15646 Federal Register / Vol. 80, No. 56 / Tuesday, March 24, 2015 / Notices 

7 15 U.S.C. 78f(b)(8). 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. 

will ensure that such costs are covered 

by each subscriber, with no subscriber 

being assessed less than the cost of 

providing the service. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

NASDAQ does not believe that the 

proposed rule changes will result in any 

burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act, as amended.7

NASDAQ notes that it operates in a 

highly competitive market in which 

market participants can readily favor 

competing venues if they deem fee 

levels at a particular venue to be 

excessive, or rebate opportunities 

available at other venues to be more 

favorable. In such an environment, 

NASDAQ must continually adjust its 

fees to remain competitive with other 

exchanges and with alternative trading 

systems that have been exempted from 

compliance with the statutory standards 

applicable to exchanges. Because 

competitors are free to modify their own 

fees in response, and because market 

participants may readily adjust their 

order routing practices, NASDAQ 

believes that the degree to which fee 

changes in general, and changes to fees 

for non-mandatory services particularly, 

in this market may impose any burden 

on competition is extremely limited. In 

this instance, the increases to the fees 

assessed for subscription to NASDAQ’s 

Risk Management Service arise from a 

need to cover the increase of costs in 

offering the service since 2006, and the 

loss of a significant number trades 

covered by the service and a reduction 

in subscribers due to recent changes to 

the ORF. Because of the reduced 

number of trades and subscribers, the 

costs of the service must be supported 

by those subscribers that remain. To the 

extent that the fee increases are too 

high, subscribers may cancel their 

subscriptions and develop their own 

risk management tools that replicate the 

Risk Management Service or use third 

party risk management tools. As such, 

NASDAQ does not believe that any of 

the proposed changes will impair the 

ability of members or competing order 

execution venues to maintain their 

competitive standing in the financial 

markets, and to the extent the fees are 

deemed too high, the changes may 

represent an opportunity for other 

market venues or third parties to 

provide competitive services. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were neither 

solicited nor received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing change has become 

effective pursuant to Section 

19(b)(3)(A)(ii) of the Act.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–NASDAQ–2015–021 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–NASDAQ–2015–021. 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 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 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–NASDAQ–2015–021, and 

should be submitted on or before April 

14, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–06620 Filed 3–23–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74525; File No. SR–ISE– 

2015–09] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Schedule of 

Fees 

March 18, 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 March 12, 

2015, 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, 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 as described in more 

detail below. The text of the proposed 

rule change is available on the 

Exchange’s Web site (http:// 

www.ise.com), at the principal office of 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 56 / Tuesday, March 24, 2015 / Notices 15647 

3A ‘‘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 Rule 

100(a)(37A). 

4A ‘‘Crossing Order’’ is an order executed in the 

Exchange’s Facilitation Mechanism, Solicited Order 

Mechanism, Price Improvement Mechanism 

(‘‘PIM’’) or submitted as a Qualified Contingent 

Cross (‘‘QCC’’) order. For purposes of the fee 

schedule, orders executed in the Block Order 

Mechanism are also considered Crossing Orders. 

5 ‘‘FX Option Symbols’’ are options overlying 

AUM, GBP, EUU and NDO. 

6 ‘‘Early Adopter FX Option Symbols’’ are options 

overlying NZD, PZO, SKA, BRB, AUX, BPX, CDD, 

EUI, YUK and SFC. 

7A Market Maker Plus is a Market Maker who is 

on the National Best Bid or National Best Offer at 

least 80% of the time for series trading between 

$0.03 and $3.00 (for options whose underlying 

stock’s previous trading day’s last sale price was 

less than or equal to $100) and between $0.10 and 

$3.00 (for options whose underlying stock’s 

previous trading day’s last sale price was greater 

than $100) in premium in each of the front two 

expiration months. A Market Maker’s single best 

and single worst quoting days each month based on 

the front two expiration months, on a per symbol 

basis, will be excluded in calculating whether a 

Market Maker qualifies for the Market Maker Plus 

rebate, if doing so will qualify a Market Maker for 

the rebate. 

8The rebate for the highest tier volume achieved 

is applied retroactively to all Priority Customer 

Complex volume once the threshold has been 

reached. For purposes of determining Priority 

Customer Complex ADV, any day that the complex 

order book is not open for the entire trading day 

may be excluded from such calculation; provided 

that the Exchange will only remove the day for 

members that would have a lower ADV with the 

day included. 

9 ‘‘Select Symbols’’ are options overlying all 

symbols listed on the ISE that are in the Penny Pilot 

Program. 

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

symbols excluding Select Symbols. 

11These rebates are provided per contract per leg 

if the order trades with non-Priority Customer 

orders in the complex order book, or trades with 

quotes and orders on the regular order book. 

12The term ‘‘Market Makers’’ refers to 

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

Makers’’ collectively. See Rule 100(a)(25). 

13A ‘‘Non-ISE 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. 

14A ‘‘Firm Proprietary’’ order is an order 

submitted by a member for its own proprietary 

account. 

15A ‘‘Broker-Dealer’’ order is an order submitted 

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

its own proprietary account. 

16A ‘‘Professional Customer’’ is a person or entity 

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

Customer. 

17The Exchange notes that the relevant citation 

to the Crossing Fee Cap currently refers mistakenly 

to Section VI, which was renumbered Section IV in 

connection with the delisting of Mini Options on 

ISE, and also uses a previous name ‘‘Firm Fee Cap’’. 

The Exchange proposes to update this section and 

make corresponding changes to other outdated 

references to the Crossing Fee Cap, as well as to 

Market Maker Discount Tiers, which are both now 

located in Section IV. 

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 amend the 

Schedule of Fees to (1) provide more 

favorable Priority Customer 3 complex 

order rebates, (2) charge all legs for 

complex Crossing Orders,4 (3) apply 

Foreign Exchange (‘‘FX’’) Option fees 

and rebates to complex orders in FX 

Option Symbols,5 including Early 

Adopter FX Option Symbols,6 and (4) 

eliminate the Market Maker Plus 7 large 

size rebate for BAC, SPY, and IWM. 

Each of the proposed changes is 

described in more detail below. 

1. Priority Customer Complex Order 

Rebates 

The Exchange currently provides 

volume-based tiered rebates for Priority 

Customer complex orders when these 

orders trade with non-Priority Customer 

orders in the complex order book, or 

trade with quotes and orders on the 

regular order book. These complex order 

rebates are provided to members based 

on the member’s average daily volume 

(‘‘ADV’’) in Priority Customer complex 

orders in six volume tiers as follows: 0 

to 29,999 contracts (Tier 1), 30,000 to 

74,999 contracts (Tier 2), 75,000 to 

124,999 contracts (Tier 3), 125,000 to 

224,999 contracts (Tier 4), 225,000 to 

299,999 contracts (Tier 5), and 300,000 

or more contracts (Tier 6).8 The 

Exchange now proposes to decrease the 

volume requirements necessary for 

achieving higher Priority Customer 

complex order rebates. The proposed 

ADV thresholds are as follows: 0 to 

29,999 contracts (Tier 1), 30,000 to 

59,999 contracts (Tier 2), 60,000 to 

99,999 contracts (Tier 3), 100,000 to 

149,999 contracts (Tier 4), 150,000 to 

199,999 contracts (Tier 5), and 200,000 

or more contracts (Tier 6). 

In addition, the Exchange proposes to 

increase the rebates provided for 

Priority Customer complex orders. 

Currently, Priority Customer complex 

orders receive a rebate of $0.30 per 

contract in Select Symbols 9 and $0.63 

per contract in Non-Select Symbols 10

for Tier 1, $0.35 per contract in Select 

Symbols and $0.71 per contract in NonSelect Symbols for Tier 2, $0.39 per 

contract in Select Symbols and $0.75 

per contract in Non-Select Symbols for 

Tier 3, $0.41 per contract in Select 

Symbols and $0.80 per contract in NonSelect Symbols for Tier 4, $0.43 per 

contract in Select Symbols and $0.82 

per contract in Non-Select Symbols for 

Tier 5, and $0.45 per contract in Select 

Symbols and $0.83 per contract in NonSelect Symbols for Tier 6.11 The 

Exchange now proposes to increase the 

rebate in Select Symbols to $0.40 per 

contract for Tier 3, $0.43 per contract for 

Tier 4, $0.45 per contract for Tier 5, and 

$0.46 per contact for Tier 6. For NonSelect Symbols the rebate will be 

increased to $0.78 per contract for Tier 

3. Other rebate amounts will remain 

unchanged from their current levels. 

2. Fee for Complex Crossing Orders 

The Exchange charges Market 

Maker,12 Non-ISE Market Maker,13 Firm 

Proprietary 14/Broker-Dealer,15 and 

Professional Customer 16 orders a fee for 

complex Crossing Orders of $0.20 per 

contract. This fee applies to complex 

Crossing Orders except for PIM orders of 

100 or fewer contracts (which are 

subject to a separate fee) and is charged 

for all legs for PIM orders and for the 

largest leg only for all other Crossing 

Orders. The Exchange now proposes to 

charge for all legs for all Crossing 

Orders, including QCC orders and 

orders entered into the PIM, 

Facilitation, Block and Solicited Order 

Mechanisms. Firm Proprietary and NonISE Market Maker contracts traded will 

remain subject to the Crossing Fee Cap, 

as provided in Section IV.H.17

3. Complex FX Option Fees and Rebates 

ISE charges fees and provides rebates 

for orders in FX Option Symbols, 

including Early Adopter FX Option 

Symbols, executed on the Exchange. 

While the Schedule of Fees has separate 

fees and rebates in Section III applicable 

to simple orders in FX option classes, 

the complex order fees and rebates for 

Non-Select Symbols in Section II 

currently apply to complex orders in 

these symbols. The Exchange now 

proposes to apply the FX option fees 

and rebates in Section III to all trades 

executed in FX option classes, including 

both simple and complex orders. The 

mstockstill on DSK4VPTVN1PROD with NOTICES

15648 Federal Register / Vol. 80, No. 56 / Tuesday, March 24, 2015 / Notices 

18The Exchange proposes to clarify in Section 

IV.C., which describes the relevant market maker 

discount tiers, that both simple and complex orders 

in FX options classes are now subject to these tiers 

pursuant to footnote 3 of Section III. 

19See id. 

20See Securities Exchange Act Release No. 72163 

(May 14, 2014), 79 FR 28985 (May 20, 2014) (SR– 

ISE–2014–27). 

21 15 U.S.C. 78f. 

22 15 U.S.C. 78f(b)(4). 

proposed fees, which already apply to 

simple orders in FX option classes, are 

briefly described below. 

Maker/Taker Fees and Rebates: 

Currently, non-Priority Customer 

complex orders in FX option classes are 

charged a fee for removing liquidity that 

ranges from $0.85 per contract for 

Market Maker orders to $0.87 per 

contract for Non-ISE Market Maker, 

Firm Proprietary/Broker-Dealer and 

Professional Customer orders. The same 

rates similarly apply when these market 

participants provide liquidity to Priority 

Customer orders. Otherwise, the 

applicable maker fee is $0.10 per 

contract for Market Maker, Firm 

Proprietary/Broker-Dealer, and 

Professional Customer orders and $0.20 

per contract for Non-ISE Market Maker 

orders. Priority Customer complex 

orders are not currently charged a fee for 

adding or removing liquidity in FX 

option classes. Instead, these orders are 

eligible for a tiered volume based rebate 

of $0.63 per contract to $0.83 per 

contract when trading with non-Priority 

Customer orders in the complex order 

book, or trading with quotes and orders 

on the regular order book. With the 

proposed change, members will pay a 

fee, regardless of adding or removing 

liquidity, of $0.22 per contract for 

Market Maker orders (subject to tier 

discounts),18 $0.20 for Market Maker 

orders sent by an Electronic Access 

Member (‘‘EAM’’), $0.45 per contract for 

Non-ISE Market Maker orders, $0.30 per 

contract for Firm Proprietary/BrokerDealer and Professional Customer 

orders, and $0.40 per contract for 

Priority Customer orders. Early Adopter 

Market Makers participate in a revenue 

sharing arrangement as described in 

footnote 2 to Section III, and will not be 

liable for FX option fees. 

Fee for Crossing Orders: Currently, 

non-Priority Customer complex orders 

in FX option classes are charged a fee 

for Crossing Orders of $0.20 per 

contract, or $0.03 to $0.05 per contract 

for PIM orders of 100 or fewer contracts. 

With the proposed change, the fee for 

Crossing Orders in FX option classes 

will be $0.22 per contract for Market 

Maker orders (subject to tier 

discounts),19 $0.20 per contract for 

Market Maker orders sent by an EAM, 

Non-ISE Market Maker orders, Firm 

Proprietary/Broker-Dealer orders, and 

Professional Customer orders, and, 

finally, $0.40 per contract for Priority 

Customer orders. For PIM orders of 100 

or fewer contracts, the proposed fee 

would be $0.03 to $0.05 per contract for 

non-Priority Customer orders and $0.40 

per contract for Priority Customer 

orders. Again, Early Adopter Market 

Makers will not be charged a fee. 

Response Fees and Break-Up Rebates: 

Currently, the fee for responses to 

complex Crossing Orders in FX option 

classes is $0.90 per contract for Market 

Maker orders and $0.95 per contract for 

all other market participants. NonMarket Maker orders also receive a PIM 

break-up rebate of $0.80 per contract. 

With the proposed change, all market 

participants, except for Early Adopter 

Market Makers, will pay a fee for 

responses to complex Crossing Orders 

in FX option classes of $0.45 per 

contract. In addition, non-Market Maker 

complex orders in these symbols will be 

eligible for a PIM break-up rebate of 

$0.15 per contract. 

4. Market Maker Plus Large Size Rebate 

for BAC, SPY, and IWM 

In order to promote and encourage 

liquidity in Select Symbols, the 

Exchange currently offers Market 

Makers who meet the quoting 

requirements for Market Maker Plus 

enhanced rebates for adding liquidity in 

those symbols. In May 2014, the 

Exchange introduced a new Market 

Maker Plus rebate for members that 

meet specified quotation size 

requirements on a trade by trade basis 

in three actively traded Select Symbols: 

BAC, SPY, and IWM.20 In particular, 

Market Makers who qualify as Market 

Maker Plus in BAC, SPY, and IWM 

currently earn a rebate of $0.25 per 

contract if at the time of the trade their 

displayed quantity, in the traded series, 

is at least 1,000 contracts. The Exchange 

now proposes to eliminate this Market 

Maker Plus large size rebate. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,21

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

Act,22 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. 

1. Priority Customer Complex Order 

Rebates 

The Exchange believes that it is 

reasonable and equitable to decrease the 

volume requirements necessary to 

achieve the Priority Customer complex 

order rebates, and increase the rebate 

amounts, as these proposed changes are 

designed to attract additional Priority 

Customer complex order volume to the 

Exchange. The Exchange already 

provides volume-based tiered rebates for 

Priority Customer complex orders, and 

believes that increasing the rebates and 

lowering the associated volume 

thresholds will incentivize members to 

send additional order flow to the ISE in 

order to achieve these rebates for their 

Priority Customer complex order 

volume, creating additional liquidity to 

the benefit of all members that trade 

complex orders on the Exchange. 

The Exchange further believes that it 

is equitable and not unfairly 

discriminatory to continue to provide a 

rebate only for Priority Customer 

complex orders. 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. 

2. Fee for Complex Crossing Orders 

The Exchange believes that it is 

reasonable and equitable to charge for 

all legs for all Crossing Orders, 

including QCC orders and orders 

entered into the PIM, Facilitation, Block 

and Solicited Order Mechanisms. While 

this is a fee increase for members that 

execute complex Crossing Orders (other 

than PIM orders), the Exchange believes 

that this change is warranted as the 

current practice effectively discounts 

the fee charged for complex Crossing 

Orders to zero after the largest leg, 

effectively subsidizing complex 

Crossing Orders with numerous legs. 

The Exchange no longer believes that 

this subsidy is appropriate, and has 

therefore chosen to discontinue it for all 

complex Crossing Orders as it has 

already done for PIM orders. The 

Exchange does not believe that this 

proposed change is unfairly 

discriminatory as it would apply 

equally to all market participants that 

trade complex Crossing Orders on the 

Exchange. 

3. Complex FX Option Fees 

The Exchange believes that it is 

reasonable and equitable to charge the 

same fees for complex orders in FX 

Option Symbols and Early Adopter FX 

Option Symbols as the Exchange 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 56 / Tuesday, March 24, 2015 / Notices 15649 

23The Exchange notes that the proposed change 

to Section IV.C. is intended solely to clarify that 

market maker discount tiers will be extended to 

complex orders in FX option classes consistent with 

the meaning of footnote 3 to Section III. 

24See Phlx Pricing Schedule, Section III, Singly 

Listed Options. 

25 15 U.S.C. 78f(b)(8). 

26 15 U.S.C. 78s(b)(3)(A)(ii). 

27 17 CFR 240.19b–4(f)(2). 

currently charges for simple orders in 

these symbols. The Exchange believes 

that the current table of FX option fees 

and rebates in Section III of the 

Schedule of Fees is appropriate for both 

simple and complex orders.23 Charging 

the same fees across the board in these 

proprietary products will simplify the 

Schedule of Fees to the benefit of 

members and investors. The Exchange 

does not believe that this proposed 

change is unfairly discriminatory as 

members are already assessed fees and 

rebates for simple orders in FX option 

classes based on Section III of the 

Schedule of Fees. The proposed change 

will merely ensure that these members 

pay the same fees for complex orders in 

these symbols as well. For the majority 

of market participants this means that 

fees will be lower, and in some cases 

significantly lower. Certain fees, 

including, for example, fees charged for 

Priority Customer orders, however, will 

be increased with the proposed change. 

While Priority Customer orders 

generally receive several benefits for 

trading on ISE, the Exchange does not 

believe that it is unfairly discriminatory 

to reduce some of those benefits here. In 

this regard, the Exchange notes that the 

proposed fee for Priority Customer 

complex FX option orders is within the 

range of fees currently charged by some 

of the Exchange’s competitors, 

including NASDAQ OMX PHLX, LLC 

(‘‘Phlx’’).24 Similarly, the Exchange 

notes that PIM break-up rebates would 

be reduced with the proposed rule 

change. The Exchange believes that this 

is reasonable, equitable, and not 

unfairly discriminatory as the proposed 

break-up rebates are set at a level that 

the Exchange believes will continue to 

provide an appropriate incentive for 

members. 

4. Market Maker Plus Large Size Rebate 

for BAC, SPY, and IWM 

The Exchange believes that it is 

reasonable, equitable, and not unfairly 

discriminatory to eliminate the Market 

Maker Plus large size rebate as the 

Exchange does not believe that this 

program has satisfied its intended goals. 

When ISE introduced this program, the 

Exchange was hopeful that the higher 

rebate would encourage Market Makers 

to post deeper size in these actively 

traded symbols. After running this 

program for several months, the 

Exchange does not believe that the large 

size rebate has been an effective 

incentive for Market Makers. The 

Exchange therefore believes that it is 

appropriate to discontinue the large size 

rebate at this time. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,25 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 

transaction fee changes amend various 

fees and rebates and are designed to 

attract additional order flow to the 

Exchange. The Exchange believes that 

the proposed fees and rebates are 

competitive with fees and rebates 

offered to orders executed on other 

options exchanges. 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 26 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder,27 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 rulecomments@sec.gov. Please include File 

Number SR–ISE–2015–09 on the subject 

line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ISE–2015–09. 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–2015–09 and should be 

submitted by April 14, 2015. 

mstockstill on DSK4VPTVN1PROD with NOTICES

15650 Federal Register / Vol. 80, No. 56 / Tuesday, March 24, 2015 / Notices 

28 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Market participants pay the same fees regardless 

of whether they choose to connect to both 

exchanges or solely to ISE Gemini. 4 15 U.S.C. 78f. 

5 15 U.S.C. 78f(b)(4). 

6 15 U.S.C. 78f(b)(8). 

7 15 U.S.C. 78s(b)(3)(A)(ii). 

8 17 CFR 240.19b–4(f)(2). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.28

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–06621 Filed 3–23–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74529; File No. SR– 

ISEGemini–2015–07] 

Self-Regulatory Organizations; ISE 

Gemini, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Schedule 

of Fees 

March 18, 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 March 13, 

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 the Substance 

of the Proposed Rule Change 

ISE Gemini proposes to amend the 

Schedule of Fees to expand low latency 

Ethernet fees to non-members. 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 charges an Ethernet fee 

for its four different Ethernet connection 

options, which is $1,000 per month for 

a 1 Gigabit (‘‘Gb’’) connection, $4,500 

per month for a 10 Gb connection, 

$8,000 per month for a 10 Gb low 

latency connection, and $15,000 per 

month for a 40 Gb low latency 

connection. These Ethernet connectivity 

options provide access to both ISE 

Gemini and ISE Gemini’s sister 

exchange, International Securities 

Exchange, LLC (‘‘ISE’’).3 While the 1 Gb 

and 10 Gb Ethernet fees apply to both 

members and non-members, the 10 Gb 

low latency and 40 Gb low latency fees 

apply only to members. The Exchange 

now proposes to amend the Schedule of 

Fees to apply the low latency Ethernet 

fee to non-members as well. The 

Exchange designates this filing to 

become effective on March 16, 2015. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,4

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

Act,5 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 it is reasonable, equitable, 

and not unfairly discriminatory to 

extend the low latency Ethernet fees to 

non-members. Market participants that 

establish connectivity to the Exchange 

will continue to pay the same fee based 

on the Ethernet options that they 

choose, and there will be no 

discrimination between the fees charged 

for members and non-members. While 

these low latency connections will 

likely continue to be of primary interest 

to Exchange members, the Exchange 

believes that these options should be 

available to interested non-members as 

well. Furthermore, the Exchange notes 

that the proposed rule change does not 

modify the fees applicable to these 

premium low latency Ethernet options, 

which will remain at their current 

levels. The low latency Ethernet fees 

described in this filing remain 

consistent with the Exchange’s 

connectivity costs, including costs for 

software and hardware enhancements, 

and resources dedicated to 

development, quality assurance, and 

support. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

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

the Act,6 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 rule change amends the 

Schedule of Fees to apply low latency 

Ethernet fees to non-members in 

addition to members, and is not 

intended to have any competitive effect. 

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 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,7 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder,8 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. 

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