4600 Federal Register / Vol. 80, No. 18 / Wednesday, January 28, 2015 / Notices 

17 15 U.S.C. 78s(b)(3)(A). 

18 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s 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 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

19 15 U.S.C. 78s(b)(3)(A). 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22 Id. 

23For 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). 

24 15 U.S.C. 78s(b)(3)(C). 25 Id. 

26 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The Exchange has filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act 17 and Rule 19b– 

4(f)(6) 18 thereunder. Because the 

foregoing proposed rule change does 

not: (i) Significantly affect the 

protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) 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) of the Act 19 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.20

A proposed rule change filed under 

Rule 19b–4(f)(6) normally does not 

become operative for 30 days after the 

date of filing.21 However, Rule 19b– 

4(f)(6)(iii) permits the Commission to 

designate a shorter time if such action 

is consistent with the protection of 

investors and the public interest.22 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 waiving the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest because such waiver 

would allow the pilot program to 

continue uninterrupted. Accordingly, 

the Commission hereby grants the 

Exchange’s request and designates the 

proposal operative upon filing.23

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act.24

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved.25

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 Number SR– 

BYX–2015–05 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–BYX–2015–05. 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 

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–BYX– 

2015–05, and should be submitted on or 

before February 18, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.26

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01506 Filed 1–27–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74117; File No. SR–ISE– 

2015–03] 

Self-Regulatory Organizations; 

International Securities Exchange, 

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, the International Securities 

Exchange, LLC (the ‘‘Exchange’’ or the 

‘‘ISE’’) 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 self-regulatory 

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 

The ISE proposes to amend the 

Schedule of Fees to (1) increase the 

route-out fee applicable to Priority 

Customer orders routed to away 

markets, (2) adopt a stock handling fee 

for stock-option orders executed against 

other stock-option orders in the 

complex order book, (3) increase the 

Crossing Fee Cap subject to a discount 

for members that agree in advance to 

pay the full amount regardless of actual 

trading volume, and (4) remove certain 

obsolete text related to PrecISE 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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 18 / Wednesday, January 28, 2015 / Notices 4601 

3The term ‘‘Market Makers’’ refers to 

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

Makers’’ collectively. See ISE Rule 100(a)(25). 4A Non-ISE Market Maker, or Far Away Market 

Maker (‘‘FARMM’’), is a market maker as defined 

in Section 3(a)(38) of the Securities Exchange Act 

of 1934 registered in the same options class on 

another options exchange. 5A ‘‘Firm Proprietary’’ order is an order 

submitted by a member for its own proprietary 

account. 6A Broker-Dealer order is an order submitted by 

a Member for a non-Member broker-dealer account. 7A Professional Customer is a person who is not 

a broker/dealer and is not a Priority Customer. 

8 ‘‘Select Symbols’’ are options overlying all 

symbols listed on the ISE that are in the Penny Pilot 

Program. 

9 ‘‘Non-Select Symbols’’ are options overlying all 

symbols excluding Select Symbols. 

10A Priority Customer is defined in ISE Rule 

100(a)(37A) as 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). 

11See ISE Rule 722(a)(2). 

12The Exchange charges for execution of the 

options leg(s) of stock-option orders. 

13The Exchange notes that this stock handling 

fee, which is for the stock leg of stock-option orders 

and is therefore charged per share rather than per 

contract, is the same regardless of whether the 

options leg(s) is for Standard or Mini Option 

contracts. 

14Crossing Orders are contracts that are 

submitted as part of a Facilitation, Solicitation, 

PIM, Block or QCC order. 

15Fees for Responses to Crossing Orders and 

surcharge fees for licensed products are not 

included in the calculation of the monthly fee cap. 

16See Securities Exchange Act Release No. 73440 

(October 27, 2014), 79 FR 64857 (October 31, 2014) 

(SR–ISE–2014–48). 

17 15 U.S.C. 78f. 

18 15 U.S.C. 78f(b)(4). 

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 amend the 

Schedule of Fees (1) increase the routeout fee applicable to Priority Customer 

orders routed to away markets, (2) adopt 

a stock handling fee for stock-option 

orders executed against other stockoption orders in the complex order 

book, (3) increase the Crossing Fee Cap 

subject to a discount for members that 

agree in advance to pay the full amount 

regardless of actual trading volume, and 

(4) remove certain obsolete text related 

to PrecISE fees. Each of the proposed 

changes is described in more detail 

below. 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. 

I. Route-Out Fees 

The Exchange presently charges a 

route-out fee applicable to orders routed 

to away markets pursuant to the Options 

Order Protection and Locked/Crossed 

Market Plan (the ‘‘Plan’’). For Market 

Maker,3 Non-ISE Market Maker,4 and 

Firm Proprietary 5/Broker-Dealer,6 and 

Professional Customer 7 orders the 

route-out fee is $0.55 per contract in 

Select Symbols,8 and $0.95 per contract 

in Non-Select Symbols.9 For Priority 

Customer 10 orders in both Select and 

Non-Select Symbols the route-out fee is 

$0.45 per contract. The Exchange now 

proposes to increase the route-out fee to 

$0.48 per contract for Priority Customer 

orders in all symbols. The route-out fee 

for all other market participant types 

will remain at their current rates 

described above. 

II. Stock Handling Fee for Stock-Option 

Orders 

When an ISE member enters a stockoption order,11 the Exchange 

electronically communicates the stock 

leg of the order to one or more brokerdealers for execution pursuant to 

Supplementary Material .02 to Rule 722. 

Currently, the Exchange provides this 

stock routing functionality as a free 

service to members, and simply passesthrough fees charged by the brokerdealer.12 The Exchange now proposes to 

introduce a stock handling fee of 

$0.0010 per share for the stock leg of 

stock-option orders executed against 

other stock-option orders in the 

complex order book.13 This amount will 

include any fees charged by the stock 

venue that prints the trade, and an 

amount intended to compensate the 

Exchange for matching these stockoption orders against other stock-option 

orders on the complex order book. A 

maximum of $50 per trade will be 

assessed under this fee in order to 

ensure that market participants do not 

pay extremely large fees for the 

execution of the stock legs of stockoption orders. The Exchange will 

continue to bill pass-through fees for the 

stock leg of stock-option orders that 

trade against liquidity on the stock 

venue, instead of being matched in the 

complex order book. 

III. Crossing Fee Cap 

The Exchange currently has a 

Crossing Fee Cap of $65,000 per month 

which applies to Firm Proprietary and 

Non-ISE Market Maker transactions that 

are part of the originating or contra side 

of a Crossing Order 14 executed by a 

member or its affiliate, provided there is 

at least 75% common ownership 

between the firms as reflected on each 

firm’s Form BD, Schedule A.15 The 

Exchange now proposes to increase the 

Crossing Fee Cap to $75,000 per month; 

provided, however, that members that 

commit in advance to paying the full 

Crossing Fee Cap at the end of each 

month will instead have these fees 

capped at the current $65,000 per 

month. Members that commit to the 

discounted Crossing Fee Cap must 

indicate their desire to do so prior to the 

start of the month in a form determined 

by the Exchange. By committing to the 

Crossing Fee Cap, members agree to pay 

the full $65,000 per month regardless of 

actual trading volume. 

IV. PrecISE Fee Waiver: Obsolete Text 

On October 15, 2014 the Exchange 

filed an immediately effective proposed 

rule change that adopted a limited 

waiver of PrecISE Trade® (‘‘PrecISE’’) 

fees for Electronic Access Members 

(‘‘EAMs’’) and sponsored customers that 

execute a high volume of Crossing 

Orders in a given month.16 As the 

proposed rule change was filed in the 

middle of a calendar month, the PrecISE 

waiver for the first billing cycle was 

based on a prorated volume threshold 

for crossing volume executed from 

October 16, 2014 to October 31, 2014. 

As the first billing cycle has now 

passed, the Exchange proposes to 

remove this outdated reference from the 

Schedule of Fees. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,17

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

Act,18 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. 

mstockstill on DSK4VPTVN1PROD with NOTICES

4602 Federal Register / Vol. 80, No. 18 / Wednesday, January 28, 2015 / Notices 

19See Securities Exchange Act Release No. 67383 

(July 10, 2012), 77 FR 41841 (July 16, 2012) (SR– 

CBOE–2012–063). 

20See Securities Exchange Act Release No. 72817 

(August 12, 2014), 79 FR 48801 (August 18, 2014) 

(SR–ISE–2014–39). 

21 15 U.S.C. 78f(b)(8). 

22 15 U.S.C. 78s(b)(3)(A)(ii). 

I. Route-Out Fees 

The Exchange believes the proposed 

route-out fees are reasonable and 

equitable as they offset costs incurred by 

the Exchange in connection with using 

unaffiliated broker-dealers (‘‘Linkage 

Handlers’’) to access other exchanges for 

linkage executions pursuant to 

Supplementary Material .03 to Rule 

1901. Due to increasing taker fees for 

accessing liquidity on other markets, the 

Exchange must periodically raise its 

route-out fees to recoup the higher costs 

associated with executing orders on 

away markets. Other exchanges 

currently charge a variety of routing 

related fees associated with orders that 

are subject to linkage handling. The 

route-out fees proposed herein are 

within the range of fees charged by 

these competitor exchanges. 

Furthermore, the Exchange believes that 

the proposed fees are not unfairly 

discriminatory because these fees would 

be uniformly applied to all Priority 

Customer orders routed to away 

markets. As has historically been the 

case, Priority Customer orders will 

continue to pay lower route-out fees 

than orders from other market 

participants, including Professional 

Customers. The Exchange believes that 

it is equitable and not unfairly 

discriminatory to charge lower fees for 

Priority Customer orders as a 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. Moreover, the 

Exchange notes that Priority Customer 

orders are often charged lower taker fees 

on other options exchanges, meaning 

that the execution costs to the Exchange 

for routing these orders is 

correspondingly lower. As such, the 

Exchange believes that it is equitable 

and not unfairly discriminatory to pass 

on this cost savings to the firms entering 

these orders. 

II. Stock Handling Fee for Stock-Option 

Orders 

The Exchange believes the proposed 

stock handling fee for stock-option 

orders is reasonable and equitable as the 

proposed fee will cover the costs of 

developing and maintaining the systems 

that allow for the matching and 

processing of the stock legs of stockoption orders executed in the complex 

order book, and fees assessed to the 

Exchange by broker-dealers contracted 

to provide stock execution services. The 

Exchange notes that the Chicago Board 

Options Exchange, Inc. (‘‘CBOE’’) also 

charges a similar stock handling fee of 

$0.0010 per share (capped at $50 per 

order).19 The Exchange believes that it 

is reasonable and equitable to charge a 

similar fee for the execution of stockoption orders on the ISE. In addition, 

the Exchange believes that the proposed 

fee is not unfairly discriminatory as it 

will be uniformly applied to all 

members that execute stock-option 

orders on the Exchange. 

III. Crossing Fee Cap 

The Exchange believes that it is 

reasonable and equitable to increase the 

Crossing Fee Cap, and introduce a 

discount for members that agree to pay 

the full Crossing Fee Cap at the end of 

each month, as these changes are 

intended to incentivize members to 

bring Crossing Order flow to the 

Exchange. Members that do not elect to 

pay the discounted rate in full at the 

end of each month will remain eligible 

to have their fees capped at $75,000— 

the level previously available on the 

Exchange before the Crossing Fee Cap 

was lowered to its current level in 

August 2014—while also retaining the 

current benefit of a waived service fee 

for the execution of orders above the 

cap.20 At the same time, members that 

commit to their Crossing Order fees in 

advance will receive a discounted rate, 

which will encourage members to bring 

their Crossing Order flow to the ISE, to 

the benefit of all members and investors 

that trade on the Exchange. 

Furthermore, the Exchange believes that 

the proposed changes to the Crossing 

Fee Cap are not unfairly discriminatory 

because all members will have the 

option to make the required 

commitment in order to qualify for the 

discounted Crossing Fee Cap. The 

Crossing Fee Cap will be uniformly 

applied to members based on their 

election. 

IV. PrecISE Fee Waiver: Obsolete Text 

The Exchange believes that it is 

reasonable, equitable, and not unfairly 

discriminatory to remove text in the 

Schedule of Fees related to PrecISE fees 

for the billing period that ended on 

November 15, 2014 as this date has 

passed. Removing the obsolete text will 

increase the clarity of the Schedule of 

Fees to the benefit of members and 

investors that trade on the ISE. 

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,21 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. The 

proposed fees are similar to—and 

within the range of—fees charged by the 

Exchange’s competitors. 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 22 and 

mstockstill on DSK4VPTVN1PROD with NOTICES

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 

mstockstill on DSK4VPTVN1PROD with NOTICES