69168 Federal Register / Vol. 79, No. 224 / Thursday, November 20, 2014 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term Market Maker refers to ‘‘Competitive 

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

collectively. Market Makers 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. 

4 ‘‘Penny Symbols’’ are options overlying all 

symbols listed on ISE Gemini that are in the Penny 

Pilot Program. 

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

symbols excluding Penny Symbols. 

6A Tier 2 member is a member that executes a 

Total Affiliated Member ADV of 50,000 to 124,999 

contracts, Priority Customer Maker ADV of 20,000 

to 49,999 contracts, or a Total Affiliated Member 

ADV of 40,000 to 99,999 contracts with a minimum 

Priority Customer Maker ADV of 15,000 contracts. 

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– 

CME–2014–43 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–CME–2014–43. 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 will also be available for 

inspection and copying at the principal 

office of CME and on CME’s Web site at 

http://www.cmegroup.com/marketregulation/rule-filings.html. 

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–CME–2014–43 and should 

be submitted on or before December 11, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27452 Filed 11–19–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73600; File No. SR– 

ISEGemini–2014–28] 

Self-Regulatory Organizations; ISE 

Gemini, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend the Schedule 

of Fees 

November 14, 2014. 

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 November 

3, 2014, ISE Gemini, LLC (the 

‘‘Exchange’’ or ‘‘ISE Gemini’’) filed with 

the Securities and Exchange 

Commission (‘‘SEC’’ or ‘‘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 is proposing to amend its 

Schedule of Fees to introduce a new 

higher maker rebate for certain Market 

Maker orders. 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 purpose of the proposed rule 

change is to amend the Schedule of Fees 

to introduce a new higher maker rebate 

for certain Market Maker 3 orders. The 

Exchange’s Schedule of Fees has 

separate tables for 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. 

Currently, Market Maker orders that 

add liquidity on ISE Gemini are 

provided a maker rebate in Penny 

Symbols 4 and SPY of $0.30 per contract 

for Tier 1, $0.32 per contract for Tier 2, 

$0.34 per contract for Tier 3, $0.37 per 

contract for Tier 4, and $0.38 per 

contract for Tier 5. In Non-Penny 

Symbols 5 this maker rebate is $0.40 per 

contract for Tier 1, $0.42 per contract for 

Tier 2, and $0.44 per contract for Tier 

3, $0.47 per contract for Tier 4, and 

$0.49 per contract for Tier 5. In order to 

incentivize Market Makers to quote 

more aggressively on ISE Gemini, the 

Exchange now proposes to provide a 

higher maker rebate to Tier 2 members 

that meet an additional average daily 

volume (‘‘ADV’’) threshold with respect 

to Market Maker orders executed in a 

given month.6 In particular, Market 

Makers that achieve Tier 2 and execute 

an ADV of 100,000 to 124,999 contracts 

in a given month, including both maker 

and taker volume, will qualify for a 

maker rebate of $0.33 per contract in 

Penny Symbols and SPY, and $0.43 per 

contract in Non-Penny Symbols. 


rmajette on DSK2VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 224 / Thursday, November 20, 2014 / Notices 69169 

7 15 U.S.C. 78f. 

8 15 U.S.C. 78f(b)(4). 

9 15 U.S.C. 78f(b)(8). 

10 15 U.S.C. 78s(b)(3)(A)(ii). 

11 17 CFR 240.19b–4(f)(2). 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

the provisions of Section 6 of the Act,7

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

Act,8 in particular, in that it is designed 

to provide for the equitable allocation of 

reasonable dues, fees, and other charges 

among its members and other persons 

using its facilities. 

The Exchange believes that the 

proposed fee change is reasonable and 

equitable as the new maker rebate is 

designed to attract additional volume 

from Market Makers that do not qualify 

for Tier 3 or higher maker rebates. The 

Exchange believes that providing higher 

maker rebates for orders executed by 

Market Makers that have achieved the 

volume threshold for this new ‘‘subtier’’ will attract that order flow to ISE 

Gemini, and thereby create additional 

liquidity to the benefit of all market 

participants who trade on the Exchange. 

The Exchange further believes that the 

proposed rule change is not unfairly 

discriminatory as all Market Makers that 

achieve the new volume threshold will 

receive the same maker rebate. The 

Exchange does not believe that it is 

unfairly discriminatory to offer this 

higher rebate only to Market Maker 

orders as Market Makers are subject to 

additional requirements and obligations 

(such as quoting requirements) that 

other market participants are not. 

Moreover, the Exchange believes that 

the proposed fee change will encourage 

Market Makers to quote more 

aggressively on the Exchange in order to 

qualify for the new maker rebate, which 

will benefit all market participants. 

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,9 the Exchange does not believe 

that the proposed rule change will 

impose any burden on intermarket or 

intramarket competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. To the 

contrary, the Exchange believes that the 

proposed fee change will promote 

competition as it is designed to allow 

ISE Gemini to better compete for order 

flow by offering higher rebates to orders 

executed by Market Makers that meet 

the new volume threshold for the new 

‘‘sub tier.’’ 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,10 and 

subparagraph (f)(2) of Rule 19b–4 

thereunder,11 because it establishes a 

due, fee, or other charge imposed by ISE 

Gemini. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

ISEGemini–2014–28 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–ISEGemini–2014–28. 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– 

ISEGemini–2014–28, and should be 

submitted on or before December 11, 

2014. 


rmajette on DSK2VPTVN1PROD with NOTICES
69170 Federal Register / Vol. 79, No. 224 / Thursday, November 20, 2014 / Notices 

12 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3 ‘‘Singly Listed Symbols’’ are options overlying 

FXO, QQEW, PLTM, SMDD and FIW. 

4A ‘‘Priority Customer’’ is a person or entity that 

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

place more than 390 orders in listed options per day 

on average during a calendar month for its own 

beneficial account(s), as defined in ISE Rule 

100(a)(37A). 

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

symbols excluding Select Symbols. 

6A ‘‘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 order. 

For purposes of this Fee Schedule, orders executed 

in the Block Order Mechanism are also considered 

Crossing Orders. 

7The term ‘‘Market Makers’’ refers to 

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

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

8 ‘‘FX Option Symbols’’ are options overlying 

AUM, GBP, EUU and NDO. 

9A ‘‘Flash Order’’ is an order that is exposed at 

the National Best Bid or Offer by the Exchange to 

all members for execution, as provided under 

Supplementary Material .02 to ISE Rule 1901. 

10A 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 this rebate, if doing so 

will qualify a Market Maker for the rebate. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.12

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27450 Filed 11–19–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73601; File No. SR–ISE– 

2014–51] 

Self-Regulatory Organizations; 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change To Amend the Schedule of 

Fees 

November 14, 2014. 

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 November 

3, 2014, the International Securities 

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

‘‘ISE’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘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 the Substance 

of the Proposed Rule Change 

The ISE is proposing to (1) eliminate 

special fees for Singly Listed Symbols, 

and (2) amend its rules for excluding 

days from its average daily volume 

(‘‘ADV’’) calculations when the market 

is not open for the entire trading day. 

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 Exchange proposes to (1) 

eliminate special fees for Singly Listed 

Symbols,3 and (2) amend its rules for 

excluding days from its ADV 

calculations when the market is not 

open for the entire trading day. 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. 

1. Singly Listed Symbols 

Other than applicable response fees, 

simple Priority Customer 4 orders in 

Non-Select symbols 5 executed on the 

Exchange are generally not charged a 

transaction fee or fee for Crossing 

Orders,6 including a fee for Price 

Improvement Mechanism (‘‘PIM’’) 

orders of fewer than 100 contracts. By 

contrast, the Exchange charges Priority 

Customer orders in a special group of 

Non-Select Symbols that trade solely on 

the ISE (‘‘Singly Listed Symbols’’) a fee 

of $0.20 per contract for regular and 

Crossing Orders, including PIM orders 

of 100 or fewer contracts. The Exchange 

now proposes to eliminate the special 

fees for these Singly Listed Symbols, 

which will now be subject to the same 

fees as other Priority Customer orders in 

Non-Select Symbols. 

In connection with this change, the 

Exchange also proposes to remove other 

references to Singly Listed Symbols, 

including the definition of Singly Listed 

Symbols in the Preface to the Schedule 

of Fees, and certain fee waivers that 

apply to Singly Listed Symbols as 

described below. The Exchange has a 

Payment for Order Flow (‘‘PFOF’’) fee of 

$0.70 per contract, which is paid by 

Market Makers 7 for each Priority 

Customer contract executed against the 

Market Maker in Non-Select Symbols 

other than Singly Listed Symbols and 

FX Option Symbols,8 or for Flash 

Orders 9 and Complex Orders. In 

addition, Market Makers making or 

taking liquidity receive a discount of 

$0.02 per contract in Standard Options 

only when trading against Priority 

Customer orders preferenced to them in 

the Complex order book in equity 

options that are able to be listed and 

traded on more than one options 

exchange. This discount similarly does 

not apply to Singly Listed Symbols and 

FX Options Symbols, or to option 

classes designated by the Exchange to 

receive a guaranteed allocation pursuant 

to ISE Rule 722(b)(3)(i)(B). As the 

Exchange is eliminating special fees for 

Singly Listed Symbols, the five symbols 

currently designated as Singly Listed 

Symbols will now be subject to the 

PFOF program and will be eligible for 

the Market Maker complex order 

discount described above. 

2. ADV Calculation 

The Exchange provides a Market 

Maker Plus 10 rebate for adding liquidity 

of $0.22 per contract instead of the 

regular $0.20 per contract for Market 

Makers that meet the quoting 

requirements for Market Maker Plus and 

are affiliated with an Electronic Access 

Member that executes a total affiliated 

Priority Customer ADV of 200,000 

contracts or more in a calendar month. 

Similarly, the Exchange charges a 

discounted Priority Customer taker fee 

of $0.25 per contract instead of the 


rmajette on DSK2VPTVN1PROD with NOTICES