proprietary’’ order is an order 

submitted by a member for its own proprietary 

account. 

8A ‘‘Broker-Dealer’’ order is an order submitted 

by a member for a broker-dealer account that is not 

its own proprietary account. 

subparagraph (f)(2) of Rule 19b–4 

thereunder,23 because it establishes a 

due, fee, or other charge imposed by 

ISE. 

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 rule-comments@

sec.gov. Please include File No. SR–ISE– 

2015–03 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2015–03. 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 such filing 

also will be available for inspection and 

copying at the principal office of the 

ISE. 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–2015–03 and should be 

submitted on or before February 18, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01509 Filed 1–27–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74113; File No. SR–ISE 

Gemini-2015–02] 

Self-Regulatory Organizations; ISE 

Gemini, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Schedule 

of Fees 

January 22, 2015. 

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 January 8, 

2015, ISE Gemini, LLC (the ‘‘Exchange’’ 

or ‘‘ISE Gemini’’) filed with the 

Securities and Exchange Commission 

the proposed rule change, as described 

in Items I, II, and III 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 Substance of 

the Proposed Rule Change 

ISE Gemini proposes to amend the 

Schedule of Fees to introduce new fees 

for Crossing Orders and Responses to 

Crossing Orders executed in the Price 

Improvement Mechanism (‘‘PIM’’). 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 

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 

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 amend the 

Schedule of Fees to introduce new fees 

for Crossing Orders and Responses to 

Crossing Orders executed in the PIM. 

The Exchange’s Schedule of Fees has 

separate fees applicable to Standard 

Options and Mini Options. The 

Exchange notes that while the 

discussion below relates to fees for 

Standard Options, the fees for Mini 

Options, which are not discussed below, 

are and shall continue to be 1⁄10th of the 

fees for Standard Options. 

ISE Gemini charges a fee for Crossing 

Orders executed in the Facilitation 

Mechanism, Solicited Order 

Mechanism, Block Order Mechanism, 

PIM, or submitted as a Qualified 

Contingent Cross (‘‘QCC’’) order. This 

fee is currently $0.20 per contract in 

both Penny 3 and Non-Penny Symbols,4

and applies to Market Maker,5 Non-ISE 

Gemini Market Maker,6 Firm 

Proprietary 7/Broker-Dealer,8 and 

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4604 Federal Register / Vol. 80, No. 18 / Wednesday, January 28, 2015 / Notices 

9A ‘‘Professional Customer’’ is a person or entity 

that is not a broker/dealer and is not a Priority 

Customer. 10A ‘‘Priority Customer’’ is a person or entity that 

is not a broker/dealer in securities, and does not 

place more than 390 orders in listed options per day 

on average during a calendar month for its own 

beneficial account(s), as defined in ISE Gemini Rule 

100(a)(37A). 

11 15 U.S.C. 78f. 

12 15 U.S.C. 78f(b)(4). 

13A Priority Customer is by definition not a 

broker or dealer in securities, and does not place 

more than 390 orders in listed options per day on 

average during a calendar month for its own 

beneficial account(s). This limitation does not apply 

to participants whose behavior is substantially 

similar to that of market professionals, including 

Professional Customers, who will generally submit 

a higher number of orders (many of which do not 

result in executions) than Priority Customers. 

14 15 U.S.C. 78f(b)(8). 

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

16 17 CFR 240.19b–4(f)(2). 

Professional Customer 9 (‘‘non-Priority 

Customer’’) orders on both the 

originating and contra side of a Crossing 

Order. The Exchange now proposes to 

reduce this fee for non-Priority 

Customer Crossing Orders to $0.05 per 

contract for PIM orders only. Priority 

Customers 10 do not currently pay a fee 

for Crossing Orders executed on ISE 

Gemini. In connection with the above 

change, the Exchange further proposes 

to apply a $0.05 per contract fee to 

Priority Customer Crossing Orders 

executed in the PIM when the Priority 

Customer is on the contra-side of a PIM 

auction. 

In addition, the Exchange charges a 

fee for Responses to Crossing Orders. In 

Penny Symbols this fee is $0.49 per 

contract for non-Priority Customer 

orders, and $0.45 per contract for 

Priority Customer orders. In Non-Penny 

Symbols this fee is $0.86 per contract 

for Market Maker orders, $0.87 per 

contract for Non-ISE Gemini Market 

Maker, Firm Proprietary/Broker-Dealer, 

and Professional Customer orders, and 

$0.82 per contract for Priority Customer 

orders. The Exchange now proposes to 

reduce this fee to $0.05 per contract for 

PIM orders executed for all market 

participant types. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,11

in general, and Section 6(b)(4) of the 

Act,12 in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its members and other persons 

using its facilities. 

The Exchange believes that the 

proposed fee changes are reasonable and 

equitable as members that enter or 

respond to PIM auctions will benefit 

from significantly lower overall fees for 

their PIM trades, leading to greater 

participation and competition in the 

PIM, and enhanced price improvement 

opportunities for investors. By lowering 

fees for PIM orders, the proposed fee 

change is designed to encourage 

members to execute this order flow on 

ISE Gemini rather than on competing 

exchanges. In addition, the Exchange 

believes that decreasing the fee for 

Responses to Crossing Orders will 

encourage market participants to be 

more aggressive in providing additional 

price improvement when they respond 

to orders entered into the PIM. 

The Exchange believes that the 

proposed PIM fees are not unfairly 

discriminatory as the proposed fees 

apply equally to all members that enter 

or respond to PIM auctions, except that 

Priority Customer orders on the 

originating side of a PIM order will 

continue to not pay a fee. Priority 

Customer orders on ISE Gemini are 

generally entitled to lower fees and 

higher rebates as the Exchange believes 

that attracting more liquidity from 

Priority Customers will benefit all 

market participants that trade on ISE 

Gemini.13 While Priority Customer 

orders previously enjoyed free 

executions on both the originating and 

contra-side of PIM orders, the Exchange 

has determined to no longer offer this 

inducement to contra-side orders, which 

are solicited by members from other 

sophisticated parties that engage in this 

type of trading activity. As such, all 

market participants that trade on the 

contra-side of a PIM order will pay the 

same fee for this activity. 

The Exchange notes that it has 

determined to charge fees and provide 

rebates in Mini Options at a rate that is 

1⁄10th the rate of fees and rebates the 

Exchange provides for trading in 

Standard Options. The Exchange 

believes it is reasonable and equitable 

and not unfairly discriminatory to 

assess lower fees and rebates to provide 

market participants an incentive to trade 

Mini Options on the Exchange. The 

Exchange believes the proposed fees 

and rebates are reasonable and equitable 

in light of the fact that Mini Options 

have a smaller exercise and assignment 

value, specifically 1⁄10th that of a 

standard option contract, and, as such, 

is providing fees and rebates for Mini 

Options that are 1⁄10th of those 

applicable to Standard Options. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,14 the Exchange does not believe 

that the proposed rule change will 

impose any burden on intermarket or 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. To the 

contrary, the Exchange believes that the 

proposed fee change will increase 

competition by making it cheaper to 

enter or respond to PIM auctions. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily direct their 

order flow to competing venues. In such 

an environment, the Exchange must 

continually review, and consider 

adjusting, its fees and rebates to remain 

competitive with other exchanges. For 

the reasons described above, the 

Exchange believes that the proposed fee 

changes reflect this competitive 

environment. 

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,15 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder,16 because it establishes a 

due, fee, or other charge imposed by ISE 

Gemini. 

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 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 18 / Wednesday, January 28, 2015 / Notices 4605 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 In Amendment No. 1, the Exchange proposed 

changes to the Form 19b–4, Exhibit 1, and Exhibit 

5 to clarify that once triggered, the Risk Protection 

Monitor described therein will apply to orders in 

all series in all classes of options from the Exchange 

Member. 

4See Rule 612. The proposed Risk Protection 

Monitor is similar in that it is based on a counting 

program that triggers a risk protection if a certain 

predetermined threshold is reached. 

5The Allowable Order Rate is the number of 

orders entered during the specific time period that 

has been established by the Member. 

6The Allowable Contract Execution Rate is the 

number of contracts executed during the specific 

time period that has been established by the 

Member. 

7The Exchange notes that the specific time period 

does not need to be the same for both the Allowable 

Order Rate and Allowable Contract Execution Rate 

(i.e., there can be one specific time period for 

Allowable Order Rate and a different specific time 

period for Allowable Contract Execution Rate). 

• Send an email to rule-comments@

sec.gov. Please include File No. SR–ISE 

Gemini-2015–02 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE Gemini–2015–02. 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 

10:00 a.m. and 3:00 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 Number SR–ISE 

Gemini–2015–02 and should be 

submitted on or before February 18, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01507 Filed 1–27–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74118; File No. SR–MIAX– 

2015–03] 

Self-Regulatory Organizations; Miami 

International Securities Exchange LLC; 

Notice of Filing of a Proposed Rule 

Change, as Modified by Amendment 

No. 1 Thereto, To Adopt Rule 519A 

Risk Protection Monitor 

January 22, 2015. 

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 January 8, 

2015, Miami International Securities 

Exchange LLC (‘‘MIAX’’ 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. On 

January 20, 2015, the Exchange filed 

Amendment No.1 to the proposal.3 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 adopt new 

risk protections for orders. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://www.miaxoptions.com/filter/

wotitle/rule_filing, at MIAX’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 

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 adopt Rule 

519A, Risk Protection Monitor, to 

provide new risk protections for orders 

entered by Members on the Exchange. 

The proposed functionality is similar to 

the existing Aggregate Risk Protections 

available to Market Makers that provide 

risk protections for Market Maker 

quotations, however it will apply to 

orders entered by Members.4 The 

Exchange also proposes to codify 

existing functionality regarding the 

Aggregate Risk Manager to provide 

additional transparency in the Rule to 

Members regarding the current 

functionality. 

The Exchange proposes that the MIAX 

System will maintain a counting 

program (‘‘counting program’’) for each 

participating Member that will count 

the number of orders entered and the 

number of contracts traded via an order 

entered by a Member on the Exchange 

within a specified time period that has 

been established by the Member (the 

‘‘specified time period’’). The maximum 

duration of the specified time period 

will be established by the Exchange and 

announced via a Regulatory Circular. 

Members may establish an Allowable 

Order Rate 5 and/or an Allowable 

Contract Execution Rate 6. When a 

Member’s order is entered or when an 

execution of a Member’s order occurs, 

the System will look back over the 

specified time period to determine 

whether the order entered or the 

execution that occurred triggers the Risk 

Protection Monitor.7 Members may 

establish whether the Risk Protection 

Monitor, when triggered, will (i) prevent 

the System from receiving any new 

orders in all series in all classes from 

the Member; or (ii) prevent the System 

from receiving any new orders in all 

series in all classes from the Member 

and cancel all existing Day orders in all 

series in all classes from the Member; or 

mstockstill on DSK4VPTVN1PROD with NOTICES