Document ID: SEC-2009-1533-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Customer Fees for Crossing Orders
Posted Date: 2009-10-29T04:00Z

[Federal Register: October 29, 2009 (Volume 74, Number 208)]
[Notices]               
[Page 55872-55873]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29oc09-115]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-60861; File No. SR-ISE-2009-77]

 
Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change Relating to Customer Fees for Crossing Orders

October 22, 2009.
    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 1, 2009, 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

[[Page 55873]]

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 proposes to adopt a fee for certain customer orders 
executed in the Exchange's Facilitation, Solicitation and Price 
Improvement Mechanisms. 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 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
    As of October 1, 2009, the Exchange has implemented a new order 
type, Professional Orders.\3\ For competitive reasons, the Exchange has 
determined to charge the same execution fees for all customer orders, 
i.e., for all orders that are not for the account of a broker-dealer, 
including Professional Orders.\4\ ISE, however, believes that trading 
in the Exchange's Facilitation, Solicitation and Price Improvement 
Mechanisms is primarily activity that is conducted by broker-dealers. 
Thus, it is reasonable for the Exchange to charge non-broker-dealer 
orders that conduct a Professional Order business the same fee the 
Exchange charges broker-dealer orders. Accordingly, the Exchange now 
proposes to adopt a fee for Professional Orders that are executed in 
the Exchange's Facilitation, Solicitation and Price Improvement 
Mechanisms. Specifically, the Exchange proposes to charge a fee of 
$0.20 per contract for Professional Orders for their crossing activity, 
i.e., their interaction in the Exchange's Facilitation, Solicitation 
and Price Improvement Mechanism.
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    \3\ A ``Professional Order'' is defined by the Exchange to mean 
an order that is for the account of a person or entity that is not a 
Priority Customer. A ``Priority Customer'' is defined by the 
Exchange to mean a person or entity that is (i) not a broker or 
dealer in securities, and (ii) does not place more than 390 orders 
in listed options per day on average during a calendar month for its 
own beneficial account(s).
    \4\ See Exchange Act Release No. 34-60334 [sic] (July 17, 2009), 
74 FR 36802 (July 24, 2009).
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    ISE proposes to implement this fee change on October 1, 2009.
2. Statutory Basis
    The basis under the Securities Exchange Act of 1934 (the ``Exchange 
Act'') for this proposed rule change is the requirement under Section 
6(b)(4) that an exchange have an equitable allocation of reasonable 
dues, fees and other charges among its members and other persons using 
its facilities. In particular, the proposed rule change will allow the 
Exchange to charge a similar fee to both broker-dealer orders and non-
broker-dealer orders that interact in the Exchange's Facilitation, 
Solicitation and Price Improvement Mechanisms.

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 \5\ and Rule 19b-4(f)(2) \6\ thereunder. At any 
time within 60 days of the filing of such proposed rule change, the 
Commission may summarily abrogate 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.
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    \5\ 15 U.S.C. 78s(b)(3)(A) [sic].
    \6\ 17 CFR 19b-4(f)(2).
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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 e-mail to rule-comments@sec.gov. Please include 
File Number SR-ISE-2009-77 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-2009-77. 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 inspection and 
copying 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 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-
2009-77 and should be submitted on or before November 19, 2009.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-26021 Filed 10-28-09; 8:45 am]

BILLING CODE 8011-01-P