62900 Federal Register / Vol. 75, No. 197 / Wednesday, October 13, 2010 / Notices 

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

2 17 CFR 240.19b–4. 

3The Commission previously approved the 

trading of options on NZD, PZO, SKA and BRB. See 

Exchange Act Release No. 34–55575 (April 3, 2007), 

72 FR 17963 (April 10, 2007) (SR–ISE–2006–59). 

4See Exchange Act Release No. 34–60536 (August 

19, 2009), 74 FR 43204 (August 26, 2009) (SR–ISE– 

2009–59). 

5See Exchange Act Release No. 34–61459 

(February 1, 2010), 75 FR 6248 (February 8, 2010) 

(SR–ISE–2010–07). 

6See Exchange Act Release Nos. 34–60810 

(October 9, 2009), 74 FR 53527 (October 19, 2009) 

(SR–ISE–2009–80), 34–61334 (January 12, 2010), 75 

FR 2913 (January 19, 2010) (SR–ISE–2009–115), 34– 

61851 (April 6, 2010), 75 FR 18565 (April 12, 2010) 

(SR–ISE–2010–27) and 34–62503 (July 15, 2010), 75 

FR 42812 (July 22, 2010) (SR–ISE–2010–71). 

7Participants in the incentive plan are known on 

the Exchange’s Schedule of Fees as Early Adopter 

Market Makers. 

8A FXPMM is a primary market maker selected 

by the Exchange that trades and quotes in FX 

Options only. See ISE Rule 2213. 

9A FXCMM is a competitive market maker 

selected by the Exchange that trades and quotes in 

FX Options only. See ISE Rule 2213. 

10 15 U.S.C. 78f. 

11 15 U.S.C. 78f(b)(4). 

12 15 U.S.C. 78s(b)(3). 

13 17 CFR 240.19b–4(f)(2). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63045; File No. SR–ISE– 

2010–100] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to a Market Maker 

Incentive Plan for Foreign Currency 

Options 

October 5, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

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

notice is hereby given that on October 

4, 2010, International Securities 

Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change from interested 

persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The ISE is proposing to extend an 

incentive plan for market makers in four 

foreign currency options (‘‘FX Options’’). 

The text of the proposed rule change is 

available on ISE’s Web site at http:// 

www.ise.com, on the Commission’s Web 

site at http://www.sec.gov, 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 

Exchange has prepared summaries, set 

forth in Sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The purpose of this proposed rule 

change is to extend an incentive plan for 

market makers in options on the New 

Zealand dollar (‘‘NZD’’), the Mexican 

peso (‘‘PZO’’), the Swedish krona 

(‘‘SKA’’) and the Brazilian real (‘‘BRB’’).3

On August 3, 2009, the Exchange 

adopted an incentive plan applicable to 

market makers in NZD, PZO and SKA,4

and on January 19, 2010, added BRB to 

the incentive plan.5 The Exchange 

subsequently extended the date by 

which market makers may join the 

incentive plan.6 The Exchange proposes 

to again extend the date by which 

market makers may join the incentive 

plan. 

In order to promote trading in these 

FX Options, the Exchange has an 

incentive plan pursuant to which the 

Exchange waives the transaction fees for 

the Early Adopter 7 FXPMM 8 and all 

Early Adopter FXCMMs 9 that make a 

market in NZD, PZO SKA and BRB for 

as long as the incentive plan is in effect. 

Further, pursuant to a revenue sharing 

agreement entered into between an 

Early Adopter Market Maker and ISE, 

the Exchange pays the Early Adopter 

FXPMM forty percent (40%) of the 

transaction fees collected on any 

customer trade in NZD, PZO SKA and 

BRB and pays up to ten (10) Early 

Adopter FXCMMs that participate in the 

incentive plan twenty percent (20%) of 

the transaction fees collected for trades 

between a customer and that FXCMM. 

Market makers that do not participate in 

the incentive plan are charged regular 

transaction fees for trades in these 

products. In order to participate in the 

incentive plan, market makers are 

required to enter into the incentive plan 

no later than September 30, 2010. The 

Exchange now proposes to extend the 

date by which market makers may enter 

into the incentive plan to December 31, 

2010. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the objectives of Section 6 of the Act,10

in general, and furthers the objectives of 

Section 6(b)(4),11 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 the proposed rule 

change will permit additional market 

makers to join the incentive plan which 

in turn will generate additional order 

flow to the Exchange by creating 

incentives to trade these FX Options as 

well as defray operational costs for Early 

Adopter Market Makers. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The proposed rule change does not 

impose any burden on competition that 

is not necessary or appropriate in 

furtherance of the purposes of the Act. 

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) of 

the Act 12 and Rule 19b–4(f)(2) 13

thereunder. 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. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

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Federal Register / Vol. 75, No. 197 / Wednesday, October 13, 2010 / Notices 62901 

14 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 17 CFR 240.19b–4(f)(6). 

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 e-mail to rulecomments@sec.gov. Please include File 

Number SR–ISE–2010–100 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–ISE–2010–100. This file 

number should be included on the 

subject line if e-mail 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 

will also 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 No. SR–ISE–2010– 

100 and should be submitted on or 

before November 3, 2010. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Florence E. Harmon, 

Deputy Secretary. 

[FR Doc. 2010–25624 Filed 10–12–10; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–63046; File No. SR–FINRA– 

2010–050] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Relating to Online Filing 

of Arbitration Claims 

October 5, 2010. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

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

notice is hereby given that on 

September 27, 2010, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

substantially by FINRA. FINRA has 

designated the proposed rule change as 

constituting a ‘‘non-controversial’’ rule 

change under paragraph (f)(6) of Rule 

19b–4 under the Act,3 which renders 

the proposal effective upon receipt of 

this filing by the Commission. 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 

FINRA is proposing to amend Rules 

12302 and 13302 of the Customer and 

Industry Codes of Arbitration 

Procedure, respectively (‘‘Codes’’) to 

update the rules relating to online filing 

of arbitration claims. 

The text of the proposed rule change 

is available on FINRA’s Web site at 

http://www.finra.org, at the principal 

office of FINRA 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, 

FINRA 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. FINRA 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 

To initiate an arbitration claim at 

FINRA, a claimant files a signed and 

dated Submission Agreement, a 

Statement of Claim that specifies the 

relevant facts and remedies requested, 

and any additional documents 

supporting the Statement of Claim 

(‘‘initial documents’’). The claimant may 

file in hard copy, submitting enough 

copies of each of the initial documents 

for the Director, each arbitrator, and 

each other party. As an alternative, 

FINRA Rules 12302 and 13302 provide 

that a claimant may use the Online 

Arbitration Claim Filing system 

(‘‘System’’) to complete part of the claim 

filing process through the Internet. The 

rules state that the claimant completes 

a Claim Information Form online, and 

submits a Statement of Claim (along 

with supporting documents) 

electronically through the System. Once 

the Claim Information Form is 

complete, the System generates a FINRA 

Dispute Resolution Tracking Form 

(‘‘Tracking Form’’) for the claimant to 

reproduce. The claimant then files, in 

hard copy, the Tracking Form and any 

materials not submitted electronically. 

When a claimant files electronically, 

FINRA makes copies of the documents 

submitted through the System for the 

arbitrators and the other parties in the 

case. 

Recently, FINRA implemented 

programming enhancements that allow 

claimants to file all of the initial 

documents electronically if they file 

through the System. FINRA is proposing 

to make technical, non-substantive 

amendments to Rules 12302 and 13302 

to update the rule language to reflect 

that claimants may file all of the initial 

documents electronically. 

If the SEC approves the proposed rule 

change, FINRA would continue to 

permit claimants to file their claims in 

hard copy. The proposed rule change 

specifies that if a claimant does not elect 

to file electronically, the claimant 

would be required to file enough copies 

of the initial documents for the Director, 

each arbitrator and each other party. 

mstockstill on DSKH9S0YB1PROD with NOTICES