20522 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Notices 

16See Nasdaq Rule 7015 (providing no FIX or 

non-Trading FIX ports free of charge) and the NYSE 

Arca fee schedule available at https://

www.nyse.com/publicdocs/nyse/markets/nyse-arca/

NYSE_Arca_Marketplace_Fees.pdf (dated February 

26, 2015). The Exchange recognizes that some 

participants may be charged the lower rate of $200 

per month to the extent such participants maintain 

a low number of ports with NYSE Arca. The 

Exchange nonetheless believes that its proposed 

fees are comparable despite the fact that it does not 

proposed [sic] a lower fee for such participants. 

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

18 17 CFR 240.19b–4(f). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

revenues associated with the execution 

of orders routed to it by affected 

members, and, to the extent applicable, 

market data revenues. The Exchange 

believes that this competitive dynamic 

imposes powerful restraints on the 

ability of any exchange to charge 

unreasonable fees for connectivity. 

Lastly, the Exchange believe [sic] its 

proposed fees are reasonable because 

the Nasdaq Stock Market LLC 

(‘‘Nasdaq’’) and the NYSE Arca, Inc. 

(‘‘NYSE Arca’’) charge comparable rates 

for logical ports to access such 

markets.16 As noted above, EDGA and 

EDGX also charge the same rate for 

access to most logical ports. 

The Exchange believes that its 

proposed changes to logical port fees are 

reasonable in light of the benefits to 

Exchange participants of direct market 

access and receipt of data. In addition, 

the Exchange believes that its fees are 

equitably allocated among Exchange 

constituents based upon the number of 

access ports that they require to access 

and receive data from the Exchange. The 

Exchange also believes that its fees for 

access services will enable it to better 

cover its infrastructure costs and to 

improve its market technology and 

services. 

Lastly, the Exchange also believes that 

the proposed amendments to its fee 

schedule are non-discriminatory 

because they will apply uniformly to all 

Members. All Members that voluntarily 

select various service options will be 

charged the same amount for the same 

services. All Members have the option 

to select any connectivity option, and 

there is no differentiation among 

Members with regard to the fees charged 

for the services offered by the Exchange. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe its 

proposed amendments to its fee 

schedule would impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. The Exchange does 

not believe that the proposed change to 

logical port fees represents a significant 

departure from previous pricing offered 

by the Exchange or pricing offered by 

the Exchange’s competitors. 

Additionally, Members may opt to 

disfavor the Exchange’s pricing if they 

believe that alternatives offer them 

better value. Accordingly, the Exchange 

does not believe that the proposed 

change will impair the ability of 

Members or competing venues to 

maintain their competitive standing in 

the financial markets. 

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 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) 

of the Act 17 and paragraph (f) of Rule 

19b–4 thereunder.18 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 rule-comments@

sec.gov. Please include File Number SR– 

BYX–2015–21 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–BYX–2015–21. 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 

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–BYX– 

2015–21, and should be submitted on or 

before May 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.19

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08697 Filed 4–15–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74706; File No. SR–ISE– 

2015–11] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Schedule of 

Fees 

April 10, 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 26, 

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 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Notices 20523 

3A ‘‘ 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. 

Solicited Crossing Orders will not qualify for 

MORP as they are already eligible for the QCC and 

Solicitation Rebate. See Schedule of Fees, Section 

IV.A. 

4The Exchange notes that members must opt in 

to MORP by March 31, 2015 to be eligible to 

participate in the program on April 1, 2015. See 

note 7 infra. 

5An unsolicited Crossing Order is a Crossing 

Order entered by a member that has not solicited 

the contra side of the trade. 

6The Exchange notes that these requirements are 

based, in part, on similar programs offered by other 

options exchanges. See notes 15 and 19 infra and 

accompanying text. 

7Members must provide this notice by March 31, 

2015 to be eligible to participate in MORP when the 

program becomes effective on April 1, 2015. 

8A ‘‘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. 

9A ‘‘Firm Proprietary’’ order is an order 

submitted by a member for its own proprietary 

account. 

10A ‘‘Broker-Dealer’’ order is an order submitted 

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

its own proprietary account. 

11A ‘‘Professional Customer’’ is a person or entity 

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

Customer. 

12A ‘‘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). 

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 ISE proposes to amend the 

Schedule of Fees to introduce a Member 

Order Routing Program. The text of the 

proposed rule change is available on the 

Exchange’s Web site (http://

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

the Exchange, and at the Commission’s 

Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization included 

statements concerning the purpose of, 

and basis for, the proposed rule change 

and discussed any comments it received 

on the proposed rule change. The text 

of these statements may be examined at 

the places specified in Item IV below. 

The self-regulatory organization has 

prepared summaries, set forth in 

sections A, B and C below, of the most 

significant aspects of such statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of the proposed rule 

change is to amend the Schedule of Fees 

to introduce a Member Order Routing 

Program (‘‘MORP’’) that will provide 

enhanced rebates to order routing firms 

that select the Exchange as the default 

routing destination (as described below) 

for unsolicited Crossing Orders.3 The 

MORP is intended to compete with 

similar programs offered by competitor 

options exchanges. The Exchange 

designates this filing to become effective 

on April 1, 2015.4

MORP Qualifications 

To be eligible to participate in MORP, 

an Electronic Access Member (‘‘EAM’’) 

must: (1) Provide to its clients, systems 

that enable the electronic routing of 

option orders to all of the U.S. options 

exchanges, including ISE; (2) interface 

with ISE to access the Exchange’s 

electronic options trading platform; (3) 

offer to its clients a customized interface 

and routing functionality such that ISE 

will be the default destination for all 

unsolicited Crossing Orders entered by 

the EAM,5 provided that market 

conditions allow the Crossing Order to 

be executed on ISE; (4) configure its 

own option order routing functionality 

such that ISE will be the default 

destination for all unsolicited Crossing 

Orders, provided that market conditions 

allow the Crossing Order to be executed 

on ISE, with respect to all option orders 

as to which the EAM has routing 

discretion; and (5) ensure that the 

default routing functionality permits 

users submitting option orders through 

such system to manually override the 

ISE as the default destination on an 

order-by-order basis.6

EAMs that wish to participate in the 

program must certify that they meet the 

above MORP requirements, in writing, 

on a monthly basis and in a form to be 

determined by the Exchange. The 

relevant notice must be provided by the 

last business day of the month for 

members to be eligible to participate in 

the MORP effective the first business 

day of the following month.7

Rebate for Unsolicited Crossing Orders 

An EAM that is MORP eligible will 

receive a rebate for all unsolicited 

Crossing Orders of $0.05 per originating 

contract side, provided that the member 

executes a minimum average daily 

volume (‘‘ADV’’) in unsolicited Crossing 

Orders of at least 30,000 originating 

contract sides. This rebate is increased 

to $0.07 per originating contract side, 

provided that the member executes a 

higher ADV in unsolicited Crossing 

Orders of 100,000 originating contract 

sides. The rebate for the highest tier 

achieved will be applied retroactively to 

all eligible contracts traded in a given 

month. As is ISE’s current practice with 

respect to ADV calculations, any day 

that the Exchange 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. The Exchange 

will provide a notice, and post it on the 

Exchange’s Web site, to inform members 

of any day that is to be excluded from 

its ADV calculations in connection with 

this proposed rule change. 

Facilitation and Solicitation Break-Up 

Rebate 

In addition, any EAM that qualifies 

for the MORP rebate by executing an 

ADV of 30,000 originating contract sides 

or more will also be eligible for 

increased Facilitation and Solicitation 

break-up rebates. Currently, the 

Exchange provides a Facilitation and 

Solicitation break-up rebate of $0.15 per 

contract for regular and complex orders 

in Select Symbols. This rebate applies to 

all Non-ISE Market Maker,8 Firm 

Proprietary 9/Broker-Dealer,10

Professional Customer,11 and Priority 

Customer 12 orders submitted to the 

Facilitation and Solicited Order 

Mechanisms that do not trade with their 

contra order, except when those orders 

trade against pre-existing orders and 

quotes on the Exchange’s order books. 

For MORP eligible members that 

execute a qualifying ADV in unsolicited 

Crossing Orders of at least 30,000 

originating contract sides, the Exchange 

now proposes to increase this 

Facilitation and Solicitation break-up 

rebate to $0.35 per contract for regular 

and complex orders in Select Symbols. 

In addition, the Exchange proposes to 

adopt a Facilitation and Solicitation 

break-up rebate in Non-Select Symbols 

and FX option classes specifically for 

members that meet the MORP 

qualifications described above. The 

rebate in Non-Select Symbols will be 

$0.15 per contract for regular orders and 

$0.80 per contract for complex orders. 

For FX option classes, the rebate will be 

$0.15 per contract for both regular and 

complex orders. With this proposed 


tkelley on DSK3SPTVN1PROD with NOTICES
20524 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Notices 

13 15 U.S.C. 78f. 

14 15 U.S.C. 78f(b)(4). 

15See Securities Exchange Act Release No. 71532 

(February 12, 2014), 79 FR 9563 (February 19, 2014) 

(SR–NYSEMKT–2014–12). 

16See Schedule of Fees, Section I, Regular Order 

Fees and Rebates, Market Maker Plus. 

17See Schedule of Fees, Section II, Complex 

Order Fees and Rebates. 18See supra note 15. 

19See Securities Exchange Act Release No. 56274 

(August 16, 2007), 72 FR 48720 (August 24, 2007) 

(SR–Phlx–2007–54). 

20As explained above, the proposed rule change 

is targeted towards unsolicited Crossing Orders as 

this is the segment of order flow that the Exchange 

is seeking to encourage members to execute on ISE. 

The Exchange does not believe that this is unfairly 

discriminatory as all MORP eligible members can 

achieve the applicable rebates by executing 

unsolicited Crossing Orders on the ISE. 

2115 U.S.C. 78f(b)(8). 

change, the Exchange notes that eligible 

members will receive the same break-up 

rebates for their Facilitation and 

Solicitation orders as they currently do 

for orders submitted to the PIM. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,13

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

Act,14 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 proposes to provide the 

MORP rebate and higher break-up 

rebates to EAMs that connect directly to 

the Exchange and provide their clients 

with order routing functionality that 

includes all U.S. options exchanges, 

including ISE. Order routing firms are 

already provided enhanced rebates by 

some of the Exchange’s competitors, 

including, for example, NYSE Amex 

Options (‘‘Amex’’), which provides 

volume based rebates to members that 

provide access and connectivity to their 

market.15 The Exchange believes that it 

is appropriate at this time to offer a 

similar rebate to order routing firms on 

ISE in order to compete with these 

programs on other options markets. 

The Exchange believes the proposed 

fee program is reasonable and equitable 

because it is designed to encourage 

order routing firms to execute additional 

unsolicited Crossing Order volume on 

the ISE. The Exchange notes that it 

currently offers other incentive 

programs to promote and encourage 

growth in specific business areas, 

including, for example, rebates for 

Market Makers that routinely quote at 

the national best bid or offer,16 and 

volume-based Priority Customer 

complex order rebates.17 The proposed 

rule change is targeted towards Crossing 

Orders, and, in particular, unsolicited 

Crossing Orders, which is yet another 

segment of order flow that the Exchange 

seeks to encourage members to execute 

on ISE. The Exchange believes that it is 

reasonable and equitable to tailor the 

proposed rule change to unsolicited 

Crossing Orders. ISE already charges 

fees and provides rebates for nonCrossing Orders that are effective in 

attracting that order flow to the 

Exchange. In addition, solicited 

Crossing Orders already benefit from the 

QCC and Solicitation Rebate, which 

applies to all QCC and/or other solicited 

Crossing Orders, including solicited 

orders executed in the Solicitation, 

Facilitation or Price Improvement 

Mechanisms. The Exchange believes 

that the QCC and Solicitation Rebate has 

proven to be an effective incentive for 

members to send solicited crosses to the 

ISE. The proposed rule change would 

supplement this incentive by 

encouraging eligible firms to send 

unsolicited Crossing Orders to the 

Exchange as well, which will benefit all 

market participants on ISE by creating 

additional liquidity and increased 

opportunity to trade on the Exchange. 

The Exchange notes that the proposed 

MORP rebate levels are within the range 

of rebates currently offered by Amex, 

whose market access and connectivity 

subsidy ranges from $0.04 per contract 

to $0.08 per contract based on a 

member’s volume tier.18 In addition, the 

Exchange notes that the proposed 

Facilitation and Solicitation break-up 

rebates are equivalent to break-up 

rebates already provided for PIM orders 

traded on ISE. 

As a condition for participating in 

MORP, an EAM must configure its 

option order routing functionality so 

that ISE will be the default destination 

for all unsolicited Crossing Orders, and 

must offer to its clients a customized 

interface and routing functionality that 

similarly defaults such orders to ISE. 

Defaulting to ISE will not be required if 

market conditions do not allow the 

Crossing Order to be executed on the 

Exchange. In addition, MORP eligible 

firms must allow users to manually 

override ISE as the default order routing 

destination on an order-by-order basis. 

The Exchange believes that these 

proposed requirements are reasonable 

and equitable as they protect investors, 

while allowing member firms to qualify 

for enhanced rebates that reduce their 

trading costs on ISE. Furthermore, the 

Exchange notes that members that set 

ISE as their default routing destination 

will not be relieved of complying with 

their best execution obligations. If, 

based on its regular best execution 

analysis, a MORP eligible member 

determines that the routing 

functionality described above would 

conflict with its duty of best execution, 

such member may discontinue 

participation in the program. The 

Exchange believes that the safeguards 

described above will ensure that client 

orders are appropriately protected under 

MORP. In this regard, the Exchange 

notes that the proposed protections 

mirror protections previously adopted 

by NASDAQ OMX PHLX, LLC (‘‘Phlx’’), 

where a similar program was introduced 

in 2007.19

Finally, the Exchange believes that 

the proposed program is both equitable 

and not unfairly discriminatory because 

any qualifying EAM that offers market 

access and connectivity to the Exchange 

will be able to participate in the 

program on an equal and nondiscriminatory basis. While there will 

be two tiers of MORP rebates, the sole 

basis for differentiation among the tiers 

will be participant volume in 

unsolicited Crossing Orders.20 The 

Exchange believes that it is equitable 

and not unfairly discriminatory to 

provide higher rebates to members that 

execute a higher volume of order flow 

on ISE. With respect to break-up rebates, 

the Exchange notes that all members 

that qualify for a MORP rebate will also 

receive enhanced break-up rebates. 

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. To the 

contrary, the Exchange believes that the 

proposed rule change evidences the 

strength of competition in the options 

industry. Specifically, the Exchange 

believes that the proposed fee change 

will enhance the competiveness of the 

ISE relative to other options exchanges, 

such as Amex, that offer similar 

programs under their respective fee 

schedules. In doing so, eligible order 

routing firms will benefit from an 

innovative program that reduces trading 

costs by providing a valuable rebate for 

their unsolicited Crossing Orders. 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 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Notices 20525 

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

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. 

3Securities Exchange Act Release No. 74358 

(February 24, 2015), 80 FR 11243 (March 2, 2015) 

(SR–DTC–2015–01). 

4Third-party Users of PRS include syndicate 

members, correspondent banks, paying agents, 

transfer agents, and certain legal counsel and 

financial advisors. Individual investors do not have 

access to PRS. 

5Securities Exchange Act Release No. 47410 

(February 26, 2003), 68 FR 10558 (March 5, 2003) 

(SR–DTC–2002–13). 

6 15 U.S.C. 78s(b)(2)(C). 

7 15 U.S.C. 78q–1(b)(3)(F). 

8 Id. 

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 

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 Number SR– 

ISE–2015–11 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–2015–11. 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– 

2015–11, and should be submitted on or 

before May 7, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08700 Filed 4–15–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74712; File No. SR–DTC– 

2015–01] 

Self-Regulatory Organizations; The 

Depository Trust Company; Order 

Approving Proposed Rule Change To 

Discontinue the Prospectus 

Repository System Service 

April 10, 2015. 

I. Introduction 

On February 13, 2015, The Depository 

Trust Company (‘‘DTC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) proposed rule change 

SR–DTC–2015–01 (‘‘Proposed Rule 

Change’’) pursuant to Section 19(b)(1) of 

the Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder.2

The Proposed Rule Change was 

published for comment in the Federal 

Registrar on March 2, 2015.3 The 

Commission did not receive any 

comments on the Proposed Rule 

Change. This order approves the 

Proposed Rule Change. 

II. Description 

DTC filed the Proposed Rule Change 

to discontinue DTC’s Prospectus 

Repository System (‘‘PRS’’) and its 

Terms of Use (‘‘Terms of Use’’), as 

discussed below. 

DTC launched PRS in 2003 to provide 

DTC participants (‘‘Participants’’) and 

DTC-authorized third parties 

(collectively, ‘‘Users’’) 4 access to 

prospectuses and official statements 

relating to new issues of corporate and 

municipal securities (‘‘Documents’’).5

Today, however, there are few Users of 

PRS because many of the Documents 

provided through PRS are publicly 

available. As such, DTC states that it is 

not worth the cost of maintaining PRS 

and, thus, will discontinue it. 

III. Discussion 

Section 19(b)(2)(C) of the Act 6 directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if it finds that such 

proposed rule change is consistent with 

the requirements of the Act and rules 

and regulations thereunder applicable to 

such organization. Section 17A(b)(3)(F) 

of the Act requires, among other things, 

that the rules of a clearing agency be 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions.7

The Commission finds the Proposed 

Rule Change consistent with the Act. 

More specifically, the Commission finds 

that the Proposed Rule Change is 

consistent with Section 17A(b)(3)(F) of 

the Act.8 By eliminating a service that 

is not economically efficient to maintain 

or central to DTC’s core clearing 

business, DTC can better allocate its 

economic resources to support the 

safeguarding of securities or funds in its 


tkelley on DSK3SPTVN1PROD with NOTICES