Document ID: SEC-2012-1345-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2012-08-15T04:00Z

[Federal Register Volume 77, Number 158 (Wednesday, August 15, 2012)]
[Notices]
[Pages 49046-49048]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19978]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67627; File No. SR-ISE-2012-70]

 Self-Regulatory Organizations; International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed 
Rule Change To Amend the Schedule of Fees

August 9, 2012.
    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 August 1, 2012, the International Securities Exchange, LLC (the 
``ISE'' or the ``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 self-
regulatory organization. The Commission is publishing this notice to 
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE is proposing to amend its Schedule of Fees. The text of the 
proposed rule change is available on the Exchange's Web site (http://www.ise.com), at the principal office of the Exchange, and at the 
Commission's Public Reference Room.

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 currently assesses per contract transaction fees and 
provides rebates to market participants that add or remove liquidity 
from the Exchange (``maker/taker fees and rebates'') in 101 options 
classes (the ``Select Symbols'').\3\ The Exchange also currently 
assesses maker/taker fees and rebates for certain regular orders in 25 
option classes (``Special Non-Select Penny Pilot Symbols'').\4\ The 
purpose of this proposed rule change is to amend the list of Select 
Symbols and Special Non-Select Penny Pilot Symbols in order to attract 
additional order flow to the Exchange. Specifically, the Exchange 
proposes to remove the following eight (8) symbols from the list of 
Select Symbols and add them to the list of Special Non-Select Penny 
Pilot Symbols: Amazon.com, Inc. (``AMZN''), ConocoPhillips (``COP''), 
ProShares QQQ Trust Series 1 (``QQQ''), Sprint Corporation (``S''), 
ProShares UltraShort S&P 500 (``SDS''), Sirius XM Radio, Inc. 
(``SIRI''), ProShares Ultra S&P 500

[[Page 49047]]

(``SSO'') and Direxion Small Cap Bear 3X (``TZA'') (``Proposed Deleted 
Select Symbols'').
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    \3\ Options classes subject to maker/taker fees and rebates are 
identified by their ticker symbol on the Exchange's Schedule of 
Fees.
    \4\ The Special Non-Select Penny Pilot Symbols are identified by 
their ticker symbol on the Exchange's Schedule of Fees.
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    Additionally, the Exchange proposes to add the following 32 symbols 
to the list of Special Non-Select Penny Pilot Symbols: Arch Coal, Inc. 
(``ACI''), American Capital Agency Corporation (``AGNC''), Amylin 
Pharmaceuticals, Inc. (``AMLN''), Alpha Natural Resources, Inc. 
(``ANR''), Apache Corporation (``APA''), Arena Pharmaceuticals, Inc. 
(``ARNA''), ATP Oil & Gas Corporation (``ATPG''), Yamana Gold, Inc. 
(``AUY''), Baxter International, Inc. (``BAX''), Delta Airlines, Inc. 
(``DAL''), E.I. du Pont de Nemours and Company (``DD''), The Walt 
Disney Company (``DIS''), Dow Chemical Company, Inc. (``DOW''), Human 
Genome Sciences, Inc. (``HGSI''), JC Penney Co., Inc. (``JCP''), Joy 
Global, Inc. (``JOY''), KB Home (``KBH''), Kinross Gold Corporation 
(``KGC''), Mastercard, Inc. (``MA''), MBIA, Inc. (``MBI''), Medtronic, 
Inc. (``MDT''), Nike, Inc. (``NKE''), Pepsico, Inc. (``PEP''), 
SandRidge Energy, Inc. (``SD''), Union Pacific Corporation (``UNP''), 
United Technologies Corporation (``UTX''), Valero Energy Corporation 
(``VLO''), Walgreen Co. (``WAG''), Western Digital Corporation 
(``WDC''), Walter Energy, Inc. (``WLT''), Utilities Select Sector SPDR 
Fund (``XLU'') and Zynga, Inc. (``ZNGA'') (``Additional Special Non-
Select Symbols'').
    With this proposed rule change, the 40 symbols noted above, i.e., 
the Proposed Deleted Select Symbols and the Additional Special Non-
Select Symbols, together with the 25 symbols that are already 
designated as Special Non-Select Penny Pilot Symbols, will now be 
subject to the fees for Special Non-Select Penny Pilot Fees listed in 
Section I of the Schedule of Fees.
2. Statutory Basis
    The Exchange believes that its proposal to amend its Schedule of 
Fees is consistent with Section 6(b) of the Act \5\ in general, and 
furthers the objectives of Section 6(b)(4) of the Act \6\ in 
particular, in that it is an equitable allocation of reasonable fees 
and other charges among Exchange members and other persons using its 
facilities.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that it is reasonable to remove the Proposed 
Deleted Select Symbols from its list of Select Symbols and add them to 
the list of Special Non-Select Penny Pilot Symbols. The Exchange also 
believes it is reasonable to add the Additional Special Non-Select 
Symbols to the current list of Special Non-Select Penny Pilot Symbols. 
The Exchange believes that applying the fees applicable to Special Non-
Select Penny Pilot Symbols to the Proposed Deleted Select Symbols and 
to the Additional Special Non-Select Symbols will attract additional 
order flow to the Exchange.
    The Exchange believes that it is equitable and not unfairly 
discriminatory to amend its list of Select Symbols to remove the 
Proposed Deleted Symbols and to amend its list of Special Non-Select 
Penny Pilot Symbols to add the Additional Special Non-Select Symbols 
because the list of Select Symbols and Special Non-Select Penny Pilot 
Symbols would apply uniformly to all categories of participants in the 
same manner. All market participants who trade the Select Symbols and 
the Special Non-Select Penny Pilot Symbols would be uniformly subject 
to the fees and rebates applicable to those symbols.

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)(A)(ii) of the Act.\7\ 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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    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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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-2012-70 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-2012-70. 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 the 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-2012-70 and should be 
submitted on or before September 5, 2012.

[[Page 49048]]

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-19978 Filed 8-14-12; 8:45 am]
BILLING CODE 8011-01-P