Document ID: SEC-2013-0520-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: International Securities Exchange, LLC
Posted Date: 2013-03-18T04:00Z

[Federal Register Volume 78, Number 52 (Monday, March 18, 2013)]
[Notices]
[Pages 16738-16740]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-06157]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69123; File No. SR-ISE-2013-21]

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

March 12, 2013.
    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 11, 2013, the International Securities Exchange, LLC (the 
``Exchange'' or the ``ISE'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change as described in 
Items I and II 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.
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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 Exchange proposes to amend it Schedule of Fees with respect to 
regulatory fees related to the Central Registration Depository (``Web 
CRD''), which are collected by the Financial Industry Regulatory 
Authority (``FINRA''). The text of the proposed rule change is 
available on the Exchange's Web site 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.

[[Page 16739]]

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend its Schedule of Fees with respect to 
regulatory fees related to Web CRD, which are collected by FINRA 
(``FINRA Web CRD Fees'').\3\ The proposed fees, which the Exchange is 
adopting for the first time on its Schedule of Fees, are collected and 
retained by FINRA via Web CRD for the registration of employees of ISE 
members that are not FINRA members (``Non-FINRA members''). The 
Exchange is merely listing these fees on its Schedule of Fees. The 
Exchange does not collect or retain these fees.
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    \3\ FINRA operates Web CRD, the central licensing and 
registration system for the U.S. securities industry. FINRA uses Web 
CRD to maintain the qualification, employment and disciplinary 
histories of registered associated persons of broker-dealers.
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    The FINRA Web CRD Fees listed on ISE's Schedule of Fees consists of 
General Registration Fees of $100 (for each initial Form U4 filed for 
the registration of a representative or principal), $110 (for the 
additional processing of each initial or amended Form U4, Form U5 or 
Form BD that includes the initial reporting, amendment or certification 
of one of more disclosure events or proceedings), and $45 (annual 
system processing fee assessed only during renewals). The FINRA Web CRD 
Fees listed on the ISE Schedule of Fees also consists of Fingerprint 
Processing Fees for the initial, second and third submissions. There is 
a separate fee for electronic submissions and paper submissions. The 
initial electronic and paper submission fees are $29.50 and $44.50, 
respectively. The second electronic and paper submission fees are 
$15.00 and $30.00, respectively. The third electronic and paper 
submission fees are $29.50 and $44.50, respectively. Finally, there is 
a $30 processing fee for fingerprint results submitted by self-
regulatory organizations other than FINRA.
    The FINRA Web CRD Fees are user-based and there is no distinction 
in the cost incurred by FINRA if the user is a FINRA member or a Non-
FINRA member. Accordingly, the proposed fees mirror those currently 
assessed by FINRA.\4\
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    \4\ See Securities Exchange Act Release No. 67247 (June 25, 
2012), 77 FR 38866 (June 29, 2012) (SR-FINRA-2012-030) (``FINRA Fee 
Filing'').
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2. Statutory Basis
    The Exchange believes that its proposal to amend its Schedule of 
Fees is consistent with Section 6(b) \5\ of the Act, in general, and 
furthers the objectives of Sections 6(b)(4) \6\ and 6(b)(5) \7\ of the 
Act, in particular, because it provides for the equitable allocation of 
reasonable dues, fees and other charges among its members, issuers and 
other persons using its facilities and does not unfairly discriminate 
between customers, issuers, brokers or dealers.
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    \5\ 15 U.S.C. 78f(b).
    \6\ 15 U.S.C. 78f(b)(4).
    \7\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change is reasonable 
because the proposed fees are identical to those adopted by FINRA for 
use of Web CRD for disclosure and the registration of FINRA members and 
their associated persons. In the FINRA Fee Filing, FINRA noted that it 
believed that its fees are reasonable based on the increased costs 
associated with operating and maintaining Web CRD, and listed a number 
of enhancements made to Web CRD in support of its fee change. These 
costs are borne by FINRA when a Non-FINRA member uses Web CRD. FINRA 
further noted its belief that the fees are reasonable because they help 
to ensure the integrity of the information in Web CRD, which is very 
important because the Commission, FINRA, other self-regulatory 
organizations and state securities regulators use Web CRD to make 
licensing and registration decisions, among other things.
    The Exchange notes that the proposed rule change is reasonable 
because the amount of the fees are those provided by FINRA, and the 
Exchange does not collect or retain these fees. The proposed rule 
change is also equitable and not unfairly discriminatory because the 
Exchange will not be collecting or retaining these fees, therefore will 
not be in a position to apply them in an inequitable or unfairly 
discriminatory manner.

B. Self-Regulatory Organization's Statement on Burden on Competition

    This proposed rule change does not impose any burden on competition 
that is not necessary or appropriate in furtherance of the purposes of 
the Act. The Exchange notes that the proposed rule change will result 
in the same regulatory fees being charged to all members required to 
report information to Web CRD and for services performed by FINRA, 
regardless of whether or not such members are FINRA members.

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

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate, it has become 
effective pursuant to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-
4(f)(6) \9\ thereunder.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(6).
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    The Exchange has requested the Commission to waive the 30-day 
operative delay to allow the proposed rule change to become operative 
upon filing.\10\ The Commission believes it is consistent with the 
public interest to waive the 30-day operative delay. The proposed rule 
change lists FINRA's fees on the Exchange's Schedule of Fees--the 
Exchange will not collect or retain these fees. As such, the Commission 
believes that the proposal presents no novel regulatory issues and will 
make the fees more transparent to ISE members. Waiver of the operative 
delay will allow the Exchange to list on its Schedule of Fees the fees 
that FINRA charges for use of WebCRD without undue delay. Therefore, 
the Commission grants such waiver and designates the proposal operative 
upon filing.\11\
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    \10\ As required under Rule 19b-4(f)(6)(iii), the Exchange 
provided the Commission with written notice of its intent to file 
the proposed rule change along with a brief description and the text 
of the proposed rule change, at least five business days prior to 
the date of filing of the proposed rule change, or such shorter time 
as designated by the Commission.
    \11\ For purposes only of waiving the 30-day operative delay, 
the Commission has considered the proposed rule's impact on 
efficiency, competition, and capital formation. See 15 U.S.C. 
78c(f).
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    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. If the

[[Page 16740]]

Commission takes such action, the Commission shall institute 
proceedings to determine whether the proposed rule change 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 No. SR-ISE-2013-21 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 No. SR-ISE-2013-21. 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 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 No. SR-ISE-2013-21 and should be 
submitted on or before April 8, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-06157 Filed 3-15-13; 8:45 am]
BILLING CODE 8011-01-P